Recession proof businesses

[924934]

This list is based on what we have found from different sources:

1. Healthcare
2. Advertising
3. Energy "Alternative fuels"
4. Security
5. Cosmetics
6. International business

Are you in one of these businesses listed above? Should you be or can you apply it?

We are part of # 2 and # 6.
We think #1 makes sense with all of the baby boomers healthcare needs.
# 3 makes sense with all of the oil challenges the world is having.
# 5 make sense since many people are still able to afford something small like lipstick in a down economy.
# 4 we have no thoughts on that one.
# 2 business owners need business and more than ever; and large companies need to hit those sales numbers.


Where do you think the opportunties are? (on this list or not on this list)

[Fire_Tiger]

First, no business is recession proof. Recession resistant, yes. Proof, no.

As for your list. If they are recession-resistant then they all require you to already be in business and in the black going into a recession. As for specifically those on your list...

1) Everyone gets sick.
2) Who on Earth thinks this??? I'm a marketer by profession and I know advertising agencies go under during boom times.
3) The ONLY way I can see this if the business depends on government grants and subsidies. I've been a marketing consultant for a few of these businesses and without government assistant (a.k.a. hand-outs), they all wouldn't be able to keep their doors open even during boom times.
4) Private security firms as good as healthcare. Businesses do not cut back on their security guards even during a depression. In fact, if the local area goes into a depression, businesses will commonly increase the number of their guards.
5) I'd agree and agree with your reasoning for it.
6) To repeat myself ... Who on Earth thinks this??? Now if you're an international corporation, that's different. You're then of a size that you should be able to weather anything but a depression. But if you mean something like an import/export business, those little boats are the first to hit the rocks and go down with the first hit.

If I were to make a list, it would be as follows.

1) Stripclubs
2) Funeral homes
3) Healthcare
4) Private security
5) Micro-breweries
6) Pawn shops
7) Check cashing
8) Thrift shops
9) Grocery stores

As for why...

1) Cheap way for guys to escape their problems for an evening.
2) Everyone dies.
3) Previously explained.
4) Previously explained.
5) Same reason as #1.
6) Vultures thrive in economic downturns.
7) There will always be illegal aliens.
8) The store that even the poor can afford.
9) Everyone has got to eat.

[pcbres16]

Though those are good ideas stated above, they have high barriers to entry.

[Fire_Tiger]

Though those are good ideas stated above, they have high barriers to entry.

While I agree some are hard to start up (getting permits to open a stripclub are insane), not all of the ones I listed have high barriers to entry.

PRIVATE SECURITY FIRMS
You can start a private security firm with literally just yourself. I know of three private security firms that did just that. The owner hired himself out as a guard and was his only guard initially. All three found businesses that were looking to hire a single security guard and asked to work for them as an independent contractor. One bar needed an evening bouncer; one clinic wanted someone to watch their parking lot after dusk and then escort their nurses to their cars when the clinic closed up for the night; and a motel needed a guard to sit by the front desk during their grave shift Wednesday - Sunday. With their first "contract", they built their private security firms up from there. One eventually sold his guard firm to a larger guard firm and retired whereas the other two became large guard firms and now operate in a number of states.

PAWN SHOPS
They can also be started on a shoe string. I know of one that started out of a guy's garage. The garage was nicely visible on a street corner and he hanged a sign out for traffic to see. Eventually, he relocated it to a strip mall.

THRIFT SHOPS
They are just as easy to start up as pawn shops and you don't even need to give people money. One gal sold everything on consignment so she didn't need to pay for her stock. She also started it up in her garage. Eventually, due to needing more retail space and everyone knowing where her business was so she didn't want to relocate it, she moved to another house and turned her old house into the shop. The garage then became her receiving and processing area.

[chrispalko]

Credit Consolidation? Bankruptcy Firm?

[924934]

Some good ideas have come into this thread. This thread was made to discuss recession proof businesses (ideas) or as someone wanted to point out resistant vs. proof. I think everyone gets the idea. We do believe some are proof with the right people and plan behind them.

In an old magazine there is a story about a man who owned a hot dog stand. He started it on the roadside and he “sold quality hot dogs with a smile” and his business grew. He added a billboard to attract more business and the business grew even more. He added a cart and the business grew more. One day the Hot Dog Man’s son came home from college and said to his father “Dad what are you doing, don’t you know there is a recession on the way? You need to cut your advertising costs. You need to cut back on spending so much on those quality buns and dogs! My Business school said to cut back in hard times.” So the father took his sons sound advice and his business began to fall off and he almost went out of business. The Father woke up one day and said “enough is enough” and he went back to doing what he was doing before getting his "cut back in hard times" advice. His business bounced back, he made profits, and employed people.

Selling hot dogs is a good business too.

When starting a business in a down economy there are huge benefits. Better rental and lease rates. Better pricing from vendors that need new business. Lower investments from franchises and business opportunities. The ones that stay on top usually don't stop advertising.

Does anyone think there should be a top 3 or top 5 list?