A recession-proof refers to a significant downfall or decline in the economy which has a direct or indirect effect on the business. It could be a decline in GDP growth or a decline in industrial production etc. It could last for several months.
An economic recession is when the economy is stagnant, low industrial production, the decline in income, and increase in the unemployment rate of the country then this results in an economic recession.
What is Recession?
We all were in the recession period or the economic recession from the past two years and we were still not completely out of it but we were improving and also trying to be more stable.
Recession is caused not by a single factor but by a multiplicity of factors. These factors could be uncertainty, speculation, and oversupply. Not knowing that the economy would decline overnight. This same thing happens during a pandemic, which we know we all have faced and a similar situation can arise during wars also.
When prices of things increase considerably can also cause a recession.
Companies tend to increase their production to meet the demands of their customers but when the demand suddenly stops then all these oversupplies can lead to a recession and all these affect businesses around the world.
Is Recession bad or good?
Recession can be good and it can be bad for someone also depending on the type of industry the business belongs to. Several industries did well in a recession like Food and Beverage, Healthcare, Education, and transportation.
While some industries had to bear massive losses during the recession like Retail and others as well, countries face several recessions over time and in history as well.
The length of the average recession varies but mainly it’s for several months.
Here is a list of 10 Recession proof business ideas for all the entrepreneurs and startups out there. Recession proof refers to the businesses which are free from the impact of the recession. Anything like a GDP downfall or economic recession or increase in the unemployment rate does not bother them at all.
10 Recession-proof Business ideas for Entrepreneurs and Startups
Any Home-Based Business needs very little investment and along with this, there is no need to worry about the Recession. For example, it could be a cookie or a chocolate-making business. If people liked it, they would buy it no matter what. This business could be anything that started from your home, it could be your home food service or anything else you would love. Most, home-based businesses are recession-proof businesses as well.
You could be an online entrepreneur and for this, you only need two things: the internet and your creativity. you could provide your services or your products online and as it’s online it has a very less chance of being beaten up by recession. Online entrepreneurs make thousands of money only with the help of their laptops. They didn’t have to do anything offline.
A freelancer is a self-employed person. He/she works on his her work and doesn’t work under somebody else’s. In other words, a freelancer is his/her boss. Freelancer works on their conditions, their own time, their place, etc. Freelancer working on his terms, rules, and regulations and making decisions independently. They work on a contract or project basis. They work from project to project and this is the main reason that they are recession-proof.
As mentioned above, Education is an industry that is free from the recession. So, being an online tutor or starting an online tutoring business can be best for someone who loves teaching and wants to spread education. Even during the Coronavirus pandemic, the education industry does not face any recession education went online in countries like India and other countries as well. It didn’t bear any losses and this is the best time for all online tutors.
Create or Sell Ebooks
Ebooks refer to electronic books which could be easily read and can be easily carried anywhere in just your phone. These books are not printed on paper. With technological advancement, the demand for e-books is constantly rising these days and with this, the demand of the sellers and the creators of these books are also rising.
No matter how much GDP will fall down or up. There will be no impact of the recession on this business. It is one of the popular ways to make money online. There has never been a better time to create and sell ebooks than this.
Reselling Items Online
Whatever recession or economic recession it is, people will need the items like a table, chair, fan, almirah, and other items as well. So, reselling these items will be a very good and very profitable business idea and it will be recession-proof as well. Most people will not be able to buy luxury things, especially in times of recession. So, for them, this is a great option and for you as well.
It’s a. Win-win situation. Most of the second-hand stores showed an average increase in their sales even during the recession.
Food and Beverage Business
This industry is very big in itself and this is the most profitable industry, the best part of this industry is that it is in Recession proof. Any business in this field is recession-proof because everybody still needs food and drinks to survive all the time. This is one of the basic needs of all the people out there. It’s not a luxury.
These businesses do not need to care about any economic recession or about the fact that the economy is becoming stagnant. Businesses in this field will continue to do well and grow even in times of recession.
This is also a great business idea for early entrepreneurs when it comes to recession-proof business. As everyone keeps wearing clothes and also always needs the cleaning services. This type of business has flourished in foreign countries like the USA, UK, etc. These businesses also need less investment. There is no need for any larger machines and larger manpower as well.
One could be an online consultant and offer their services as a consultant in the economy. you can offer your services to a large number of industries right from health care to technology and so on. It’s a very profitable business and not only that it’s recession-proof as well.
One can specialize in a particular field like finance and can provide consultations regarding that which means one can be a finance consultant. Although there is a little chance that this business will get affected during the recession but in the long run, this could be profitable and could be recession-proof.
This is also a legitimate recession-proof business idea that most people don’t give attention to. In this modern world, everyone has a car and everyone also needs to take care of that car by giving regular services or other things.
A small chip shortage in a car doesn’t mean that the owner will change the whole car, he has to go to the mechanic and get it sorted without considering the recession in the economy. It’s becoming more of a need nowadays. The demand for automotive maintenance professionals has been constantly increasing day by day.
The normal wear and tear and the accident and services like applying colored wraps on a car make it more wider and profitable.
A recession refers to a significant decline or downfall in the economy affecting businesses in the world as well. That is the main reason why most entrepreneurs and Startups wanted to start or find out recession-proof business ideas.
So, here are some of the recession-proof business ideas which were already discussed above.
Most, home-based businesses are recession-proof businesses. They don’t get affected by the recession and they also require less investment. Online businesses or becoming an online entrepreneur can also be very great ideas, to begin with. The majority of the freelancer or the freelancer business are also recession proof and it is best for someone who likes to be his/her boss.
Doing anything online even creating and selling e-books was very much profitable to do and recession-proof as well. They only need two things: the internet and your creativity. Providing services like washing services or cleaning services as well as also been in demand for a long time and was considered recession-proof. Online tutoring and auto maintenance services were some of the common examples of recession-proof services.
On Biznesshub, features articles on and about business, startups, and entrepreneurs. Biznesshub covers all kinds of business & startup related articles, including entrepreneur, etc.