If the Coronavirus pandemic has taught us anything, it’s that our economy is extremely fragile. Whether it is normal economic cycles or something as crazy as a worldwide pandemic, building a business that can survive (or even thrive) during economic downturns is important.
Businesses that are successful during economic depressions are usually focused on products or services that people need, rather than want. When people are faced with financial stress they will cut out luxury and quality of life items. For example, luxury goods like jewelry, fragrances and services like hair, nails etc.
Other than being a safe bet, recession proof businesses are typically cheap businesses to start. Here are five recession proof business ideas that anyone could start.
1) Laundromats and laundry service
People will always need clean clothes, and given the small incremental cost to wash clothes, and large cost for purchasing a washer and dryer, many will opt to use a laundromat or service. You can start a small laundromat for about $200,000. Sounds like a lot, but you can use a small business loan with a 20% down to get started. So, for about $20,000 you could have a recession proof business that requires little work on your behalf.
2) Energy Broker
If you’re in a state with a deregulated energy market, like Texas, you can become an energy broker with some simple paperwork. Energy brokers act as a middle man between energy suppliers and customers, similar to a Real Estate agent. Since electricity is a necessary no matter what the economic climate, energy brokers can thrive even in down markets.
3) Tax preparation
There are only two certainties in life. Death and taxes. Sounds morbid, but it does mean it’s a great business opportunity. Even in a down economy people will need to file taxes, and in most states starting a tax prep business only requires some paperwork and a little bit of training.
4) Lawn Service
Essential home services are generally a safe bet during a recession, but becoming a plumber, electrician etc., can require quite a bit of skill and training. Luckily there is one home service that has weekly or monthly repeat customers, lawn service!