With the economy trending downward, many investors are wondering where to put their money. Some businesses that have been doing well may not be successful if a recession happens. However, investors can’t afford to wait because not investing means not making money. Thankfully, there are at least five recession-resistant businesses to invest in.
1. Cosmetics and Home Health
During a recession, people tend to spend less on non-essentials. So, as an investor, you should put your money into things that are necessary for everyday life. Cosmetics and home health products are excellent choices because people may actually spend more on these items during a recession. They tend to see cosmetics and home health as DIY alternatives to more expensive options such as professional services.
2. Laundromat Businesses
Laundry is one thing that people have to do no matter what state the economy is in, which is one reason why laundromats are still a good investment. By opening a laundromat, you provide the necessary equipment for doing everyday chores. Laundromats are especially beneficial for people who can’t afford their own machines or don’t live in rentals large enough to accommodate them.
3. Grocery and Liquor Stores
Food and beverages are two essentials that people never stop buying during an economic downturn. They may not purchase the most expensive options in the store, but everyone has to purchase groceries. Grocery and liquor stores are much better investments than restaurants and bars because people see these venues as far more expensive than cooking and drinking at home.
4. Home Improvement
Home improvement is a broad category that includes everything from paint and construction supplies to power tools. These items are extremely valuable during a recession because that’s when more people will try to handle repairs and renovations around the home themselves. Even though the equipment can be expensive up front, many people prefer the equipment cost to paying labor fees.
5. Funeral Homes
The cycles of life and death don’t stop when there’s a recession. People still need services for handling loss. A funeral home may not be an exciting business investment, but it’s recession-proof and provides an important service to communities.
We hope this list of recession-resistant businesses to invest in gives you some ideas for how to handle the current economic situation. The important thing is to continue investing even when the economy is bad so that you come out financially stronger.