15 businesses and industries that make money during recession

Do you want to make money rrecession in times of economic downturns? If YES, here are 50 best lucrative recession proof business ideas you can start in In a recent poll involving 1, residents of the U. Now that recession has come and gone, is there hope for businesses to thrive, much less survive and recover? One of the situations businessfs entrepreneurs dread is a recession. It cripples businesses and reduce the morale of entrepreneurs to undertake new business ventures. During recessions, many people lose their jobs, as businesses lay off many of workers in a bid to cut costs. As a result, job security is always the number one priority during these hard times, and workers flock toward the so-called durlng businesses. Recession-proof businesses, as the name implies, are businesses that are not affected by during an economic meltdown. Such businesses either continue to thrive magically or survive unscathed, at .

1. Startups

Despite each of the major U. For example, in recent months we witnessed a couple of short-term inversions of the yield curve — a chart depicting yields on U. Treasury bonds of varying maturities. Typically, we’d like to see an up-sloping curve, with longer-maturity bonds having higher yields than short-term notes. But throughout , this curve flattened out, then briefly reversed, with short-term Treasury notes sporting higher yields than long-term bonds. A yield-curve inversion has preceded every recession since World War II, although not every inversion of the yield curve since then has been followed by a recession. Manufacturing data has also been notoriously weak of late. The ISM Purchasing Managers Index for October marked the third consecutive month of contraction in the manufacturing sector, while the September reading was the weakest we’ve seen in more than a decade. Thanks to technology, manufacturing doesn’t hold the same importance to the U. Suffice it to say that it’s not a matter of if a recession will occur, but merely a matter of when. However, this doesn’t mean it’s time to pack up your things and run for cover. Trying to time the stock market is probably the single worst action you could take an investor, as demonstrated by J. Morgan Asset Management’s annual analyses on stock market volatility. Every year, its analysts find that missing even a small number of the market’s best days while trying to avoid the worst days can lead to substantially lower long-term returns. So, what’s the game plan to not just survive, but thrive, during a recession? It’s simple. Seek out the following three types of investments:. The first game plan would be to seek out companies that provide basic-need goods or services. These tend to be purchased at predictable levels no matter how well or poorly the U. Examples might include detergent, toothpaste, toilet paper, and electricity, all of which are basic necessities for consumers in any economic environment. Basic-need companies are likely to underperform during stock-market booms, but they often prove their worth during the inevitable corrections. NextEra provides electricity and gas to around 10 million people, and its business model is protected in a variety of ways. The company’s traditional electric business is regulated, which is just a fancy way of saying that it needs approval from state electric commissions before raising prices. Though this might sound like an impediment to growth, it’s actually great news, since it keeps NextEra from being exposed to potentially volatile wholesale-market pricing.

Almost no one is thinking about the fifth recession-proof company, and therein lies opportunity.

Getty Images. They also widely see GDP growth slowing from 2. Some are even more pessimistic. Here are 15 top recession-resistant stocks to buy if you want to get ahead of the risk. Among the things you should know about recessions : The organization in charge of actually determining whether a recession has occurred typically needs six months to do so. Data is as of Oct. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. In times of recession, companies that sell low-priced merchandise typically perform better than those with expensive products. While the nature of its business would bode well for its resilience in another recession, Walmart still must deliver the goods. Walmart appears poised to do well, recession or not. Its e-commerce arm, for instance, continues to gain traction. In the second quarter ended July 31, Walmart U. In addition, its two-year stacked U. So either way, WMT stock has investors covered. Dollar Tree currently is in the process of renovating its Family Dollar stores.

Seeking out specific types of investments could have your portfolio thriving when the next recession strikes.

Recessions are generally times of economic hardship, when companies cut staff and prices on the stock market fall and stay low. If you have cash, there are smart investments that can help you make the most of the recession. To make money during mmake recession, sell unwanted or unused items online or in second-hand shops since people inxustries be more inclined to buy second-hand during a recession.

Additionally, if you own your own home you could rent out a spare room, which can help pay the mortgage and reduce the amount you have to spend in utilities. If you live in a big city, you can also rent out your parking space. In order to earn some extra money in your spare time, consider tutoring or doing budinesses jobs, like painting or garden work. To learn how to make money investing during a recession, keep reading! Categories: Recession Making Money. Log in Facebook Loading Google Loading Civic Loading No account yet?

Bsinesses an account. Edit this Reccession. We taht cookies to make wikiHow great. By using our site, you agree to our cookie policy. Article Edit. Learn why people trust wikiHow. There are 20 references cited in this article, which can be found at the bottom of the monye.

Method 1. Sell unwanted or unused items online. A straight-forward way to make some money during a recession is selling old or unwanted things you have around the house. This could be anything from expensive electronics and jewellery, to old furniture or clothes. You can sell things online via internet auction sites like Ebay, or more specialist websites if you have something rare or collectable.

Do some research on how much similar things are being listed and sold for before you price your items. Look for similar items both on the website you are posting on and on others, including eBay and Amazon. Be accurate and truthful in descriptions of the goods you are selling.

A good picture can really help your items sell more quickly. Sell to second-hand shops. An alternative or supplementary way to make money selling your stuff is to visit some local second-hand stores to see if the store owner is interested in buying any of it.

Second-hand stores normally buy and sell items, and if you go there in person, you can talk face-to-face and find what kind of items the owner is interested in.

This requires more leg-work, but saves you the hassle of listing items online. With these stores you can generally opt for consignment or selling outright. If you sell out-right you busineses the money up. If invustries sells well, however, you may get more than you would from selling out-right. Vintage clothing or furniture can fetch a good price ghat specialist stores. Visit a few shops first to investigate the prices they are charging for items that are similar to what you want to sell.

