Home staging specialists might be real estate agents or interior design professionals, or both. A staging expert increases the appeal of a home by furnishing and decorating it to look its best to appeal to potential buyers. People who may not be able to afford to buy a home during a recession, and people who were forced to sell for financial reasons, still need a place to live.
The answer for many, at least short-term, is a rental. Recessions also often lead to an increase of shared living arrangements and people moving in with parents or extended family members. Rental agents, landlords, and property management companies can thrive during a recession when renting is likely to become a more appealing option, if not the only one available.
For many, dining out during a recession starts looking like an extravagance. Supermarkets often see an increase in sales as people choose to cook more meals at home and even entertain their friends at home more often.
People cut back on luxuries during a recession but that doesn't mean they never buy anything that isn't strictly necessary. There's even a tongue-in-cheek economic theory called the Lipstick Index that argues that sales of cosmetics will always rise during bad times because they're a relatively affordable luxury.
That said, a great variety of other cheap thrills can be purchased at bargain and discount stores. People who otherwise never step into a dollar store rethink their shopping habits when a recession hits. Business Essentials.
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Recession Terms A-F. Recession Terms G-Z. There are a lot of older people today who own property, are financially comfortable, and can easily afford the care they need during their golden years. Contraceptives: This is another healthcare service that is always in demand, but especially so during a recession. The many contraceptives services available will help them to plan their family according to the state of their finances. Pharmaceuticals: Most demand for pharmaceutical healthcare is relatively inflexible.
Such necessary treatments are not particularly price sensitive, nor can they often be put off until a more financially stable time. That number, published by the American Pet Products Association, was an increase of 6.
Growth is currently predicted to continue at a rate of 5. Veterinary Services: The beloved pets of Americans still need care regardless of what the economy is doing, so veterinary services generally remain unaffected by recessions.
Grooming Services: Pet ownership has greatly increased thanks to the millennial generation who are buying more pet animals than previous generations. Essential Pet Products: The same research revealed that over half of Americans in their 30s own a type of cat, with three-quarters of the same age group owning dogs. As pet ownership increases, essential pet care products will only rise in demand.
The home renovation and repair industry includes a number of essential services that remain recession proof. Plumbing: When there is a plumbing emergency at home or work, it is just not possible to wait for a more financially stable period to get it fixed. Auto Repair Services: Many people are reliant on their cars and trucks to get from home to work and cannot afford to be without a vehicle, so auto mechanics will continue to be in demand during a recession. Equipment Repair and Maintenance Services: Any business reliant on particular equipment will need access to a repair and maintenance service.
For example, office workers are not usually equipped with the skills to repair a printer, so they will need to call in the right people if they have a problem. Home Repair: Most people are also not skilled at home repairs so when an issue arises, experts with the skill and knowledge will be required regardless of the state of the economy.
Utilities: Home utilities such as water, gas and electricity are absolutely necessary at all times, so businesses who work in these areas can still thrive during hard times. Recessions can actually be good for the real estate and property management sector, as it is often the best time to invest in property.
As real estate includes any property consisting of land and the buildings on it, ultimately it is an industry with an essential and very valuable product. Property Stagers: Professional property stagers help a seller make a quick sale and maximize their property price. This is why it is such a valuable job that will always be in demand. Real Estate Agencies: The knowledge, network and experience required in the job of selling properties is not something ordinary folks have, so real estate agencies are in a good position to continue doing well during a recession.
A Rental Agent Business: Recessions can be a good time for the wealthy to invest in properties, but the not so wealthy still somewhere to live.
Rental agents should always be able to find a sizable amount of tenants needing a home and businesses needing office space to cater to.
While many people make adjustments to their spending during a recession, spending on their children is not where they tend make the sacrifices. Historically, products for babies continue to sell well during economic downturns as families look to reduce spending in other areas. Entrepreneurs moving into the baby products business could be very successful, as the industry is projected to massively increase in value over the next few years.
Similarly to the baby products business, the child care market has also grown in size and is set to continue. As more and more mothers are empowered to continue their careers after child birth, the child care market will only increase in value. Accountancy and other financial information services will always be in demand during a recession.
This is especially true nowadays as more and more complex laws and regulations are introduced each year. This sector endures because it is crucial for businesses to have their finances in order regardless of the state of the economy, so there are numerous financial and accounting services which continue to do well during hard times.
Tax Prep: The consequences of not declaring the right tax information is a serious matter, so businesses and wealthy individuals cannot afford to take risks with their tax prep. Accounting Services: Astute business owners hire professional accounting services even during a recession as they can save the business money by ensuring everything is in order.
Financial Planning: Many wealthy individuals and organizations may seem content during a recession, but their fortunes can quickly diminish without proper financial planning using all available information. Bookkeeping: Few business owners and entrepreneurs have sufficient bookkeeping skills and spare time to record their financial information correctly.
It can be an exhaustingly time-consuming task for those lacking in bookkeeping experience, so hiring a specialist bookkeeper will continue to be a popular option. Freelancing has the potential to be one of the most recession-proof businesses in the world, even compared directly to many of the others on this list.
Companies can save a lot of money by outsourcing certain tasks and activities to freelancers. This lets them pay for those tasks individually as and when they are needed rather than hiring a permanent employee. Being a writer might conjure images of people writing editorials for the New York Times or the table of contents in a novel, but it is much more to do with creating content for all the business websites that need regular new content to stay relevant and improve their search engine ranking.
Case in point: The New York Times reported that the recession sparked a huge surge in candy sales. Not enthusiastically. You can take your time scaling intelligently from there. The recession-proof business ideas listed above are just a small sampling of the businesses that are entirely viable to start during a recession.
Some other viable business ideas can be found in the health care, tech repair, and daycare industries, for instance. Equally important as coming up with a recession-proof business idea is executing that idea. This article originally appeared on JustBusiness, a subsidiary of NerdWallet. Home repair business.
Reselling items online. Bookkeeping, accounting, or financial planning. Car repairs. Gig or temp work. Online teaching. Online beauty business. Corporate cleaning services. Food and beverage business. The bottom line.
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