From the article: 5 Money Making, Recession Resistant Home Businesses
Many businesses tank in periods of economic recession, but some actually thrive. Is there such a thing as a "recession-proof business"? If so, which small or home businesses do you think are most recession proof?
Children Elderly
- No matter how you look at it, Some one has to go to work if they have children or elderly family member living with them. Babysitting, or adult sitting (childcare or adult care) will always and forever keep booming as long as you don't raise the cost of service. Maybe even drop a little than your neighbors.
- —Guest coach dee
Businesses that thrive in a recession
- Businesses that deal with patented medicines, restaurants, food stores. [From Your Guide: Barry, I'm not so sure about restaurants, many have been struggling. However, I will agree on food stores. I know our local market has been packed every day, despite the recession. Although shoppers are looking for bargains and may be spending less, we all still have to eat. Thanks for your thoughts! Randy D.]
- —Guest Barry Obiomah
Two Types of Recession-Proof Businesses
- The two types of businesses which seem to be recession-proof: 1. Those with products that everyone needs, and which are low priced. So $1 stores are doing well, as is Wal-Mart. 2. Those businesses which provide small luxuries. We might not have money for a yacht, but we can pamper ourselves with good chocolate, a book, or a small treat. Businesses which sell wine, chocolates, and other such treats usually do well in recessions.
- —Guest Jean
Businesses no, industries, yes
- I do not think any specific business in particular is recession proof (unless their networth can sustain them through tough times). But babies are born every day, and sadly, people die everyday, too. People need services for these things no matter how the economy is doing. For this and other reasons, I think certain industries may be more likely to survive a recession than others, and some even become (temporarily) stronger. For example, debt counseling and employment agencies may see an increase in clients because more people need their services. Houses of worship see an increase when people need to turn to faith and hope. And I read the movie rental industry and libraries are seeing an increase in customers who can no longer afford to buy books, games and movies.
- —Guest LAWolfe
Repair and Renovation are Good Bets
- I'm with you on that one, Randy. Collection services was one of my picks in the article I wrote about the Best Small Business Ideas for Businesses That Will Prosper in Tough Times. I also think that repair businesses are pretty recession-proof with people needing or wanting to make-do rather than but something new. I mentioned both auto repair and shoe repair in my article. And home renovation is another business that keeps going strong. I think a lot of people are choosing to "make do" with the house they're in rather than reading up as many used to do. One big trend in renos that contractors might find especially lucrative is the increasing number of people wanting to put in "in-law" suites so they can rent them out and make some extra money.
- —sbinfocanada
Debt Management Services
- At least with the type of recession we've had recently, I think debt management services might be a recession-proof business. Recessions typically mean lost jobs, which typically results in less spending cash and struggles to pay bills. Debt mounts up and consumers need advice for smart ways of managing their debt. Those with financial services and accounting backgrounds might be a good fit for this recession proof business.
- —Randy4HmBiz