11 Businesses That Thrive in a Slowdown
In these challenging circumstances, are you considering establishing a business? Even though other people might think you’re insane, a downturn in the economy can be a great moment to launch a business. Make sure you are aware of the characteristics of successful firms.
The best company in a bad economy is always one that is led by strong leadership, with a clear mission. However, some industries might perform better than others. What industries, then, prosper during a downturn? And what unique opportunities that can weather a crisis are there?
Grocery stores naturally do the best business during a slowdown. People constantly need to eat, and during a downturn, they often reduce their takeout and dining out spending as well. Sales of groceries soar even higher as a result.
2. HEALTH CARE
People must have access to health care in order to survive. When the economy slows down, this demand doesn’t. The demand for healthcare is never elastic, thus it doesn’t alter in response to price. Even during a crisis, demand for healthcare may increase as more people seek mental health care.
It is not surprising that candy tends to weather economic downturns because humans are motivated to seek pleasure and avoid pain, regardless of the situation. During the Great Depression, Snickers and Three Musketeers were both first released. Additionally, Cadbury recorded record earnings during the 2008 recession.
4. BEER, WINE AND LIQUOR
Another “guilty pleasure” industry that typically makes money during slowdown is the sale of alcohol. People sometimes turn to alcohol to comfort themselves when larger purchases like electronics, vacations, and new cars are out of their price range. Although it’s not a good habit, it’s one of the top enterprises that survive recessions.
5. DISCOUNT RETAILERS
Discounters are an exception to the rule that fashion, jewelry, and other non-essential goods are not the best enterprises in a bad economy. During the 2008 crisis, Dollar Tree, Walmart, and Ross Stores had some of the highest-returning stock.
6. CHILDREN’S GOODS
Baby products are largely immune to economic downturns: Parents can’t exactly cut corners on diapers, formula, and outfits for a rapidly developing infant. Even children’s apparel and toys are impervious to the recession. In order to continue spoil their children, at least a little bit, parents will make sacrifices in other areas.
7. PET INDUSTRY
Americans adore their pets. We won’t likely cut corners when it comes to veterinary care if a cherished pet dog or cat becomes ill. It goes further than that. In 2020, Americans are expected to spend $1.5 billion more than they did in 2019 on pet food and treats. Large industries like the pet industry continue to grow despite the economic downturn.
8. FINANCIAL ADVISORS AND ACCOUNTANTS
Everyone begins to worry about their financial future when the market goes into a bear market. People want to make sure their investments are secure or even make new investments. Businesses rely on accountant expertise to help them get through challenging times. These are useful talents in any economy, but particularly in a struggling one.
9. CYBERSECURITY AND TECH SUPPORT
We are shopping, working, chatting, and streaming more than ever before online as a result of the present economic. Businesses that survive economic downturns constantly adapt to new trends, and possibilities are emerging for people with the knowledge and abilities to thwart cybercriminals and support recently remote-working office personnel.
Things will break even when the economy is weak. Rain on the roof, water in the pipes, and the requirement for auto maintenance won’t be slowed down by the recession. Therefore, in a crisis, plumbers, electricians, mechanics, roofers, and general handymen are likely to prosper.
11. FREIGHT OPERATIONS
Businesses that prosper during a downturn typically offer goods or services that consumers will always need or that will make them happy during difficult times. Freight and logistics routinely weather economic downturns because they provide both conveniences and necessities.
Source: Tony Robbins