Recessions, or even a volatile market like we’re currently experiencing due to COVID-19, are difficult times. There’s a great amount of uncertainty, people losing their jobs, and a direct hit on cash flows that can place businesses in dire straights. But it doesn’t have to be all bad.
Current businesses are finding ways to pivot their business models, revisiting their budgets, and developing new forecasts to minimize their burn rate and maximize their available cash runway. They’re surviving and finding ways to thrive, but for those looking to start a business, now may be one of the best times to do so.
1. Health and Senior Services
Health care spending in the United States grew at a rate of 4.2% from 2008 to 2012. After the recession of the early 2000s, the health care sector grew a whopping 8.8 percent. This business is ideal for service-minded people who can work with the elderly and sick, but also anyone wanting to improve their health to ensure they don’t get sick in the future.
2. Convenience Store
Convenience stores tend to charge more than other discounted retailers (think: Dollar General or Wal-Mart); however, convenience stores also tend to sell a lot of alcoholic beverages, cigarettes and tobacco, a variety of hot and cold drinks, and basic grocery staples and small indulgences like donuts and sweets, so they tend to do well even during periods of recession.
3. Grocery Stores
When people cannot afford to eat out, they tend to do a lot more cooking in the home. For this reason, people tend to spend more at grocery stores. Throughout the Great Recession, the USDA found that Americans significantly cut back their spending on food away from home. Instead, they chose to buy groceries and cook food at home.
4. Tattoo Parlors
Tattoo parlors generally experience good sales during periods of recession. According to a poll, one in five Americans had a tattoo in 2012. This number increased by 7 percent from 2008. The trend seems to want to continue as more and more people are getting tattoos every year. Someone starting a tattoo business should love tattooing and have significant experience with tattooing and some artistic skills. Individuals who are willing to pay a higher price point for better quality tattoo artists are typically looking to enjoy a certain personal experience.
5. Pet Care Business
With total sales of over $103 billion in 2020, the US pet industry is currently breaking records with its rising popularity. That number, published by the American Pet Products Association, was an increase of 6.7% on the 2019 figures.
Growth is currently predicted to continue at a rate of 5.8% through 2021, though the historical average yearly growth of 3% to 4% still makes the US pet industry an interesting business proposition, even during a recession.
6. Home Staging Experts
It is more difficult to sell a home during a recession, but some people have to do it. People who specialize in home staging thrive as the housing market becomes increasingly competitive.
Home staging specialists might be real estate agents or interior design professionals, or both. A staging expert increases the appeal of a home by furnishing and decorating it to look its best to appeal to potential buyers.
7. Rental Agents and Property Management Companies
People who may not be able to afford to buy a home during a recession, and people who were forced to sell for financial reasons, still need a place to live. The answer for many, at least short-term, is a rental.
We have always emphasized the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing, and making the website of your company more user-friendly.