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Recent world events such as the pandemic, the war in Ukraine and fuel shortages have led economists to believe that a recession could happen soon. The Federal Reserve estimates the probability of a one-year recession to about 35% by 2023.

While inflation is rising and the stock market has stumbled, there are recession-proof businesses that can help you profit in times of uncertainty. Here’s a list of recession-proof business ideas to keep in mind.

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Home Improvement Contracting

Home improvement and contracting is one of the most resilient industries, with a valuation of $457 billion a year. This may interest you : Fireworks show business upturns despite higher costs. Suffice it to say, many people want access to repair, plumbing and pressure washing services as soon as possible, rather than waiting for better economic conditions.

Since people are likely to stay at home and save money, they may also part with their limited budget for home improvement projects. This is especially true for homeowners who want to sell their property to combat financial struggles.

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Online Reselling

Online resale of luxury handbags, clothing, and accessories is common during economic downturns. Thanks to eBay, Poshmark and thredUP, it’s easy for anyone to resell items online and ship products to customers. Read also : Should You Buy an Amazon FBA Business or Start Your Own?. According to Forbes, about 33 million consumers will buy pre-owned clothes for the first time in 2020. This industry is also expected to double in the next 5 years, reaching $77 billion.

Get more tips in our guide to starting an online clothing store.

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Cleaning Services

Due to the ongoing pandemic, the company’s cleaning services remain in demand. Businesses regularly need cleaners to clean and disinfect lobbies, bathrooms, employee workspaces, and other common areas. To see also : Bars and restaurants look forward to sports betting for a boost. Starting your own cleaning business can seem daunting. However, it is possible to start small and offer personal cleaning services to neighbors or small businesses first.

Child Care

Working parents are constantly in need of childcare services, so this industry will always thrive. Despite the impending recession, many remain motivated to pursue their careers and seek help when it comes to caring for their young children. With a valuation of $54.3 billion in 2019, the childcare industry is expected to continue growing at a compound annual rate (CAGR) of 3.9% from 2020 to 2027.

Online Freelance

Companies may downsize and lay off employees but the demand for labor remains. Rather than full-time staff, companies often hire high-quality freelancers to fulfill their design and marketing needs remotely.

As long as you have a laptop and the right skill set, you can offer freelance services from anywhere in the world. Done right, you’ll earn extra income to pay the bills and stay in the workforce. By working from one gig to the next, you’ll also learn new skills and expand your network as well.

Online Teaching

The e-learning industry is expected to grow from $197 billion in 2020 to $840.11 billion by 2030. If you have marketable skills and a healthy dose of charisma—then you can teach anything online. No need for a PhD or teaching qualification to offer photography, yoga, dance and craft lessons from the comfort of your own home.

To make this business sustainable, launch an online course on a platform like Teachable to continue earning money with minimal effort. You have to do a lot of marketing to attract students, but you can earn thousands of dollars once you can build a reputation.

Accounting, Bookkeeping, or Financial Planning

Financial services will remain in demand regardless of recession. In fact, the accounting industry is worth $544.06 billion in 2020, and the demand is still growing.

Whether you’re making money from a large company, a small Etsy shop or a YouTube channel – you need an accountant when tax season comes around. Most people do not want to do their own taxes. Instead, they are more likely to seek out professionals who can offer assistance with tax preparation, accounting, financial planning and bookkeeping.

Car Repairs

Your car may have a faulty starter, radiator leak or poor emissions from time to time. And while some people can tune their own vehicles, many of us can’t do the same. Additionally, people are also more likely to repair their cars during a recession, rather than buying a new one.

If you don’t have the resources to start your own auto repair business, you can offer this service to family and friends first. Over time, your business can grow with the power of networking and strategic advertising.

Beauty Business

People may be trying to cut costs, but they are still likely to invest in beauty and self-care products. According to the lipstick effect, people tend to spend money on small indulgences like hair and nail salons to compensate for bigger sacrifices.

Those on a tight budget may be able to justify spending on skin care, makeup and body products as these are affordable luxuries. So this could be the right time to launch an online boutique or record a makeup vlog on Youtube for extra income.

Food and Beverage Business

People have their own way of coping with the recession. Interestingly, comfort food and drink are key to staying optimistic and motivated for some. That is why the food and beverage industry remains resilient despite the pandemic in 2020.

Admittedly, people are moving away from cafes and restaurants but consumption at home continues to increase. Thanks to food delivery services such as UberEats, Grubhub or DoorDash, home bakers can easily sell their confections online and deliver them in front of people. Those who do not have the energy to fulfill many orders can promote their delicious concoctions among their neighbors, friends and family for some extra cash. You can even start a vending machine business to quench people’s cravings when they are on-the-go.

Start Your Own Recession-Proof Business

Making money can seem like a challenge, especially during a recession. Still, there are businesses that will continue to thrive despite the troubling economy.

Here’s hoping some of these healthy business ideas resonate with you. It’s okay to start small and sell your services on your network only. Eventually, you will be able to attract more clients, get resources and make your business grow. Learn more about how to build a successful company in our complete guide to starting a business.

Find Legal Answers For Your Small Business

Nolo offers hundreds of consumer-friendly do-it-yourself legal products written in plain English.

Frequently Asked Questions

What businesses do well in a recession?

Businesses in the home improvement, auto repair, childcare and accounting industries are doing well in the recession. Suffice it to say, most consumers consider these services important and will continue to spend their money, rather than wait for better economic conditions.

What is the best business to start during a recession?

There are some small businesses that you can start during a recession such as an online freelancing business or an online teaching business. You can also build your own brand and start selling beauty products or food online. If you don’t have the resources to accommodate many customers, you can offer this service on your network first.

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