21 Businesses That Will Thrive in Recession

There was a time when we would go to any shop, and each of the shopkeepers would say that the market was being so cruel and low, it was difficult even to recover costs. Customers were not spending, and the list of worries for business people would never end.

Plain and simple, we call it a ‘recession.’ This article lists 21 Businesses That Thrive in a Recession and proves why these businesses are recession-proof.

In times of a low economy, being in business can worry you about your profits and sales, but being employed by someone can equally concern you regarding job security and remuneration.

Don’t have a business yet? Check our guide on the best 42 business ideas you can start with almost no money. Of course, these are also recession-proof.

But a little history class first:

The Great Recession of 2008

The Great Recession of 2008 is a recent case of recession at a global level, which we can all recall.

Like the Nuclear Explosion at Hiroshima and Nagasaki, we are still struggling to make good the losses of that recession, and it would probably take more years to do so completely.

This dark period began in the US in 2007, following a dip in the real estate market, and the tremors of this economic earthquake were felt in most developed countries.

According to the US Bureau of Labor Statistics, during the first quarter of 2009, the lowest point of the recession, over 230,000 US businesses closed.

However, countries like China and India were less affected than others, as shown in the map below of the real GDP growth rate for 2009.

Source

Fast forward to the present:

“The Mother of All Recessions” Starts In 2021

According to UniCredit specialists, the world is heading to a deep recession. So deep that, according to a report, you can read that “The mother of all recessions has arrived.”

In the UUS, the economy is expected to shrink by 5% in 2020; in the eurozone, GDP is projected to contract by approximately 13% in 2020. Speaking about the UK, there is also a shrinkage of GDP by almost 10%.

The global GDP contracted by 4.2% between Q4 2007 and Q2 2009.

The OECD’s GDP figures for the third quarter of 2020 reflect the ongoing impact of the coronavirus on economies worldwide.

Businesses That Thrive in Recession

While studying recession, one question tickles all of our minds: Does the recession affect every business?

Most of us think ‘yes’ is the answer because we tend to witness a decline in almost all major industries. These industries include real estate, construction, jewelry, textiles, agriculture, etc. However, there are a handful of business lines that not only sustain but also flourish during times of recession, while the rest struggle in the darkness.

So if you are not one of those who laugh off the fear of recession until it strikes them, instead, you are the one who wants to recession-proof your business, then here is a concrete list of business options for you that have shown upward graphs even when the economy was low.

Wait no more. Here is our list of 21 Businesses that thrive in recession:

Digital Industry Thrives in a Recession

1. Digital Marketing & Web Development Agency

According to Better Marketing, big agencies with large accounts that spend the most on advertising risk losing 30% of their revenue.

For small and mid-sized agencies, the risk is negligible, but there is also an opportunity for growth. If you are a small to mid-sized agency, be flexible, optimize your processes, lower costs, and compete for clients who would typically go to expensive agencies.

People purchase goods and services online more than ever. Additionally, due to the pandemic, people who hadn’t previously had an online presence established it quickly. Many apps and websites still need to be created, allowing WordPress development companies to prosper.

Here is our complete, actionable guide on starting and growing your digital marketing agency.

Digital marketing jobs are also in high demand, so if you’re not yet ready to start your agency, you may start a career in digital marketing.

2. Blockchain & Cryptocurrencies

Blockchain is one of the leading technologies of today’s world. And the best cure for a recession is innovation and adaptation.

Considering blockchain’s importance and developments, it may be the vehicle that will carry us out of the recession, just as it did in 2008. It was the micro-gig economy, with leading companies like Airbnb, Uber, and Fiverr, among others.

From cryptocurrency trading and exchanges to video games and virtual worlds, to decentralized finance and Web 3.0, the shift from physical to digital is underway. We believe that COVID-19 will further accelerate this evolution, enabling blockchain-related businesses to thrive in a recession.

3 Affiliate Marketing

According to Statista, affiliate marketing spending in the US alone will reach $8.2 billion by 2022. According to Rakuten’s Forrester report, 81% of advertisers and 84% of publishers use affiliate marketing.

