A number of vital services in the home restoration and repair business are recession-proof. With annual spending on home improvements in the United States exceeding $400 billion, it is an industry with a lot of room for growth.
Here are a few good business ideas that are still in demand even during economic downturns.
Plumbing: When a plumbing issue arises at home or at work, it is simply not possible to wait until a more financially secure time to have it repaired.
Auto Repair Services: Because many individuals rely on their vehicles and trucks to commute from home to work and cannot afford to be without one, auto technicians will be in high demand throughout a downturn.
What occupations are unaffected by the economic downturn?
8 industries with the best job security during a downturn
- Health-care services. People get sick and require medical care regardless of the state of the economy, thus the demand for health-care occupations is fairly stable, even during a downturn.
What are enterprises that are recession-proof?
Businesses that are recession-proof are frequently in industries that are unaffected by economic downturns. These are typically sectors that everyone requires, even when money is scarce.
Businesses that provide basics are the ones that do the best when the economy is down. Home and vehicle repair businesses, as well as public services such as plumbing and electricity, grocery stores, and so on, all perform well.
So, if you’re seeking for recession-proof businesses to invest in, keep reading to learn which ones have the best chance of weathering the storm.
Who made money during the Great Recession?
Warren Buffett declared in an op-ed piece in the New York Times in October 2008 that he was buying American stocks during the equity downturn brought on by the credit crisis. “Be scared when others are greedy, and greedy when others are fearful,” he says, explaining why he buys when there is blood on the streets.
During the credit crisis, Mr. Buffett was particularly adept. His purchases included $5 billion in perpetual preferred shares in Goldman Sachs (NYSE:GS), which earned him a 10% interest rate and contained warrants to buy more Goldman shares. Goldman also had the option of repurchasing the securities at a 10% premium, which it recently revealed. He did the same with General Electric (NYSE:GE), purchasing $3 billion in perpetual preferred stock with a 10% interest rate and a three-year redemption option at a 10% premium. He also bought billions of dollars in convertible preferred stock in Swiss Re and Dow Chemical (NYSE:DOW), which all needed financing to get through the credit crisis. As a result, he has amassed billions of dollars while guiding these and other American businesses through a challenging moment. (Learn how he moved from selling soft drinks to acquiring businesses and amassing billions of dollars.) Warren Buffett: The Road to Riches is a good place to start.)
Which companies prospered during the Great Depression?
Chrysler responded to the financial crisis by slashing costs, increasing economy, and improving passenger comfort in its vehicles. While sales of higher-priced vehicles fell, those of Chrysler’s lower-cost Plymouth brand soared. According to Automotive News, Chrysler’s market share increased from 9% in 1929 to 24% in 1933, surpassing Ford as America’s second largest automobile manufacturer.
During the Great Depression, the following Americans benefited from clever investments, lucky timing, and entrepreneurial vision.
Which industry is immune to the downturn?
A recession-proof business can be extremely profitable for people in both good and bad times. Whatever the state of the economy or the stock market, certain company concepts, such as those listed below, have a good possibility of succeeding despite the rest of the financial doom and gloom.
Many well-known or historically successful enterprises were founded during economic downturns. The Walt Disney Company was created in the late 1920s, at the commencement of the Great Depression, and the Hewlett and Packard electronics company was founded in the late 1930s, during the second recession.
Rising interest rates and shifting GDP pose far less of a threat to the finest recession-proof enterprises mentioned below than they do to most other businesses, with many of them having the ability to do even more business than usual.
Food and Beverage Business
Because everyone still needs food and drinks to live, the food and beverage business is one of the most recession-proof industries. Because it is not a luxury that can be put aside in difficult times, enterprises in this area can thrive even in a downturn.
In a downturn, how do you make money?
During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue to grow and provide investors with consistent returns.
Consider investing in the healthcare, utilities, and consumer goods sectors if you wish to protect yourself in part with equities during a recession. Regardless of the health of the economy, people will continue to spend money on medical care, household items, electricity, and food. As a result, during busts, these stocks tend to fare well (and underperform during booms).
What are the industries that will always be in demand?
You may use Google Trends to discover how many people are searching for your product/service in different locations and if the numbers are increasing. Investigate societal trends and jobs that have existed for a long time and are unlikely to be displaced by technology.
Hairdressers
People’s hair will always need to be cut. Create a high-end or differentiated experience for customers in comparison to what they are accustomed to so that they will tell others about it and become loyal to you.
The Wacky Barber Soho, for example, has created a one-of-a-kind ambiance in their shops with retro marketing materials, posters plastered walls, free beer and nibbles for customers, and a reputation for fantastic haircuts. It was an unforgettable event that you’ll most likely tell your friends about.
Tradespeople
Plumbers, electricians, and builders will always be in high demand, especially those that come well recommended. Female tradeswomen and handywomen are in high demand by other women who would prefer have a woman come to their house to help them than a guy.
Vegan foods and supplies
In the last decade, the number of vegans in the UK has more than tripled, from 150,000 to 540,000, and vegetarianism is also on the rise. The number of places offering decent vegan food and product options, as well as vegan jobs, is not keeping up with demand in many areas.
IT Support
One thing is certain: technology will always be present and will continue to advance often at a breakneck pace. This implies there will always be people who require assistance with its use, setup, troubleshooting, and repair.