Recession Proof Businesses
Find The Right Business That Is Always In Need
Over the years, there have been downturns in the economy which have made entrepreneurs very apprehensive about chasing their dreams of starting up their own companies.
While many industries are susceptible to the slightest economics dips, there are some recession proof business ideas that can keep entrepreneurs on an even keel, even in the worst economic conditions.
Qualities Of A Recession Proof Businesses
Certain businesses fare better than others during a recession. For instance, high end electronics and and luxury items see fewer sales during a recession. Consumers, as a rule, become very cautious about spending money, especially during periods when the economy would benefit from an influx of capital. Here are some things to consider when thinking about starting up a recession proof business.
Does Your Business Offer Products Or Services That Are Universally Used On A Regular Basis?
Companies that serve critical and essential roles are recession proof businesses. Every link in the chain of the healthcare industry, grocery stores, the automotive field, and the like provide critical services. During an economic boom as well as a recession, essential goods and services will always make money from consumers, because they serve customers so that they can weather the harsh economic periods.
Is Your Client Base Protected From A Recession?
Private sector companies that are contracted with state and federal agencies, for example, will be protected from a recession because the various branches of government need to function, regardless of the state of the economy. The energy industry will never suffer due to a recession because everyone needs oil, gas, electric, and even nuclear power. Transportation and logistics companies have customers and jobs that are well-insulated against economic downturns. If customers are protected from the recession, then, by extension, the companies that service those clients are recession proof businesses.
Proprietary Products, Services And Intellectual Property
Many recession proof businesses have proprietary technology and processes that set themselves apart from other companies in their respective industries. A company that manufactures equipment that doctors need on a daily basis, a company with patents on certain computer hardware, and pharmaceutical corporations will find themselves completely shielded from the negative effects of a recession.
A recession will always make entrepreneurs and consumers think in terms of economic fundamentals, and if something can be categorized as an unnecessary expense, then people will not buy it.
Recession Proof Businesses
The qualities of recession proof businesses are a good litmus test when trying to come up with business concepts that can whether poor economic conditions. However, if you still need some accessible real-world examples to see recession proof business ideas in action, we have compiled a short list.
When the economy is bad, two personalities emerge. First, people becomes frustrated and desperate – willing to go outside of societal norms in order to make a few dollars, and this can lead to some highly illegal activities. Second, people become scared and anxious – wanting to take extra measures to protect whatever goods and assets they have, until the economy starts to turn around for the better. Security services are recession proof businesses – especially when the economy isn’t at its best.
If there is one industry that is completely sheltered from an economic crisis, it’s the world of commercial finance. During a recession, banks will start raising interest rates on loans, approve fewer loan applications, and suspend certain packages and incentives that used to be regularly available to business owners and entrepreneurs. In fact, during the economic crisis of 2008, when banks and credit unions were facing branch closings due to over-extension and predatory lending, the independent commercial lenders were able to get business owners the financing they needed at rates that were competitive and flexible. Businesses always need financing, and even if it is through a series of micro-loans and debt restructuring, the world of commercial finance keeps businesses running when banks are struggling. Commercial finance is one of the most recession proof businesses. Many people choose to start up businesses in this field because on the low investment, high yield profits, and that the industry never misses a beat, even during a major recession.
Looking To Invest In A Recession Proof Business?
If you are thinking of starting your own business, but are looking for opportunities that are recession proof, consider the Commercial Capital Training Group. The Commercial Capital Training Group (CCTG) gives emerging entrepreneurs the training, tools, and support to launch their own businesses in the world of commercial finance.
Graduates from CCTG’s programs have the skills to start a recession proof business with unlimited profitability, plus ongoing support from our panel of lenders and financial experts (with over 80 years of combined industry experience) to ensure success, even when other industries are being hit hard by a recession.
Take control of your destiny and embrace financial independence with the Commercial Capital Training Group, and launch your own recession proof business today!