That’s because affiliates receive money only when they generate a sale for the vendor. In troubled economic times like these, the vendors reduce the marketing budgets that don’t bring guaranteed deals.

According to Google Trends, search trends for affiliate marketing have increased during previous economic crises.

For publishers, affiliate marketing is also appealing due to its low entry barrier. They need a website that gets traffic and to sign up for an affiliate marketing network.

Entertainment Industry

We all desire to be entertained, even in happy times. We seek distractions from our business tensions during gloomy times, and most wealthy businesspeople consider entertainment an easy escape.

So here are a few business options thriving during a recession:

4. Movies

When it comes to Jennifer Lawrence or Julia Roberts, who will think about the market’s bullish or bearish phase before spending those three hours?

Instead, they find it an easy and affordable option to distract and refresh their minds from their worries or profits and losses. A big tub of caramel popcorn with a sizeable chilled Coke and Vin Diesel is dancing on the big screen; who will resist? So popcorn and theatres are always a yes.

5. Television

We have all seen those funny businessmen with unlimited wealth sitting in their massive black boss chairs in their office, scratching their nice, round, flat stomach and watching television when no customers are around.

So be it, ladies and gentlemen, America’s Got all of them to enjoy: talent and Game of Thrones. There is no such harmful impact of the recession on television show makers; instead, people love to share hearty laughs while watching FRIENDS. People continue to pay for Netflix subscriptions.

6. Tattoos

Although it may seem unusual, modern generations are increasingly keen to get their skin inked, and when they have free time from their business, they choose to sit and get an excellent tattoo. The UUU has seen a considerable increase in the number of people getting tattoos during the recession period.

Health and Wellness

Health is the prime requirement for every being, so ongoing income levels do not affect our health expenditure. The wellness industry is an emerging branch in the health sector that broadly deals with exterior looks and beauty.

So here are a few lines of earnings in this industry that are boosted during the recession:

7. Pharmaceuticals

Gone are the days when an apple a day was said to keep the doctor away. With adulteration in almost all food products and mechanized lifestyles, diseases and health issues are not expected to decline anytime soon. Items such as life-saving drugs are included in the list of essential goods, so they will never be compromised in this sector.

8. Doctors

It is a recession period, so it does not mean we won’t visit a doctor even when we have a fever of 102 degrees or break our leg. Gynecologists and pediatricians are unavoidable at any given point in time.

9. Beauty and Wellness

Whether she is your wife or girlfriend, you know you can’t win an argument with her regarding her beauty chores. The monthly facial is always a must, even during low sales months.

Ladies may restrict them from buying expensive clothing, but they would love to compensate for the lost shopping joy by purchasing affordable cosmetics. They can find delights in petty things like nail paints or mascaras.

Not only for females, but also for the beauty-conscious business person, a relaxing spa or a body massage can help release some of your nervous tension.

Food and Beverages

The Food, Clothes, and Shelter sequence prioritizes food first. So, no question marks are raised when we say the Food industry is not affected by dipping trends in the economy. A country can never be so poor that it allows its people to starve. Sto o the following segments of this industry see sunrises even on dark days:

10. Grocery

Just because your shop or office is locked down, you can’t shut down the kitchen of your house. You will always need essential kitchen items like wheat, salt, and milk. You can skip on luxurious groceries like Mozzarella Cheese or Worcestershire Sauce, but basics will always be on the shopping list.

11. Fast food 

People often complain that their spouses don’t have time to spend quality time with them. It may sound funny, but the recession is the time for you. Families often come closer together during difficult times.

So we can take advantage of your idle time to enjoy a nice dinner date with our loved ones. So the restaurants welcome guests with open arms at all times. A glass of wine while you dine can drive away the worries of your workplace in a blink.

With the rapid development of the vaccine, we expect the restaurant industry, which was severely impacted in 2020, to reopen and flourish in 2021, making it one of the businesses that will thrive in a recession.

