4 Recession-Proof Businesses to Consider for Your Future
If you’re an entrepreneur, and you’re thinking about starting up a new business venture, you may want to pump the breaks for a bit and think long and hard about the kind of business you’re starting. Many financial analysts predict that 2018 will bring another economic downturn similar to the one we experienced in 2008. That’s not exactly a great environment for a new business.
But don’t pull the plug on your entrepreneurial dreams just yet. There are several different industries that continue to thrive through economic crises. So if you’re set on starting up your own business, consider one of these four recession-proof businesses.
Got a knack for numbers? Then you’re probably safe to start up that accounting firm over the next year. As the saying goes, the only thing that is certain in life is death and taxes, so even amidst a national economic crisis, accountants are still in high demand. In fact, with people trying to hang onto every penny of their tax returns, and the IRS trying to grab every penny they can, accountants can become even more successful during economic downturns than in more stable times.
And, if you double as a financial advisor, you can help people make financial decisions that will help them to get by on less money than they did before. These kinds of services are invaluable when your dollars buy less than they did before.
When times are good and your car breaks down, you very well may decide that it’s simply easier to replace your vehicle with a new one. But when people fall on leaner times, and something goes wrong with their car, they turn to repairs to keep their mode of transportation operational. According to the Kellogg School of Management, “In the wake of the global financial crisis in 2008, Americans stopped buying new cars…. [A]nnual new car sales decreased by an order of magnitude, from about 16 million in 2005 to less than 10 million.”
With Americans hanging onto their cars for longer, trying to squeeze out every mile possible, auto repair and maintenance shops continue to do well during economic downturns. If this is the business you were hoping to start, then you shouldn’t have to worry about any recession that might strike next year.
When recessions begin to affect other businesses, those business owners will often turn to consultants for help in keeping the company afloat. That makes business consulting a smart entrepreneurial decision, even in the midst of potentially difficult economic times. If you can start a reliable consulting business, your ability to keep a company’s doors open while others declare bankruptcy can turn your endeavor into a huge success.
Of course, you’ll need to deliver the results if you want that security. But keep in mind that starting a consulting business comes with one other perk—and it’s a big one, if a recession does strike. According to entrepreneur and business consultant Sam Ovens, a consulting firm is one of the fastest, easiest, and most affordable types of companies to start. That makes it a good business choice, if you’re taking the entrepreneurial plunge before or during difficult economic times.
Property Management Companies
While economic troubles are bad news for real estate agents, they’re not so bad for those involved in the rental industry. This includes rental agents and landlords, as well as property management companies. As families tighten their belts, they may turn to renting as a more affordable housing solution than paying a monthly mortgage. If you can get yourself into this business before an economic crisis strikes, you should be able to weather a recession without too much trouble.
Nobody knows for certain what 2018 will bring. So if you’re thinking about starting a business soon, keep in mind the looming possibility of another recession, and consider making your startup one of the recession-proof options listed above.