The 13 Best Recession-Proof Businesses in 2023

It provides cutting-edge training designed with input from both academia and business to enable learners to build skills that are suitable for the workforce. Although there may be economic booms and busts, it is always necessary to invest for the future. Independent of the economy’s state, employment in primary, secondary, higher, special, and vocational training is in high demand. The education method is changing; therefore, those who desire to follow this road should be aware. New distance and on-demand learning forms are becoming more relevant alongside conventional classroom educators. Hence, both the location and the method of delivery of education employment can be flexible.

Individuals want to ensure their investments are stable or even invest in new opportunities. Businesses rely on advice from their accountants to help them survive tough times. It’s a niche specialty market focused on connecting sellers with buyers, but there’s room for financial gain by being the middle-person. This business is ideal for service-minded people who can work with the elderly and sick, but also anyone wanting to improve their health to ensure they don’t get sick in the future.

Company

Businesses that thrive in recession tend to have products or services that people need no matter what or that make them happy in hard times. Freight and logistics delivers both the necessities and the comforts, making it consistently recession-proof. No, there are no guarantees that a business will be totally recession-proof or not.

In fact, the Kendra Scott brand now operates more than 115 stores and is valued at more than $1 billion. “In my 20-plus years in this industry, it’s known that we are the first durable goods retailer to experience a decline in sales during a recession,” says Werner. Fifteen years after exiting her full-time job in Crystal City, Potts is flourishing as founder and CEO of Spotted MP, based in New Alexandria, an unincorporated community south of Alexandria, Virginia. She and her two full-time employees operate the marketing and PR firm.

Cut or reduce unnecessary costs

Even with a decreased disposable income, sweets offer an inexpensive (and delicious) dopamine spike. You’ve got it—they’re another example of the lipstick effect in action. Compared to grocery stores, confectionary stores are a slightly different, but still very stable, recession-proof business option. Commercial and home cleaning services are always in demand and are among the many small businesses that are well set up to be recession-proof. There are some services, like waxing and hairdressing, that most of us just don’t have the skills to execute well at home. In general, anything requiring expertise is hard to replace or do without, and therefore more recession-proof.

However, it’s worth noting that freelancers do sometimes suffer during downturns in the economy. As contract workers, freelancers don’t have the same employment protections as full-time employees. One economic condition marking a recession includes consumer demand decline, creating cash crunches for businesses that may result in bankruptcies and other financial issues. However, a recession-proof business is an operation particularly suited to endure the challenges of a recession.

Top 10 Recession Proof Business Industries

This business can be incredibly successful, and if you purchase in the right area, it can thrive through a recession as people look to rent when they can’t afford to buy. The IRS also offers a number of tax benefits to renting a residential property, including depreciation and deductions for certain expenses. Digital marketing is a fast-growing area for a recession-proof business. Without the need for a physical office space, digital marketing businesses have fewer overhead expenses than traditional marketing agencies, making them more adaptable to adverse economic conditions. Businesses within the courier, freight, and logistics companies now benefit from access to extensive data that helps them strategically adapt services to market demands.[4]The Motley Fool. With eCommerce positioning itself at the forefront of the economy, the freight industry is essentially the backbone of the economy.

Club Pilates, KidStrong, The DripBar, Valhallan, and Glow Sauna are a few fitness and health franchises paying off today. Budget travel is clearly an in-demand industry right now, especially with America’s increasingly remote-work flexibility. Airbnb reports that long-term stays are at an all-time high in 2022, with Airbnb guests already booking stays in over 72,000 cities and towns during the summer. Short-term rentals like Airbnb are popular, especially in times of inflation. See our Top Auto Franchises 2022 for the lowdown on some of the best-performing automotive repair and maintenance franchises, from Strickland Brothers to Meineke to AAMCO. In many cases, ETFs that cover certain sectors are a wise way to proceed.

Information Technology

Understanding what makes a business recession-proof is invaluable, whether you’re looking to start something new or just see your current company through an economic downturn. All types of businesses can be “not recession-proof.” If your business does not have cash reserves or a strong business plan, it can suffer during a recession. However, specific industries survive better than others in recessions. Because each recession brings with it unique economic characteristics, the exact answer depends on the recession.

“You need to take a hard look at your portfolio,” Mysore advises, because shedding assets can be a way to reduce leverage without necessarily cutting core aspects of operations. Keep consistent, careful tabs on the numbers behind your business’s performance, day-to-day operations, and financial history. Those figures will let you understand where you stand going into a recession and help guide you through economic turbulence as a result. Make sure you’re consistent (but not pushy) in staying in touch with your clients once you bring them on board. See how they’re enjoying your product or service, and ensure any major concerns they might be having are addressed quickly and comprehensively.

But while the consumer demand for auto repair and maintenance remains strong, the industry is facing supply chain problems on top of rising costs. While inflation has impacted nearly all industries in some way, the combination of great demand and low chinese university of hong kong availability has proven challenging. For 2022, 35.8 percent of independent repair shops expect to face challenges in finding parts or part shortages. And 29.4 percent expect finding affordable parts to be one of their biggest challenges in 2022.