Are you thinking of starting your own business but scared of the recession? It has now been officially declared that we have entered into a global economic recession as per the latest reports from International Monetary Fund. However, the recession also brings in new business opportunities to flourish. We have listed down in this article, a list of profitable recession proof business ideas that have a steady demand and give you good returns.
Recession-free business ideas are mostly based on things that continue to have their demands in spite of the recession. Therefore, you have to find out the areas where the demand is not affected by the recession. In other words, they are basic or essential products or services.
Some of the recession proof business ideas listed below can be started with little investment. Let us have a look at some of such businesses:
21 Recession Proof Business Ideas
1. Delivery Service
The coronavirus outbreak has added to the global financial crisis. One business that is going to benefit is the product delivery industry. Experts predict the home delivery business is going to grow exponentially in the coming days and months. If you have a team of young workers, it is worth considering starting a delivery business.
Some of the delivery businesses one can start are the following:
- Food delivery
- Medicine delivery
- Product delivery for E-commerce companies
2. Accounting and Taxation Service
Accounting and taxation are the two areas that ensure recession-free business opportunities. If you are a certified accountant, you can start this business with almost no investment.
The medium and small businesses need the service the most and you can cater to several clients. Remember, the role of the accountant and the tax consultant is very crucial in a time of recession.
3. Event Management
The events like marriages and parties remain an important part of society even in times of recession. If you have good social contact and many friends, you can start the recession-free business of event management.
You can begin with personal contacts and start growing bigger contact circles. This will enable you to expand your event planning business from wedding, anniversary, or birthday parties to corporate parties.
4. Funeral Services
Death is the biggest truth of all times irrespective of recession. So, your funeral business is a recession-free business idea.
People get emotional about the grand funeral of their loved ones. This will help to grow your business well. You have to keep a good social contact base.
5. Auto Repair
Auto repair gets greater demand in times of recession as people at this time do not intend to buy a car. Instead, they rely heavily on repair services.
If you are an auto mechanic, you can take advantage of the situation and grow your business. You can be an at-call mechanic, or open a repair center of your own if you have space or can afford to rent a space.
A laundry business has its demand even in times of recession because people become busy multi-tasking and going out in search of jobs. For all these, looking clean and good is necessary and thereby you can fit your business idea here.
You can start your business with a home laundromat and then gradually increase the scale of operation. Begin with your neighborhood. You can also go for a franchise of dry cleaning chains.
7. Cleaning and Essential Service
The cleaning business can be a recession-free business idea if you target offices and other types of cleaning like commercial institutions, construction sites, etc.
Home cleaning services may not be a good business idea in a time of recession, but the demand for office cleaning remains. Therefore, you have to choose the right target client for your business.
In the essential service part, you can provide the service of plumbing, electrical repair, or carpentry services to your clients.
8. Home Staging
The business of home staging is related to the value addition or beautification of a house so that it looks attractive to the buyer and fetch a good price. During the recession, many people sell their houses for extra money and the property dealers find it difficult to get a good price.
If you have a good sense of design and beauty or a degree or diploma in interior design, the business of home staging is ideal for you. You can contact individual sellers or property dealers in your area for business.
If your suggested changes and beautification give a better price to the property, your credibility increases and you get more clients.
9. Beauty Services & Cosmetics
The beauty business is a recession-free business idea. There is always a demand for haircuts, beauty treatments, and styling. That is a necessary condition for looking good. In addition to providing beauty services, you can also sell cosmetics as they have a steady demand even in times of recession.
If you have beautician training or training in haircut or styling, this business is ideal for you. You can open your parlor at home, or give services at your clients’ place.
Moreover, several showbiz persons need beauty services regularly. For example, the models, actors, etc. You can also extend your service to this sector.
10. Information Technology
Information technology is a time-tested business idea that can give you good profits even in times of recession. There are various areas of business related to information technology.
You can provide a computer or smartphone repair service; open a cyber café, internet research service, or start blogging. If you have creativity, you can do blogging, social media marketing, digital market, etc.
11. Investment Advisory Service
The recession time makes many people confused about their investments and rush to sell their shares or debentures. If you are an accountant or have a good idea of investments, you can start the business of an investment advisory service.
This business is very essential as people with little knowledge of investments get tensed in times of recession and they often need proper guidance. If you are thorough in your knowledge, you can do good business.
You can start your investment advisory service with your friends and family members and then grow it with service persons or small business owners.
12. Online Counseling
Mental health has become a priority recently, with more cases of depression, especially among young people. A recession makes many young people depressed and some of them even become suicidal.
If you are a psychologist or a diploma holder in psychological counseling, you can start this business of online counseling for people with different types of mental illness. Online counseling has a good demand and your investment is almost zero.
You can advertise your service through social media and get contacts from there. Once some of your clients recognize your name, you will get more contacts by the word of the mouth campaign. Arrange for online payments.
13. Healthcare & Old Age Care
Healthcare is truly a recession-free business idea, as people always need it irrespective of the condition of the economy. Therefore, you can start the business of providing healthcare services to people in need.
