Recession-Proof Businesses and Jobs

May 23, 2010 | By | 7 Replies More

Just when I thought the economy is finally on the road to recovery, new economic jitters are emerging, this time coming from Europe. I hope the problems that some European economies such as Greece and Portugal are currently experiencing will not set back the economy again. The recession was hard – and it still is – for many small business owners.

For one, the economic crisis has changed the way consumers are spending. As a result, a number of businesses (particularly small businesses) have been reeling from the tightening spending of their customers.

According to Advertising Age, consumers who experienced cash crunch considered the following expenditure items expendable:

  • Beauty treatments such as high-end cosmetics (91%), facials (90%), and manicures/pedicures (88%)
  • Fashion items such as luxury handbags (92%)
  • Electronics and media such as satellite radio (91%)
  • Fine dining (89%)




So if you are thinking of starting a business, what are recession proof businesses whose demand will not come crashing down when the market comes falling?

In the article 15 Home Business Ideas that Thrive During Recession, I have written about businesses that still manage to do well in times of recession. These businesses include:
Small Business Entrepreneurs Talking”

  • Food business
  • Financial advisor home business
  • Home staging
  • Auto repair and maintenance
  • Green home businesses
  • Virtual assistant
  • Elder care
  • Online video production
  • Cosmetics and little indulgence
  • Trading assistant
  • Bargain hunting and coupon websites/blogs
  • Blogs monetized by ads
  • Buy into a home-based franchise
  • Direct sales
  • Home-based tutoring business

  • Even with families cut down on eating out, they still find time to treat themselves at home, such as ice cream
  • While expensive handbags may be out, consumers substitute small luxuries for big ones, such as lipstick. New York Times even had an article that lipstick may be an economic indicator
  • Entertainment including movies and video games
  • Spirits and alcoholic beverages
  • Noncyclical businesses such as babies, education, and funeral parlors.
  • Health care
  • Gambling
  • Recovery specialists (often called vulture businesses) such as like repossession firms, auctioneers of foreclosed homes and debt consolidation companies.
  • Discount retailers like dollar stores (discount clothing store Ross experienced a huge surge in its stock price during the recession)
  • High end luxury items, as the “superwealthy are largely immune to pedestrian matters like the recession”
  • CNN also has its own list of recession proof businesses and professions, as follows:

    • Debt collection 
    • Healthcare products
    • Mediator
    • Computer repair
    • Internet marketer
    • Pawn broker
    • Cosmetic sales
    • Green businesses
    • Thrift and consignment stores
    • Car repair shops
    • Virtual assistant

    Different lists, but there are a lot of intersecting ideas. The key is to really look at how the tough times are affecting how your target market is spending – and then be nimble and flexible enough to adjust to these changes.

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    Category: Business Ideas

    About the Author ()

    Isabel Isidro is the co-founder of PowerHomeBiz.com. A mom of three boys, avid vintage postcard collector, frustrated scrapbooker, she also manages Women Home Business, Starting Up Tips and Learning from Big Boys.

    Comments (7)

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    1. Lisenbee87 says:

      Fairly extremely neat internet site. Rather very good in the course of go through by means of and really considerably fascinating info. Completely period incorporates not nevertheless look again and greet.

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    2. Mike says:

      Interesting,

      As one who researches all recession proof businesses, no cost to low cost to start, there are very few to choose from. What I look for is a product or service the masses are purchasing already so no selling is required, just telling, much easier for the newbies to marketing. We all know most people do not like selling due to the high rejection levels one must endure. We also know most people do not like to be hard sold or chased.

      Everyone rents movies, and everyone is looking to save money, and this is why this industry is booming. Cheap entertainment always thrives in a recession. No longer can it be said that going to your local theatre is no longer a cheap date. The cost for an average family is near $30.00, so rental industry is booming. This is why I feel this new rental option is worth evaluating. With cable and satellite movie rentals at $6.99 per movie, BlockBuster at $10.00 and NetFlix at $8.00 currently, how does $2.08 per month for unlimited movies sound?

      With the no cost free affiliate option, everyone can easily earn free unlimited movies at no cost, plus an extra income if needed. This makes for a very unique recession proof business opportunity and it should appeal to the masses who already are renting movies and want to save money in this recession.

      Success to all,

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    3. ryan says:

      Here’s one recession proof business. Cleaning service business. Low money upfront to start compared to many other businesses. All you need is about 300-400 dollars.
      I started a office cleaning business. And money is pretty good. If you are woundering how to start a office or residential cleaning business Like i did. Check this site out for yourself: It will tell you how to price a job, Write a bid and follow up letter, Licensing, How to correctly figure the bill for each month, How to find customers etc. It has help me a lot by avoiding mistakes. I hope this helps anyone interested.

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    4. Paul Branwhite says:

      Starting a courier business is relatively stress-free. There are a lot business which rely on courier services such as banks, legal offices, accountants, etc. What you need is a reliable transportation, communication equipment (phone), and a bit of computer equipment to manage clients (such as invoices, etc.). You won’t also be competing with big companies such as FEDEX or UPS because the specialize in national parcel delivery. There are a lot of websites such as http://www.courierpros.com which can help individuals who are starting out with their courier business.

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    5. luciyahelan says:

      Hat’s off. Well done, as we know that “hard work always pays off”, after a long struggle with sincere effort it’s done. This action proof to be a win, win situation. This is a true art work, which will be a success story.There’s usually a good bunch of talent nominated- they just don’t usually win.

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    6. Sarah Wood says:

      Recession-proof means staying creative. Creative marketing can re-invent your business. Times are tough – don’t give up!

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    7. ketan says:

      i want to start a busisness but dont know what busisness to do i dont have enough capital please help me suggesting a busisness

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