Do you know even during the recession, some businesses remain profitable and unharmed? Ok, can you guess some of them? What if you are riding in one of them?

Let’s have a look!

What is a recession-proof business?

A recession is when people get cautious about their spending and try to invest their money more carefully as, at that time, they fear that they may lose their jobs, or the economy will worsen.

But a handful of businesses don’t fall into the danger line of a recession. Their industry doesn’t get affected by the recession that much, not even in an economic downturn. Instead, their business ends up being a need and must for everyone else, without which they can’t do or survive. Companies that people need in their day to day life survive the recession and end up being profitable.

So, let’s see the recession-free businesses and know why are recession-free.

Grocery store

The 90% salary of a poor person, the 50% salary of a middle-class person, and 20% salary of a rich person is spent on food.

People can cut the cos t of their luxury, trips, or any hobby they have, but they can’t cut off their food value.

This gives me enough reason why grocery shop is a recession-free business. No matter what happens, people will need food and grocery for their survival, and they will surely invest more in food and grocery items rather than unimportant expenses.

Even if people become homeless or jobless, they do need food to save their lives. Besides grocery shops, even restaurants and places where food is people can find a meal at a low price get benefited from recession.

Their business runs well, and where everyone ends up being bankrupt or jobless, they get an increase in their profit margin.

Children products

The businesses that cater to child needs and products are tended to be recession-proof. As there are many families having babies, and people may ignore their needs, but the child must get the required things at any cost.

They will need full care, and the products they need can’t be replaced by anything cheap as the parents of the child do have concerns about the products.

Many a time, parents may cut down on their expenses and reduce the costs, but they don’t cut the needs of their child, compromising the quality. Kids need diapers, bottles, nipples, milk, cereal.

If they cut off these costs and provide their child with less expensive products, then the child might not grow up properly.

Every parent wants to buy the best staff for their children. They want to provide them with every possible happiness.

Let’s look at their birthday or Christmas party. Parents do get something for their children on their birthdays and Christmas present.

So somehow, we can say that businesses cater to baby products are recession-proof business ideas. Businesses cater to children are the most profitable and promising in every economic situation.

Childcare and daycare services

I have already mentioned that baby items are recession-proof. The same goes for childcare services. During the recession, childcare service’s demand goes up, and even their daycare routine doesn’t change that much.

When the recession activates, both the parents try to go to work to bear the family’s expenses. So, they ultimately try to put their baby at a daycare or childcare services.

They want their babies’ safety. If their budgets get tight and they need to cut down any cost, they will consider it last.

Both working parents and the single-parent family mainly bear these costs as they want their kids’ safety even when they aren’t at home.

Even if they lose their job or their business crashes, they don’t cut down their childcare costs. They want their children to be safe and sound is a fun-loving place.

Aged care worker

In every house, we do have some elder or aged citizens who need some special care. And no matter what happens, the cost of elder can’t be ignored.

Healthcare facility providers and healthcare workers job is always saved from recession. The job holders hire a caretaker for their elderly parents to make sure their parents are safe and sound at home when they aren’t around them.

Seniors aren’t taken to a care center, but they need a caregiver at their house to serve them. As they become weak at this age and can’t do their chores, they need assistance with their work and chores.

It may look like a luxury for some of you, but, it is not a luxury but a need for someone. So, this proves that age care workers’ jobs and businesses are recession-proof.

Medical clinics (dental and others)

Medical Services are the ones that can’t be avoided and are unpredictable. We don’t know when, where, and how we will need medical care.

You can’t save medical bills to achieve financial freedom. From kids to elders, all people need medical facilities anyway. During a recession, we noticed a rise in medical clinic profit margins and a rise in their demands. Their services are more in need then.

Even in recessions, people face more problems like anxiety and depression, wanting to get medical help and assistance. And these costs are inevitable, which can’t be ignored.

People take loans or take money from friends but still take medical care and pay the bills accordingly.

People take insurance for medical care, and somehow, they manage to take this service, and their business goes on with profit margins.

Even if they don’t need medical care, they need medicines and therapies for their running diseases. So, we can say so that clinical medical services are a recession-proof business.

Cleaning Services

When it comes to cleaning services, I won’t say this business comes in high demand during a recession, but they also don’t lose their demand.

People need to make their surroundings clean and make the environment suitable for living. For this purpose, clearing services do survive quite an in-demand even when a recession takes place.

The government mainly maintains cleaning services, and the government also supports these kinds of businesses that are beneficial to the country.

