I could probably drum up a few more goblins that would scare us, but that’s enough for now. Entrepreneurs and startup addicts won’t let these little threats stop them, but I think they will be looking more closely at the kinds of businesses that tend to be more recession-proof.
Most businesses built around beer, wine and spirits do fine during a recession. Pricier beverages don’t fare as well, but middle-of-the-road and lower-costs liquors weather the down turns like a champ. There’s an important principle here: If something is truly a habit – like wine with dinner or an evening cocktail – people do not quit no matter what the economic circumstances are. They merely adapt. Consider a liquor store or wholesale distributorship.
While there are barriers to the booze biz, cosmetics are a much easier industry to get into. I suppose when people are crying in their milk all day, they need some good cosmetics to put on their happy faces at night. But whatever the motivation is, cosmetics weather recessions quite well. There are many ways to pursue a business here, from becoming a Mary Kay representative to selling over the Internet.
Movie attendance weathers economic downturns very nicely, although the entire industry has been in a slump recently. The big chains have a stranglehold on new releases. So why not consider a local indie theater that cashes in on the trend toward combining movies with meals? Could be a big hit in your hometown!
I don’t like to be an alarmist, but I continue to believe that we live in very unsettled economic times. There are some major unknowns that could push the economy south quickly and in a major way, such as:
- Booze
- Cosmetics
- Movie theaters
- Health Care
- Specialty food stores
- Sweet things