Currently, the US is experiencing the prospect of an economic recession as the nation grapples with the Corona Virus epidemic. Although it is too early to foretell the economic downfall from the international epidemic, the country is already experiencing massive closures, lost profits, layoffs as the doubt of what will happen to the markets. It is in such times that most people consider the stability of their current businesses and jobs.
Although it is not possible to ensure that a business will thrive in a recession, particular industries still prosper during times of widespread economic recession and unemployment. Financial hardships do not essentially equate to individual financial breakdown.
Actually, most individuals tend to try franchising during periods of an economic recession. Franchising is well-known to be performing great in times of strained financial conditions. During the boom times, the anxiety of missing out on incredible chance fuels a sturdy growth in franchise companies.
On the other hand, during a downturn, the fear of financial security and job loss drives several individuals to take control over their futures by capitalizing on franchise businesses.
Despite the current trends of economic stability and growth, the economy is notoriously unpredictable. If you are looking forward to start-up a business, you may need to consider risking your capital to a business that will prosper in good and bad times as well.
How to determine a recession-proof business
Companies or firms that offer goods and services that fulfill individuals’ basic needs are unlikely to break down even during economic recession. As you research on which type of business you want to start, consider fields that provide basic needs. Below is a list of some examples:
- An industry or company that offers stable foods, including grocery
- An industry or company that offers mandated services including pipeline inspection
- An industry or company that offers essential public-work services such as electric servicing
- An industry or company that offers critical maintenance or repair services such as the auto-mechanic industry
Businesses that thrive in a recession
Whether you are purchasing a franchise or starting an independent firm, consider the following firms as feasible choices due to their proven economic endurance.
1# Retail consignment
When there is weak cash flow, individuals typically do not purchase new clothes, books, or furniture- that is a no-brainer. Most individuals choose to rationalize buying the gently utilized items at thrift stalls and consignment stores.
The stigma about second-hand products has vanished; actually, they have become very popular such that there is a common name to describe shopping at thrift stalls; thrifting.
According to CNN Money, while clothing stalls’ sales were low by ten percent in 2009, it was clear that average thrift stores’ sales had risen by an average of thirty-five percent. If you are looking forward to starting a franchise business, you might need to consider the following top-ranked firms:
- Just between friends– this is a top-rated cost-effective franchise that concentrates on consolidating consignment sales occasions.
- Rhea Lana– this is a community-based event kid’s consignment stall. It has been named among the two hundred fastest improving franchises.
2# Senior And Health Service Industries
According to the BLS (Bureau of Labor Statistics), the social assistance and health care sector will add over 5.7 million job opportunities between 2010 and 2022, the largest prospected growth from any type of firm.
The BLS also approximated that the demand for personal health and in-home aides is anticipated to improve by seventy percent due to the aging baby-boomer cohort – the United States predicts that there will be more than 57.8 million child boomers between the ages of sixty-six and eighty-four by 2030).
This firm is facing great improvement and potential job securities, a significant tempting offer for those looking to start their industries.
There are a number of franchise opportunities in the health care sector, including:
- FirstLight Home– is a non-medical, in-home, personal assistance service given to disabled adults, new mothers, and seniors, among others.
- Visiting Angels– this is a private duty, non-medical home assistance agency that specializes in enriching the life quality for thousands of seniors from all over the country.
- Amada Senior Care home– is an in–home, non-medical care franchise company that focuses on helping seniors and their relatives in exploring all existing care alternatives and helping them better understand the VA benefits and long-term insurance.
- Right at Home– is currently servicing customers in eight states, with over six hundred locations in operation. It is among the largest home assistance franchises globally.
- Qualicare family home assistance: this franchise focuses on caring for individuals with complicated health problems, from consistent neurological to Alzheimer’s challenges. They provide nurse-managed and family home care plans.
- Both the CarePatrol and Senior Care Organization assist families in assessing senior housing alternatives.
- Homewatch CareGivers refers to a senior-assistance franchise that earns average revenue of over 1.3 billion dollars. It specializes in improving the life quality of families within their societies.
- The 101 Mobility is a franchise that services individuals with a disability and elderly clients, installing and providing a wide variety of high-quality mobility tools such as porch lifts, ramps, auto lifts, and stairlifts.
- Assisted Living Locators to provide referral service and no-cost placement for independent retirement choices, in-home assistance, and memory care.
3# Information technology
Currently, the world is experiencing a drastic improvement in technology, which in turn emerges new job opportunities. The Wall Street Journal states that information technology was the quickest improving sector in the United States economy at the time of the Great Recession.
The more efficient and effective, newer technology of the past decades has made people interestingly dependent on their devices.
It is very apparent that in today’s world, most clients flaunt the most recent iPhone for the security of their households with the newest technology home security and communicate with Alexa anytime they need their favorite audio to play, or their heat turned on.
Modern technology has leaked into the globe and has taken over control of the operation of our firms, functioning of our daily lives, and interactions.
Due to our dependence on contemporary technology, this firm will keep on growing forever. Actually, the article in the New York Times indicates that the sales of expensive high-tech toys (including video-game systems and TVs) were on the advancement back in 2008 while food sales marked a downfall.
