Economic security is something we all crave, and for many people, starting a business is a great way to get that security. But what about starting a business when the economy is in a recession? Or when one’s looming? Then you need a recession-proof business idea.
Recession-proof businesses often provide essential goods or services that people need even when they’re cutting back on other expenditures. Industries like repair services, cleaning, debt collection, fast food, and more are great because they provide critical services and products that are essentials to consumers. Other businesses that can offer cost-saving solutions, especially for basic needs, can see a continual flow of revenue, even when times are tough.
In this guide, we’ll cover 14 of our favorite recession-proof business ideas, helping you find the perfect venture to achieve your financial goals.
The downside of a recession is that no one, including a business, is completely safe from it. Even super “successful” businesses stumble or even fail during a recession. But for the perspective of this article, a recession-proof business is one that remains stable and continues to generate revenue despite economic downturns. These businesses are more resilient to the impacts of a recession, maintaining demand for their products or services even when consumers and businesses are cutting back on spending.
Recession-proof businesses typically offer essential services or products that people can’t do without. In a similar vein, businesses with low overhead costs also do well during recessions because they can handle lower revenue numbers without severe strain. These businesses are often leaner, more flexible, and can adapt quickly to changing market conditions, helping them weather the storm of an economic recession.
Here are 14 of our favorite business ideas that adapt well during a recession. From essentials like repair services and childcare to evergreen businesses like fast food, you’re sure to find an idea that works.
Online freelance services encompass a wide range of opportunities, including writing, web design, graphic design, virtual assistance, and digital marketing. These services cater to the growing demand for remote work, allowing freelancers to offer their skills and expertise to clients worldwide. The flexibility and scalability of online freelance work make it an attractive option for many professionals looking to supplement their income or transition to a full-time business.
Freelancing services make for fairly recession-proof businesses because they have low start-up costs and low overhead costs. Most freelancers can get started with just a computer and an internet connection. As an added plus, potential clients tend to prefer freelancers over new employees during a recession because they don’t have to pay benefits for a freelancer.
Freelancing businesses also tend to be more recession-resistant because you can serve clients across the country and even internationally. If you have the skills, you could even offer several different services to bridge the gaps and help you keep your efforts full-time.
If you want to succeed as a freelancer, you’ll want to build a portfolio that showcases your skills and past work. You can take advantage of low-cost platforms like Upwork, Fiverr, or even LinkedIn to connect with clients and save money on fees. Upskill and get additional certifications to stay competitive, too.
Bookkeeping and accounting services involve managing financial records, preparing tax returns, and ensuring compliance with financial regulations for individuals and businesses. The continuous need for financial management makes bookkeeping and accounting a resilient business, even during economic uncertainty.
You might be wondering, why is bookkeeping and accounting a good business during a recession? It’s pretty simple: during a recession, people pay more attention to their business and personal finances during a recession. And if they’re not good at doing it themselves, they’ll be willing to hire someone to do it. This gets especially true during tax season, when business owners are striving to maximize their refunds or at least minimize their tax liabilities as much as possible. That’s where your bookkeeping services business can come in.
To succeed with bookkeeping as a small business, it’s crucial to have relevant experience and qualifications, such as certifications or degrees in accounting. Building a trustworthy reputation through accuracy, reliability, and strong client relationships is also essential. Last but not least, stay updated with the latest financial regulations and tax laws to provide the best possible service to your clients.
A debt collection agency specializes in recovering unpaid debts from individuals or businesses on behalf of creditors. These agencies employ various strategies to contact debtors, negotiate repayment plans, and ensure outstanding debts are paid.
A debt collection agency can be a reliable business opportunity in a recession simply because there’s a lot of demand for one. In fact, there’s probably more demand for one during a recession than an ordinary market. Different creditors like banks, utility companies, and even medical providers find that they get more unpaid bills during a recession. Debt collection agencies play a crucial role in recovering these funds, helping creditors maintain cash flow and financial stability. This constant demand helps create a steady market for debt collection services even in challenging economic times.
