Let us start off by explaining briefly what a recession is so as to put things into perspective. In simple terms a recession is a time when there is a general decrease in economic performance. One of the key features of a recession is a widespread drop in consumer spending. The gross domestic product (GDP) shrinks, income levels dwindle pushing individuals and businesses into torrid times. If these and more related characteristics persist for at least 6 months then you know you are in the thick of a recession. Since entrepreneurship ought to be an all-year round venture it becomes necessary to know which businesses thrive despite going through a recession. Remember that economies are cyclic so at one point or the other any nation can experience a recession – that is why this article is important. The following business ideas are recession-proof.
If ever there is an opportune time to start a real estate business then it is during a recession. One of the major things you will be riding on is the general fall in the prices of properties. This tends to be fuelled by the dwindling of income levels that forces people to hastily dispose some of their properties at giveaway prices in order to get some quick money. You can then earn from such properties by renting them out. Over time the properties even appreciate in value once the recession is over. So if you have some substantial amount of money investing in a real estate business can be the way to go during a recession.
Food And Beverages
The demand for products and services under this banner remain high even in times of recession. Most of these constitute what are commonly known as basic commodities so these types of businesses tend to survive in times of recession. On the beverages front you can actually choose to settle for alcoholic beverages as they usually sell well. The sourcing and selling of fresh farm produce, meats and other basic food commodities usually thrives well in recessions. Cooked foods outlets such as restaurants or fast food outlets also do well even during a recession.
This is obvious because we have just been discussing about food and beverages as one line of business that is recession-proof. In some countries you will even notice that a significant number of people actually engage in farming businesses during times of recession. This has implications for all other farming-related aspects as they make for other lucrative recession-proof businesses. Ordinarily farming involves livestock and crop farming in a broad sense. Examples of livestock businesses include cattle fattening business, piggery farming business, goat farming business and poultry farming business.
Livestock farming entails stock feeds thus a stock feeds business naturally becomes a recession-proof business. Actually livestock farming can be easy to do in a recession due to the availability of cheap livestock. This is caused by the decreasing income levels that force people to sell livestock at ultra-cheap prices. By implication a butchery business also becomes a recession-proof business and the list goes on. On the crop production side, horticulture is one of the most steadfast types of businesses during a recession. For example, cabbage farming business, tomato farming business and potato farming business. All this shows you that there are numerous farming or farming-related businesses that are impervious to the negative effects of a recession.
Events Management Services
Come what may, events of various kinds are always being planned and held. Even during times of recession this trend never really wanes so this speaks of the robustness of businesses in events management. Some of the services worth mentioning here are event hire services for things like stages, public address (PA) systems, venue hire and the like. Associated services needed such as catering, entertainment or décor are also relevant to events management. Thus any business that involves the planning and management of events can withstand the fury of a recession.
The prices of precious metals or minerals such as gold, copper, diamonds and so on are usually determined by global markets. This means that even if your host country is going through a recession the prices of precious metals can remain quite favourable. So most mining ventures especially those that specialize in precious metals or minerals can fight off a recession.
Beauty And Wellness Services
This includes businesses such as salons, barbers, spars, gyms and so on. The demand for goods and services herein is always high despite the incidence of recessions. People are always big on looking and feeling good so such businesses remain relevant during a recession. It is evident because if you visit salons or gyms you will still find influxes of people visiting those places daily.
Moving from point A to B never grows old as people bustle around in an effort to make ends meet. Taxi cabs, public service intra- and inter-city vehicle rides and delivery services are some of the major areas of activity in the transport sector. So businesses under this include taxi cab business, minibus transport business and trucking business. The demand for some of these services can even be more during a recession due to the heightened need by people to move up and down to generate income. Associated fields such fuel retail, vehicle repairs and maintenance are also some of the active domains despite an on-going recession.
The principle is quite simple – any business that deals with goods and services deemed as basics can be recession-proof. This does not negate the indispensable need to conduct market research before starting the business. In a recession the risk factor is actually trebled several times over so be frugal and empirical in running your business. The key issue to closely consider is pricing because you will be operating in an environment of weakened income levels. Regardless, if you are diligent and focused enough any of these businesses can stay afloat throughout any recession.