Top 35 Recession-Proof Business Ideas in 2020
You’ve been thinking about building your own businesses for a while, right?
But things haven’t gone as expected this year.
Instead of thinking about how to build one, now you’re afraid of doing it, right??
One of the situations that most entrepreneurs fear is a recession, as in the case of the global financial crisis and the CoronaVirus (CoVid-19) pandemic.
During recessions, many people lose their jobs, as businesses lay off many workers in an attempt to cut costs.
As a result, job security is always the number one priority during these tough times, and workers flock to so-called recession-proof companies.
Recession-proof businesses are companies that are not affected during an economic crisis.
Such businesses continue to magically thrive or survive unscathed, at least.
The best business model I’ve ever known – unstoppable, resistant to EVERYTHING – is lead generation with ads, my number 1 choice over any other.
And I can tell you this because it’s what has allowed the zeros in my account to continue to grow despite this crazy situation.
So, take it easy! There’s hope
Now, if starting a business and staying strong during a recession is a way to go for you; here are 50 proven recession-proof companies that will ensure job security when the economy turns bleak.
Top 50 Best Recession-Proof Business Ideas
Food and drinks
The food business is very lucrative because the economic situation does not matter.
People must eat, right?
But I’m not talking about pooling your hard-earned money and starting a restaurant business; although if that seems doable, it might work.
However, going into the restaurant business still has its risks and a very high one.
Instead, you might consider entering a food and beverage business with a focus on offering healthier products.
These days, going into recession is an even better excuse to eat healthy because it encourages people to cut back and avoid unnecessary purchases.
Here you have a few other ideas:
People will always have snacks and fast foods, regardless of economic trends.
Therefore, if you start a business that produces cookies, bread, cakes, pastries, etc., you’ll have a constant flow of business.
Even if you’re not good at baking, consider hiring a person or two to start.
Fun fact: Snickers, Tootsies Pops, and Three Musketeers bars were invented during the Great Depression.
Hard times have a way of rooting for America’s sweet tooth.
In 2008, Nestlé’s profits were up 11% and Cadbury’s were up 30%.
Candy can calm anxiety and is an affordable treat when you’re tightening your budget elsewhere.
Coffee shop business
To start a successful coffee shop business, it’s recommended that you develop a business plan that can help you run the business effectively.
If you also intend to seek outside funding or grow, then you definitely need a business plan.
Also include your market strategy and the key factors that you think will make your cafeteria unique and different from any other cafeteria in the area.
Although it sounds easier than it is, but like any other business, if you don’t plan, you plan to fail. This is where a cafeteria marketing plan comes into play.
It’s a very profitable one!
Pizza delivery business
It’s no news that the fast food industry is booming.
Due to tight schedules and busy routines, many people turn to fast foods and ready meals that don’t take a lot of time and effort to prepare.
One of the favorites is pizza.
Who doesn’t love pizza?
Many people love pizza because it’s delicious and comes in different sizes, and consumers can order any type of topping they like: pepperoni, sausage, cheese, etc.
Starting a pizza delivery business is pretty easy.
Pizza delivery simply means that you would take pizza orders from customers, usually over the phone or sometimes over the internet.
You can also try food blogging, especially when you don’t have the capital to set up to invest in the business ideas listed above.
Your blog can focus on suggestive ways to develop common cooking and food preparation techniques.
Just write about a new way to make an omelette; or come up with an innovative pasta dish and watch your blog increase traffic.
You can make money from your blog by selling ad space, selling your own products, or selling other people’s products.
So regardless of the capital you have, you can still take advantage of the food industry by being a food producer, food vendor, or teacher.
The choice is yours.
Most people love pets and can spend any amount to keep them healthy.
Therefore, starting a business that provides veterinary services is a good way to make a steady profit.
Even if you’re not a veterinarian, you can hire one to work with you.
No matter the economic climate of the moment, we don’t save pennies when our furry family members are sick, right?
