When the economy struggles people want to quickly get answers to questions like; where to be investing money, how to start a small business franchise and other money making ideas. The top recession-proof industries are not advertised or always easy to find. Discover the top business ideas that will survive economic recessions and depressions.
Discount Products and Services
Looking at discount retailers: In times of plenty companies like Walmart actually change their merchandise by concentrating on quality to compete with the non-discount stores. In a recession they thrive by bringing back in their core low cost items to provide to the masses.
Consumers also tend to fix rather than replace many of their items. Auto repair shops see a steady growth during a recession while new car sales plummet. Copier repair services grow while replacing older machines is not in the budget.
Emotionally Motivated Successful Industries
The purchase of cigarettes, inexpensive wine and beer all spike in a positive direction during low economic times. Generic labeled ice cream and the purchase of impulse items marketed to bring psychological retreat like candy bars and junk food also increase in sales.
On the positive side, many adults will want to emotionally bolster themselves up and at the same time polish their resumes by going back to school for a higher degree. Higher education does see an increase during times of economic decline.
“Have to” Industries – Needs Driven Products
In spite of a depression, people still pay taxes, get sick and die (often in that order). While these industries may not see a big rise in a recession, they also don’t see very much of a decline. Tax preparers and accountants tend to stay just as busy. Healthcare, with the exception of elective surgical procedures, stays steady and in some cases even increases.
Funeral homes, cemeteries and crematories continue to take care of the deceased in the world. However, funeral homes that focus much of their effort in pre-need insurance will see an overall drop in revenues during a recession. Cremations see an increase because of the lower expense compared to a traditional burial.
Other Recession-proof Industries
In the U.S. pet owners treat their precious animals with the same degree of love and kindness they do their own children. The pet industry is historically one of the last industries to be affected during a depression. Many job seekers will make a move to join the military services during times of recession as well. Focused marketing toward military members can be a wise move.
While attending the Advertising Specialty Institute convention in San Diego in 2010, this author was able to interview several manufacturers and distributors of branded products. He learned that one of the most flourishing industries in this current recession is the franchise industry. Many who have found themselves without employment are venturing into the world of self employment and doing so with the safety net of a franchise organization.
A representative from Coleman Specialty Products shared that they have seen growth in the double digits this last year. More families are taking outdoor related vacations close to home rather than springing for plane tickets.
Industries Historically Depression-proof
Business experts typically name the following industries as growth or at least stable business models during depressions:
- Liquidators, especially business equipment
- Second Hand Sellers/Buyer
- Biotechnology
- VOIP
- Video Games
- E-commerce and Online Auctions
- Flea Markets, Traders, Classifieds
- DIY (Do It Yourself) industry for hardware, supplies and instruction for keeping up maintenance rather than replacing.
- Rental and Leasing Firms, as companies have less cash for purchasing equipment
- Resellers of just about anything used or refurbished
- Information, classes, books and/or home study courses on cooking, repair, no-cost leisure activities, etc.
When the economy is down as a person is deciding what business to invest in or what company to start up on their own special considerations should be made with these ideas in mind. However, even existing businesses can benefit from this information. As an example, a printer who is noticing a downturn in revenue may wish to start marketing to one of the businesses listed in this article. Taking a business through an economic drought can be very painful. Those who survive do so with careful planning and strategic goal setting with recession-proof businesses in mind.
W Denis Nurmela - - Built multi-million $ companies from scratch - Church & Non-Profit Leader - Educated & Avid Reader - Coach, Consultant, ...
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