World events like the pandemic, Ukraine war, and the resultant fuel shortages have led economists to believe that recession in the coming year is most probable. As per the new Bloomberg Economics model projections, a US recession is effectively certain in the next 12 months.
There are recession-proof businesses that could help you profit during these times of uncertainty.
What is a Recession-Proof Business?
A recession-proof business is one which is not much impacted by the economic effects of a recession. It typically stems from industries that provide basic needs. The demand for these basic needs is not affected by recession. Here’s our collection of recession-proof business ideas to keep in mind.
1. Online Freelance
Demand for labor is a constant even during downsizing days. Companies prefer freelance services to full-time staff to meet their design and marketing needs during recession times. The only requirements for freelancing are a laptop and the required skillset. It is also possible to expand your network and learn new skills through freelancing.
2. Childcare Services
With the increasing number of nuclear families with working parents, the demand for childcare services is skyrocketing. Paid childcare services provide supervision, care, and sometimes education to infants and young children. The reason this job is recession-proof is because the parents may have to work longer hours or even more than one job. Childcare services are one of the last costs parents will abandon.
3. Real Estate Business
This is a surprise addition to the list of recession-proof business ideas. Historically speaking, the housing market has not always crashed during recession times. This is because when the prices drop, it becomes the perfect opportunity for the investors. Since the business is stable in the long term, investors don’t budge away from investing in it.
4. Beauty Business
Beauty and self-care is one expense people will not cut down even during the worst times. According to the lipstick effect, people tend to spend money on small indulgences like hair salons and nails to compensate for the bigger sacrifices they make. So, this may be the ideal time to launch an online boutique or film makeup vlogs on YouTube for extra income.
5. Home Improvement Companies
More the people save by not going out during recess times, more the attention given to homes. Home improvement companies thus have a lot of work to be done during tough economic times, which makes them perfect candidates for recession-proof small businesses.
The bathroom industry, particularly in the UK and US, is surprisingly resilient. During difficult times homeowners look to improve their homes, especially if they may need to downsize or sell due to financial struggles. The bathroom is a space that can increase a property’s price with minimal spending.
