Is there a silver lining during times of economic trouble?
While millions are scrambling to preserve their livelihood, some are finding new ways to survive.
The global pandemic is causing economic depressions and recessions in every country. Check out these recession-proof businesses to make money.
7 Recession-Proof Businesses to Start
Many people will choose entrepreneurship of necessity.
Large companies, once thought unshakeable, are crumbling every day. Millions who believed they were secure now understand that no one is immune to joblessness.
People who never thought of themselves as business owners are suddenly looking at ways they can take their skills on the road.
Sound like you? If so, you might be on the verge of finding new ways to make a living.
First, evaluate what made you employable in the first place. What unique talents can you bring to the table?
Then, start exploring some of the most recession-proof industries around.
Want to start with something simple? Try working as a delivery service.
While it’s not exactly your own business, it’s an excellent way to get started with independent employment.
No need to re-invent a UPS or FedEx. All you need is a car.
Since the pandemic, food, grocery, and package delivery services like GrubHub and DoorDash have skyrocketed. As the need for their services has increased, so has their need for extra help.
March saw a hiring binge of gig drivers. Delivery services like Instacard and DoorDash hired hundreds of thousands of workers.
While Amazon hired throngs of new employees for their warehouses, they also hired drivers to fulfill the ever-present need for “last mile” delivery.
With millions of people sheltered away at home, the need for package delivery is going to be strong for the foreseeable future.
2) Online Education
Recessions often push people to develop new skills.
If you have specialized knowledge that others would find useful, you might want to consider online education.
From major universities to private tutors, educators of all stripes are moving online.
The increasing popularity of online classes is a benefit to all. Teachers can develop the curriculum once, then manage it on any number of useful online education platforms.
Students can take the class whenever they want. With social distancing now the norm, both student and teacher can stay sheltered and safe.
So take that talent and share it. If you have never taught before, why not take the plunge? You’ll be surprised how much you know!
3) Junk Removal
Whether we are out and about or sheltered in place, our ability to generate junk is eternal.
A junk removal service is a low-cost, low-skill business that anyone can start. If you have a large truck, a strong back (and maybe a helper or two), you can open up shop.
Large-scale junk removal businesses exist. Often these service construction sites and involve large, industrial-sized bins.
But people often need help purging their property of yard debris, old furniture, or post-moving-sale leftovers.
You can help by saving someone a trip to the junkyard, and make a few bucks in the process.
4) Bicycle or Auto Repair
In a recession, most people will maximize what they already have rather than going new. So, anything that involves repair, repurposing, or refurbishing can do well.
Combine this with the constant need for transportation, and you have a perfect opportunity.
If you already possess the skills, opening an auto repair shop can prove to be a great success during a recession.
When economic times are hard, the last thing anyone wants is to take on a big, fat auto loan. If there is a chance that a repair will squeeze a few more years out of their old clunker, most people will seize on the opportunity.
Once established, repeat customers can lead to a thriving business.
Not ready to go that route? Bicycle repair is also a viable, recession-proof business. It requires far less equipment than auto repair, and it is a skill you can learn within a few months or even weeks.
If you live in an area with abundant bicycle commuting, then you’ll have a cyclical business you can rely on!
There is one question you should ask when evaluating how recession-proof a business is:
How boring is it?
In general, the more boring an industry is, the more necessary it is.
Accounting wins when it comes to the snooze factor. But, you know what? People always need accountants.
Even though accounting requires a specialized degree, bean counters tend to wether all economic downturns. So, if you’re good with numbers, you might want to look into this recession-proof industry.
Whatever your recession-resilient hustle, the reality is that you’re going to want to communicate. And communicate well.
A small business phone system is essential for staying in touch. Whether it’s with your team or your customers, an internet-based mobile phone system keeps you connected.
6) Affordable Luxuries
When you’re looking into how to make money during a recession, affordable luxuries tend to do well.
When the economy tanks, that $5 latte or that slice of artisan rhubarb pie might be the only luxury someone can afford.
Never underestimate people’s need for a little escape. And never underestimate their willingness to pay for it, so long as it’s within their means.
7) A New Startup
We saved the best for last. If you have been keeping a novel idea alive in your mind–an invention or some other bold new way to solve a problem–a recession just might be the best time to act on it.
The idea of a startup seems counterintuitive at first. After all, when the economy goes south, you think you’d want to avoid risk and go for the security, right?
Not so much. Many legendary businesses got their start during recessions. Apple, Whole Foods, 3M, Adobe Systems, and Microsoft all opened shop during a recession.
Your Best Move During a Recession
How to make money during a recession? Act.
While most people are hunkering down, there’s plenty of opportunity in the downtime.
There is no single, fool-proof area that will guarantee you riches. The best recession-proof businesses arise from your natural strengths. So take the leap. You won’t be disappointed.
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