Pet spending was one of the few areas of consumer spending that grew every year during the recession.
We spent $14.3 billion on veterinary care in 2019. It is expected to reach $15.3 billion in 2020, or even more!
The pet grooming industry is another industry that is not affected by recessionary trends in the economy.
People with pets are still looking for quality services for their furry friends.
If you’re an animal lover, pet grooming can be a great idea for a recession-proof business that you can start now!
Healthcare and Beauty
Health care services
Regardless of the times, someone somewhere will always need a good professional health service.
This is an industry that has seen significant growth in recent years. And it shows no signs of slowing down anytime soon.
If you have the resources, training, manpower and capital; then getting involved in a business that offers health services will ensure a comfortable market for you.
Consider companies that are focused on offering affordable preventive solutions to individuals, alternative healthcare, and home health.
The healthcare industry is a growing billion dollar industry, primarily because the need for robust health care increases with age.
People apply cosmetics religiously.
In fact, some people apply their facials and makeup several times a day.
Of course, recessions are not excuses for anyone to look ugly.
Therefore, people will always pay the price for maintaining their good looks.
A cosmetics business is therefore a spinner at any time. Have you heard of the lipstick indicator?
The theory is that lipstick is an “affordable luxury.” Instead of buying the $200 sweater in a time of financial uncertainty, women will opt for the $20 cosmetic.
Couples enjoy sex all the time even though they don’t want babies most of the time.
Likewise, teens and young adults have casual sex all the time.
These are the reasons why there’s always a great demand for contraceptives; whether the economy is good or not.
So if you start a business that focuses on selling birth control devices and pills, you will never feel the shock of a recession.
Americans didn’t skimp on ink during the last recession.
A tattoo can be a significant (and relatively inexpensive) form of self-expression during a frustrating and difficult time.
Tattoo parlors across the country reported an increase in business during the economic crisis!
Alternative health services
There are many business opportunities in the healthcare sector, even for entrepreneurs with no medical background.
People interested in the health care business but lacking the necessary credentials to offer primary health care services, for example opening a general practice practice, can still earn a lot of money in alternative health care.
There are also many other options.
How about healthcare software design, medical equipment supply to practices, medical equipment repair and maintenance, etc.
As baby boomers grow older, they’ll need varying degrees of assistance.
This means that there will be an increased demand for group homes for the elderly, also known as nursing homes for the elderly or foster homes for adults.
A group home for the elderly caters for the diverse individual needs of the elderly, while allowing them to live as independently as possible.
The goal of group homes is to meet the needs of older people, not to restrict any part of their lives.
If you love taking care of the elderly, then you should consider starting a group home for the elderly.
This means that you can get rich by taking advantage of the growing demand. This article explains in detail the steps required to start a group home for the elderly.
Whether you’re good at teaching academics or vocational skills, you’ll always get people who would pay to learn from you if you start a tutoring business.
Start by reaching out to potential students in your neighborhood and telling them about your tutoring service. Probably later, you’ll advertise using broader means.
To start a tutoring business, a prerequisite that you must possess is passion.
You must love teaching because if you don’t, you’ll see tutoring as a stressful and difficult task.
Now why should you start a tutoring business and who should start a tutoring business?
Well, tutoring is a service that anyone can do, as long as they have a specific skill or adequate knowledge on a particular topic; and you have the ability or passion to share this knowledge with others.
Tutoring and coaching
Skills are passed down to successive generations, hence the need for mentoring and coaching services.
This is especially applicable for people who excel in teaching or instructing others, whether in academia or other skills, for example playing the piano.
If you can also coach / coach players in soccer, tennis, baseball or any other sport, you can earn money by turning your skills into a business.
Despite bad economic times, learning, music, acting, and sports always thrive.
Discount chain stores
With high prices and declining revenue, more and more people will opt for discounted items instead of going to the regular retail sale.
This is a business that can actually grow during the recession and sales could even pick up compared to normal times.
