"Within one month our revenues had jumped over 50%."

Top 10 Business Sectors That Thrive During A Recession

open for business

Let your business thrive

For most small business owners, the recession brings with it nothing but doom and gloom. Dropping sales are typically accompanied by cash flow problems and for many, it’s simply a matter of weathering the storm.

The good news however is that for some small business owners, the outlook isn’t quite so pessimistic. Contrary to popular belief, some business sectors are not only failing to suffer, they’re positively thriving.

Should you find yourself on the lookout for a new business opportunity, here are ten sectors that, despite the gloomy economic climate, continue to go from strength to strength.

Health Care

First off, we have health care, if you’re sick, you’re going to seek medical treatment. And the amount of money in your pocket is largely irrelevant. In fact, somewhat depressingly, health care services are more likely to experience growth during a recession than decline. This is because with a recession, comes increased stress levels. And this often leads to a corresponding decline in both physical and mental health.

Repair Services

During tough economic times, the first thing to go are usually big ticket purchases that are not strictly necessary. And a perfect example of this is a replacement for a broken product that could just as easily be repaired. As a result, there’s no better time to be involved in the repairs industry. Examples include auto, electrical and general home maintenance.

Self Help

Self help is another sector whose popularity during a recession should be largely self explanatory. Self help products are not just about personal development, they’re also about hope. And this is obviously something that people need a lot more of when times are tough.

Coupons

If a coupon company is popular outside of a recession, you can generally expect its popularity to explode when a recession hits. Coupons are obviously designed to save people money and this is exactly what everyone is looking for during a recession. While coupons are traditionally popular among the lower classes, everyone likes a good deal during a recession.

Temping Agencies

When a recession hits, it’s not just consumers, but also companies that feel the squeeze. Small businesses in particular are looking to save money wherever they can and temp agencies provide a simple and straightforward means of doing just that. While it certainly doesn’t help with unemployment statistics, during a recession, temp workers are always going to be popular.

Education

Speaking of unemployment, when jobs are scarce, enrolments in further education tend to increase. Graduates, knowing that the job market is weak, decide to stay in university longer. And even those who’ve been out of education for many years are often left with no choice but to update their skill sets to deal with the increased workplace competition.

Grocery Stores

While the average restaurant is hard hit during a recession, the same certainly cannot be said about grocery stores. As more and more people opt out of expensive restaurant visits, more and more people hit the supermarkets to stock up on food that they can prepare themselves. It follows that if you own a competitively priced grocery store, you can expect your profits to go up, not down, during a recession.

Financial Advisors

Knowing where to invest, and more importantly where not to, generally becomes a lot more difficult when a recession hits. Traditionally safe bets such as property can suddenly become rife with danger. It follows that anybody offering advice on how to navigate such dangers can expect their popularity to greatly increase during a recession.

Property Management

Property prices might plunge during a recession but that doesn’t mean that the property management sector can’t remain as buoyant as ever. Demand for rental accommodation only drops when the population does. And where there’s people renting property, there’s always going to be property management companies getting their cut.

Vices

Finally, we have vices, when times are tough, they can seem even more attractive than usual. Sales of alcohol and cigarettes are both more likely to rise than fall during a recession. The same logic applies to gambling. Surprisingly, the less money people have at their disposal, the more likely they are to want to gamble with it.

About the Author

Danny Sawyer is an employee at Halbert Brothers Inc., a company providing full service machinery rigging as well as turnkey plant re-locations. He is passionate about adventure sports and movies.

Tags: , , , , ,

Author:Globial International Business Team

The Globial International Business Team researches, analyzes, and reports on all things related to global trade and business.

Subscribe

Get our news and articles

No comments yet.

Leave a Reply

CommentLuv badge