Top 10 Recession-Proof Businesses in 2024
Michael Nicholas / Franchising / August 3, 2023
Recessions are a natural part of the economic cycle, coming and going like the tides. Despite the inevitable economic challenges, entrepreneurs pour their time, energy, and resources into starting their companies, hoping for success even during times of economic uncertainty.
Savvy entrepreneurs understand that waiting for the “perfect” moment to start a business is futile. A better tactic is to opt for a company that can withstand the test of time and economic downturns by choosing recession-proof industries.
In this blog, we’ll explore ten recession-proof business ideas that can offer the potential for lasting success and stability, regardless of the economic climate. Let’s dive into these opportunities and discover how specific businesses that do well in a recession can provide peace of mind for entrepreneurs in both prosperous and challenging times.
A recession-proof business is one that is not as heavily impacted by the economic effects of a recession, typically stemming from industries that provide basic needs. Because they offer needed products and services, they are the last industries to be affected by changes in consumer spending.
To be clear, there is no such thing as a fully recession-proof business. Every recession is completely different and impossible to predict. For example, the real estate market crashed in 2008 but actually thrived during the early 2000s recession. However, some recession-proof industries are much more likely to weather the storm, regardless of what causes the economy to falter.
Recession-proof businesses are those found in sectors that thrive even during economic downturns, such as:
Recession-proof businesses typically cater to non-negotiable needs, offering products or services that people cannot easily forgo. By providing essential solutions, these businesses ensure their relevance and demand even during economic downturns.
Additionally, sustaining affordable prices plays a crucial role in their resilience during challenging times. When consumers become more budget-conscious in recessions, businesses offering competitive pricing are generally better positioned to retain customers and maintain a steady revenue stream.
Regardless of how the economy looks when you decide to start your own business, setting yourself up with a recession-proof business is a solid plan. You never know what the future holds, and these business ideas can give you some assurance now and for years to come.
The automotive services industry includes all post-purchase services necessary to keep a car in working order, such as oil changes, tire repairs, air conditioning, electrical inspections, plus body repair, painting, and much more.
The market is expected to register a 3 percent compound annual growth rate over the next five years and reach a value of $76.91 billion by 2027.
If people aren’t out buying new cars, you can best believe they’re doing everything they can to take care of the ones they have. Cars inevitably need maintenance as they age and have more miles put on them, even during a recession. Plus, as long as the freight industry continues to remain strong, there will be a need for servicing big rigs and delivery trucks.
Times have changed, and more and more families have two working parents, whether out of necessity or personal preference. Paid childcare services provide supervision, care, and sometimes education to infants and young children.
Childcare services were valued at $54.3 billion in 2019 and will continue to grow. From 2020 to 2027, there is an expected compound annual growth rate of 3.9 percent.
During a recession, parents may have to work longer hours or even more than one job. While historically expensive, childcare services are still one of the last costs parents abandon. Not to mention they usually make up a significant part of their budget. It’s not just about a safe place to leave your child while you’re at work. For many, it’s the first step of their growth and education.
The real estate industry involves the sale of land, residential, commercial, and industrial properties. But, there are other businesses involving real estate that may also thrive during a recession, like property management or investment firms.
Zillow Group expects that home value will continue to rise, going up 7.8 percent in the next 12 months.
It might surprise you to see real estate on our list when you consider the Great Recession. However, historically speaking, a recession does not always mean the housing market will crash. As of right now, home prices continue to soar, but even if prices drop, it may be the perfect opportunity for investors.
While prices fluctuate short term, the sector is usually more stable in the long run. Real estate even proved to be one of the most pandemic-proof businesses as the housing market boomed.
Millions of businesses and firms seek outside help regarding accounting and other financial information services, as do individuals. With rules and regulations getting more complicated and confusing, consulting experts seems to be the go-to move. Services offered include tax preparation, bookkeeping, and invoice outsourcing.
Worldwide, the financial services market grew from $2.5 trillion to $3.3 trillion between 2010 and 2018.
Even if the economy slows down, it never comes to a full halt. In fact, financial services drive the economy. So, many financial and accounting services continue to do well during hard times.
Home improvement services encompass a wide range of offerings aimed at enhancing and maintaining residential properties. These services can include renovations, remodeling, repairs, and upgrades to various areas of a home, such as kitchens, bathrooms, flooring, roofing, and more. Whether homeowners want to increase their property’s value, create a more comfortable living space, or address necessary repairs, the home improvement industry caters to their diverse needs.
The home improvement industry accounted for $538 billion in 2021 and is expected to reach more than $620 billion by 2025.
