Financial institutions have proven to be able to survive and thrive during economic downturns such as the one we are experiencing today. Bankruptcy may seem like the kiss of death for business owners, but that’s not always the case.
In fact, my old business – a website for hunters – had its best year in 2009, the height of the Great Recession.
Whether you’re looking for business ideas or outside ideas, or you just want to know what types of companies are doing well in the industry, this post has you covered.
What is a Recession?
First, it is necessary to define what a recession is.
According to Oxford, a recession is “a temporary slowdown in the economy … usually characterized by a decline in GDP for two consecutive months.”
What Happens in a Recession?
What does bankruptcy mean in real life? Give us an economist’s definition of reality.
- Unemployment is rising
- In general, the stock market is going down
- Consumer confidence is falling
- Decide not to spend too much
- Interest seems to be falling
In other words, they’re not really funny. The good news is that – like everything – they are temporary.
However, there are many 21 Recession-Proof Businesses that can thrive in tough times. Here are some things to consider.
1. Rental Properties
During the Great Recession, millions of homeowners lost their homes to foreclosure. At the same time, all these people are still empty, so they turn around and start renting again. Of course, many tenants depend on rent. This means that investing in real estate for the long term can be a down market. Although housing prices have fallen, housing prices and rents are still high.
If you have the money, a recession can be a great time to get a rental or two. Consider a platform like Roofstock, which makes it easy to shop and compare products across the country.
(Actually, some of our friends got a few kills from 2009-2012!)
NOTE: Come out first in Real Estate: $15k per month in Passive Cash Flow
And if a big paycheck is out of the question, check out a platform like Reach.
Writing makes it easier to market income-generating properties across the country – especially when tenants and property management are involved. And instead of needing thousands of dollars for a down payment, you can buy shares in these properties for less than $100.
It allows you to add valuable content to your archive – without the headache of managing it yourself.
2. Mobile Notary Service
In many states, mortgage lenders help new home buyers (and refinancers) build their credit reports. Instead, they usually earn $75-$150. With interest rates low during the recession, more people are getting refinances and cell phones are in high demand.
Being a mobile notary is an inexpensive business that allows for flexible hours. (A guest on One Side Hustle is said to have called it “the best kept secret in real estate.”)
3. Virtual Assistant or Remote Freelance Service
As companies cut costs to stay nimble, they may consider remote work or outsourcing. This will save them the cost of office management and they will be able to handle other labor tasks such as paying taxes and benefits.
Setting up shop as a virtual assistant or remote freelancer is pretty easy. You may not need to register as a business – you are a trader by default.
Then it’s just a matter of finding out what services you can offer and contacting clients who need your services. Depending on your skills, you can make $20-100+/hour working from home.
If you’re interested, check out my friend’s free video tutorial featuring:
- Where you can find thousands of professionals.
- How to make money full time working from home.
- Clients are seeking help from the VA. (Hint: This is not the first VA experience)
4. Used Clothes
During the last recession, thrift stores saw sales skyrocket as people tried to save money on their clothes. If you have an eye for fashion and markets, you can turn that into income by selling on eBay and other online sites with apps like Poshmark.
Likewise, customers like to extend their existing clothing by making alterations. I can’t say I’ve used a sewing machine, so it might not be the best trade-off for me, but it might be something to think about.
6. Flea Market Flipping
Bankruptcy can create the perfect storm for traders or flippers. First, motivated sellers may be willing to participate in a profitable sale in exchange for a one-time fee. So, in the store, shoppers may decide to use shopping to save money. If you can represent yourself, you have your own profitable business.
My favorite flippers are Rob and Melissa Stephenson who regularly make thousands of dollars every month by buying low and selling high. (I love seeing all the products they have in stock!)
Free training is available on how to get started and make your first sale in 2 weeks.
7. Online Content
While online content may be successful in good time, I think it can also be a money witch. I mean creating online content for your own website, podcast or YouTube channel. If you focus on creating relevant content, content on topics that people are searching for, you can make money in many ways.
These include advertising, promoting affiliate products and selling your products or services. My life is based on this business model and I find it very creative, intellectual and (ultimately) profitable.
8. Mobile Mechanic
Like the idea of changing clothes, people like to keep their cars longer when there is business. But the cars still need maintenance and repair, which means shops and jobs are in the spotlight.
One of my favorite examples of this type of work is Matt Buchnak from Chicago who started repairing cars in his garage. At first he was making a few hundred extra dollars a month – but years later he was pushing $50,000+ a year.
9. Cover Letter and Resume Writing
When unemployment is high and competition for jobs is fierce, a cover letter and resume can make all the difference. Page Hustle Nation member Mike McRitchie pays $550 and up for his resume and LinkedIn enhancements.
When people are unemployed, many go back to school to improve their skills. Starting a tutoring business can help them with entrance exams, curriculum and difficult subjects.
The best teachers command $40 an hour and up.