TOP FIVE RECESSION-PROOF BUSINESSES
Economics is incomplete without a recession. For as long as the world economy is concerned, there are times the world will do well economically, as well as times most people will have to deal with a recession. The world’s economy goes into recession when stock markets go down. When this happens, a lot of people lose their purchasing power. As a result, firms are unable to make sales and, therefore, losing their value. Unfortunately, many are left with no source of income, loss of jobs, and means of livelihood.
Despite the sad reality, some businesses survive a recession. Let’s discuss five recession-proof businesses.
INFORMATION TECHNOLOGY
Although recessions can make a business person seem powerless, it is not out of place to set up a business in the recession. Furthermore, the fact that there is a recession is not an indication that every company will do poorly. The reason for this is some businesses are recession-proof. If you run a recession-proof industry, you most likely will be able to make it through a recession. According to statistics, of all the industries in the United States, the IT sector grew fastest both after and during the recession that occurred between 2007 and 2009. It, however, is an attestation to the fact that information technology is a recession-proof business.
Why Does the Information Technology Sector Boom in a Recession?
There are lots of reasons the Information technology industry does very well in a recession. However, of these reasons, one of the most pronounced is the fact that information technology businesses never have enough hands to handle the available work.
Information technology might not seem as recession-proof as other popular recession-proof businesses. It, however, will always require workers because there is a general lack of qualified hands in the IT sector. This implies that regardless of the state of the economy, it will be difficult for anyone with high level IT skills to be out of a job.
Just like other sectors of the economy, IT workers have to retire. Unlike a lot of different industries where retirement by workers is sometimes an attempt to make a place for others that are just coming up in that field, this is not the same in the IT industry. More often than not, when people retire in the IT industry, there are usually not enough people to replace them. Due to this, issues of people being fired from work in a recession is almost impossible.
What IT Sectors are the Most Recession-Proof
At this point, you know that information technology is a recession-proof business. That, however, is not good enough. If you are looking at investing in this business because it is recession-proof, you must know the sectors in this business that are the most recession-proof. That being said, let’s take a look at the most recession-proof areas you should consider when looking to invest in an Information technology business.
Integration and BPM
Acquisitions and mergers are unavoidable when recession kicks hard. Beyond being unavoidable, they seem to increase very rapidly during a recession. Because in recessions, firms that are not very financially stable struggle badly and have no choice but to join forces with other companies or sell to much more prominent firms in the same sector. Due to the rate at which mergers and acquisition occurs during a recession, integration experts always have more on their table than they are used to.
As firms are acquired and merge, middleware becomes very important. While middleware is useful for merging firms, these are not the only set of firms that need this technology. As firms struggle to survive and reduce costs, they also need integration services.
Data Loss Prevention
Investing in security might not seem so crucial on a typical day. The only time they seem very beneficial is if something goes wrong or almost goes wrong. Although data losses do not always occur, when they do, they can be very drastic. Lots of organizations are aware of this and will do anything in their power to prevent data losses. While data losses can be prevented when employees adhere to instructions, there is more to the prevention of data loss than just adhering to guidelines. Certain technologies are needed to avoid data losses, and lots of industries are willing to invest considerable amounts in acquiring these technologies to prevent the loss of data. Since lots of organizations will be open both in a recession and when the economy is in a perfect state, they will always have to invest in data loss prevention if they must run without hitches.
Social Networking
Social networking was perhaps not a part of the IT sector some years ago. It, however, is a significant part that people looking to go into IT business should consider. The staff of a company can collaborate very easily by taking advantage of social networking technologies, and lots of business owners have realized this. Therefore, a business focused on social networking will keep striving for so long other sectors if the economy keeps functioning.
Mobile Computing
As the years go by, it will become increasingly difficult for firms to pay no attention to the mobile device preferences of employees. Although not entirely, this development is wholly due to Google’s G1 Android and the iPhone. According to surveys, a firm’s choice of supported mobile tools sways young employees simply because younger employees do not consider mobility as a way to stay in touch when on the move. Instead, they think it more of a lifestyle.
