Businesses that do well in a recession
October 7, 2008 by ShannonCherry
Filed under Business
Even when the ec
onomy is going south, many people still start new businesses.
Of course, some businesses are more vulnerable to recession than others. For example, car manufacturers and auto dealers often suffer badly because buying a car is usually a longer-term decision. When times get bad, people tend to put off buying a new car as long as they can.
But there are some businesses that simply do better in a bad economy. Here are some that I thought of:
- Pawn Shops
- Auto Mechanics (If people aren’t buying new, they must be fixing the old one!)
- Credit Repair Companies
- Collection Agencies
- Movie rentals
What businesses do you think will do well as we face a (possible) recession?
Wal-Mart, baby!
It was interesting to read AdAge’s report on marketing budgets in the faltering economy. A lot of spending has gone down, but Wal-Mart has doubled its budget. And that sounds like a good marketing strategy to me–you know, for a discount chain.
It makes you think if the companies that do well in a recession can be put into a certain type of category like “misfortune handlers”. I wouldn’t say that all of them would be put in this category as some of them come up with more efficient methods and are not based on misfortune, but benefit as people in bad times look for gems of production.
Thieves seem to prosper during recessions.
grocery stores – people eat at home
the movie theaters – cheap entertainment
liquor – anesthesizes the fears
fast food – its cheap
bank workout consultants
Funeral homes – people die consistently in good times and bad. I also think that health generally declines during economic downturns because people are less apt to seek medical care, which probably leads to an increase in deaths.