If you’re an entrepreneur looking for a new opportunity, you hope to find small business ideas built to withstand financial ups and downs. Some businesses are generally better suited to survive the inevitable recessions that are part of the economic cycle that fluctuates between periods of expansion and contraction. Recessions happen about every seven years, and many economists believe that the U.S. economy will experience another one in 2023.
Here are five business ideas that may offer you the best protection from a potential recession.
1. Real Estate and Property Management
“When financial markets start to suffer and crash, real estate becomes a safe haven investment. Plus, people will always need a place to live! As the real estate market ramps up, there are plenty of opportunities for small businesses to thrive.”
2. Car Repair
“Travel will continue to be a prominent part of daily operations, with people needing to drive to work, school, or for leisure. Not everyone understands how to repair their vehicle if it breaks down, needs an oil change, or requires other fine-tuning maintenance.
Car repair businesses will continue to thrive during a recession due to their necessity and demand. Additionally, with the evolving industry, repair and auto shops are useful for dealing with recalled parts or replacements and services specific to a manufacturer.”
Source: U.S. Chamber
3. Home Improvement Contracting
“Home improvement and contracting is one of the most resilient industries, with a valuation of $457 billion in a year. Suffice to say, most people want access to repair, plumbing and pressure washing services as soon as possible, rather than wait for better economic conditions.
Since people are likely to stay home and save money, they could also allot their limited budget on home improvement projects. This is especially the case for homeowners looking to sell their properties to combat financial struggles.”
4. Service-Disabled Veteran-Owned/Minority-Owned (SDVOSBs)
“SDVOSBs and minority-owned businesses can compete for set-aside government contracts. For example, Veterans Affairs hospitals have construction contracts that can only be bid on by SDVOSBs.”
Source: The Balance
“Not surprisingly, grocery stores are one of the top industries not impacted by recession. People always need to eat, and during a recession, they typically also cut back on eating out in restaurants and ordering takeout. That makes grocery sales skyrocket even more.”
Source: Robbins Research International
Is Your Business Prepared for a Recession?
It is always an excellent plan to have money saved in case of an emergency like an economic downturn. First Union Lending can put together the right plan for you if you need backup funds quickly and easily. Click here or call.