To succeed in the debt collection industry, maintaining professionalism and adhering to ethical practices is paramount. Building a reputation for respectful and fair treatment of debtors can lead to long-term success and avoid legal issues. Agencies should also invest in training and certification to help ensure compliance with regulations such as the Fair Debt Collection Practices Act (FDCPA).
Owning a fast food LLC for franchise owners involves operating a restaurant under the brand and business model of an established fast food chain. Franchisees benefit from the franchisor’s established brand recognition, marketing support, and operational guidelines, making it a lower-risk venture. Fast food franchises cater to the consistent demand for quick, affordable food options, making them a resilient choice during economic downturns.
A fast food restaurant can be a reliable business during a recession because of a steady demand; even during a recession, customers are looking for a quick and inexpensive meal (even if their financial advisors tell them it’s better to eat at home). Plus, from a business owner’s perspective, a fast food franchise can be a reliable business for a recession because it’s relatively low-cost to start compared to other restaurants. The established brand presence means you’ve already got a framework to build on, a proven business process, and you don’t have to spend as much to market yourself.
Making it work is its own challenge, though. To succeed, you’ll need to choose the right franchise, ideally a strong brand that you know will be attractive to customers in your area. After you get up and running, you’ll want to hire and manage your employees well and do your best to keep costs low and reduce waste. Last but not least, keep your service standard high so your customers keep coming back.
Retail consignment shops operate by selling second-hand goods on behalf of individuals. Consignors bring in items they want to sell, and the shop handles pricing, display, and sales. When an item sells, the shop takes a percentage of the sale price as a commission, and the consignor receives the rest. This business model allows shop owners to maintain inventory without the upfront costs associated with purchasing stock.
A consignment shop can be a reliable business in a recession for several reasons. For starters, the demand for secondhand items can be higher during a recession since many consumers look for more affordable clothing, furniture, and other items. Plus, as a business owner, you’d have a lower cost to acquire your inventory and stock. Additionally, you can scale your operations up or down to meet the demands of your local market.
During economic downturns, the demand for affordable, high-quality second-hand goods increases as consumers look for ways to save money. Consignment shops provide a valuable service by offering gently used clothing, furniture, and other items at lower prices than new goods.
To succeed as you open a consignment shop business, finding a niche market can help differentiate your store from competitors. Whether it’s designer clothing, vintage items, or children’s goods, specializing can attract a loyal customer base. Maintaining a quality inventory is also crucial; carefully select and display items to offer inventory that’s in excellent condition.
Device refurbishment involves repairing, restoring, and reselling used electronic devices like smartphones, laptops, and tablets. You’ll diagnose issues, replace faulty components, clean, and update the software, all of which help the device function like new. Then, you can sell them at a lower price than new devices, offering consumers significant cost savings.
A device refurbishment business can be a solid business option during a recession because there’s an increased demand for low-cost devices. Plus, logistically speaking, this business can be relatively low-cost to start and operate. It’s often affordable to buy devices to refurbish, and you can buy supplies to fix them on an as-needed basis.
You can also scale your business up or down to meet the demand; maybe you’ll refurbish ten devices at a time or just one. You could even run this small tech industry business as a side hustle alongside your day job to earn a little extra cash.
But to succeed in device refurbishment, you’ll need to know not only how to diagnose and repair devices, but you’ll also need to find a way to source parts affordably. You’ll also need to market your services (probably through online platforms) and back it up with excellent customer service to build your customer base.
Maintenance and repair services encompass a wide range of specialties, including electronics, appliances, and auto repairs. These services involve diagnosing issues, fixing faulty components, and restoring the functionality of items. Repair businesses provide a valuable alternative to replacing expensive items, offering cost-effective solutions for consumers who prefer to extend the life of their possessions.
So what makes repair services a good business for a recession? For one, during a recession, customers are more likely to repair their car or appliance rather than buy a new one, so demand for repairs may increase during a recession. Your business can help them stay on budget.
Plus, an auto repair service or appliance repair business can have lower startup costs and overhead costs if you manage it correctly. Often, you can make repairs directly in a clients’ home or garage (or even yours) if you want to keep things small. You’ll likely need a truck for your equipment, too.
