The global pandemic has impacted so many businesses and tough economic conditions have been too much for some companies with many ventures folding under the financial strain.
However, the tough trading conditions have also served to highlight some recession-proof businesses that have continued to make money despite the difficulties in turning a profit that other sectors have experienced.
Here is a look at some of the types of businesses that seemingly flourish in any sort of trading climate.
We all need to eat
Although people might cut back slightly on their spending in a recession it is abundantly clear that a business involved in food and beverages has a fighting chance of continuing to thrive.
It is a simple case that, regardless of the state of the economy, we all need to eat.
Make do and mend
Even when times are tough you will still need to get your car repaired or fix a leaking gutter and people will always have to spend a percentage of their money on repairs, even when money is tight.
In fact, there is a definite trend toward repairing and making do with what you have got rather than replacing it with new, so the repair industry can usually be considered recession-proof.
Another type of business that tends to thrive in any financial climate is one that offers health and care services.
With a huge number of baby boomers hitting retirement age there is likely to be strong demand in the care sector.
The need for cleanliness
Although domestic cleaning services might suffer in a recession when consumers cut back, it is clear that there is a continual demand for commercial cleaning.
Even more so when you consider the need for sanitized workspaces as a result of the pandemic.
The desire for a bit of a sweet treat
As already outlined, people will always need to eat, but there is another industry that is closely linked that will also tend to continue to thrive when times are tough.
If you are feeling a bit stressed or just want an affordable treat you are quite likely to turn to a sweet treat for that fix. That is why candy and comfort foods often do well.
It is interesting to note that recessions don’t have an impact on everyone and wealthy people continue to spend regardless of economic conditions.
Sales of luxury items such as designer handbags rose by about 20% in the global recession back in 2008 and the price of must-have luxury items is no barrier if you have the money.
Government spending has to continue, even in a recession, and even if the budget might be cut as a result of financial constraints the orders are unlikely to dry up completely if you run a business that supplies government bodies.
Appeal to thrifty shoppers
Although certain retailers might suffer in a recession it has been demonstrated that discount retailers and thrifty stores continue to thrive even when shoppers are tightening their belts.
Discount chains have continued to grow when other retailers have really struggled and if your business appeals to price-conscious consumers it will probably prove to be recession-proof.
If you create a business in these highlighted sectors you stand a good chance of being on solid ground, even in recessionary times.