Top 10 Recession-Proof Industries to Start a Business In : Under30CEO Top 10 Recession-Proof Industries to Start a Business In : Under30CEO
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Top 10 Recession-Proof Industries to Start a Business In

| January 4, 2011 | 12 Comments

grand openingWhen starting a business during good times or bad, it is extremely important to figure out what businesses do well in a recession and which ones simply do not.  Basic economics of elastic and inelastic goods tell us which products/services people can live without during an economic downturn and which they can not live without.  Not all is cut and dry though, it is important to do your due diligence on the ground floor by studying consumers, business owners and looking at economic data.  Even companies like Starbucks will try to claim that their business has turned upward during the recession because even though people might not have jobs, their $4 coffee is one of the simple pleasures they do decide to splurge on.  Here is a list of 10 recession proof industries…

1. Healthcare

No matter what’s going on, people still get sick and injured. Some studies have also shown that healthcare needs increase during recession due to the associated stress.

2. Repair services

Computers, cars, jewelry, houses. If it can be fixed, people will choose repairs over buying new replacements to save money.

3. Staffing services

During times of economic uncertainty, companies hedge their bets with temps rather than commit to hiring more long-term employees.

4. Education

Even in economic decline, people want the best education for their children. Supplemental learning centers, tutoring services, and test preparation franchises are all good bets.

5. Senior care

Home care services are growing fast. These typically non-medical services offer an excellent alternative to expensive retirement centers for seniors who are still in good health.

6. Business services

From payroll to PR, companies save money by outsourcing services rather than paying full-time staff.

7. Coupons

This is one business that improves when the economy slips. During these times, coupons are equally attractive to both upper- and lower-income shoppers.

8. Debt settlement

With personal debt at an all-time high, demand in the debt settlement industry is as great as it’s ever been.

9. Resale shops

From sporting goods to designer duds, consignment shops offer a win-win scenario for shoppers and sellers alike. Already a $12 billion industry, the resale industry is expected to grow 5% this year while many major retailers take a tumble.

10. Property management

A good property management company can protect the owners’ investments during dicey times. It doesn’t matter if real estate is selling or not—the only time property management could suffer is if the population lowers.

This article originally appeared on FranchiseHelp the franchise listings and data portal

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  • http://www.ryanhanley.com/about Ryan Hanley

    I’m definitely a little biased and I certainly rout for less insurance agents in the market but I would have to say that Independent Insurance Agencies especially with a good sized personal lines book is fairly recession proof as well…

    Thanks,

    Ryan H., http://www.RyanHanley.com

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  • Anonymous

    Thanks so much for the useful list…yes, business services are doing well since the last recession…we are ourselves into small business virtual assistance and have seen our client base increase last year…Hope for the same this year too :) Senior care also seems to be an untapped niche here in India…As always, under30 CEO posts rock!!!!

  • Dylan Rudnaik

    What about the so-called “Vice” industries (adult entertainment, gaming, alcohol, etc.)? These tend to be quite recession proof.

  • http://www.GenuineThriving.com/ Jeremiah Stanghini

    I used to think that education was a recession-proof industry, but I’ve had a number of people send me articles about how the education industry might be a bit “overpriced” and as such, is a major candidate for a “bust.” I hope it’s not true — I cherish higher education — I’d have to in order to be pursuing my second graduate degree — but I suppose time will tell.

    With Love and Gratitude,

    Jeremiah

  • Brandonwilliams911

    Recession proof ? I don’t think so. In bad economic times, people tend to be more catious with their spending and try to save more. If I ever lose my job, I don’t think I will ever go visit gaming centres or drown my sorrows in alcohol.

  • Gravityresources

    Second hand bikes are in huge demand and will be even more so I reckon. There is a business there for someone.

  • Gravityresources

    Second hand bikes are in huge demand and will be even more so I reckon. There is a business there for someone.

  • Gravityresources

    Second hand bikes are in huge demand and will be even more so I reckon. There is a business there for someone.

  • Nfshero

    Education feels like a hobby nowadays, and an expensive one if it can’t guarantee a decent job.
    Where is the food industry…probably the last thing to get hit

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  • http://www.EducationBeatsMedication.com/ Dani

    I too am surprised not to see the food and beverage industry on this list. Especially the energy drink industry. As generation Y is the largest consumer of energy drinks & statistics show $20+ billion in revenue predicted to grow to $50 billion by 2016.