Open Source
A lot of firms think about open sources before going ahead to make decisions regarding technology procurement. Nonetheless, they become a lot more attractive because of economic downturns. According to Gartner, “OSS will be chosen more as a possible alternative to expensive proprietary software. The economic downturn will push the OSS adoption up and harm sales in several segments, notably OS and office suites.”
Virtualization
Between 2007 and 2008, lots of firms were interested in server virtualization. However, it appears desktop virtualization is one sector of the technology industry that should be given a lot of attention by businesses that are interested in investing in the information technology sector.
HEALTH SECTOR
When the economy gets bad, people will be unable to spend their money in the way they want to. They might be unable to buy houses, cars, and go on vacation. They, however, will always get sick. In addition to getting sick, people need to have babies and will, therefore, need to go to the hospital. Also, people with chronic ailments will need to keep treating their diseases. The implication of this is the health sector will continue running regardless of what the state of the economy is. While many people assume this scenario should keep the health sector from being affected by the recession, this is not usually the case.
When a recession occurs, the healthcare sector can get into trouble just like other sectors of the economy. Although this is usually unexpected, it is one of the many effects of the recession.
All things being equal, recession affects virtually every sector of the economy. However, specific areas are more affected while some appear rarely hit. One sector of the economy that seems to perform better than others in a recession is the health sector. This is basically because of demand and supply. So long people are alive, they will always need to have their health checked. This implies that there will always be jobs for healthcare workers.
The average person's demands for whether in a recession or a booming economy are health insurance, medical equipment, retirement home services, hospital supplies, and drugs. Now, regardless of the demand for the services offered by the health sector, when recession persists, this sector of the economy ends up being affected. Therefore, it is usually the last to get affected, as well as the first to recover.
The healthcare sector is perhaps not the sector to work in if all you are interested in is getting rich very quickly from your job. Nonetheless, if you are looking for an excellent job security degree, you should consider working in the health sector. Humans will always need healthcare. So, if you have the right qualifications, you can be confident that you will still get a job in the health sector. This is also the case in recession and when there is a lot of economic uncertainty.
The healthcare sector is one sector of the economy that is characterized by constant job growth. There are lots of factors responsible for this. Some obvious, others not too noticeable. Some factors responsible for the job growth in the health sector are the retiree of workers, an increase in the demand for health workers worldwide, and rapid advancements in medicine.
The healthcare sector is believed to be recession-proof because of the many positions that humans have to occupy to live a healthy life. Some of these positions are physical therapists, medical secretary, physician assistant, Esthetician, physical therapist assistant, occupational therapist assistant, diagnostic medical sonographer, home health aide, and personal care aide. While the jobs mentioned above are the core healthcare jobs that will always be available regardless of the state of the economy, some other jobs in the health sector that will always be needed are opticians, epidemiologists, radiologic technologies, nutritionists, medical equipment repairers, pharmacists, physicians, dental hygienists, dentists. The fact that these jobs are always needed means individuals with the skills to fill these positions will never be out of a job.
How Recession-Proof is the Health Sector
The health sector might seem like it is recession-proof. Nonetheless, there are lots of exceptions to this. According to experts, the health sector sometimes gets affected by the recession. It, however, does not respond in the same way as other sectors. Due to this, the health sector can best be described as being resistant to recession.
How does this work? When there is a recession, specific industries get affected first. These initially affected industries have no choice but to downsize if they must keep surviving. This leads to a massive loss of jobs. As people in various sectors of the economy lose their jobs, their health insurance, which is usually sponsored by their employment, also slips off their fingers. Once this happens, they start making gradual changes to their basic healthcare patterns. Instead of visiting the hospital for healthcare, they might prefer to get drugs over the counter and self-medicate. It is terrible in itself. It, however, gets a lot worse as the rate of unemployment increases.
The reduction in the earning power of the average person drastically reduces the amount hospitals make daily. When hospitals and other healthcare centers make less gain, it becomes difficult to pay their workers. This, in turn, drags healthcare workers into a recession.
