In all, 30.6% of these businesses reported having more than three months worth of cash on hand—a comfortable number. Construction businesses have also pandemic proof businesses reported a relatively high rate of increase in both the number of employees working and the hours they worked. Clearly, projects are continuing apace for this industry, despite the recession. Businesses in these eight industries appear to be performing well, according to unemployment levels as well as the results of recent weekly surveys from the U.S.
Integrate online and offline
- If you don’t have the resources to start your own car repair business, you can offer these services to family and friends first.
- When we’re stressed out by the state of the world, we often use small acts of self-care to lift our mood, which makes beauty services a great recession-proof business idea.
- Finance and insurance businesses may not exactly be thriving as much as they are—relatively—unaffected by the events of 2020.
- Companies have invested in this software to better connect employees who no longer have the office to center themselves around.
- In turn, companies that enable the baking of bread have seen their demand sharply increase, including makers of flour and yeast.
In general, anything requiring expertise is hard to replace or do without, and therefore more recession-proof. Understanding what makes a business recession-proof is invaluable, whether you’re looking to start something new or just see your current company through an economic downturn. Learn the key factors that help a business survive an economic downturn and the best recession‑proof companies you can start right now. The retail trade encompasses more than just the local gift shop or national brand clothing stores. This industry includes “store retailers” that sell office supplies, electronics, automobiles, and the like; as well as “non-store retailers” that sell through vending machines, catalogs, and other direct methods.
Liquor and wine stores
With the general public practicing “social distancing” and many U.S. states closing restaurant dining rooms, more families are stocking up on goods and eating at home. This has led to large and small grocers alike to see surges in customer demand. Technology support services, and online entertainment providers such as game and app developers have also done well in a world of increasing automation.
Top 5 pandemic-proof industries
Our partners cannot pay us to guarantee favorable reviews of their products or services. We believe everyone should be able to make financial decisions with confidence. For over a year, the coronavirus caused people to work at home and stay inside most of the day. This combined with the anxiety that stems from a pandemic led to a loss in routine, with people no longer working out, drinking more alcohol and generally taking care of themselves less. From marketing to legal to finance, you can advise others in just about any area of business expertise with a https://www.facebook.com/BooksTimeInc/ consulting firm.
- Major changes in the world economy and consumer behavior can be good indicators of what to expect.
- With more people cooped up inside in 2020, consumers turned to gaming to help them pass the time during the pandemic.
- Compared to grocery stores, confectionary stores are a slightly different, but still very stable, recession-proof business option.
- Other factors driving up used car interest include low inventory of new cars, low interest rates and people wanting to spend less cash on cars due to economic uncertainty.
- They’re an absolute necessity and, regardless of economic climate, they need to be kept in working order.
Products
In fact, according to the lipstick effect, people tend to spend more on affordable luxuries during recessions. When we’re stressed out by the state of the world, we often use small acts of self-care to lift our mood, which makes beauty services a great recession-proof business idea. They are an essential aspect of healthcare that people will not forgo, regardless of the financial struggles they are facing. Even during the most difficult times, research into life saving treatments continues, and pharmacies need to stay open for people to obtain drugs https://www.bookstime.com/articles/what-is-the-accounting-journal-entry-for-depreciation that help fight colds, control cholesterol, and combat other common ailments.