The best recession-proof businesses to start during an economic downturn.
These are unpredictable and difficult times for society, especially businesses. However, there are some recession-proof businesses that can still be a success throughout the pandemic. Here’s a list of business ideas to help turn this negative into a positive!
Auto Repair And Maintenance
Currently, a lot of us are choosing to use our own vehicles over public transport in order to keep safe and at a distance from others. This adds to the already constant demand for auto repair and maintenance businesses. In tough economic times, people are much less likely to purchase a new car or vehicle. Which means they are more likely to repair or improve their existing car rather than buy or rent another vehicle or take out a loan. Vehicle repair and maintenance will always be a successful business route as it is a necessary service for many people.
No matter what people are earning or spending, accountants are always needed by both people and businesses. Whether it’s in order to pay taxes or keep their finances in order. During a recession, an accountant’s workload is likely to be increased as many people need help understanding things such as government loan options. Many people also turn to an accountant to gain a clear understanding of their income and expenditures as cash flow tightens.
The ultimate necessity and, therefore recession-proof business sector is the food industry. For many, dining out during a time of economic uncertainty becomes a luxury. Supermarkets often see an increase in sales as people choose to cook more meals at home and even entertain at home more.
During the 2020 Covid-19 lockdown, restaurants were forced to close or change their operations to pick-up and delivery services only.
Grocery stores on the other hand were designated essential businesses and have seen a surge in activity. Consumers rushed to stock up on essentials in anticipation of quarantines which then created a shift toward home prepared meals.
DIY And Home Maintenance
During a recession, many people choose DIY as an alternative to paying decorators or ‘handymen’. They also tend to choose making improvements to their existing home rather than moving to a new house. This is because the option to save money is much more appealing than borrowing to buy a new home. Businesses that sell/provide tools and materials for home improvement are very likely to see an increase in product demand during a recession.
Always Look For A Silver Lining
Not all businesses and industries suffer the same impact during an economic downturn. Some businesses even benefit as consumers cut back on substitute products and choose to narrow their options.
Businesses that provide essential goods and services will often experience an increase in demand during a recession. They will, in turn actually benefit from providing the necessities which the general public need. Whether that’s weekly groceries, a fortnightly takeaway or fence paint to spruce up the garden
The COVID-19 pandemic has caused many people to re-evaluate the necessities in their lives
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