While not everyone loses their job during a recession, a lot of firms try as much as possible to pay less for the workforce they maintain. And this includes a significant reduction in healthcare insurance.
How Can the Healthcare Sector Become More Recession-Proof?
Since the recession will always occur, and the healthcare sector is not free from a recession, there are steps the healthcare sector can take to become more recession-proof.
To become more recession-proof, healthcare workers need to think carefully about the implication of a recession in the healthcare sector. When they do this, this sector becomes a lot more prepared for the effects of a recession.
Although no one prays for a recession, leaders in the healthcare sector are supposed to anticipate recession as this is one way this sector can be recession-proof. They can do this by studying particular recession scenarios that took place in the past. This should include how long this recession lasted, what the rate of unemployment was in this period. The risks that existed while the recession understudy was on and the opportunities that came to limelight after these recessions. Once this is done, a playbook should be developed to help this sector make it through a recession. Once the playbook is developed, the next thing should be to get the right group of people to carry out this playbook. These groups of people should be divided into teams.
FREELANCING
Although most sectors of the economy get affected by the recession, those in the freelance industry do not have to deal with as much fear as those in other sectors. Because, to no small extent, freelancing is entirely recession-proof. While this is not absolute, there are specific steps freelance writers can take to keep their jobs above the water in a recession.
These steps are;
Work with More than One Client
If you want to do well as a freelancer in a recession, you cannot afford to work with just one client. Furthermore, you will be a lot better off if you do not work in only one industry. If you do not spread your attention across different clients and industries, you risk being affected by the recession.
Although freelance writers are usually not directly hit by the recession, the firms they work with might shut their doors. Doing this means the freelance writer might be out of a job totally if they work for just one client or a single industry. To avoid getting stuck, you must learn to spread your financial risk before recession sets in.
Picture this, you are a real estate writer, and you work for just one client. You will most likely be out of work if real estate sales go down drastically. On the other hand, if you write across various industries and work with different clients, you will not have to deal with the direct impact of the recession.
Keep Making Pitches
Freelance writing should be progressive. It is not an industry where you can do a lot of you do not add value to yourself. You can leave the level of simple writings and do something a lot more complicated by making a pitch.
When you make a pitch, you are in a position to get more complex projects. With an increase in the complexity of the projects you handle comes higher rates and better samples.
Networking is Key
In this age, to stay floating as a freelance writer in recession, you must take advantage of networking. A long time ago, it would be not easy to keep getting new jobs if your link to a firm gets relieved of their position. That, however, is not the same in this age.
There are several ways to network with your clients, as well as other writers. One of the most trusted is LinkedIn. When you do this, if your clients leave their place of work to a new one, you can always stay in touch with them and get more offers if they handle the same position or a similar position in another organization.
Work for Profitable Firms
As a freelance writer, you must discover the firms that have the best rate. Once you find out these firms, your chances of staying above recession for a long time regardless of how bad things get will increase drastically.
You have to identify the firms that are most profitable and work with them. To do very well as a freelance writer in recession, you might want to avoid working with solo because this might not be the best marketing in a recession. This might lead them to become nervous. And when they are nervous, they will reduce the sales copy significantly.
Learn to Meet the Needs of Your Clients
As a freelance writer, one way to continue earning a decent income even in a recession is to write about the most important things to your clients. If you write about things they do not consider necessary, it is only a matter of time before your services are no longer needed.
When writing for business clients, you must master the art of writing persuasive copies. This is important as sales pages will never become outdated. While companies will always need sales pages, soft-sell content marketing might no longer be required.
Furthermore, you will need to discover the juiciest stories that magazines are interested in delivering. Once you find them out, you must give them all your attention. By doing this, you will be able to come up with topics that the magazine will have no choice but to publish.
It would be best if you Learned to Stay Calm
Recession does not occur frequently. Due to this, there is a considerable likelihood that lots of freelance writers that have been writing in the last five years are not aware of what to do to stay free from recession. As a result of this, there could be a lot of anxiety in the face of recession.
