Check out these five businesses that will thrive during the next recession
After a historically long bull market, most economists now predict that we are on the verge of economic downturn. No one knows for sure when the next recession will strike, but whether we will face a recession in the not so distant future is a matter of “when”, not “if”.
With that said, some businesses actually do quite well in a recession – even better than they do in during a bull market. Below, we’ll take a look at five businesses that thrive during a recession. If you are thinking of a career change, getting into one these five businesses may be the best way to set yourself up for success with the possibility of the recession looming large.
Clothing is an area that many people tend to splurge on when they’ve got plenty of money in their pocket. When times are tough, though, not nearly as many people can afford to spend hundreds of dollars on name brand apparel.
Instead, they turn to thrift stores such as Goodwill, Plato’s Closet, and local, mom-and-pop stores to purchase clothing at a discounted price. Between 2007 and 2011 – a time of economic downturn and recovery from the downturn for the United States – Goodwill saw their sales rise 10% a year. Meanwhile 20% of Americans reported shopping at thrift stores in 2012 compared to the 14% of Americans who shopped at thrift stores in 2008 before the recession.
It seems to reason that accounting businesses would take a hit during a recession as individuals and business owners alike attempt to do their own taxes in order to save money. However, most business owners recognize that working with an experienced accountant enables them to avoid costly mistakes and save on taxes. Since accountants are in the business of helping people save money, their services are especially valuable at times when money is tight. This makes accounting a business that is set up very well to survive and even thrive during a recession.
Small businesses and individuals are not the only ones who are hit hard by a recession – businesses of all sizes feel the pain and are forced to cut back on expenditures, including marketing. Rather than halting their marketing efforts altogether during a recession, though, many businesses shift to more affordable methods of marketing.
When budgets are cut, costly marketing avenues such as paid advertising are often replaced with more organic means of marketing. This is great news for freelance writers and content marketers since content marketing is one of most effective means of driving organic traffic to a business’s website.
Content marketing may not be as reliable as paid advertising since the business won’t know for sure how much or how little traffic they will receive from their efforts. For a small investment, though, businesses can purchase a piece of content that has the potential to attract large amounts of traffic. In a time where budgets are being cut, this is a much more attractive option than spending massive amounts of money on advertising.
As an added bonus, freelance content marketers – like all freelancers – are able to provide their services to a global market. This means that, during a recession, freelance content marketers can pick up clients in countries where the economy is still flourishing. For example, if the US market has tanked, a freelance content marketer may still be able to find plenty of business working for clients in parts of the world that are not experiencing any economic woes.
Did you know that many popular candies including Snickers, Three Musketeers, and Tootsie Pops all came on the market during the Great Depression? During tough times, Americans look for inexpensive ways to make the day a little brighter, and buying some candy for a few bucks presents a very low cost opportunity to purchase something enjoyable at a time when most of their money is going toward necessities.
During the last recession, Cadbury’s profits rose by 30% while Nestle’s profits rose by 11%. It’s safe to say that economic woes don’t affect our sweet tooth, and the candy industry is, somewhat surprisingly, one of the most recession-proof industries in the country.
While the world economy is intertwined and recessions in one country can affect the economy in another country, the reality is that recessions in the United States do not impact the rest of the world in the same way. While the United States is dealing with a severe recession, many other countries in the world may be thriving.
This creates an opportunity for international companies to start putting more focus on foreign markets when the US market isn’t spending money. In order to effectively market their products to international customers, though, these companies must rely on translation services.
Like freelance content marketers, freelance translators also benefit from being able to work on a global scale rather than being entirely exposed to the US economy. This combined with the uptick in demand for translators during a recession makes translation services a very stable business no matter what the economic environment in the United States might be.