4 Recession-Proof Online Business Ideas 2023

Even in a recession, businesses and consumers will need repairs, tech support, system upgrades, or other technology-related services when issues arise. According to Phsy.org, the tech industry as a whole added 77,000 jobs during the 2008 financial crisis. Other businesses are cutting back on expenses and likely laying off employees because of the decreased revenue they have coming in. If you’re thinking about starting a business in a certain industry, however, it could be a good idea to do so during a recession. Competition may be lighter, and some industries are are more likely than others to survive in an economic downturn. Healthcare and other services for seniors are generally recession resistant.

According to Doug Greene, the owner of Signature Properties, in times of economic crisis, people still need three basics — food, health care, and housing. In order to choose a recession-proof business, prospective business owners should focus on these essential services. Spending on digital marketing is predicted to exceed $600b in 2022.[9]Statista. While you may assume businesses cut down on advertising during recessions, digital marketing is a cost-effective alternative to traditional marketing channels.

Serves consumers unaffected by recessions

There are plenty of areas of tech support expertise, from helping a client recover lost data to talking them through new software solutions. Each of these sectors represents an opportunity for you to start a new business. Unless you are a self-sufficient farmer, groceries are an absolute daily necessity, so prices tend to remain pretty stable during recessions.

• Depending on credit conditions, borrowing to buy a new home is often not an option for most people during a recession anyway.
• These include a reduction in GDP, fewer retail sales, higher unemployment, and slowdowns in manufacturing.
• Creditors tend to raise their lending standards when a recession hits, so prioritizing credit-building is in your best interest if you want to brace for an economic downturn.
• Consumers are — now more than ever — focused on living a healthier lifestyle.
• Similar to refurbishment, many people who are worried about the economy will be more likely to get their devices repaired rather than replacing them with a new model.

Recession-proof businesses are usually in industries that are not severely impacted by a decline in the economy. These industries are usually ones that everyone needs, even when finances are tight. But before we dive into what industries are recession proof, let’s discuss what a recession means. In the U.S., the electric utility industry earnings are forecasted to grow by 9.6 percent annually, historically lower than usual. But even so, sales are doing well for electric companies, increasing by nearly 12 percent per year.

Final Thoughts on Recession & Pandemic Proof Businesses

Sign up for Shopify’s free trial to access all of the tools and services you need to start, run, and grow your business. Nearly everyone lives with wireless technology, from sound systems to streaming. The number of smart homes is slated to be more than 400 million worldwide by 2024, according to Statista. Smart devices regulate heating and cooling systems, wireless gadgets, and appliances, including home security systems. Businesses—virtual or in-person—that cater to homeowners with smart device installation or maintenance needs will likely have a robust consumer base during any type of economy. Try Shopify for free, and explore all the tools and services you need to start, run, and grow your business.

Once the economy stabilized, he could then appeal to the other side of the market—businesses looking for talent—through a job board and freelance marketplace. “The more debt you have, the more cash you need to make your interest and principal payment,” Mueller explains. When a recession hits and less cash is coming in the door, “it puts you at incremental synonyms & antonyms risk of defaulting.” To keep up with payments, companies with more debt are forced to cut costs more aggressively, often through layoffs. These deep cuts can impair their productivity and ability to fund new investments. Leverage effectively limits companies’ options, forcing their hand and leaving them little room to act opportunistically.

Recession-proof businesses to consider

But the uncertainty of a recession necessitates experimentation, which requires that decisions be made throughout the organization. Even if companies decide not to decentralize, they can try to do a better job of gathering input from employees at all levels when making key decisions. Most firms suffer during a recession, primarily because demand (and revenue) falls and uncertainty about the future increases. Diversification — whether that be through pursuing more target markets, offering more products or services, or adding more distribution channels — can help you alleviate that risk. Businesses selling baby products — like bottles, cribs, and baby clothes — generally hold up better than most during a recession. Parents will almost always look out for their children, no matter how the economy is faring.

After the recession of the early 2000s, the health care sector grew a whopping 8.8 percent. There are a variety of recession-proof businesses you can run that require little money to get started, or fewer necessary skills, and even less formal education. Due to the wide variety of recession-proof businesses you can choose from, most of them can be started with a little research, some upfront planning, and a good positive attitude. Big companies like Google are famous for acquiring smaller companies during recessions. As such, it’s important to have a solid product that’s capable of remaining afloat.

Property Management

During an economic downturn, luxury purchases and some services start to decrease as people become hyper-vigilant to how much they’re spending. As the economic hardships continue to mount in 2023, it’s looking more and more like the economy could be headed for a recessionary period. When there’s an economic downturn, many folks try to save money by avoiding going out, but that means their home needs more attention. Home improvement companies still have plenty of work to do during tough economic times—which makes them great candidates for recession-proof small businesses.

A bad economy isn’t likely to lead to people getting rid of their devices altogether; people are too attached to their smartphones, tablets, and other electronics that this won’t be the case. However, people will likely be less willing to shell out hundreds or thousands of dollars on an expensive, brand-new replacement when a refurbished model can fit their needs just fine. The food industry can have its drawbacks, but the love of fast food is probably not going anywhere, anytime soon.

Repair Services

There’s no such thing as a recession-proof business, since every financial crisis is different. But certain types of businesses have traits that help them hold up in tough economic times. I asked business owners who survived the 2008 recession and the economic downturn at the start of the pandemic what made their business models resilient. Another characteristic of a resilient business is their ability to adapt to changing economic conditions.

However, there are a surprisingly high number of industries that are highly resistant to economic downturns. These industries that are recession proof offer opportunities during times of economic recession. Although things might be tougher, it’s definitely possible to move into a recession-proof career or build a successful recession-proof business during trying times. The national pet industry made over $100 billion in sales for the first time in history in 2020! So, pet care and supplies like pet food are shown to be recession proof businesses now. Based on the list of the above recession proof industries, let’s go over some actual business ideas.