7 Recession Proof Businesses and Industries

While there are many different types of companies that have their revenues subject to economic fluctuation, there are a number of businesses that are generally considered to be recession proof. In this article we take a look at the different types of companies that always tend to generate substantial revenues and profits in any economic climate.

Accounting and bookkeeping services

Given the complexities of tax laws as well as the difficulty in maintaining a proper set of financial records, accountants, bookkeepers, CPAs, and enrolled agents are always able to generate revenues for their services. Regardless of how the economy is doing, people are always going to be required to file tax returns to both federal and state taxing authorities. As such, the demand for these services does not wane during economic difficulties. These businesses are able to generate very high gross margins from the per hour fees that are associated with completing bookkeeping, managing payroll, filing tax returns, and engaging in other activities that are common to this type of business.

Funeral Homes

It is the unfortunate fact of life that everyone will pass away at some point. Even during times of economic recession, people will continue to pass away and require the services of funeral homes and funeral director businesses. These companies are always able to generate substantial revenues from mortician services, sales of caskets, cremation services, as well as making arrangements for funeral services. These businesses typically are the most stable industry given the fact that they are able to thrive in any economic climate. The start up expenses associated with the new funeral home are considered to moderate, and these businesses – given their strong level of economic stability – have readily available access to capital from banks and financial institutions. Almost all lenders are willing to provide the necessary money needed to establish a new funeral home business.

Healthcare Practices

Healthcare practices which include doctors, dentists, nurse practitioners, and allied healthcare professionals are always able to produce substantial income for their owners given the demand for the services in any economic climate. One of the interesting aspects of this type of business is that they enjoy very high barriers to entry given the fact that the practitioner must have completed a substantial amount of education while conforming to a number of licensing requirements. As such, this is not a business that can readily be started by any individual that is looking to become an entrepreneur. As it relates to licensed healthcare practitioner seeking to establish their own practices, almost all financial institutions are willing to provide nearly 100% of the capital necessary in order to establish a new medical, dental, physical therapy, surgical, or related healthcare business.

Information Technology

Given the ubiquitous nature of the Internet and secure information technology networks, the demand for IT consulting firms and IT networking companies is substantial. These companies always generate highly recurring streams of revenue given that they typically operate on a month-to-month service contract with their clients. For entrepreneur that is looking to establish a recession proof business, this is an outstanding opportunity. There is no formal licensing or educational requirements in order for company to hold itself out as an IT consulting firm. Additionally, many of the instructional courses needed in order to provide comprehensive IT services can be acquired from a local community college. Additionally, there are substantial online resources where an individual can quickly become trained in the field of information technology. These businesses have minimal startup costs, and they can be started for as little as $10,000 if the owner-operator establishes a very small office and primarily works at the site of clients.

This is one of the fastest growing industries within the United States, and it will continue to become one of the largest and most profitable industries over the next 20 years.

Pet Care Businesses

As many people own dogs and cats, the demand for comprehensive dog walking, pet sitting, and general pet care businesses is substantial. Yearly, more than $50 billion is generated on services specific for pets that live in the homes of their owners. These businesses have next to no startup costs given that an individual can simply establish a small website, distribute business cards, and post flyers in community centers in order to create a local brand-name. Once established, these businesses are able to generate highly predictable streams of revenue from the daily services rendered to the client base. Additionally, these businesses are very scalable as additional pet care technicians can be hired to render services to a greater number of clients.

Retail Entertainment Businesses

Although retail entertainment businesses, such as arcades, bars, and related entities offer a service that is not a necessity – these businesses are almost always able to generate substantial revenues and profits given that they are low-cost form of entertainment. During sharp economic declines, many people will opt to go to retail entertainment facilities rather than taking an expensive vacation. As such, the high gross margins generated from services allow these businesses to provide entertainment that is affordable in all economic climates. One of the recent trends among these businesses, especially among arcades, is to develop a membership base that allows individuals to pay monthly fee in exchange for being able to access the facility on an ongoing basis. These recurring streams of revenue further add to the economic stability of these companies.

Commercial Cleaning Services

Most commercial enterprises need to have clean and neat offices in order to attract a customer base. Most commercial cleaning businesses often provide their services on a monthly contract basis, which allows them to generate highly recurring streams of revenue. Additionally, many wealthier homeowners – who are less swayed by negative changes in the economy – are typically always able to afford in-home cleaning services. As such, these businesses are generally able to remain profitable at all times given their strong demand among commercial, residential, and industrial clients. These businesses do have moderate sort of costs, but these companies can be found for about $50,000 depending on the type of equipment and vehicles that we purchased for the start up.

Specialized Contractors

In any economic climate, individuals are going to continue to have issues with their homes and buildings that they own. As such, most contracting focus businesses are able to continue to remain profitable in any economic climate. It is no secret that homes will often have certain appliances and systems that break down, and regardless of how the economy is doing – people are going to need repair services for the systems. Specific types of contracting businesses attend always remain profitable include HVAC contractors, roofing contractors, plumbers, electrical contracting businesses.

Leave a Reply

Your email address will not be published. Required fields are marked *