The current world order is going through a recession. Many tech giants across the globe are in the news for layoffs. The number of employees who are asked to discontinue as an employee is huge in number. You can see thousands of people who were laid off. So, can we say recession wins and no business can overcome it? The answer to this is quite complicated. However, there have been some businesses that are recession proof! By recession proof, I do not mean that recession has no impact on their profits. The term implies that the impact of the recession has been negligible and manageable for the industries to a large extent.
Let us check some of the businesses that are recession proof!
Before that, here is what recession is technically
A recession is defined when there are two consecutive quarters of negative GDP (Gross Domestic Product) or a decline in economic activity.
Businesses That Are Recession Proof
Technically, every business can face recession. However, there are some businesses that have a low or medium impact of the recession and can sail through it without many difficulties.
Here we categorize the business into two main categories. Businesses that have
- Medium Impact During Recession
- Low Impact During Recession
Businesses With Medium Impact During Recession
Here are some businesses that have experienced a medium level of impact during recession periods.
1. Repair And Maintenance Services
This business can have a medium impact due to the recession. However, it is not completely shut. People do continue their repair and maintenance services of all sorts. Repair and maintenance would contain electric work, automobiles, water, and much more. You can see people availing of repair and maintenance services throughout the year.
The maintenance services also thrive as they are involved in serving people from the public and private sectors. Moreover, these companies constantly work for contracts and part-time projects as well. It helps a lot to keep their finances strong for them.
2. Accounting And Tax Services
The other business is accounting and tax services. No matter how bad the recession is, people still file their tax returns and maintain their accounts. Moreover, businesses need to take extra efforts to prepare accounts during the recession and the entire financial statement needs to be analyzed. Without proper financial planning, they can face instability in their supply line. It is during the recession, they need a more complex analysis of their finances.
Individual and accounting companies are filled with projects to file tax and accounting sheets during this period. Moreover, this is something that is required by all governments. The activity of accounting and tax returns never stops. It is a repetitive process each year. And for each year’s returns, accounts are to be maintained throughout the year. Hence, accounting services are required throughout the year.
3. Wedding Organizers
The third in this would be wedding organizing companies. Many people would think of having the wedding with a light budget and hence save on wedding organizers. So, this industry does suffer a medium impact. However, be it a recession or not, weddings still take place.
People do carry on with their weddings. The reason being it is a one-time event for everyone. Moreover, weddings are preplanned. Hence, the wedding companies are preplanned at their ends as well. Weddings take place throughout the year and this is something that helps this industry survive better than the others.
Businesses With Low Impact During Recession
Here are some businesses that face the low-level impact of the recession.
1. Sewage Management
Sewage management companies are operating throughout the year. There is no day they can skip their work. The recession seems to have a negligible effect on their operations. Sewage and waste management is an inevitable part of any society. Without managing this, the entire sewage system can collapse.
The other positive aspect of this industry is that it operates for both – the private and public sectors. Sewage management is not limited to a particular place or time of the year. It is required every day in every part of the city. Recession can make an impact on this industry. But the impact is mostly negligible.
2. Healthcare and Pharmacy
This is one industry that simply cannot rest even if it needs to. Sadly, this is the reality. The recession hardly impacts this industry. It is a sad fact that people require medical attention throughout the year. You will hardly see a medical institute having less work on any particular day.
Healthcare and pharmacy are required for human survival. Many pharmaceutical companies may face the recession impact. But it is negligible due to the fact medicines are always required in one way or the other.
3. Liquor and Tobacco
In many surveys, it is concluded that the recession period for any person is tough. So, many people may resort to an increase in their drinking or smoking habits. You cannot expect people to stop their alcohol consumption or smoking habit only due to the recessions.
In fact, it turns out to be the opposite in most cases. People are so frustrated with the recession period, their financial conditions, and their job instability, they may resort to more such ill habits. It is another sad reality but it is true. Alcohol and tobacco companies have shown very less negative results due to recession periods.
4. Grocery Stores
Grocery shopping is something that needs not much explanation. This is our daily requirement for survival. Certain companies manufacturing grocery products may surely face a severe impact of the recession. However, grocery stores are still immune to the recession. The reason is they sell products of many different companies in one place.
If one company is facing recession, the others may still be in the game. Grocery stores still have a lot to sell. Moreover, as a consumer, you would also purchase as it holds your daily needs. You may switch brands or numbers, but you still buy groceries. Hence, grocery stores face a very negligible impact due to the recession.
5. Telecommunications
Telecommunications is a part of our lives now. You cannot imagine your life without mobile phones and internet usage. There are telecommunication companies facing recession. However, the impact is still low for them. We all use telecommunication services on a daily basis. You or I cannot quit our internet usage or mobile services.
These companies surprisingly do well in the recession period as well. People may switch to low-cost telecommunication services due to less stable financial conditions. But, they won’t entirely quit their services.
6. Insurance
Recession or not, insurance is needed by everyone. People continue their insurance services during the recession period. Moreover, it is helpful in safeguarding them against financial instability. You can help yourself a lot by having health or financial insurance.
Insurance companies operate throughout the year. In a recession, even companies avail many insurance claims for their employees. The insurance business also has a low impact because of the recession.
7. Freelancers
Freelancing is one business that can make or break you during recession periods. However, this business has been proven to be quite immune to the recession. One major reason to explain this is that a freelancer has clients across the globe. Being a freelancer, you are providing your services to multiple clients from different locations.
This helps you diversify your income range and allow a steady income during the recession period. When companies are facing the severe impact of the recession, a freelancer may hardly lose a few clients. Not every client of a freelancer is expected to be hit by the recession.