Be it an apartment, a hospital, an office, a bank, a court, or the streets, hotels, classrooms, malls, we all need these places to be cleaned by any means. These places are required to be cleaned anyhow, and for that, we need cleaning services which will complete the work.

So, cleaning may sound like a luxury but is it really? As some governments are strict about cleanliness, and for that these businesses are going in high demand.

And even in a recession, we will need them to do such works. We can cut down the apartment clearing, but can we cut down the other ones? No, we can’t. So eventually, cleaning services is a recession-proof business.

Accountant

Accountants are the core of any company. May the world turn down, and everything becomes messed up, the demand for an accountant will never expire.

May it be about tax preparation services or about bookkeeping or running the information system of the company properly; they are needed for sure. Even they are the persons who make the company cut their costs more according to the circumstances.

Even during a recession, businesses need to pay their statutes and preserve track of expenditures and revenue.

They can’t just get rid of the person who knows the company’s numbers and makes it more profitable with the knowledge and expertise of this section.

Managing the costs and taxes, also keeping the most effective and strategic cost-cutting methods are essential during a recession. So, an accountant can’t be cut off so easily. That makes this business recession-proof and even more in demand during recessions.

Trade business (Driver, plumber, mechanic, electrician)

Nothing stops owing to the bad economy. May whatever happens in life, the show must go on! And this precisely refers to transportation usage. Nowadays, whatever we need to do, we need transportation to go to our destination. So, the service of repair and mechanical is always needed for us. The world is moving fast, and so do we need to. At present nothing happens without transport.

To be very honest, we don’t have any facilities like our cars or vans will never be broken or stopped working.

So, we do need to repair industry and electrical service for a smooth and stable life. No matter what happens, we must use this plumber, electrician, or Car renovation services for our day-to-day works.

If we don’t make them useable again with the mechanical service, we will need to buy new items, which is more expensive than the benefit.

IT services

IT or Information Technology is the future of ours. We all need IT services in our day to day life.

People are getting used to work from home nowadays, as this is giving them flexibility to work at their own schedule.

The demand for IT services is increasing day by day, and it seems like a recession-proof job opportunity. This is the future of the business world.

We are now living in a world of technologies, and we need security for them. Without IT scrutiny, we will lose the security of our information and data.

Small business working from home needs IT support. Also, government is trying to provide their services online. Their confidential information needs to be protected and encrypted. So, IT services remain in demand always.

Courier and delivery business

Businesses do run in a bad economy; they don’t shut down their business and sit until the economy gets better. Mails are still delivered, products are still shipped, letters are still proposed. And for these things we do need courier and delivery businesses.

Sales and purchases may decline, but still, it never diminishes completely. Even if the service is slightly affected by the recession, the cost is less than other businesses.

We still need to courier some documents or products and order online, then take packages. And in the period of recession, people usually buy second-hand products online and then take courier service.

Food Business

Even during a recession, people need to eat for their survival. People may cut off any cost, but they can’t cut off the cost of their food. They still go to restaurants and retail stores to purchase food and consume it.

As the food is the main thing for which we mainly earn. We can’t just ignore the food business talking of the recession-proof businesses.

We do need food businesses. Be it homemade food or restaurant food. Think about yourself if you get two options, food, or a designer’s new dress for seven days.

What will you choose? Food right! As if you don’t have food, you will starve and die eventually. So, we do need food for our survival, and this is a must need for us. So, the food businesses are always at the peak of demand may whatever the economy is like.

Discount Retail (Dollar store)

While a recession is happening, we all think about cutting our costs and still fulfilling our needs. For that, we have discount stores. These stores mainly give a significant discount on their products and make it easier for us to purchase needed things at a low and affordable price.

It is evident that in such crisis time, people will love those businesses that will help them cut their costs and still fulfil their needs. Dollar stores and discounts are an example of these.

They sell the needed things at a low cost. Like superstores, they sell more items at lower prices and generate a fair amount of profit from this tactic.

As discount stores buy items and products in a low margin and sell them at a low-profit margin, they sell more in quantity, and their profit goes up.

As this is the ultimate solution to the people facing a crisis, this business also does well in a recession period.

Can you become rich during recession?

Yes, it is possible to become rich during recession. You can certainly take advantage of low housing costs and shares.

All you have to do is buy during recession and hold for future. You patience will be paid off automatically.

There are many companies who became more profitable during recession. Lets look at some of the examples from the recession in 2008.

We all have heard of the great recession of 2008, and even you haven’t them let me enlighten you there.

In 2008, the Great Recession took place, and it began to become the biggest curse to the businessman, entrepreneurs, and jobholders.