You can start your healthcare-related business with hospitalization service, monitoring billing, and payment, services related to post-hospitalization care, and alternative healthcare services.
The old persons always need special care and often they are alone. You can start an old-age care business where you can provide healthcare and in-home care facilities to senior citizens.
These services may include buying provisions for them, taking them to the doctors’ chamber, or taking them for small outings. For this business, you need a caring attitude and patience to deal with old people.
14. Online Grocery Store
The grocery business is truly a recession-proof business as people need them in their daily lives. The concept of an online grocery store can fetch you a good profit.
This business needs investment and good networking, as you need a good website, bulk purchase, storage facilities, and delivery persons. To start with, do not sell perishable items like fruits or vegetables. Rather, only trade on dry items like food grains, spices, and preserved items.
15. Food Truck
Supplying low-priced healthy food is a good and recession-proof business idea because, during such tough times, people need the essential things at a moderate price. If you can cook well, this is a good business idea for you.
You have to focus on items, which are low in price but good to taste and high in food value. One can serve households, offices, hostels, or canteens. Furthermore, you need a hygienic and well-equipped kitchen and people to deliver food.
You can also opt for your food truck selling low-priced food. Take the truck to popular places like office areas, and school-college-university areas to get more clients.
Remember to keep the standard of your food very good, so that you get more clients. You can also advertise your service through social media.
16. Courier Service
Courier Service has its importance even in times of recession. Many important documents need to be delivered by courier. Courier service is a recession-free business idea for you.
For this business, you need an office and delivery persons and a network of contacts with delivery persons for long-distance delivery. You can add more value to your business by providing speedy delivery at long-distance locations.
You have to remember one thing in the business of courier service. The principle of this business is the time commitment and you have to follow it.
17. Babysitting/ Childcare
The business of babysitting is a recession-free business idea, as parents will need to go out for working and they will always need someone to take care of the little ones. If you are fond of kids and can manage them well this is a good business idea for you even in times of recession.
As a babysitter, you can go to the child’s home and take care of him/her during the absence of their parents. Remember to maintain the hygiene of the baby and make yourself pleasing to the children by playing games, helping them with their homework, etc.
If you have space at your home, you can start a childcare center where you can take care of more children. Once your reputation is good and the children are fond of you, your business will get very good returns as the parents prefer an amiable and trustworthy person to take care of their little ones.
18. Food Crop Transportation
Any business related to food is a recession-free business idea. If you have your carriage or can rent one, you can start a business in food crop transportation.
For this business, you need to have a good idea and contact with the farms and the markets nearby. Your negotiating skill with the farmers and regular supply to the markets or stores can fetch you good profits.
Suggested Read: How to Start a Transportation Business with One Van
Remember to check the quality of the food grains and deliver them on time. That is the key point of this business. If you get a good response, you can hire more carts and cover greater areas.
19. Food Crop Selling
The business of selling food crops is a good business idea. If you own farmland or can take land on lease, you can start this business. Otherwise, you can purchase directly from the farmers and sell them to different markets.
If you want to grow your crop and sell them, you need to have a good idea of agriculture. Do good research on the demand and supply chain of different crops and the type of crop suitable for your land.
Food crop selling is a profitable business, provided you keep strict supervision on all the stages of farming. The demand for food remains constant always. You have to produce well to earn well.
20. Poultry Farming
The poultry business is a recession-proof business idea. This business will fetch you good profits if you have the idea and invest in the correct item.
In the poultry business, you can choose any of the poultry items like eggs, chicken, mutton, lamb meat, or beef. Here again, you need a good idea of poultry farming and a good support system of vets, delivery of items, and proper food and nutrition for the animal(s) you are raising.
There is always a steady demand for tutors even in times of recession. If you can teach students or have a specialized degree or skill, you can start this business of tutoring.
You can teach school-level students personally, or give online classes to higher-level students. You can also start an online tutorial teaching skills like computer operation or design.
Remember, in times of recession, many people would like to start education again or train themselves for the job market. Your tutoring service can be of great help to them. These are the basic concepts of some recession-proof businesses. The period of recession shows a downward slope in the economic sector, but if you do your research, you can prosper in business even at this time.
Frequently Asked Questions
What businesses do well in a recession?
Though surprising, it is a fact that a down economy gives birth to a number of new business enterprises. Some of such recession-time businesses are listed below:
- Grocery store
- Cleaning business
- eCommerce delivery business
- Liquor business
- Healthcare business
What sells best during a recession?
It is seen consumer products seels most during recession time. Items like toothpaste, soaps, laundry products, and toiletries are sold in maximum quantities during this period. As a result, in a country like the United States, it is seen that discount retailers and grocery stores make good money in a down economy.
What is the most recession-proof industry?
When we look into the history of recession period economies of the past, it is observed that industries like healthcare, consumer staples, liquor, and wine, transportation, and cosmetics perform best.
There are certain areas of goods, services, and concepts that have a universal demand, irrespective of any economic situation. You have to find those areas and start your business. Remember one thing, do not go for very high investments in the beginning. After all slow but steady wins the race.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.