With consistent technological advancement and increasing reliance on our devices comes the urge to comprehend to work with these programs and devices. There is a sturdy market for technological support. For instance, the franchise industry includes:
TeamLogic IT– this franchise services minor firms looking to stay updated about modern technology.
4# Beverages And Foods
No matter the current economic situation, individuals must eat. Whether you are looking for a great healthy option that will sustain themselves during the day or a delicious meal to help them through a depressing condition, there are franchise and business opportunities just waiting for people to invest in.
Sweet taste, sweet returns
According to BLS, consumption of candy increased dramatically at the time of the Great Recession. Apparently, most people in the US utilized a burst of sweet foodstuff for emotional comfort during the periods of the financial crisis, which made this field a strong investment for your prospect franchise and business.
According to the New York Times article, the profits of the Cadbury brand rose by thirty percent in 2008, and in that same year, Swiss Drinks and Food Company showed a 10.9 increase in profits.
The candy industry was proved to be performing greatly even in the time of the Great Recession. Mars Bars, Tootsie Pops, and Snickers were all invented at the time of the Great Recession.
If you need a sweet franchise business opportunity, consider the following:
- Haagen-Dazs shop: this involves over two hundred franchise locations in North America as well as strong brand recognition. The shop is a reward-winning company worth considering.
- Kona Ice: its franchisees have ranked the company as the best year after year on several Business Reviews.
- Health and Happy Products, Inc.: they are the best in the frozen candy industry, integrating fresh and sweet products with incredible services.
Cooking in times of economic recession
During times of economic instability, individuals cut back all their splurges. This means that many people opt for less dinner and others cooking in. According to the DPD (National Purchase Diary), 77.4% of daily meals were cooking at home in 2008.
Home-prepared food increased to eight percent in 2013, during the end of the economic recession. Currently, with the social distancing rules and regulations, home cooking is once more becoming popular.
So, where are individuals getting foodstuff they cook at their homes? At the grocery, definitely.
Grocery stalls are popular stable investments, not only because they provide basic sustenance to people but also because people just need to survive (food and much of it); they also offer basic goods to consumers.
No matter the state of the economy, individuals must brush their teeth, wash their dishes, and do laundry. All of these items are sold at the grocery stores, including dish soap and laundry detergent, all of which must be bought in good or bad times.
Individuals might find themselves spending a lot during an economic recession, but that does not mean that they will cut going out of their budget. Actually, the NCADD found out that individuals tend to drink much alcohol during recession times. They might not be buying fancy mixed alcohols, but they consume plenty of cheap wines and beers.
5# Repair Industry
We are currently far from the times when vehicles do not break down, windows do not shatter, and roofs do not leak. These are bad news to the customers but incredible news for the people with repair industries.
Particularly during recession times, individuals tend to splurge a lot of money on repairs, which is opposite to disposing of their broken items and purchasing new ones.
This is most clear in the automobile sector. According to the Los Angeles Times, three billion dollars rise at mobile auto industries in the United States between 2010 and 2011.
Moreover, automobile franchises that provide a broad range of goods and services tend to perform greater during times of economic recessions compared to businesses that specialize in just a single field.
Are you looking for a franchise business opportunity in the repair business sector? Below is a list of a few options that you should consider:
- PuroClean: is the leading franchise company in property emergency facilities that assist businesses and families overcome various drawbacks caused by mold, water, fire, and any other type of property damage.
- Fibrenew; is the market-leading business that specializes in vinyl, plastic, and leather restoration. It has a strong thirty-year-old franchise corporation with over two hundred and forty franchises from all over the world. The company is a mobile, home-based franchise that provides eco-friendly and flexible hours services.
- Snap-on Tools: this universally famous company offers customers premium instruments in over one hundred and thirty states. With a worldwide franchise network of over four thousand two hundred franchises, the firm is a leading international marketer, manufacturer, and developer of equipment and tool solutions for experts.
- Christian Brothers Automotive Company: established in 1982, the regionally operated and owned industry provides full-service economic repairs.
6# Cleaning services
Although residential cleaning facilities might seem like luxurious activities for many people, it is regulated by the law that all workstations must be clean. Nowadays, and more than ever before, cleaning organizations are experiencing a significant increase in demand.
Think about it: office space, windows, lobbies, and classrooms, among others- all need to be cleaned on a weekly and daily basis. Invest in this sector, just a mop at a time. Cleaning companies, and no matter the situation of the economy, will give great revenue.
Starting a new company or purchasing a franchise is not just a decision that you can make in one night. It is an endeavor that you must research comprehensively.
For many potential investors, franchising is a great opportunity, provided that it gives you a chance to become your own boss without risking starting a corporation from scratch.
You may like the following business articles:
- 15 Home-Based Business Ideas for You to Consider When You Have Less Than $1000
- Top 10 Automobile Business Ideas
- What to Do If You Want to Get Out of A Failing Business
- 10 Profitable Home-Based Internet Businesses Ideas
- What makes a startup successful
With comprehensive research, you can cash on a business that provides security and earns income no matter the current economic state.