When the economy is booming, it’s a good time to be in business. Consumers have money in their pockets and are not afraid to treat themselves. But when inflation is on the rise, and the economy is heading toward a recession, people tend to keep a tighter grip on their cash, saving it for the rainy days ahead. This can make it difficult for business owners.

However, some businesses do better than others during tough economic times. They are known as recession-resistant businesses.

What Makes a Business Recession-Resistant?

Recession-resistant businesses are those that enjoy a steady revenue stream no matter how the economy is doing. They generally provide goods and services people need as opposed to things they want. Health Care is one example. The demand for health care doesn’t change, no matter how much it costs. And the demand for mental health care services may even rise when times are tough.

Grocery and convenience stores are other examples of business that do well in a recession. People usually cut out restaurant meals when money is tight, opting to buy groceries and cook at home instead. And while car dealers may have trouble making sales, auto mechanics may see more business as people try to get as many miles as they can out of their old cars.

No matter what type of company you own, or are planning to buy, there are ways to set yourself up to best handle economic ups and downs. For instance, if you keep your overhead low, it will be easier to find the money to pay the bills if your revenue dips.

Owning a franchise, as opposed to a stand-alone business, is also a good idea. Just like a sturdy ship navigating rough waters, a well-established company with a strong brand can help you weather a recession.

 What Businesses Do Well in a Recession?

• Children’s Goods and Services

Baby goods are practically recession-resistant, as parents have no choice to buy diapers, clothes and possibly formula for their growing baby. Even with older children, many parents scrimp and save to make sure their children have everything they want.

• Veterinary Care, Pet Grooming and Pet Supplies

People who don’t have children (and some that do) enjoy spending their money on their pets. Even when money is tight, they will still buy food for their dog or cat, and take it to the vet and the groomer.

• Financial Advisors

When the economy starts trending down, people start worrying about their financial future. People who worry if their investments are safe, or if they need to start investing, will seek out the help of financial experts.

• Emergency Restoration Services

Victims of flooding or fire at their primary residence have no choice but to immediately call a restoration service to repair the damage.

• Home Services

When the economy is suffering home sales slow. People start thinking about ways to renovate or redecorate their existing homes instead. And plumbers, electricians, roofers, and handymen are always needed, even during a recession. That’s why home services businesses are always good ones to invest in.

How Home Franchise Concepts Can Help

In business for 30 years, Home Franchise Concepts is well-respected in the recession-resistant home services industry. Our family of brands includes nine different home services franchises: Budget Blinds®, The Tailored Closet®, PremierGarage®, Concrete Craft®, AdvantaClean®, Kitchen Tune-Up®, Bath Tune-Up®, Two Maids®, and Aussie Pet Mobile®.

Our proven franchise models help all our franchisees build a strong business, and our extensive training teaches them how to run it. Plus, the combined buying power of our franchise networks help keep costs low.

Contact Home Franchise Concepts Today

At Home Franchise Concepts, we know what businesses do well in a recession, as well as the best way to run them. If you are interested in finding out more about our brands and which one of them may be right for you, contact us today. One of our franchise advisors will be in touch to answer your questions and get you started on the path to franchise ownership.