Recession period is usually uncomfortable for many businesses. Many people suffer financially as organizations experience ship-wreck. Nevertheless, for smart investors who understand times and seasons a recession may be an opportunity to thrive and increase. Chronologically, some businesses even succeed in difficult times based on what and how they engaged their businesses. The following are five businesses you can involve in and still thrive during recession.
1. Real Estate Services
Although buying and selling houses, as well as building houses during recession are usually very difficult because funds are seldom accessible, there are some real estate services that are more likely to thrive during recession. These services include rentals, property management, home maintenance and home staging.
During recession home renovation, maintenance and staging are likely to take the place of building and construction because most people will find it more financially comfortable to renovate and furnish existing properties than building new ones. Renting of properties is also more likely to be on demand than buying due to the inflation.
2. Accounting / Financial service
The service of accountants or financial experts is always important even during tough economic times. This is because most businesses and individuals want to keep their finances in order as they hope to have a clear understanding of their cash-flow. Businesses, individuals and government want to monitor their income and expenses as the recession bites. For example, the federal government recently formulated a new economic measures to compensate for the economic damage caused the Covid-19 pandemic. In this regard, the services of accountants and financial experts are needed to formulate these economic measures.
3. Auto-Mobile Repair and Maintenance
Due to the tightened cash-flow during recession most people will prefer to repair their old cars instead of buying new ones. Auto-mobile mechanics usually experience increase in patronage during these difficult times because most people cannot afford new cars. It will be a good idea to consider investing in this type of business in a harsh economy.
4. Grocery / Staple Stores
Man basic needs are food and household essentials. Regardless of the state of an economy, grocery and staple merchandise will thrive. These vital products even increase in sales during recession, as experienced during the current 2020 Covid-19 lockdown. Any wise investor will consider venturing into grocery and staple business.
This sector of an economy is regarded as recession resistant because year-in year-out people get sick and must seek medical attention. The players in this type of business do not usually feel the heat of a recession. Come rain sunshine, they are always in business and even succeed more due to the depression incurred by many people.