However, even under normal conditions, a steady flow and customer base is guaranteed.
Recessions don’t affect everyone equally.
According to Newsweek, the total number of billionaires worldwide increased 20 percent in the last year.
Forbes counted a record number of billionaires in 2018 – 1,426 – while various parts of the economy were still recovering from the recession.
Many of these über-rich live in Russia, the Middle East, and Asia and have no trouble searching for a giant private jet or their own sun-soaked island in the Mediterranean.
Even in tough times, people want to look clean and good.
And they’ll get a few bucks just for that.
Therefore, starting a laundry business is a very good idea, as you’re also immune to the harsh effects of economic downturns.
To start this business, you’ll need a washing machine, dryers, irons, etc. and you may need to hire one or two people.
A laundry business, also known as a dry cleaning business, can be an easy and profitable business to start.
There are many aspects of laundry business that you can get involved with, including dry cleaning franchises, home laundry, etc.
Knowing how to start a laundry business generally begins with selecting the right type of service to offer.
When the economy is bleak, people get frustrated.
And out of desperation for quick cash, they indulge in various forms of crime, especially theft.
Even when the economy is smiling, homeowners and owners of other valuable properties hire security guards to protect their assets.
And this becomes even more necessary during recessions.
Therefore, the demand for security guards is always on the rise. With the growing security challenges in the country, private security guards, bodyguards, and executive protection agencies are needed because government security forces and agencies are overwhelmed.
Yes, this is a recession-proof business, as morbid as it sounds.
This is an inevitability, which means that you’ll never be without customers (I know how it sounds, but it’s what it is, right?)
Funeral services get a steady stream of business regardless of how the economy performs.
While the wedding industry takes a major hit during the recession, funeral homes actually survive much better.
People in general will definitely continue to see a big send-off for their loved ones and death won’t wait for the recession to end, right?
People die every day, and the only way for people to give their dead a proper burial is by hiring the services of funeral homes. So the economy has no impact on the fortunes of funeral services.
Repair services are recession-proof businesses, too.
There’ll always be people whose kitchen sinks, the air conditioner breaks down, the roof begins to leak, or the car suffers from overheating.
What this means is pure business opportunity, even when economic times seem unstable.
And even if potential customers try to delay the much-needed repair, they will eventually come to you for help.
But it’s worth noting that many, if not all, of these businesses require specialized training, skills, and equipment.
You might think that business owners would cut costs by doing their own taxes during a recession, but that’s not the case.
Tax accountants were in steady business during the recent recession. Business owners wanted to make sure they were getting the best possible refund without making costly mistakes.
Although the economy is expanding, albeit slow, when you think about starting a business, you need to plan for the long term.
If you choose a business that thrives in good times but can also weather crises, you can rest easy no matter where we are in the business cycle.
A catalog of different wedding services helps make that day bright and memorable.
No matter how bleak the times are, a well-organized wedding will always help ease people’s worries, even for several days.
The scope of business ideas in this niche is quite varied.
You can think of becoming a wedding and honeymoon planner, offering wedding photography and video recording services, designing custom materials for wedding invitations, designing wedding and bridal gowns, offering wedding catering services, etc.
Staging of the property
Can you make a house look worthy of its price?
Real estate agents and home sellers will easily pay for your expertise.
The job of a property organizer is to ensure that a house that is going to be sold looks good.
Basically you, as the property organizer, should advise the seller on the best way to organize and present things on the property to maximize the probability of making a good sale.
To start with, you need to have a great sense of style, decor, and details.
Then you must make a name for yourself. Meeting independent real estate agents and sellers is a good place to start.
This business can really thrive in times of recession.
Reputable virtual assistants are almost always in demand throughout the year.
Becoming a virtual assistant is another viable business idea that has resulted from increased access to the Internet.
This will be a valuable option for you if competent management and organizational acumen are your strong suit.
