10 Best Recession Proof Businesses to Start During Recession

Are there recession proof businesses ideas 2023 really exist
Are there recession proof businesses ideas in 2023 really exist?


Are there recession proof businesses really exist?

Economic experts suggest that these five recession proof businesses & startup ideas are well-suited to a period of economic recession due to consumer demand.

Starting a new business can be overwhelming, and starting a new business during a recession can seem even more risky. However, some businesses historically thrive during an economic downturn.

Related: Study Guide on The Great Recession 2008

Entrepreneurs choosing new businesses should consider these industries that their fellow business owners consider recession proof businesses. The businesses listed here serve a need that persists even in times of economic hardship.

Bonus Article: Ukraine for Indian Students is Still Safe?

What types of businesses do you start during a recession?

Recession proof businesses typically have at least one of the following characteristics:

  • Sells essential or mandatory goods such as food, diapers or hardware
  • Offers essential public services such as shipping or tolls
  • Provides major repairs such as plumbing or electrical repairs
  • Serves high net worth individuals or customers who are otherwise insulated from the recession

Recession Proof Businesses Ideas

Here’s a list of 10 recession proof businesses sectors to consider to get your business off the ground.

1. Health care and related services

Even during a recession, people need comprehensive treatment and preventive health services.

  • Seniors and sick patients will still require care regardless of the state of the economy.
  • Pharmacies will continue to fill orders.
  • New and expectant mothers will require care and guidance.
  • Young children will still need pediatric care.

Bonus Article: Australia International Students Study Guide – Study in Australia

What makes comprehensive treatment and preventive health services business recession proof?

The industry has survived many economic downturns in the past, recession proof businesses, and healthcare and medical research are always critical. In fact, research has shown that the introduction of COVID-19 vaccines has spurred economic activity.

Related: Case Study on 2023 Financial Crisis

2. Grocery store and related businesses

The food industry can be very resilient in times of economic hardship. recession proof businesses. Not only do people need nourishment to survive, but food can also offer comfort and familiarity in times of stress.

  • Convenience stores and dollar stores provide sustenance for people who may not have larger grocery chains nearby.
  • Vending machine service maintains cheap food supplies in schools and offices.

Bonus Article: Delhi University Seats 2023 | Colleges wise seats available | DU admission seats 2023-24

Whether it is a business related to food production, distribution, delivery or retail, there are many opportunities in this industry for businesses that have a chance to weather the recession. recession proof businesses. However, this is not always the case for restaurants, as they charge a premium for service and convenience that may be out of reach for many during a recession.

What makes Grocery store recession proof?

Food demand remains relatively constant during a recession. recession proof businesses. While restaurant spending may be down, the number of home meals is usually up, leading to steady business for the markets.

Related: Most Common Economic Recession Example 2023

3. Tax and accounting services

Taxes are inevitable, even during a recession. While the Internal Revenue Service (IRS) has granted extensions in the past, the agency is not known to grant broad tax exemptions in the face of a recession.

  • Small businesses will still need accounting services to help them manage their books or in some cases prepare for bankruptcy.
  • Individuals will still need accounting services to help them get through tax season.

Bonus Article: 5 Best Life Saving Quotes from Ramayan

Many small business owners and individuals struggle with bookkeeping, but during a recession they can try to do it themselves. This can actually end up doing more harm than good if records are disorganized or improperly stored, as this could lead to costly fees or tax penalties.

Related: 5 Real Life Examples of Depression in Economy

What makes bookkeeping business recession proof?

The IRS does not stop collecting taxes during an economic recession. recession proof businesses. You’ll still need to file your annual income tax return, and Tax and Accounting Services will still keep an eye on your bottom line to help you avoid costly fines and penalties during tax season.

4. Financial advice

During a recession, money management can be a touchy subject. Many people cannot afford the expenses they usually incur, forcing them to decide what to keep and what to cut.

  • Counselors and planners can offer tips to individuals and families trying to restructure their budgets or save money during the slowdown.
  • Investors and high net worth individuals will seek reassurance that the recession is covering them.

Bonus Article: All Interesting Facts About Crypto Currency vs BitCoin

Financial planning services will not be available to everyone, but for many they will feel essential to planning.

What makes Financial Advice business recession proof?

An economic recession immediately targets personal funds. recession proof businesses. Financial advisors provide advice that can help investors better understand how their portfolios are performing during a recession.

5. Supply chain and delivery companies

Delivery services are more and more in demand and this demand does not abate even during the downturn.

  • Demand for supplies of basic products such as food continues to grow.
  • Most businesses still need to send and receive shipments of goods during the recession and in the global economy, supply chain logistics continue to be of great importance.

Virtual ordering shows no signs of slowing down, which means shipment volume will only increase.

What makes Supply Chain and Delivery business recession proof?

Just like a recession doesn’t stop taxes, neither does the post office! Shipping goods in the global economy has persisted even in recessions, leading to rich business for many delivery companies when other businesses may be struggling.

6. Childcare and Daycare needs

The need for childcare is not abating even with the decline.

  • Working parents often need after-school care for children of all ages.
  • Parents of young children often need round-the-clock care if they work.

Babysitting agencies, crèches and nannies continue to see high demand.

What makes Childcare business recession proof?

Children need supervision, regardless of the economic climate, and parents have to work.

7. Car maintenance businesses

Economic downturns do not make machines fail-safe. Recession proof businesses. Vehicles will continue to need service during the recession as people continue to commute and drive to work.

  • Transport and delivery vehicles will continue to have high mileage and require frequent maintenance.
  • Taxi and ride-sharing services will likely continue to operate, creating more opportunities for auto repair.

