Each year, thousands of people decide they hate their jobs and want to embark on a new journey by starting a business. The trouble is, not all of those individuals end up creating successful enterprises.
Startups fail for various reasons, but one of them is low demand due to economic strife. You’re likely reading this because you want to quit your job and be a small business entrepreneur, but you want to succeed in your new business venture.
Of course, the big question is what type of business you should start that will do well even during times of economic crisis? To answer that question, keep reading to learn more about seven top recession-proof startup business ideas:
#1: Affordable Luxury Products
Some would-be entrepreneurs might assume that no-one has any money to spend during a recession. It might shock you to learn that the opposite is true. Many people will still purchase ‘luxuries’ amid the doom and gloom of an economic crisis.
One way to capitalize on that fact is by setting up a new business selling affordable luxury products. In a nutshell, these aren’t essentials, nor are they ‘expensive’ premium products. Such items are typically mid-level consumer products.
#2: Auto Repair Services
Most consumers have at least one vehicle in their household, especially in rural areas with little to no public transport. Auto repair services are essential because people still need their cars and trucks maintained, and many drivers will seldom know how to do that.
If you’re handy with a spanner and can easily rebuild an engine, you should consider starting a business offering auto repair services. You could even open a franchise in your area, such as Milex Complete Auto Care.
#3: Resume Writing Services
Unemployment will rise during a recession because people get laid off, and businesses shut down due to significant revenue loss. As a result, laid-off workers will immediately look for a new job, and one thing they’ll always need to do is update their resumes.
If you’ve got excellent writing skills and can write content that packs a punch, you could offer a resume writing service. It’s an enterprise you can run from home, and you’ll have virtually no overheads.
#4: Bail Bond Services
Each year, thousands of people get arrested by the police for various reasons. Those individuals will often have legal representation, but one thing they all have in common is the need for freedom.
Many people will often get granted bail but will need to pay the bail amount set by the judge presiding over their case. In those situations, many individuals will typically require a bail bond to secure their release from jail.
You could set up a bail bond company and help those individuals get their freedom back once again. As you can imagine, bail bond services is a niche business that never gets affected by recessions.
It’s relatively straightforward to set up a bail bond services business, and you can even use software like Bailtec to help manage your clients and their payment plans.
#5: Tutoring Services
When a recession hits, many people looking for a new job or getting laid off want to go back to college. They do this because gaining a qualification will give them the edge when they apply for new jobs. Some people will also go to college as they want a new career.
In those scenarios, individuals enrolled in college may want extra help to understand their learning material fully. As such, they’ll often pay for additional tutoring to ensure they have the best possible chance of gaining their new qualifications.
If you’re an expert in a particular field, you could always set up a new business offering tutoring services. You could provide your services face-to-face or via the Internet using video call technology.
#6: Discount Food Store
Everybody has to eat – even during a recession. The trouble is when money’s tight, some people cannot afford to buy their groceries from their usual grocery stores.
A discount food store typically makes a profit by purchasing goods in bulk at low prices and only making a small margin on each item. Their prices are significantly lower than their competitors, and so they’ll always be busy with customers buying lots of cheap food.
#7: Discount Clothing Store
Lastly, people will still buy clothes during a recession as clothing is necessary, much like food. But, consumers will be more selective about where they spend their money, especially if their families suffer a drop in income.
As with discount food stores, you could buy lots of garments cheaply and sell them for a low margin. Discount clothing stores always do well and will even generate more revenue during a recession.