You can also scale your repair business up or down to meet customer demand (or your own circumstances). You could keep your day job and focus on repairs on weekends and evenings, or you could go full-scale and run full-time to build a steady cash flow.
To succeed in the car repair industry or any other type of repairs, focus on high-demand services that cater to common needs in your local community. For example, electronics repair, appliance repair, and car repair are often in high demand due to the essential nature of these items. Building a local client base through word-of-mouth referrals, online reviews, and community involvement can help establish your business. Additionally, investing in ongoing training and certifications will help you stay updated with the latest repair techniques and technologies, enhancing the quality of your services and customer satisfaction.
Commercial clients, homeowners, and even apartment renters all need clean spaces, making a cleaning service business a viable option with a variety of potential clients. Your cleaning business could be especially valuable for other busy professionals who’ve taken on extra work to make ends meet. Your cleaning offerings could include routine cleaning, move-in or move-out cleaning, carpet cleaning, or even post-construction cleanup.
What makes cleaning services one of the more recession proof industries? For one, cleaning services are an evergreen demand; they’re always needed, even during a recession. Additionally, cleaning businesses are pretty low-cost to start up and maintain. They’re scalable, too; you can grow your business to meet demand, and you could even start or stop operations on and off to match your circumstances.
To succeed, you’ll need to take advantage of effective marketing strategies like online platforms, local advertising, and word-of-mouth referrals. Offer exceptional service every time to help retain clients and generate positive reviews. When possible, expand into eco-friendly cleaning options to attract a wider array of clients. That way you can continue serving customers for a long time to come.
Do you love throwing parties? Even in a recession, starting an event planning business can be a rewarding business prospect. You can coordinate a variety of events, like weddings, corporate events, private parties, and other social gatherings. You’ll be able to handle everything from venue selection and vendor coordination to timeline management and on-the-day execution. This business involves creativity, attention to detail, and excellent organizational skills to help ensure each event runs smoothly and meets the client’s expectations.
Special events might not seem like one of the best recession proof business ideas, but it can still work if you manage it well. After all, recessions don’t stop milestones like weddings and birthdays; people need to celebrate those events. Your event planning business can meet that demand, especially if you can offer cost-effective packages for parties.
From a business perspective, event planning can be a workable business option for a recession because the startup costs are relatively low; most of the work comes from setting up a network of local vendors. You can even run an event business as a side hustle if you need to.
To get started on the right foot, start out by building a robust network of reliable vendors, from caterers and florists to photographers and venue owners. Effective marketing through social media, online portfolios, and client testimonials can help showcase your expertise and attract new clients. By focusing on delivering exceptional service and creating memorable experiences, event planners can build a loyal client base even during economic challenges.
Financial planning services help individuals and businesses navigate financial uncertainty by offering guidance on budgeting, investments, debt management, and long-term financial strategies. During a recession, people become more conscious of their finances, seeking expert advice to reduce expenses, manage debt, and maximize savings. Businesses also rely on financial planners to help them cut costs, optimize cash flow, and plan for tough financial times.
This industry remains profitable because financial concerns rise during recessions, creating a steady demand for professional guidance. To succeed, financial planners should build trust, stay informed on economic trends, and offer personalized solutions tailored to their clients’ needs. Offering services like retirement planning, tax optimization, and investment management can also help expand your client base and establish your business as a reliable financial resource.
If you’re passionate about kids, there are lots of business opportunities you can consider. You could start a daycare at home, build a new daycare center, build an afterschool program, or even begin a babysitting service. You can create a wide range of activities that promote the physical, emotional, and intellectual development of the kids you care for.
Childcare is one of those services that’s a non-negotiable, maybe even more than usual during a recession. Parents might be working extra hours so they can build multiple revenue streams for their families, so they need a safe and reliable space for their kids while they’re away. That means it’s a reliable business option during financial challenges.