Vuring stores may buy second-hand sports equipment if it is in good condition. Thar out a room. If you own your own home, it will probably be your biggest asset and something you durin certainly make some money from in a recession. The easiest way to do this is to rent out a spare room to. This can make a serious dent in your mortgage repayments as well as reducing the amount you have to spend on utility bills and businessees.

You can rent a room through an estate agent, or do it independently. Operating with an estate agent should give you more protection, but the busjnesses will take a significant cut from the rental income. Whatever you decide, be sure to thoroughly vet potential housemates and ask for references from previous landlords. These websites will also take a small cut from your rental income, but allow you makee easily post your residence, get to know potential renters, and accept payment.

If you want the house to yourself at weekends, you may be able to find someone who only needs a room Monday to Friday. Rent out your parking space. If you live in a big and busy city, parking spaces may be very valuable. If you have a parking space outside your apartment, renting this out can be an easy and recession-proof way to make some extra money. Your ability to do this will depend on where you live and what the local parking situation is like. Some factors, such as being near a train station, or a place where a lot ineustries people work like a commercial or business centre, can help.

Once you are sure you are free to do it, you can advertise your parking spot online. Method 2. Try tutoring. Employment can be hard to come by in a recession, with employers generally industfies to shed staff rather than expand. If you find that you are struggling a bit and want to make some more money in your spare time, think about how you can induwtries your skills and knowledge to do.

An ever-popular way to make more cash is by tutoring in the evenings or weekends. Perhaps you could give some music lessons, or teach a foreign language. Maybe you could teach a cooking or baking class. You may even be able to get part-time work as a driving instructor if you recessiom the necessary requirements. Sign up for mystery shopping. You may be able to make some extra busindsses in your nad and weekends by completing some mystery shopping assignments. You can find listings of opportunities in your state online.

You will fill out a form evaluating things such as the customer service and your experience in store. Beware of scams, and steer clear of any mystery shopping company that has a membership fee or tries to charge you for.

Participate in paid online surveys. An easy businesse to make money at home in your spare time is by taking part of various online surveys.

This is not, however, a way to make bhsinesses lot of money quickly as you will often only receive a few dollars for a five or ten minute survey.

The advantage of these surveys is that they are more or less recession-proof and they quick and easy to fit around your other commitments Look at some independent information that compares and rates online survey companies before you sign up for one. Use apps to make money. There are a number of smart phone apps that you can use as an easy way to make a little extra cash. Generally these apps give you a chance to earn small amounts of money, but are recfssion and easy to use.

The requirements will vary depending on the app, but some of the possibilities include quick surveys, checking prices of goods in stores, or photographing your receipts. There is even an app that pays you just to install it. The app will collect anonymous statistics from your phone about the websites you visit, how long you spend on Facebook and other information. You can also get cash rewards for correctly predicting a string of sports results.

Complete odd jobs. If you are looking to earn a little extra cash, monry can look online for short tasks that you will be paid. Many of these are things which you will be able businesxes do from your computer at home, and might include things such as testing a website, transcribing some audio, doing a translation, or some data entry.

Other opportunities for skilled freelancers include writing, voiceovers, explanatory videos, graphic design, web design, coding, or any other skilled service.

Websites like Guru, Freelancer, Elance, Upwork, and Toptal connect talented freelancers with paid work. Be alert to potential scams, and only sign up to work with trusted websites. Be a private cab driver. If you busiesses a car, it is now easier than ever to earn money as a private driver. Uber has eecession it businesees to use your car to make some more in your spare time. You will need to sign up to the website and complete all the necessary forms, including information on you and your car, and pass the background check, before you can start taking fares.

Method 3. Invest in government bonds. If you have some assets and you are interested in how best to invest to both protect and increase your assets during a recessiona good place to start is government bonds.

Bonds are very safe and reliable in a recession, when other investment options may be more volatile. There is also a good chance that the value of the bonds will increase during a recession. The most common high quality bond is the United States Treasury Bond. Invest when prices are low. If you are still in stable employment and your industtries has not suffered during the recession, some smart investments can help you make money and take advantage of the depressed stock market.

If you can comfortably put more money into your portfolio when the prices are low, you could see excellent returns when the economy moves out of recession. Invest in precious metals. The prices of precious metals, especially gold, may move inversely to other assets during recessions. Like other investments, however, there is no guarantee that these investments will hold their value, especially during a global recession.

Most Profitable Franchises in 2019

Thriving boom cycles that last a few years, followed by deep recessions, and then an inevitable rally, recovery, and subsequent boom that begins the cycle anew. Still there are certain sectors and kinds of businesses that tend to do well even during a recession, and even expand while the rest of the economy is contracting and everyone else is scared. Startups do very well during a recession. Because everyone is cutting costs, prices are lower and startups can take advantage of this situation to get a start with bargain prices on the things they need for their business instead of struggling to raise the 15 businesses and industries that make money during recession for the sky-high prices that happen during economic booms which big, established businesses with giant budgets carelessly pay for while riding high on the hog. So recessions even out the playing field a little and give the underdog a chance to get in the game. As big businesses cut spending on all kinds of things that startups need to get going, inventories 15 businesses and industries that make money during recession sit there taking up the floor plan and costing money, and companies are more desperate to move. That initial cost to get to the market can be a big barrier to entry, but for a bargain, it might make sense in the initial cost structure for a new business with all the fixed costs that make each unit of sales less profitable until the business scales up and give it a chance to reach the volumes necessary to continue even after the recession is over and prices go back up. As a matter of fact, a fascinating number of major Fortune companies today got their start during a recession. The first one on this list is good news for entrepreneurs: 1. Startups Startups do very well during a recession.