So you’re looking to start your own business! Well done, as it’s not such a crazy idea, given many global brands opened their doors for the first time in a recession. Microsoft, General Electric, FedEx and many more used the downturn to launch what are now massive enterprises. So are you wondering if you can choose an industry that might be protected from a recession?
Keep reading to find out the best industries you can invest in to start your own business now. In this blog article, we consider which industries historically perform well irrespective of economic conditions.
How Can You Identify Recession-Resistant Industries
Industries that do well in a recession tend to include staple items such as groceries and other everyday items. They also tend to be focused on fixing items rather than replacing them. Think of people heading to a smartphone repair shop instead of ordering a new thousand-dollar phone.
Industries that tend to do well during recessions also center around people feeling good about themselves. People might not be scheduling a full day at the spa, but they still buy their cosmetics despite a recession and get nice smellies for the bath. If you can position yourself in one of these industries, you will fare well in the next downturn of the economy.
Examples of Recession-Proof Businesses
When jobs are lost or incomes reduced, people hunker down and focus more on the bare necessities. People still need to drive cars, but they won’t be shopping for new overseas luxury cars as much as they would in a good economy. Maintaining their car so it drives well, is safe and lasts longer is the priority. But that’s just one example, have a look at our list of industries, all ripe for starting a new business:
- Repair industries
- Consignment stores
- Cleaning services
- Food – grocery and fast food
- Alcohol and tobacco
- Beauty and cosmetics
These seven industries historically do very well even when the market takes a downturn. This is not to say luxury items are off the agenda for everyone.
In a recession, wealthy people are still buying luxury items. However, most of the population are not. They are dining out less, buying groceries and cooking their meals.
Life does go on, though, with weddings, funerals, and everything in between. Therefore whatever you choose to do, focus on humans’ primary needs at a price point that’s attractive no matter what the economy is doing. Boom or bust, if your products and services are priced right, sales will continue as long as there is a need.
Creating a product or service from scratch is challenging for all budding entrepreneurs, even when they’ve chosen a sector that’s sure to do well while others are stagnant. And if you’re not interested in starting your own business, then you should consider investing in pandemic-proof franchises. Think about all the dine-in restaurants closed down during the COVID scare. It forced everyone to head to drive-through fast food if they didn’t want to cook every night.
If you owned a franchise fast-food restaurant, you would have done very well at a time when many people were wondering where their next paycheck would come from.
With a little forethought, you can recession-proof your business and build the business of your dreams.
Start Your Own Business Today
Starting your own business has been the dream of many. But the threat of a recession is enough to keep the most interested budding entrepreneur on the sidelines. Use our list to create your own recession-proof businesses to help you survive the next economic downturn.
You can follow your dreams, start your own business, and thrive. Regardless of the next boom or bust economy, when you invest in the right industry, you can ensure success for a long, long time.
For more great information on starting a business including innovation, check out the rest of the articles on our blog.