It is okay to get concerned about the state of the economy. What you should not do, however, is too get nervous. If you find yourself getting nervous, you should relax. This is important as relaxing will help you think correctly and carry out the right actions.
VICES
There are many businesses the average person can invest in when looking for where to put their money. Some of these businesses are lucrative, and others are not so lucrative. Furthermore, some of them will only do very well when the economy is perfect. Others will do well both in a good economy and a lousy economy. If you have lost all the money you put into a business due to a major shake in the economy or have had to leave a job because workers were laid off, then a recession-proof business might mean something to you.
When an economy is in recession, good job security becomes a wish. Furthermore, lots of people gravitate towards businesses that are regarded as recession-proof as this can go a long way in determining if they stay on a job or get out of employment.
How Vices Thrive in a Recession
It is believed that as the economy of a country gets worse, sin becomes more pronounced. This is perhaps because lots of people become idle. While this is quite true, it is not entirely true. When there is a recession, the vices industry generally does well. Nonetheless, not all the products in this industry do well. In the great depression, there was a skyrocket of cigarette sales. That’s not all. Recessions have come and gone. Nonetheless, tobacco stocks have always been a great buy.
In a recession, lots of people lose their jobs. This loss in jobs is never received well by people. As a result of this, some with no alternative give in to vices. That’s not all. As people become a lot less busy because of the loss of a job, they seem to fill the ample space they have in their lives with any of the vices they love the most. Those that love taking beer begin doing this in an increased frequency. The only thing that might change is the quality of the drinks they buy.
Due to a reduction in funds, lots of people will opt for brands that are cheaper than they are used to. As recession kicks in, a good number of people get frustrated and always seek avenues to express their frustration. It is thereby leading them to draw tattoos and thus bringing about increased patronage of tattoo parlors. In addition to being an avenue of expression in a recession, tattoos are quite cheap and creative.
Recessions are bound to come and go. Regardless of this, people will not cease smoking and taking alcohol. Due to this, drink, as well as tobacco companies, do not fail to do well in a recession. Although it might only look like people keep taking alcohol and smoking while the recession is on, it is more than this. During the recession, lots of people feel a lot frustrated, and one way they deal with this enormous frustration is by smoking as well as taking alcohol.
Tobacco might be looked at as a taboo. It, however, is the consumer product with the highest profit margin. Beyond tobacco, a lot of money is made from the sale of cannabis both in recession and out of recession.
There is a federal ban on cannabis. However, that does not take away the fact that it is a product that can do very well in a recession. With cannabis, there are lots of investment opportunities. Lots of people are afraid of putting money into cannabis because of the federal ban on it. Lots of pharmaceuticals and biotech companies are doing a lot of legal stuff with cannabis.
In a recession, many people cut down on the amount they spend on living in general, which includes a reduction in the amount they put into entertainment. Regardless of how much people cut down their budget in other essentials, it appears they can’t do much about cutting down the amount they put into buying alcohol.
How Recession Proof is the Vices Industry
When a recession hits the economy of any nation, the spending power of the average person reduces. For some, this reduction is very slight. For others, it is drastic. Regardless of how deep the reduction in spending power is, the average person is unable to spend as much as they would typically spend.
Due to the reduction in spending power, the buying habits of people change considerably. Therefore, it implies that a lot of people will be spending less on shopping than if the economy was not in a recession. A change in spending habits due to a reduced spending ability might mean lots of people will come up with a list of the things they need and the things they do not need. While this practice will affect most sectors of the economy, the vices industry will not be as affected as people will have to go a step lower in the quality of alcoholic drink they buy. Because instead of putting alcohol or cigarette away entirely, the average person prefers to reduce the variety of alcoholic beverages they buy. This way, they will still be purchasing alcoholic drinks the same way they did before a recession.
