Proven strategies to recession-proof your business in 2023

The economic recession caused by the pandemic highlighted the importance of having a recession-proof business. When a recession hits employers turn to freelancers as an alternative to hiring full-time employees. So, freelancing is one of the best recession proof industries to consider. Corporate cleaning companies are considered recession-proof businesses because they provide a steady source of income, even when the economy crashes. Sales at grocery stores, candy sales, and alcohol sales all tend to increase during a recession.

Home staging specialists might be real estate agents or interior design professionals, or both. A staging expert increases the appeal of a home by furnishing and decorating it to look its best to appeal to potential buyers. Many people will choose a do-it-yourself (DIY) home renovation or upgrade rather than consider selling and moving during a recession. Depending on credit conditions, borrowing to buy a new home is often not an option for most people during a recession anyway.

What sector is least impacted by the recession?

Companies that cater to the high-end luxury market or discretionary spending should be avoided, as such personal spending is the first to be cut back during a recession. In tough economic times, people are less likely to purchase a new car. Auto repair and maintenance shops rake in the cash during a recession, when people will gladly fork over a few hundred dollars on repairs to avoid a monthly payment on a car loan. However, there have been counterexamples in recent recessions, such as the Cash for Clunkers program instituted during the Great Recession, which spurred a modest spike in new car sales.

That’s why plumbers, electricians, mechanics, roofers and all-around handymen are likely to do well in a recession. John Egan is a freelance writer, editor and content marketing strategist in Austin, Texas. His work has been published by Experian, CreditCards.com, Bankrate, SHRM.org, National Real Estate Investor, U.S. News & World Report, Urban Land magazine and other outlets. John earned a bachelor’s degree in journalism from the University of Kansas and a master’s degree in communication from Southern New Hampshire University. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.

Most profitable small business ideas

There is continuously increasing demand for care workers as an ever-higher percentage of the US population gets older and lives longer. The U.S. Census Bureau projects that 21% of the American population will be over the age of 65 in 2030, whereas in 2017 that number was just 15%. The recession-proof nature of this industry may be due to the federal student loan program. While this places a significant and long-term financial burden on the student, it makes a pathway to education accessible.

Let us know what industry or franchise you’re interested in, and we can help you find the best franchise — at the best price. (And we can help you secure the funding you need to get started, too!) We partner with multiple established franchises, including Le Village Cowork, Tumbles, Home Clean Heroes, Clean Juice, and Club Pilates. It generally makes the recession proof list, no matter the economic climate. From candy to beer to poker, you can count on vices to drive business — even in times of economic uncertainty.

In a recession, which jobs disappear first?

That said, retail is an industry that often suffers during market contractions. As consumers tighten their budgets, non-essential retail can take a significant hit. Telecommunications is another industry usually performing well during economic downturns due to little fluctuation in demand. Whether via broadband, phone networks, or any other telecommunication channels, individuals still need to communicate, socially and professionally, despite poor economic conditions.

• Whether we’re in an economic recession or not, you’ll want to consider your business industry — and if it’s recession proof.
• Working professionals prefer Simplilearn’s approach because online learning is a convenient choice.
• Along with staying agile and preserving capital, businesses can re-engage their core customers for repeat purchases, plan for the worst, even engage capital beforehand to have access to cash when they need it.
• They hypothesize that this is because performance pay makes companies more flexible by aligning workers’ incentives with changing conditions.

As you bring more money into the business, you can add more products to your line, helping you scale more sustainably and with demand. For example, Glossier started out with only 4 products, and has now become a billion-dollar beauty brand. Whether you’re a small business owner, freelancer, are dividends considered assets or CEO of a major company, when it comes to taxes, you’ll probably need an accountant. From tax preparation to bookkeeping services, accounting is definitely a recession-proof business. There are certain recession-proof industries that have particularly consistent consumer demand.