In the childcare industry, it’s paramount that you have all of the certifications and licenses required by the federal, state, and local governments. For example, certifications in early childhood education and even first aid can help enhance your credibility. You’ll also need to make sure that your space is child-proofed and furnished with age-appropriate toys and activities. By building strong relationships with parents, you can foster trust and loyalty to build your childcare’s customer base.
Security services encompass a variety of offerings, including a home security business, corporate security company, event security contracting, and personal protection services. These services are designed to protect individuals, properties, and assets from potential threats like theft, vandalism, and personal harm. Home security can involve installing alarm systems, and surveillance cameras and providing on-call security personnel, while corporate security might include securing business premises, monitoring access points, and safeguarding sensitive information.
During an economic downturn, there can be a perceived (or actual) increase in crime rates, which heightens the demand for reliable security services. Individuals and businesses become more vigilant about protecting their properties and assets, making security services a recession-proof business. The constant need for safety and protection can foster a steady demand for comprehensive security solutions.
To succeed in the security industry, building trust with clients is paramount. Offering comprehensive security solutions tailored to the specific needs of each client can help establish credibility and reliability. By focusing on delivering high-quality and personalized security services, security businesses can build a loyal client base and thrive even during a challenging economic slowdown.
Home staging plays a crucial role in the real estate market by preparing properties for sale to make them more attractive to potential buyers. This involves arranging furniture, decor, and accessories to highlight the best features of a home, creating an inviting and appealing atmosphere. Effective home staging can help properties stand out in a competitive market, potentially leading to quicker sales and higher offers.
In a competitive real estate market, making properties stand out is essential for sellers. Home staging helps buyers visualize themselves living in the space, which can be a decisive factor in their purchasing decision. By enhancing the visual appeal of a property, home stagers can help clients achieve a more favorable outcome, making this a valuable service in any housing market condition.
To succeed in the home staging business, sourcing affordable staging materials is key. This can be done by purchasing second-hand furniture, renting items, or using versatile pieces that can be repurposed for different properties. Building strong relationships with realtors can also lead to consistent referrals and collaborations. Offering exceptional service, maintaining a keen eye for design, and staying updated on market trends can help home stagers create beautiful and effective presentations that attract buyers and foster long-term business success.
Property management companies are responsible for overseeing the daily operations of rental properties, including residential, commercial, and industrial spaces. Their duties encompass a wide range of tasks, such as tenant screening and selection, rent collection, property maintenance, handling tenant complaints and issues, and ensuring compliance with local laws and regulations. Property managers act as intermediaries between property owners and tenants, helping ensure that both parties are satisfied with the rental arrangement.
The demand for rental property management remains consistent, even during an economic downturn as people continue to need housing and businesses require commercial spaces. Property owners often seek professional management services to handle the complexities of property maintenance and tenant relations, making this a fairly stable business when a recession hits.
To succeed in property management, providing excellent tenant services is crucial. This includes promptly addressing maintenance requests, helping keep the property well-maintained, and fostering good tenant relationships. Efficient property maintenance, such as regular inspections and timely repairs, helps retain tenants and minimizes vacancy rates. Building a reputation for reliability and professionalism can attract more property owners looking for dependable management services.
Next Up: Check out our “Low risk business ideas” post.
Certain businesses tend to thrive during economic downturns because they offer essential services, cost-saving solutions, or high-demand products that remain necessary even when budgets tighten. In 2025, some of the most profitable recession-proof businesses include bookkeeping and accounting services, debt collection agencies, repair services, and fast food franchises. These industries continue to see steady demand as individuals and businesses look for ways to manage their finances, recover unpaid debts, repair essential items instead of replacing them, and find affordable meal options.
Other strong performers include cleaning businesses, property management, and security services. Homeowners and businesses prioritize cleanliness and maintenance to protect their investments, while landlords still need property management to keep their rental income flowing. Security services also become more crucial as economic uncertainty often leads to increased concerns about safety and asset protection. Entrepreneurs who focus on these in-demand industries can build profitable, recession-resistant businesses that continue to generate income even in challenging economic times.