Certain services this industry provides, such as HVAC repair, electric, and home repair, are necessary even during a recession. AC units don’t care about the economic situation, but many Americans live in areas where you simply cannot live without it. Damaged roofs, leaking pipes, and other issues will still need to be repaired immediately. Home improvement also turned out to be a covid-proof business. With people stuck at home, many decided to fix up their houses.
Americans sure do love their pets. The animal care industry is massive and covers many different categories, including medical care, toys, daycare, and more. As people become more educated on animals’ needs and welfare, they are highly aware of where they put their money when it comes to their pets.
The global pet care market is expected to grow to more than 325 billion by 2028, with dog products and services pulling in the highest revenues.
If you believe everything you read on the internet, millennials have canceled having children and are having pets instead. Especially after the pandemic, the pet industry is breaking records, and proper pet care is not something most people are willing to forgo when money gets tight.
Business consulting includes a broad range of professional services other companies need help with, such as strategy, market research, or public relations. Consultants or consulting firms are meant to help their clients by solving specific problems or issues, often saving them money.
From freelancers to large firms, consulting businesses are generating up to $300 billion in annual revenues.
Consulting businesses can stay afloat during recessions because of their ability to be flexible and adapt to market situations. If companies are struggling to make money and you can help them create growth or optimize during a recession, they will want to keep you around. Plus, staying profitable will be much easier with no inventory and little overhead.
The SaaS market has grown at insane speeds over the past ten years and isn’t likely to slow down. Software as a service is delivered via the internet rather than installing complicated software and hardware. As a cloud-based service, the ease, scalability, and security are high, and users typically pay a monthly or yearly fee.
The rapid growth is expected to continue, with the market estimated to be worth about $208 billion in 2023, with US companies leading the way.
The SaaS industry is another with little to no overhead, making them easier for businesses to maintain during a recession. In addition, many of these software are fully integrated into business processes, so companies can’t afford to ditch them during a recession.
The healthcare industry includes a wide range of services, from hospitals and medical clinics to pharmaceutical companies and medical equipment manufacturers. The healthcare sector is dedicated to promoting, maintaining, and restoring human health through medical and therapeutic interventions.
According to Statista, the healthcare market is expected to reach nearly $59 billion in 2023 and show an annual growth rate of 10.4 percent in the years to come.
Healthcare is a fundamental need that people cannot do without, regardless of the economic situation. During a recession, individuals may cut back on unnecessary spending, but they will continue to seek medical care when necessary. Moreover, the recent global pandemic has highlighted the significance of pandemic-proof businesses in the healthcare industry. The ability to provide essential medical services, telehealth consultations, and innovative solutions while adapting to rapidly changing circumstances has highlighted the industry’s resilience.
According to Statista, in 2020, about 16.9 percent of the United States population was 65 or older. By 2030, that percentage is projected to reach 20.6 percent. This demographic shift emphasizes the demand for senior services for this growing population segment.
Senior services may include a range of businesses that cater to the needs of the elderly population. As people age, they may require assistance with daily activities, healthcare, companionship, and other specialized services to maintain a high quality of life.
The aging population’s continuous growth has led to an increased need for senior services, making this one of the most recession-proof industries. For many elderly individuals, these services are crucial for their well-being and safety, ensuring their relevance even during economic downturns. Additionally, the expansion of retirement communities and assisted living facilities opens up further opportunities for entrepreneurs in this field.
Starting an entire business from scratch can be costly, take a while to get things moving, and have no guarantee of success after all your hard work and dedication. A recession-proof franchise can take a lot of the guesswork out of the equation and help you get your business up and running much faster.
Franchising offers a proven business model with established brand recognition, training, and ongoing support from the franchisor. By investing in a recession-proof franchise, such as one with P3 Cost Analysts, you can leverage the expertise and experience of a well-established brand, increasing your chances of success even during challenging economic times. Additionally, as part of a larger network, you can benefit from collective buying power, marketing resources, and shared knowledge.
In uncertain economic times, having a recession-proof business can provide stability and security. The listed recession-proof business ideas cover various industries, from automotive services and child care to real estate and healthcare. By identifying essential products that people will continue to seek even during a recession, you can position your business for long-term success.
If you’re looking for an opportunity for business ownership in a sector that will thrive during all economic conditions, a cost reduction consulting franchise with P3 Cost Analysts could be the right move. If you have a passion for helping other business owners and want to help them cut costs during a recession, then you would shine with a cost reduction consulting franchise.
If you’re interested in learning more about starting a cost reduction consulting franchise, call us at 1-877-843-7579 or email us to speak with a franchise expert.
