While many businesses in the retail sector are posting record losses these days, other businesses are turning a profit, especially service-oriented businesses offering non-discretionary goods. During economic recessions, people are reluctant to part with their hard earned money, so businesses that help people keep money in their pockets are winners in tough economic times.
1. Financial Advisor
This might seem like a strange choice given typical market activity during a recession. But when turmoil is afoot, people are looking for solid advice on how to manage their money. Americans, especially those close to retirement, are worried about their financial futures.
2. Business Coach
As businesses try to improve morale, increase bottom lines, and improve efficiency, more and more of them turn to business coaches. Business coaches offer advice on everything from reading financial statements to helping companies with time management and personnel problems.
3. Beer Distributor
Beer consumption doesn't go down in a recession. In fact, it usually goes up as people switch from more expensive wine and cocktails. And with the wealth of microbrews available now, there's a beer to suit even the most discriminating palate.
4. Reusable Water Bottle Sales
Another profitable business that's taking off is selling reusable water bottles. With all the health scares about Bisphenol A (BPA) and other harmful chemicals leaching into water from traditional reusable plastic bottles, stainless steel and BPA-free water bottles are a must-have item even in the tough economy.
5. Green Café
The green café is a variation of the neighborhood café. The advantage of a neighborhood café is that it can start off small and expand as your income grows. The advantage of a green café is that it can have lower operating expenses because it focuses on recycling and reusing as much as possible, thus creating very little waste. And being green offers a unique marketing aspect.
6. Consignment Shop
Even socialites are doing it—shopping at thrift stores, that is. And if that isn't an indication of a trend, then what is? That's just one of the reasons running a consignment or resale shop during a recession is a sound business proposition. Consignment shops sell clothes, furniture, decorative items, and home furnishings; business owners can specialize in one of these resale niches or offer all of these items in their stores. One of the advantages of starting a consignment shop business is that it doesn't require a lot of capital to get started.
7. Automotive and Appliance Repair
The automotive repair business is always brisk during economic downswings because people opt to repair their cars rather than buying new ones. The same can be said about large appliances like washers, dryers, and refrigerators. For many big-ticket items, repair is far more cost-effective than buying new.
8. Auto Salvage Yard
Think of it as architectural salvage for cars instead of houses. Sometimes called auto parts recycling centers, auto salvage yards often experience booms during recessions. More people repairing their cars leads to increased demand for recycled car parts.
9. Residential Real Estate Appraiser
Because recessions usually see waves of foreclosures in the housing market, residential real estate appraisal is a profession that's going to remain in demand, despite an economic and real estate slump.
10. Home Healthcare Services
Home health aides, personal aides, and visiting nurses all fall under the umbrella of home healthcare service providers, one of the top growth industries today. Recession or not, Baby Boomers are going to need these services as they age. If you have experience in the healthcare industry, especially in management or nursing, then operating a home healthcare services business is definitely an option.
Ready to Get Started?
Don't let a sagging economy keep you from your dreams of business ownership. Get started today with a LegalZoom LLC or Incorporation.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.