Starting a business can feel stressful, especially during a recession. But the good news is that you don’t have to do it alone. Here at ZenBusiness, we specialize in the “red tape” side of business startups. Whether you need help registering your business as a limited liability company (LLC) or corporation, finding the business license report you need, or something else, we have your back. Let us handle the paperwork so you can focus on what you love: a business that helps build your financial future.
A recession-proof business is one that continues to thrive or remains stable during an economic downturn. These businesses typically provide essential services or products that people prioritize regardless of financial constraints. They often have lower overhead costs and cater to needs that persist even when discretionary spending decreases.
Industries often considered recession-proof include the health care sector, utilities, repair services, education, and essential retail. Some businesses in the food and beverage industry also tend to hold up well, such as grocery stores and fast food restaurants. These sectors provide necessary services and products that people continue to need regardless of economic conditions. Understanding these industries can help you identify potential business opportunities that are more likely to withstand an economic crisis.
That said, you have to balance the perpetual demand of your business idea with how much it costs. For example, health care businesses tend to be more expensive to start, even though the demand for them never goes away. In contrast, cleaning businesses are also in demand but much cheaper to start.
There’s no absolute guarantee that any business will succeed through a recession. But some businesses tend to do better during a recession, including online businesses. The flexibility and low startup costs of online businesses make them adaptable to changing economic conditions. However, their resilience depends on the business model and the demand for their offerings during a recession.
To identify the best recession-proof business idea, consider your skills, interests, and the market demand. Research industries that typically perform well during an economic downturn, such as the healthcare industry, repair services, and essential goods. Evaluate your strengths and how they align with these industries to choose a business that you are passionate about and capable of sustaining.
Starting a recession-proof business doesn’t necessarily require a lot of capital. Many recession-proof businesses, such as online services, freelance work, and home-based businesses, have low startup costs. Careful planning, budgeting, and utilizing available resources can help you launch your business with minimal financial investment.
To help ensure your business remains resilient during financial challenges, focus on providing high-quality essential services or products. Diversify your offerings to cater to different market needs and maintain strong relationships with your customers. Effective cost management, continual market research, and adapting to changing customer preferences are also key strategies to sustain your business during economic challenges.
Market research is crucial when starting any business, especially a recession-proof one. It helps you understand the consumer demand for your product or service, identify your target audience, and assess the competition. Comprehensive market research helps ensure that you make informed decisions and tailor your offerings to meet market needs effectively, increasing your chances of success.
Yes, many service-based businesses can be recession-proof, particularly those that offer essential or highly demanded services. Examples include healthcare services, repair and maintenance, childcare, and financial consulting. These support services tend to be necessary regardless of economic conditions, providing a stable source of income.
Excellent customer service is vital for maintaining a recession-proof small business. Satisfied customers are more likely to return and recommend your business to others, providing a steady stream of revenue. Building strong relationships with your customers and addressing their needs effectively can enhance customer loyalty and help your business survive tough economic times.
To finance a recession-proof small business with minimal risk, consider starting with a small-scale operation and gradually expanding as your revenue grows. Look for low-cost funding options such as personal savings, microloans, or crowdfunding. Additionally, focus on maintaining a lean business model with low overhead costs to minimize financial strain and increase your chances of sustainability.
Businesses that provide essential goods and services tend to survive economic uncertainty. Industries like bookkeeping, debt collection, repair services, healthcare, and home maintenance remain stable because consumers and businesses still need them, regardless of financial hardships. Additionally, low-overhead businesses like freelancing and online services can adapt quickly to changing market conditions, making them more resilient.
Businesses that offer necessities or cost-saving solutions tend to do well in a recession. Fast food, discount retail, repair services, property management, and security services remain in demand as consumers prioritize affordability and essential needs. Additionally, financial services like bookkeeping, tax preparation, and debt relief thrive as individuals and businesses seek financial stability.
Businesses that help people save money, maintain necessities, or manage financial stress tend to be the most profitable. Repair services, fast food, cleaning, and discount retail see consistent demand as people look for budget-friendly alternatives. Similarly, financial consulting, bookkeeping, and tax preparation remain lucrative as individuals and businesses need expert guidance to navigate economic challenges.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 800,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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