Opportunities abound for such individuals, considering that many companies, in an attempt to lower operating costs, are cutting back on conventional assistants and instead outsourcing the position to qualified individuals around the world.
Repossessions and Removals
Some industries act as financial scavengers during a recession, feasting on the rotten remnants of the rest of the economy.
For the repository man, whose job it is to take back vehicles and other property when the owner fails to make payments, bad news is big business.
The traditional logic is that sin wins when the economy loses.
Like candy, cigarette sales soared during the Great Depression, and tobacco stocks are still a smart buy in any recession.
But in contrast to popular wisdom, people tend to spend less on so-called sin industries like alcohol and cigarettes during recessions.
The reason some experts say isn’t that people stop indulging themselves during bad times, but rather that they reduce something or lower the quality of their favorite vice.
If you want to start a business that is as recession-proof as possible, a debt collection agency is one of the best options available.
Of course, there are other debt-related industries you could get into.
Perhaps you could offer debt counseling services or enter the debt consolidation industry.
Whichever option you choose, companies that revolve around debt in one form or another will almost always perform well during a recession.
It may seem strange, but accounting firms seem to do well during a recession.
Business owners feel more secure during a recession if they have an accountant to help them with their financial decisions.
A study conducted by Intuit in 2009, during the heat of the financial crisis, found that 80% of small business owners felt more secure knowing they had bookkeeping services to help them with any potential problems they might face.
People are already losing a lot in the stock market and from pay cuts, so they’ll be more inclined to protect what they already have in every way.
If technology is your strong suit, this could be the recession-proof business you can start now because people will start to recognize the great importance of cyber security.
Online Dating Services
So yeah, there might not be any big wedding plans until stocks go up, but with general dissatisfaction on the rise, people might be looking for some love to help them get through the tough times.
Layoffs could mean breakups are on the rise, too. All of that just means better business for the dating industry.
Thanks to the Internet, virtually all the products and services you need are just a few clicks away.
Thanks to the ever-increasing and widespread internet accessibility, more and more suitable business opportunities are being created for solopreneurs, also known as web entrepreneurs.
When reading the profiles of some of the biggest names in the blogging industry, you might be surprised to learn what these guys were up to before they got big.
Before you begin, you will want to familiarize yourself with optimizing web traffic.
You can then proceed to make money doing what you love, for example running a fashion tips blog or offering content writing services.
Social media consulting
With the dramatic rise in popularity of social media like Facebook and Twitter, businesses find it more necessary than ever to start using these platforms to reach potential customers.
This has led to a high demand for marketing consultants who advise companies on how to promote and market their products and services on social media.
And this demand will continue to increase as long as social media remains relevant.
A lead is a potential customer, a person to whom we have many possibilities to sell a product or a service.
That’s why the acquisition of leads is a very important process in any company.
So much so that there are people who have created a business model around this idea.
The business model of lead generation consists of a person (you) dedicated to capturing leads from a certain sector and then selling them to businesses that may be interested.
Surely you’ve seen online pages in which in exchange for entering your email they offer you to receive the best offers for a service or product you need.
Let’s visualize it better this way:
Imagine that you need to hire a plumber.
When browsing the internet you find a website that offers you the best plumbing services in your area.
You enter your email.
Then what the web does is get in touch with plumbing companies in your city, those who pay will get your email and can send you an offer.
That’s an example.
I’m a full-time lead generator (and I’ve tried many business models before. Some are even on this list!)
What I did to get to earn what I earn (a lot, a LOT of money) was to spend an afternoon learning how to create online billboards for companies that desperately needed – like all – clients.
These online billboards stay active 24/7, bring customers to them and make money for me even when I’m not actively working.
Why is it recession-proof?
Because it’s an INTELLIGENT business model.
Your customers will be companies, and there are always companies, millions. And what will companies always need? Customers.
If you’re looking to start a business that guarantees you peace of mind even when other businesses face tough times, this is probably the best of all.