If people can continue spending their hard-earned money on vices, then those that run, as well as work in the vices industry, will not be out of a job. Although there could be a slight reduction in salary, this will be nothing compared to the trouble that will be faced by other sectors of the economy that are worse hit.
Education
One sector of the economy in which everyone enjoys good job security is the education sector. Regardless of the state of the economy, teachers are usually in very high demand. Statistically, the number of people enrolling in colleges has not been affected by the recession. It is a significant indication that people will always get educated regardless of the state of the economy. A lot of people will even do this even if it means forfeiting other services that are considered quite essential. Many people go for knowledge regardless of the state of the economy. When there is a recession and workers get laid off, a lot of these workers often go back to school. This is unexpected. However, it is a way to brush up their skills and get ready for better opportunities.
No one envisages for a recession. Nonetheless, recessions will always take place. While recessions take place once every few years, predicting the next recessions is not the easiest of things to do. Predicting a recession can be likened to predicting the weather. If a day is to be sunny, the fact remains more often than not, that day will be bright. However, what will be uncertain is the degree to which the sun will shine and how long the day will stay sunny. It can be said to be the same way recession occurs. A lot of times, people expect a recession. Nonetheless, not many people know how long and how sharp the recession will be.
Since you might not be able to predict a lot of things about the next recession, if you do not want to lose all you have, you might want to invest in a recession-proof business.
Many businesses are expected to thrive in a recession, and education is one of these businesses. When the economy of a nation goes through a recession, one of the sectors that remain active is the Education sector.
Why is this so?
Regardless of the state of the economy, people will always have to get educated. Although, it might be challenging to pay for tuition fees and everything associated with getting an education, the only way to be positioned for any opportunities that might arise after a recession is to be educated.
Beyond getting people ready for any opportunities that might arise after a recession, education is a source of hope during a recession; the average person wants to look towards that hope. While many services get fewer demands during a recession, the demands for educational services increase substantially, as many people recognize that one way to get started with the right foot after a recession is to get a proper education.
How to Keep Your Education Business Untouched After a Recession
Education might be a recession-proof business. Nonetheless, there are things you have to do to ensure that your business stays recession-proof. Let’s walk through some of them.
You Must Advertise
When the economy of a nation goes into recession, a lot of people begin to hoard money. It also feels like a perfect time to quit putting more funds into a business. If you are running a company that is not recession-proof, you might want to hold on for a while until the recession begins to wear off. When running an education business in a recession, one of the best things you can do is advertise your business. This might be against general business ethics. It, however, will do your business a lot of good.
Now, in a recession, lots of businesses begin cutting down their budgets. And one area they do this is in advertising. Therefore, if you run an education business, a recession is not the time to cut down on advertising. However, it is time to put more money into letting people know about your business. When you advertise your services as an education business, it becomes a lot easy to connect with those that need these services the most. This, no doubt will be a difficult thing to do. It, however, will be a defining moment for your business.
Create a Budget
To keep your education business floating in a recession, you must be budget savvy. Education is a recession-proof business, staying afloat in a recession is a lot more complicated than a lot of people realize. If your education business must make it through a downturn, you will need to operate on a budget. You must identify the essentials in your business and cut out the extras. Such things as training and product improvement services should be funded. However, you might not need to give any attention to excursions and other extra-curricular activities.
How to Take Advantage of the Resistance of Education Businesses to Recession
While education is a recession-proof business and can guarantee a reasonable degree of job security, individuals that want to be a part of this sector have to know where the demands for teachers are highest. This might not seem like much. It, however, is a crucial tip.
There are times when there are more teaches of specific subjects and a shortage of teachers in other disciplines. Due to this, if you are looking to take advantage of the job security in the education sector during a recession, you can significantly improve your job prospects by giving the subjects high in need intense attention and focusing less on those with lots of qualified teachers already.
Conclusion
Without a doubt, a recession doesn't stop making money, increasing income, and starting a business. There are recession-proof businesses, and they strive and grow during and after a recession.
With the right information, education, and steps, you can start a recession-proof business immediately and succeed.
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