There are all kinds of reasons why you may want to start your own business. You might have reached a point in your career where you want more freedom or a better work-life balance. Maybe you’ve spent your career working for others, and you’re ready to take the next step and be your own boss. It could also be that economic circumstances mean you must roll your sleeves up and create your own opportunity.
Whatever your reasons are, starting a business is a thrilling, and scary, time for an entrepreneur. This is doubly true during an economic recession. Thankfully, it’s not all doom and gloom because you’re starting a business in a recession.
In fact, there are some business models that continue to thrive, even during an economic downturn. Here are seven recession proof business models you should seriously consider to make sure you make the right choice when starting our company.
1. Repair Services
Entering the repair industry is a safe bet in weathering any economic storm as a new business. Essential services that people always need, regardless of circumstances, tend to fare well in hard times.
This is because their business model isn’t reliant on the economy. Your refrigerator doesn’t care about the economy when it decides to stop running. The same goes for your plumbing or electrical system.
Whether you’re pursuing training to become a licensed electrician or are handy enough to perform jobs that don’t require certifications, repair services can be a great way to turn a profit during a recession.
2. Food Services Built for Delivery and Drive-Thru
People always need to eat. This is true regardless of what the world looks like. However, what people eat and how they eat it changes during a recession.
The business model for a restaurant must also adapt, given the extra restrictions that come with a global pandemic. This has made drive-thru and delivery service a lifesaver for restaurants.
Fewer customers feel comfortable spending extended time in enclosed spaces, and it will likely be some time before confidence returns to normal. This has more people opting for delivery services for things they never would have thought of before.
If you’ve dreamt of opening a restaurant, it can still make sense in a recession as long as you have a drive-thru or are prepared to offer delivery for diners.
3. Mobile Tire Services
We just talked about two kinds of services that always do well in a recession: essential repairs and delivery services. What happens when you combine both of these recession proof industries into one successful business model? The result is a mobile tire service such as Tread Connection.
Spending time in a waiting room for tire service has never been fun for customers. The worries caused by coronavirus have turned an inconvenient typical tire shop visit into a stressful and harrowing experience. As a result, more customers prefer at-home tire installation to find the services they need, in a safe environment on a schedule that works for them.
A mobile tire service lets entrepreneurs bring the tire shop directly to their clients. No waiting rooms, no hassles, just convenient, quality service at your home or office. This surging reliance on at-home contactless services is a trend that is expected to continue long after the pandemic has passed. This makes a mobile tire service a strong selection among recession proof business models.
4. Sweets Businesses are a Sweet Deal
You might think that as belts tighten, sweets and snacks would be among the first things to go. Actually, the opposite is true. While other, larger purchases are put on the back burner, people still find themselves in need of small splurge from time to time. This often comes in the form of sweets and snacks.
Comfort foods are a source of reassurance and an affordable luxury that people can rely on when times are tough. While many consumers may not feel comfortable spending on that spa outing, they can easily justify a few bucks for a bar of nice chocolate.
Research shows that as of March 2020, sales of comfort foods were up nearly 50 percent compared to 2019. The same is true for specialty coffee and other relatively affordable luxury goods. Talk about a sweet deal!
5. IT Services
In a time when we’re dependent on our technology for practically everything, it makes sense that information technology (IT) services would be in high demand. The IT industry thrived during the last recession, and it makes sense that it stands to also do well during the current downturn.
COVID-19 has made the importance of technology and connectivity more apparent than ever. More employees are working from home, and businesses are exceedingly reliant on technology to keep things running.
Even companies that never needed IT services before likely need them now as they turn to virtual conferences, remote work, and more. IT professionals are well-positioned to handle the newfound needs of businesses adapting to a virtual workplace.
6.Tutoring and Teaching Businesses
The school year looks much different in 2020. Much of this is due to the ongoing coronavirus pandemic. Because of the rise in remote learning and virtual classrooms, many students find themselves in need of additional instruction.
This has made the popularity of online and virtual tutors skyrocket as parents and students do everything they can to ensure they can keep learning. While the method through which students learn may change, the importance of learning does not. Providing students with the resources they need to succeed in the virtual classroom is a vital service that students will need both now and in the future.
7. Healthcare and Home Health Care Services
Health care is another industry that has long been considered recession proof. This is especially true for home health care workers. Even before the pandemic hit, the Bureau of Labor Statistics projected a 36 percent growth rate between 2018 and 2028 for home health care workers.
As many hospitals and healthcare facilities fill up due to the extra strain of the pandemic, more patients are opting for in-home care to minimize hospital capacity and reduce their own potential exposure to the virus.
Combine the increased demand for in-home care with the aging Baby Boomer population, and you have a formula for a successful career that will continue for some time.
Start Your Own Franchise in a Recession Proof Industry
Obviously, there’s no such thing as any business being “recession proof.” Even so, there are still safer bets than others when it comes to striking it out on your own during a downturn.
Learn how you can start your own franchise with a brand that is disrupting the already recession-resistant tire industry as we know it. Start your Tread Connection franchise today and get in on the ground floor of this rapidly expanding recession proof industry.