When something breaks and money is at stake, it’s more important than ever to have qualified professionals ready to assess and fix the problems.

What makes Automobile and Bike maintenance business recession proof?

Some people try to cut back on driving to save money on fuel and maintenance, while others choose to tackle repairs themselves. Recession proof businesses. But most people will still need a mechanic to assess and repair their vehicles.

8. Home hardware

Any store that offers tools to help people fix things themselves is likely to keep their business going through the recession.

  • House calls are less available, leading people to handle some repairs themselves.
  • Those responsible for repairing critical functions such as refrigeration, plumbing and air conditioning will need tools for their work.

While some people may neglect repairs during a recession to save money, that won’t be the case for everyone. Recession proof businesses. Other recession-proof businesses will also require occasional repairs due to the recession.

What makes Hardware and Home making store business recession proof?

Studies show that during a recession, people are more likely to engage in home improvements. Recession proof businesses. Expensive improvements like digging pools or buying new appliances may not be considered, but DIY renovations can offer people a chance to improve their quality of life and make necessary repairs and avoid big bills.

9. Plumbing and engineering services

Similar to auto mechanic services, people will demand utilities during a recession.

  • Many electrical repairs require the work of a licensed electrician and cannot be completed without one.
  • Plumbing and appliance repair is probably unfamiliar to most Americans, and outright replacement is expensive.

Plumbers and electricians provide valuable work that continues through almost any type of downturn.

What makes Plumbing business recession proof?

Electrical leaks and malfunctions are not only inconvenient, but can actually be dangerous or even life-threatening. Recession proof businesses. Many home repairs in these areas require extensive knowledge, if not actual licensing from the state, requiring professionals.

10. Technical and IT support services

More people than ever are working from home, which means companies are increasingly dependent on technology.

  • IT services facilitate the smooth operation of companies with far-flung employees.

Maintaining the underlying technology increases productivity and allows operations to continue.

What makes Technical and IT support business recession proof?

In some ways, IT support is directly linked to the ongoing need for transportation services. Recession proof businesses. As people continue to order goods and services online, many of these people will require technical support or customer service to help with a myriad of issues in addition to hardware and software support in their home offices.

Recession Proof Business Ideas to Consider in 2023

1. Cleaning services

Smith also called industrial cleaning services recession-proof, especially in light of the pandemic’s downturn, where cleaning has taken on new urgency. “The importance of maintaining a clean and healthy workplace has increased significantly, and larger businesses that are not affected by the recession may be more willing to pay for cleaning services,” says Smith. “Clients can also include smaller companies that are trying to offer their customers and employees a healthy work environment.”

Related: 5 Recession Tips on How to Survive Recession

Home cleaning businesses are also relatively recession-proof. Mike Walsh, CEO of CloudMyBiz, which offers cloud solutions for businesses, says cleaning is an essential service. “Seniors always require care regardless of economic situation,” he said. “There will always be a need for care or cleaning for those who can’t do it themselves, so create a business that offers these services.”

2. Resale

While inflation means rising prices, people will still have to pay for necessities and affordable luxuries such as clothing and household items. Alexandra Fennell, co-founder and CEO of an organic wellness company for women, suggests consignment stores, whether brick-and-mortar or online.

“Competitive prices on unique items will attract customers even during an economic downturn,” says Fennel. “Additionally, consignment store owners can directly implement consumer feedback to find items their audience wants, guaranteeing revenue.”

3. Freelance business services

Freelancing, or being an independent contractor, is a solid option for working in a recession. Steve Wilson, financial expert and founder of Bankdash, a financial reporting website, says: “By contracting out certain jobs and activities to independent contractors, businesses can save a lot of money. Instead of hiring permanent staff, it allows them to pay for duties independently as and when they are required.”

Wilson says virtual assistants are in high demand because businesses may not need or be able to afford full-time assistants, but they still have tasks that need to be completed. A freelance virtual assistant can work for several different clients and fill their part-time assistant needs. Freelance writers are also needed for businesses, especially for marketing copy. Wilson says, “Being a writer might conjure up images of someone writing editorials for the New York Times or the contents page of a book, but it has more to do with creating material for all business websites that require consistent new content to stay relevant and increase their search engine rankings.”

4. Property management

According to Doug Green, owner of Signature Properties, in times of economic crisis, people still need three basic things – food, health care and housing. Recession proof businesses. In order to choose a recession-proof business, prospective business owners should focus on these essential services.

“In real estate, it could be starting a property management company,” says Greene. “You get all the benefits of increasing appreciation/rent without the risk of actually owning the property.”

Greene says, “If you decide to manage short-term rentals, you can get 20-25% of the income that the owner makes, and all you have to do is manage the house. Recession proof businesses. It’s a low-overhead business model that could start this type of business during recession is optimal because you can decide what kinds of properties you want to manage, set your price, and you don’t have to invest in real estate or equipment.”

While a recession is a daunting prospect, starting a recession proof business can be a solution to shrinking margins and declining sales as consumers cut back on their spending.

The Bottom Line: Recession proof businesses

Plan ahead to help weather the storm

Recessions are unpleasant for most, and it can be difficult to plan for tough times when things are going well. In addition to financial uncertainty, additional stress from the recession can build up and create heightened tension. Recession proof businesses. The good news is that there are many business opportunities that can help you weather the recession, depending on your skills and interests.

A good place to start is to talk to a qualified professional to help you start your business now. Recession proof businesses. That way, if and when the next recession hits, you can be better prepared to face the uncertainty.

Leave a Comment