Finance Industry

The phrases’ recession’ and ‘boost in finance industry’ seem like north and south poles at the surface level, but you get that relation vividly once you dig deeper.

So we can witness growth in the following niches:

12. Accountants

It is a myth that high-income earners require accountants more; in reality, it is the opposite. You need more expertise to manage your returns when you are down in the valley. It is then more crucial for you to take advantage of all the available tax benefits and subsidies.

You need to manage the inflows and outflows of your funds more carefully when the amount is comparatively small. Even during a recession, presenting an accurate and transparent picture of your firm’s financial records is vital.

13. Financial Consultants

If the lousy business days are not tending to end and getting more challenging for you to cover your variable costs and meet your break-even point, you might be thinking of borrowing some money or getting a loan sanctioned.

Here, in such cases, the role of financial consultants becomes all the more important. People who are running small businesses, franchise owners, consultants, etc., will need financial help, as only they are the ones who can guide you practically in an unbiased way.

They would advise you regarding managing your idle funds, if any, or suggest ways to meet the shortfalls efficiently.

14. Investment Advisers

The money invested during a recession may double after the economy recovers, or the exact opposite can happen- the money invested can become zero. Investing during such unpredictable times is no different from gambling.

It is always better to consult an expert in that field before taking a significant risk. As a result, the business of investment advisories thrives.

Repair and Maintenance Services

Because they are short on money, people will opt for better repairs instead of buying new appliances for their homes, a new computer, a new phone, or a new car. This is another one of those businesses that will hardly ever shut down unless the owners decide to do so.

15. Home repair

The demand for home repair and maintenance businesses always stays constant. People will always need repair services because anything can get damaged at any time. Additionally, many people will opt for a do-it-yourself home renovation or upgrade rather than consider selling and relocating during a recession.

16. Auto Repair Business

Car repair businesses are particularly beneficial during recessions, as cars are a necessity, and if a car is damaged, people cannot avoid getting it fixed, regardless of the cost.

Auto repair and maintenance shops rake in cash during a recession when people gladly fork over a few hundred dollars on repairs to avoid a monthly payment on a car loan

17. Computer and Phone Repair Service

For the same reason as the two above, most people will think twice before purchasing a new computer or phone. Also, considering that a new smartphone costs well over a couple of hundred dollars to almost a thousand, they will want to repair the old one till economic times are better.

Sin Industries 😈

This head may seem a bit off track because the topic revolved around crucial things like money, finance, and economics. But somewhere in our heads, we all know what our hearts wish to do when we are depressed.

We want to grab those 60ml pegs or vodka shots, expecting to forget our tensions. So in times of depression, we see ever-increasing growth in the following areas:

18. Alcohol

When we discuss happy hormones, we recall a well-known scientific term: dopamine, a motivational chemical released by the brain.

Many beverages release this chemical, with alcohol being at the top of the list. That is why people tend to shed their worries when they are drunk. How can we forget to put the liquor business when discussing dealing with depression?

19. Tobacco

Though the government has never yet and will not approve any alcohol and tobacco products marketing, the consumers never exhibit a lack of awareness. If not alcohol, the businessman suffering from sheer losses will choose tobacco as an escape. It works the same way as alcohol does, intoxicating and numbing our logic and senses, hence helping our stress blow out for a while.

20. Gambling

The term’ casino’ is exciting in itself. This term describes a nice place with loud music, an unlimited choice of drugs, and intoxicants to delight yourself while you play the game of cards by betting handsome sums of money.

What else do you need to relax from those ongoing business issues in your office? This is probably how most wealthy and idealistic business people would like to spend their idle days.

Conclusion on Businesses That Thrive in Recession

Although this isn’t a comprehensive list, it can provide some clues as to what is and isn’t recession-proof. monetizebetter.com helped entrepreneurs and small business owners during the 2008 recession and will continue to do so in other hard economic times.

Do you have any questions about the upcoming recession? Please let us know in the comments below, and I will be happy to answer.

Note: This article is updated by Daniel S from MonetizeBetter.com