A Complete Guide To Recession-Resistant Businesses

Jun 21, 2020

A Complete Guide To Recession-Resistant Businesses

Forget about “recession-proof business.” If you google just about any stable industry plus the phrase “recession-proof,” the results will lead with news headlines like, “________ Is Not as Recession-Proof as It Used to Be.” The Great Recession of 2008 exposed weaknesses in traditionally resilient sectors like healthcare, retail, funeral services, and collection agencies, and the coronavirus pandemic complicates matters even further. 

Services once thought essential are being questioned. Non-elective medical procedures are now being put off out of health concerns. Auto maintenance is not needed as the world shelters in place. The shipping and logistics industry is bracing for the disruption of global supply chains and closures of international borders.

Even before the pandemic, experts were predicting a recession in the next year or two. Since June 2009, the US had been experiencing its longest-ever period of sustained economic expansion, and many knew that the good times couldn’t last. (The expansion ended in March.) Downtimes are a normal part of business, but the current economic downturn, spurred by the coronavirus pandemic, will likely be different from any other recession in recent memory due to the unprecedented effects of COVID-19 and global quarantine actions.

However, small business owners can still aspire to be “recession-resistant.” While all businesses will be affected by a recession, proper management can help minimize the effects. Businesses that manage themselves well (and have some luck) may even come out ahead as they outlast their competitors and gain new customers. Below, we will look at the traits of recession-resistant industries, which specific industries usually do better during recessions, and how you can prepare your small business for a recession.

About the Author

Ben Glaser

Ben Glaser

Ben has almost a decade of experience covering personal finance and business. From 2014–2017, he was blog editor and spokesperson for the shopping website DealNews.com, where he regularly appeared on programs like Good Morning America and Fox and Friends to offer consumer advice. Ben graduated from Harvard with a BA in English and lives in the Hudson Valley of New York.

See all articles by this author

Quickly Compare Loan Offers from Multiple Lenders

Compare Offers
from 300+ Lenders

Applying is free and won't impact your credit
Talk to a rep at (855) 853-6346

Mon–Fri | 9am–9pm ET

Phone Icon

Give us a call
(855) 853-6346

Monday - Friday | 9am - 9pm Eastern Time