Recession Proof Businesses You Want To Know About
One word that most people do not want to hear is “recession.” According to economists, a recession can be described as a general business contraction. In simple English, this means it is a period of general slowdown in economic activity. During a recession, workers lose their jobs, business profits fall and bankruptcies increase. From the scenario above, you can see that a recession is bad news for both the salary earner and the business owner. Since most people belong to one of the two categories above, it is clear that a recession is bad news for all of us.
The only good aspect of a recession which might be seen as good is that all businesses are not affected the same way. Some businesses can be considered recession-resistant business. There are also businesses that are actually recession proof. Since we cannot wish a recession away, we can at least look for recession proof businesses and invest in these businesses. Below are some recession proof businesses you want to know about.
This is the ultimate recession proof business, but it is not a business for soft people. As you already know, two things are certain in life. One is death and the other is taxes. People die during periods of economic prosperity and people also die during a recession. Invest in funeral homes and you will enjoy high turnover and decent profits even in a recession. It is important to point out that you should be ready to offer cremation services if you are operating in a recession. This is because many of your customers will choose this option in order to avoid expenses burial ceremonies.
Nobody in his or her right mind will go for luxury goods in a recession. This means that most people who sell designer clothes, shoes and bags cannot expect a high turnover at this time. On the other hand, discount stores are likely to attract many customers in a recession. During the last recession of 2007–2009, discount stores like Wal-Mart, Dollar General, Family Dollar and Dollar Tree were not adversely affected by the recession. On the contrary, these shops made good money at this time and even expanded their operations.
Healthcare and drugs
The healthcare industry is one popular recession proof business and this is easy to understand. More people are likely to lose their health in a recession because of stress and uncertainty. The good news for the healthcare provider is that medical bills must be paid by health insurance firms. Pharmacies also make money in a recession because there is more demand for drugs at this time. Vitamin pills, supplements and other drugs that promote good health record increased sales in a recession. Invest in pharmacies and the healthcare business and you will smile all the way to the bank.
Invest in vices
This may sound immoral but there is nothing illegal about making money from booze, cigarettes and gambling if the state has not outlawed these businesses. One thing you have to understand is that a recession is not exactly a happy time for most people. The harsh economic realities mean that many people will find a way to console themselves. This is why alcoholic drinks and tobacco usually see an increase in sales during a recession. Supply these products and you will not even realize there is a recession because your business will boom.
Invest in candy and chocolates
In case you do not have the stomach to invest in vices, you can make good money from candy, chocolates and inexpensive sweets. In the best of times, most people have a sweet tooth. In a recession, the sweet tooth is combined with the need to eat “comfort foods.” Supply sweets and chocolates to people in a recession and you will make good money.
As stated already, a recession is not exactly good news, but you can turn bad news to good news. If you want to make money in a recession, your best bet is to invest in recession proof businesses. Some of the best options for you are funeral homes, discount stores, healthcare and candy. Invest in these businesses and give yourself the ultimate recession immunity.