July 6, 2022
If the search interest on Google for the term “recession” is any indication, it seems like we could be heading for a nasty recession. This got me thinking, what would be the best type of business to start in a recession?
5 Small Businesses to Start in a Recession
There are 5 businesses that I think will perform well in a recession.
- Medical Practices – Whether it is a recession or not, people still get sick. Also, for those that have insurance that will be paying the bill, even if finances are tight at home you can still go to the doctor without breaking the bank.
- In home healthcare – We think that in home health care businesses can also perform well in a recession because it is cheaper to stay at home than a nursing home or assisted living facility, plus if your insurance covers the cost, consumers will have little reason not to sign up for in home healthcare services.
- Accounting firms – Accountants are recession resistant as well because everyone will still need to file their taxes. Businesses will still need to complete their monthly accounting, file taxes and complete required audits. Accounting services aren’t discretionary in most cases.
- Law firms – Much like accountants, lawyers always find a way to survive and thrive. Bankruptcy attorneys will thrive during a recession. It also seems likely that when money is tight for households and businesses, people might be more likely to file lawsuits to try to win financial compensation when they feel they have been harmed.
- Childcare businesses – Many families that had one spouse staying home with the kids might decide to go back to work during a recession which might increase the demand for childcare services. It seems that well run daycare facilities should be recession resistant.
If you decide to start any one of these businesses and need to create some financial projections during your planning process or for a potential lender or investor, you can check out the relevant templates here:
- Medical Practice Financial Forecast Template
- Home Healthcare Startup Financial Model
- Accounting Firm Financial Projection Template
- Law Firm Financial Projection Spreadsheet
- Childcare Facility Financial Projection Template
What other types of businesses do you think will perform well in a recession?