Question:

What business other than food is recession proof?

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What business other than food is recession proof?

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10 ANSWERS


  1. There really isn't one.

    Food isn't.  People need to eat, but they can become very price sensitive, and this leads to a huge reduction in margins and thus profit.  They also tend to stay away from the higher status end which carries the highest margins.


  2. Restaurants get hit hard too during a recession. I'd say that anything in the Medical field is recession proof. Oh also big time movie stars. They're still enjoying their $100 hamburgers inside their brand new Aston Martens.

  3. Providing utilities and power, pharmaceuticals and medical devices.

  4. apparently oil and haliburton

  5. I suggest taking a look at something called the 'hierarchy of needs' and thinking about what really drives people's behaviour.  The concept is that some things are more important than others - the most basic being things like air, water, food, shelter, clothing etc. - and that some purchases will continue to be made, even when all other spending ceases because of a lack of disposable income.

    Of course, nothing is truly recession 'proof' - more recession 'resistant'. Even with food, people will substitute cheaper products for more expensive ones when times get tough.  Or simply eat less.

    EDIT - one of the other respondents suggests that the power industry is recession proof.  This may not be the case - since a great deal of power is consumed by industry, and industry is hit badly by recession.  I guess it would depend on the depth and duration of the downturn.

  6. Don't know if _any_ business is truly recession proof. But consider the more unusual business: waste management for example - even in a recession, people are going to have garbage, they're going to need that garbage hauled away so that they avoid stench, rats and bugs and health problems.

    Or, look into businesses that serve people who're in trouble - credit management, helping people sell their possessions on eBay, etc., coupon-services, etc.

    Or look into areas that we know are going to have HUGE growth, recession or not: elder care, for example, or the meals-on-wheels type of thing for older people who cannot really cook for themselves but still need to eat!

    There are lots of ideas out there. If you have a passion for something, do _that_ - you'll be able to figure out ways to make money even if there is a depression, as long as you are doing what you love! You are never more creative than when you are doing your best work, you know!

    Good luck,

    FF

  7. I would not say anything is truly recession proof.  I have heard all those so called professionals talk about recession proof stocks, they got hit hard too.

    I believe the best way to play a down market is by shorting.  It is the line of least Resistance.

  8. property, garments, mutual funds, public provident fund(ppf),

  9. No business is recession proof except for liquidators (which do great business as other businesses collapse).

    What makes a business recession proof is the types of services that they offer.

    For example, in food, well do you have products that are lower cost (in a recession people will count their change, not go out as often and save money).

    Education can be highly recession proof as people have to study longer to get a good job, often leading to an education boom. However, if your education product is not position properly you will be effected.

    The idea is to recession proof your business. Computer companies will make more from upgrades and repairs in a recession than a boom economy.

    Clothing stores will sell cheaper items because people don't want to waste money.

    So be wise and have good business sense. The US economy is not in recession but companies and people are thinking and acting as if it is (gas prices don't help)

    A successful business will provide, 1. Value for money 2. Discount services.

  10. Funeral Business

    Bet you were just "dying" to know the answer.

    :)

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