Hi friend. Today we’re going to be going over the top 10 best businesses to start during a recession or economic downturn.
Many of us have been hit recently by inflation and even job loss, but we can also benefit from recessions by starting the businesses that are most in demand during them.
Now I have done some research on what businesses are historically recession-proof. And in fact, they are not just recession-proof, but many of these actually tend to thrive and do even better during recessions, so this list is pretty solid. And we’ll get to that in just a minute.
So my name is Rebecca and here we focus on building wealth and living our dreams without being tied down to a traditional job. (Which is a good idea when we’re out here losing our jobs because of the bad economy, can I get an amen?)
There are a lot of ways to do that, so we are exploring as many of them as we can. And like I said, today we’re focusing on small business which is my personal favorite way to ensure freedom and margin in my life.
As a quick disclaimer, this content is meant for educational purposes only, and I am not a financial or business adviser. Please be sure to reach out to a professional if needed.
So with that out of the way, let’s go ahead and jump right into the top 10 best businesses to start during this recession or economic hard times.
1. Real Estate
There are 3 ways to benefit from real estate in a recession.
The first is of course buying real estate. This is beneficial because “In an economic downturn, central banks tend to encourage investment by lowering interest rates, so it’s often the best time to get in on the housing market.” (Source: https://mailchimp.com/resources/recession-proof-businesses/).
And while we’re not seeing interest rates lowering yet, it’s definitely something to be on the lookout for in the future, since we know they historically do drop.
The second way to benefit from real estate during a recession is by becoming a realtor. I think that especially when the rates are so high, people are probably holding off on buying and selling right now.
That means that the chances are pretty good that when the rates do finally drop, there will likely be a flood of people ready to buy and sell, who need a realtor.
The third way to benefit from real estate during a recession is by becoming a property manager. Not everyone can afford to buy a house, especially when money is tight.
And that means everyone who can’t afford to buy a house will be renting. More renting means there will be a lot of landlords who need property management.
2. Entertainment
The entertainment industry does well during recessions, and while this might surprise you, there is one very specific reason why that is: stress.
People need and seek out extra relief from stress during hard times.
For this reason, Netflix did superbly well during the previous recession. And I know you’re probably thinking you can’t afford to compete with Netflix, but free content like Youtube and entertaining blogs can certainly become a profitable business if you put in some work!
Plus, that allows for people to gain some stress relief from your content for free when they can’t afford services like Netflix – all while you benefit and grow your business!
3. Financial planning services
Financial planning, bookkeeping, and other financial services are a must during a recession or economic downturn, whether business or personal.
This is because many people are extra concerned with money during hard times and want to make sure they’re doing the best they can with what they have.
4. Healthcare and pharmaceuticals
You may not realize this, but you can actually resell certain healthcare related items legally and make a great business out of it.
Think of items such as you’d find at a drugstore. Bandaids, hand sanitizer, etc.
People will always need their health-related items and medicines. You can even resell over-the-counter drugs such as ibuprofen and cough syrup.
Now think outside the box here: you don’t need to start a brick-and-mortar corner store to benefit from this demand. You can start an e-commerce store and sell all the same things from the comfort of your home.
And here’s a bonus: senior care services and group homes fit nicely into this category as well, since people will always need senior care, as well as other care homes, such as for the disabled.
Regardless of the economy, people will need care! And although these homes can take a little bit of time and some simple licensing to get started, they are typically a very lucrative business.
5. Virtual & freelance services
Think IT support, copy-writing, cyber security, digital marketing, virtual assistance, etc.
Many businesses need to cut back on expenses during a recession, so this one might surprise you.
But actually outsourcing to a freelancer to do the job is going to be cheaper for a business than paying a full-time employee to do the same job. Plus, your services will be higher quality if you specialize in them.
It ends up being a win-win so that other businesses can outsource when they can’t afford a full time employee for those services.
6. Ecommerce businesses
This is another surprising one! People are cutting back on their spending during a downturn, right??
Wrong. In fact, there is proof that retail has done well in recessions. And what’s even more important is that now there are statistics showing that people are CURRENTLY spending more than ever.
The other thing that’s really great about this is that literally anybody in the world can start an e-commerce business with very little investment or capital up front.
7. Logistics & deliveries
As consumerism, retail, and shopping continue to skyrocket with this recession, each of those products will need to be delivered.
Not only will they need to be delivered to people’s houses, but think even bigger. They will also need to be shipped to the stores.
This is a great opportunity to dive into during a downturn.
8. Beauty services
Salons, tattoo parlors, and beauty products go hand-in-hand with the retail therapy as well.
There are studies of the 2008 recession showing proof that these businesses did remarkably well during hard times.
Self-care is always important, but especially during these challenges. People really need stress-relief and joy now!
One more thing – think outside the box here once again. This doesn’t just go for salons, parlors, and services.
Beauty products will also be needed, so this is another great opportunity to start an e-commerce business that can boom during a recession.
9. Parts and repairs and contracting
Vehicles, houses, and businesses are always going to need parts and repairs.
Think of plumbers, electricians, mechanics, general contractors, you name it. These will not go out of style because they are necessities.
And once again, with the services, parts will be needed. You could easily start a parts shop online for these types of supplies and make good money during a recession.
10. Educational services and job schooling
This is my favorite number because it pulls it all together.
The thing is, not only can you turn your skills into a freelancing business during an economic downturn, but you could also teach those same skills to others who are needing to find a good job.
Not everybody knows this information on what types of businesses will do well in a recession, but now you do.
So you can start a school in one of these areas and give certifications for skills that will benefit people who are needing jobs. In doing so, you will not only help other people to land jobs, but you can also really benefit from this recession!
So that’s gonna be it for today, but let me know what you think in the comments.
Did you know that there are certain businesses that actually thrive in recessions? And which one would you be interested in starting?
If you made it to the end of this post, I’m so honored that you would take your time to be with me and I truly hope this was helpful information to you.
Until next time, just remember that you are loved, you are not alone, and you’ve got this!