When a recession hits our economy, many businesses suffer. Buying slows, borrowing money is more challenging, and supply and demand dwindle. Currently, we are at the beginning of a recession cycle. However, the good news is there are some recession proof businesses that are not affected by a downturn in the economy.
Thankfully even in hard times, there are some recession proof businesses that do well. The best business during a recession is one that provides goods and services that people need to live. Although no company is completely recession-proof, some handle financial crises better than others.
Some examples of recession-proof businesses are:
A company that provides staple products that people need to live, like grocery stores, does well even in a poor economy. Department stores like Target, Walmart, and Kohl’s would also fall into that category.
A business that sells alcohol, such as bars, package stores, convenience/gas stations, and liquor stores, does well during a recession. A company selling comfort foods also does well, including take-out restaurants and even boutique candy stores. People want to feel good when the economy is suffering, so they buy alcohol and comfort foods to make themselves feel better.
There is a saying that the rich get richer. During a recession, another recession proof business is luxury retail outlets. Designer clothing, purses, and jewelry do really well because most people with additional means keep spending no matter what is happening with the rest of the world.
Even if things aren’t great, we all still want to look our best. During a recession or other economic bump in the road, cosmetic sales soar. That includes men’s and women’s hair products, colognes, shampoos, beauty creams, and makeup.
As grim as it might seem, funeral homes and related businesses do fine no matter what is happening economically. Additionally, even if the U.S. is going through a tough time financially, you still have to pay your taxes, so accountants and tax preparation services fare well during these cycles.
Additionally, the federal government is usually unscathed by any type of economic dip. There are other recession proof businesses as well.
If you want to learn more about how to recession proof businesses, contact Interactive Accountants today. We have over 100 years of combined experience and have helped hundreds of clients weather all types of markets. If you aren’t currently in the best recession-proof business, we can help.