10 Recession-Proof Business Ideas That Are Easy to Start
If recession proof business ideas is on your radar, this short guide cuts through the noise. Here is what is worth knowing, and how to put it to work today.
Key Takeaways
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- If the unpredictability of business ownership concerns you, a recession proof business could be the right choice.
If the unpredictability of business ownership concerns you, a recession proof business could be the right choice. Economic changes and fluctuations impact some types of businesses more than others.
It’s possible to build a business that won’t be crushed by recessions or economic downturns, but you have to know the types of businesses that can survive in those economic climates.
One common myth is that recession proof businesses can’t or won’t succeed in a strong economy. But recession proof businesses can be profitable when the economy is strong.
Alternatively, maybe you feel there is a recession ahead, and you’re looking for a business idea that will not only survive but thrive during uncertain times, which we’ll also cover.
Table of Contents
ToggleWhat Makes a Business Recession Proof?
While there are numerous different types of businesses capable of surviving an economic downturn, here are a few common characteristics of recession proof businesses:
- They provide essential services. Consumers typically cut back on spending during a recession, but they have to continue spending money on essential services like healthcare.
- They sell consumer staples. People need to purchase certain products regardless of the economy. They may cut back on luxury or discretionary spending, but they still need to pay for the essentials.
- They offer low-cost alternatives. Numerous people look for ways to save money or for lower-cost alternatives when finances are tight. If you sell a product or offer a service that can help them save money, they may turn to you during a recession.
Recession Proof Businesses: 10 Good Ideas
Below is a list of specific types of businesses that are capable of surviving and even thriving during a recession.
#1. Overseas Outsourcing
Remote work is more common and practical than it’s ever been, and numerous types of businesses are able to hire overseas workers to save money.
The idea here is to build your business using talent that costs less than you’d pay for an equally qualified American employee, and use the lower overhead costs to offer shoppers or clients a better cost without sacrificing quality.
Why it’s recession proof: When a recession hits, businesses look to cut costs in any way possible. They’re more likely to choose a service provider based on cost when minimizing expenses is a priority. By outsourcing the work to overseas talent, you’ll be able to offer the best cost to your shoppers.
Saving money by outsourcing work overseas doesn’t mean you have to offer a low quality service. There are plenty of highly skilled workers in other countries, but it does take some effort to find the right ones.
How to get started: Before you start, you’ll need to understand the laws and regulations related to hiring international employees or contractors. Hiring contractors is the easier option, but it may not be right for your business. How to Employ and Pay Remote Employees Around the World is an insightful article from Remotive that serves as an excellent primer on the subject.
#2. Cost-Reduction Consulting
A cost reduction consultant is hired by businesses to find ways to lower expenses without damaging the operations of the business. According to Consultport, a company that lets you to match consultants and businesses, cost reduction consultants “skillfully cut costs in a strategic manner that doesn’t impair business operations or productivity. They define and implement sustainable actions that effectively reduce expenditures towards increasing savings.”
Numerous cost reduction consultants specialize in a specific industry like manufacturing or retail. Some charge an hourly rate and others bill a percentage of the amount saved.
Why it’s recession proof: A cost reduction consulting business can thrive in any economic condition. Businesses are always interested in saving money in order to increase profitability, and that’s especially true during a recession when the business may be struggling to stay in the black.
If you opt to bill a percentage of the amount saved for your clients with no other fees, there’s zero risk for clients to hire you and it will be easier to secure business.
How to get started: Entrepreneur has the following advice for anyone looking to start this type of business:
“Potential clients will largely be small-to-midsize businesses, but you can also target your marketing efforts toward professionals, nonprofit associations and privately-run institutions […]. Get started by developing an expense reduction manual. The manual should be representative of the type of business or industry you’ll target and include an index of categories you’ll analyze, such as business location, employees and communications. The purpose of the manual is to act as a road map to guide you through each client’s business. You can then tailor the manual to a specific client’s business and enter subcategories for each business component that you analyze.”
Related: Learn how to use AI in your consulting business in our guide to making money with ChatGPT.
#3. Selling Used Items
There are a few different business models that involve selling used items. You could purchase items at yard sales, flea markets and auctions and resell them online for a profit. You could also open a consignment store in your local area.
Why it’s recession proof: During a recession, numerous people look to save money in any way possible. One of the best ways to cut expenses is to purchase used instead of new, so a recession leads to increased demand for lower-cost used items.
If you’re running a consignment shop you can also offer people the opportunity to make some money by selling things they no longer use, which
Final Thoughts
The bottom line: a little research on recession proof business ideas goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.
Originally published at thewaystowealth.com.
Marc Andre
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