Unveiling the top 5 recession-proof businesses that you can try
A turbulent economy, such as the one caused by the COVID-19 pandemic, can have a negative impact on many businesses, especially those that depend on discretionary spending, luxury goods, or tourism. However, some businesses can survive and even thrive during an economic downturn, providing essential goods or services that people need regardless of their financial situation. These recession-proof businesses can offer stability and profitability to entrepreneurs who want to start or grow their own ventures. Here are 5 recession-proof businesses that you can consider during a turbulent economy:
- Healthcare: Healthcare is one of the most resilient industries, as people always need medical care, whether it is for prevention, diagnosis, treatment, or recovery. Healthcare businesses include hospitals, clinics, pharmacies, laboratories, telehealth, home healthcare services, etc. According to a report by PaymentCloud, healthcare spending in the US increased by 4.6% in 2020 despite the overall GDP decline of 3.5%. Healthcare businesses can also benefit from government subsidies and insurance reimbursements.
- Grocery, Food, and Beverages: Grocery, food, and beverages are essential items that people need to survive and maintain their well-being. Grocery stores, supermarkets, convenience stores, online grocery delivery services, etc., can give people access to affordable food and beverages. According to a report by Forbes Advisor, grocery sales in the US increased by 11.6% in 2020 compared to 2019. Grocery businesses can leverage their existing supply chains and customer loyalty to offer other products or services in demand during a recession.
- Courier, Freight, and Logistics: Courier, freight, and logistics are vital services that enable transporting and delivering goods and materials across different locations. Courier, freight, and logistics businesses include trucking, courier, freight forwarders, and warehousing companies. According to a report by Business Strategy Hub, courier services in the US grew by 17% in 2020 compared to 2019. Courier, freight, and logistics businesses can also benefit from the growth of e-commerce and online shopping during a recession.
- Education (e-learning): Education is a valuable investment that can help people improve their skills, knowledge, and employability. Education businesses include schools, colleges, universities, online education platforms, tutoring services, etc. According to a report by Clever Girl Finance, e-learning revenues in the US increased by 36% in 2020 compared to 2019. During a recession, education businesses can also take advantage of the increased demand for online learning and upskilling.
- Accounting and Finance: Accounting and finance are essential functions that help individuals and businesses manage their finances effectively. Accounting and finance businesses include accounting firms, bookkeeping services, tax preparation services, financial planning services, etc. According to a report by Side Hustle Nation, accounting and finance revenues in the US increased by 7% in 2020 compared to 2019. Accounting and finance businesses can also benefit from the increased need for financial advice and assistance during a recession.
These are 5 recession-proof businesses you can start or grow during a turbulent economy. These businesses have a high potential for growth and profitability in the future as they align with market trends, customer needs, and technological advancements. However, before starting your business, you need to research, plan your strategy, and test your product or service in the market. You also need to be prepared for the challenges and risks of entrepreneurship. If you have the passion, the vision, and the skills, you can turn your business idea into a reality.