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Remember, success lies in adapting, innovating, and staying resilient in the face of adversity. “For peace of mind, I want to know that there’s always other cash flow coming in from another asset class,” said He. After graduating from Bentley University in 2011, He worked as a consultant at PricewaterhouseCoopers for nearly four years.
Worldwide, the financial services market grew from $2.5 trillion to $3.3 trillion between 2010 and 2018. The market is expected to register a 3 percent compound annual growth rate over the next five years and reach a value of $76.91 billion by 2027. During the Great Recession, universities in the United States saw considerable increases in enrollment. Between 2007 and 2010, there was an almost 16% increase in the number of students enrolling in college.7The Hechinger Report. While other industries suffered immensely, academia experienced a notable increase in students.
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Communication Services
This is also a business idea that can recession proof businesses be started from home and run through online courses, which reduces expenses for you and makes it easier to offer recession-appropriate pricing. You can also make your business recession-proof by starting it from home, rather than renting an external space to make and sell your food products or services. This can help keep your costs down, regardless of the economic climate and consumer confidence.
Plus, as long as the freight industry continues to remain strong, there will be a need for servicing big rigs and delivery trucks. The Wix website builder offers a complete solution from enterprise-grade infrastructure and business features to advanced SEO and marketing tools–enabling anyone to create and grow online. Health and wellness businesses, such as gyms, fitness trainers and nutrition consultants, often maintain their customer base even during recessions. People tend to continue to prioritize their health and well-being where they can and exercise and nutrition are an integral part of that.
Health Services
These businesses often cater to fundamental needs, like food, healthcare or childcare, ensuring consistent demand even when wallets tighten. Recurring revenue models like subscriptions or contracts offer stability while adaptability helps adjust offerings or pricing to meet changing needs and keep your business resilient. Also, digital marketing businesses can operate with lower overhead costs—adding to their recession-proof nature. Many business owners find one of their largest business expenses is the cost of labor. However, digital marketing businesses can reap the benefits of the growing gig economy. By hiring web designers, copywriters, SEO managers, and other staff on a contract basis, you can pay employees on a per-project basis.
- If you plan to start a new eCommerce business, you’re probably aware of what a good online selling platform can do for your venture.
- Recession-proof businesses, as the name implies, are businesses that are not affected by an economic meltdown.
- Even equities, which are supposedly the most sensitive assets during a recession, are not always predictable.
- Also, it has become common for new government benefit programs, loan guarantees, and financial regulations to be rolled out, updated, or expanded during recessions and other economic crises.
- In today’s tech-driven world, businesses heavily rely on technology for their operations.
Pet care
The economic devastation reaped by Covid-19 may be the spark that ignites a prolonged slump. If that’s the case, then it’s time again for workers, entrepreneurs and investors to seek refuge in so-called recession-proof businesses. Recession-proof concepts often come with a comprehensive support system including training and marketing. This proven model helps owners and managers navigate challenges in real-time more effectively, leading to a greater chance for success. If you could create your own fantasy board of directors, who would be on it?
It cripples businesses and reduce the morale of entrepreneurs to undertake new business ventures. Recession-proof means you see no negative impact during an economic downturn, and perhaps even see an increase. Sometimes you’ll need to make a quick pivot in response to market conditions, but in every crisis there’s opportunity. According to Business Insider, Microsoft, CNN, GM, HP, Airbnb, and many other prominent businesses got their start during recessions. Licensing ideas from creative people (like you!) is a cost-effective way for companies to innovate and introduce new products. Cleaning services have minimal startup costs and charge anywhere from $ an hour, depending on location and complexity of the work.
If you start a business that relieves them of this hardship, you will make lots of profit in return. A tattoo can be a meaningful (and relatively cheap) form of self-expression during a frustrating and difficult time. Tattoo parlors across the country reported an increase in business during the economic crisis.
For the repo man — whose job is to repossess vehicles and other property when the owner fails to make payments — the bad news is big business. For starters, you need to have a keen sense of style, décor and detail. Making acquaintances with real estate agents and independent sellers is a good place to start.
The Arkansas-based giant reported growth in profits and revenues in the three years following the Great Recession. Consumers cut back on their spending and shopped at discount retailers, who upped their game by using their economies of scale to drive lower prices for products. Several factors can be used to safeguard an overall portfolio against a recession, including asset diversification, rebalancing, and a long investment timeline. Increasing the amount of cash holdings in a portfolio is also a good way to protect it against a recession, at the opportunity cost of forgone returns. This enables investors to access liquidity quickly to take advantage of a falling stock market.