If you were a child back, you might not understand the depth, but your parents have struggled financially. The time was hard for every person who was earning then. Many big companies became bankrupt, banks became hopeless, and families lost their jobs.

While a recession goes on, most businesses aren’t recession-proof businesses, leading to distinction or bankruptcy. As people start to cut their expenses and ultimately, many product consumptions and service taking are put on hold.

Like cutting your hair from a renowned and expensive shop is cut off, Netflix and chill don’t even count in the necessity; getting your nails done isn’t more important than eating food.

Many businesses start to lose their customers and begin to lose their market shares. Even their profit margin is poorly affected by this. This economic downfall heavily influences the entertainment industry, the luxury industry, and many others like these.

But some companies do survive the recession and remain profitable. They use such tactics and strategies to adapt to the situation and change their actions accordingly.

Many companies have survived the Great Recession of 2008. Some of them are Netflix, Groupon, Lego, Airbnb, Dominos and Amazon.

It’s not like that recession only happened in 2008. We have faced uncountable recessions through the times. Many companies use different tactics to survive in the market at that time. Their aim isn’t to make a profit actually; they aim to cater to the need and stick to their position.

Let’s look at some strategies taken by big companies during the period of recession.

Netflix:

The moment you read Netflix, what did you think? Netflix is such an enormous company! They would easily survive any economic downturn. But did it?

Netflix flourished and became significant in 2013 when the TV series “House of Cards” become the most-watched TV series. Before 2013 it was hard for Netflix to survive any recession.

But they took some tactics and strategies to take competitive advantage and sustain such a downturn.

They introduced a new product, the streaming service when the Great recession 2008 took place.

They made themselves a place where people can stream videos and watch them from home using a rental store.

Even during 2008 and 2009, they partnered with organizations like Xbox. The primary purpose of this partnership was to make people stream videos through those devices.

This was a strategic partnership of Netflix to make its products available to the market.

By doing such things and taking these strategic decisions, Netflix survived in the recession period and ended up being one of the best companies of all time.

During such a downturn, the thing that can help us sustain is innovation and differentiation. Collaboration and partnership can take them furthermore ahead.

Groupon:

Groupon is a company everyone knows, and they also faced the disastrous 2008 recession. Even they survived the economic downfall and remained strong throughout.

What many of us don’t know that Groupon was a 2008 startup. They launched in the middle of 2008 when the great recession was going on. A challenging one indeed but worth it! But how did they pull this off the market?

They did this with the help of some great strategies and steps. They started their business with a discount giving note. And during a recession, values are like the best way possible to attract customers.

They were offering discounts, and their sales go up eventually. This was risky but worthy strategy to take.

Discounts make them what they are now. As they did what their customers need and cater to their needs. As a result, they did end up having a good and promising customer base. Even they survived the recession likewise.

So, we can say it’s just about taking an in-depth look at the situation and grab it.

Lego:

Lego is one of the most successful brands of all time, and we must think this isn’t a company that may be affected by the recession, but this isn’t true.

Lego’s case was mesmerizing as why would a toy company expand so much and be an excellent profit-making company as well!

Let’s dig more here. Amusement and toys are related to the child industry, which is already rising and recession-proof. While the 2008 recession, Lego decided to go global and sell its toys worldwide.

This was mainly their lucky stroke.

They built a centralized effort and started to make revenue from Asia and Europe. As an economic crisis or downturn was going on, they changed their focus for a short period.

Doing this, they become highly profitable and expanding their businesses worldwide, even in this economic downturn.

Dominos:

If you love pizza, chances are that you heard of Dominos.

Who has not heard of Dominos! Yes, they also faced the recession and overcame it. They do have taken some strategies for survival; most of them are already mentioned.

First, they focused on the marketing of their products. They marketed their products so enormously that whenever anyone thinks of pizza, they think of Dominos.

They created some TV advertising at that time. TV advertising may not sound unusual to you now, but back then, in 2008, it was a huge thing to do.

Then here comes the big stroke, they sponsored the show ‘Britain’s Got Talent’.

Their central theme was marketing! They marketed their products so accurately and made their image in the minds of consumers.

We all love dominoes for their name, fame, and pizza.

Their business flourished during the recession because of their unique and strategic ideas.

Conclusion:

Don’t think the recession is completely a bad thing. You can take your business in the next level during a recession.

You can read case studies of successful companies which thrived during the recession.

You don’t have to do lots of things to be successful. Some minor tweaks around online marketing will get you some success.