Are you looking for recession-proof business ideas and the winning niches for your business that not only can survive but thrive even during pandemic and recession situations?
You might be wondering how some businesses are booming even during pandemics and recession, wherein other industries are struggling to survive, and some of them closed or on the verge of closing down.
So, what is a recession-proof niche /business?
Some industries find markets in any global crisis, and they can sustain even after the situation come back to normalcy. Those are recession-proof niches.
These industries are less likely to be impacted by recession or pandemic situations.
Every crisis is an opportunity in disguise. And the businesses can survive even after the crisis by making a shift and reinventing new normals.
In this post, I will show you the facts about the crisis situation and the impact on businesses and society. Also, give you a list of top losing and winning niches /industries during and after any pandemic and recession situations.and
Table of Contents
How Businesses Can Survive During Recession or Pandemic Situations
⇒ Adaptation is the Key to Survive
Pandemic or any economic crisis is like a do or die situation for many of the businesses. Those are rigid and believe in the legacy and classic mode, whereas the demand is to adapt and change to sustain.
Those who adapted the things and made a shift wins the game.
⇒ Survival Of The Quickest
The new normal to sustain your business in any situation is “Survival of the Quickest.”
Those who learn & adapt quickly and make the decision and take action can only survive.
⇒ Forced Entrepreneurship
As the people are losing jobs and employees are getting pink slips, specifically, the salaried people are bound to start up their own businesses.
This the right time to make quick decisions and create a recession-proof business.
⇒ Nature is Paying Back
The way we are treating nature and over-consuming the resources is now the tight slap we are getting in terms of the pandemic.
We should be more sensible and responsible for nature and animals and live a more conscious life to add value to society.
Social Changes During Pandemic or Recession
• Working Style
The working style gets changed completely. Professionals are working from home now. The corporate work culture has been completely redefined to sustain in the crisis.
• Business Model
The businesses are going online mode of operation wherever feasible. Those businesses could not go online, are struggling to survive. Some of the businesses are trying to maintain the balance with the hybrid model, wherein the part of the business goes online while the other part is still in offline mode.
• Education System
Schools, Colleges, and other educational institutions are now conduction online classes, training, and workshops. Even activity and practical-based classes like dance, yoga, music, etc., are moving to virtual /video conferencing mode.
• Priorities Changed
The priorities of life gets back to the basics. We have certain goals in our lives, but during pandemic the priority is to be safe and healthy. Now more priority and quality times for the family and loved ones.
• Health Consciousness
People becomes more health-conscious, which is a good sign of a healthy society. Cleanliness and health awareness are on the upside now.
• Food Habits
Due to health consciousness, food habits are also changing. People prefer home-cooked food now instead of junk, which is again a good sign of a health-conscious society.
• Social Interaction
The way we interact with each other has been changed completely. Now we avoid social gatherings at festivals or other events. This may continue even after the situation gets back to normalcy.
• Entertainment /Sports
Now the people are more inclined towards in-house games and home entertainment. The mall, theatres, and stadiums are closed, so we spend more time with family, play games, or watch movies together.
• Internet Usage
Internet usage has increased significantly as online activities have increased due to online education, entertainment, and games.
• Environment
Due to the lockdown situation, there are fewer vehicles on the road; industries and factories are also not operating on a full scale; this causes the environment to purify and clean. The entire environment is cleaner now, and there’s very less pollution, which is good for our mother nature.
• Expences
Daily expenses have dropped now, as there is no outing for food, entertainment, or shopping. There is no need for purchasing luxury goods as the prime focus is now to be safe and healthy.
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Worst Affected Businesses During Recession
So many businesses are affected due to the pandemic and recession. Here is a list of worst affected industries:
⇒ Travel & Tourism
The travel and tourism industries are the worst impacted business during this crisis. People are restricting their travel needs until and unless it is essential. The tourism industry will not go back to normal even after this crisis. People will hesitate to go out for vacation or holidays.
⇒ Hospitality
This is related to the tourism industry as people avoid going out, so the hotels and the hospitality industries have also been impacted badly. Star hotels with huge inventories and operation expenses are suffering most nowadays.
⇒ Restaurants
Now people prefer home foods over restaurants, to be safe and healthy during this crisis. No one wants to take a risk and go out for dinner. Even though restaurants offer extra safety for their customers, people still avoid taking food from restaurants.
⇒ Live Sports
Though there can be a live telecast of the sports, watching live matches on the stadium is now not possible. This is a huge loss, not only for the sportsperson but also for the sponsors.
⇒ Events & Conferences
Event management industries have also suffered a lot. Live events, workshops, and business conferences are only possible online now. Large live events would not be possible even after the crisis will be over.
⇒ Films & Entertainment
Now people are spending more time watching web series, Netflix and Amazon Prime. Films are getting released on OTT platforms now. People will avoid going to the mall and theatre even after this crisis.
⇒ Automobile
Now people prefer to stay at home and work from home or are bound to restrict their movement. Travels only if it is essential or in an emergency. The need for the vehicle has gone down. This has impacted the automobile manufacturing industry badly.
⇒ Logistics
Except for the food chain, medicine, and basic amenities, all logistics industries have been affected.
⇒ Retail & Shopping
Offline businesses, specifically retail and shopping, have a tough time now. No one is going shopping and buying from the retail shop, except for food and medicine.
⇒ Jobs
Many businesses that can not go online and cannot survive in this crisis are either giving pink slips or giving leave without pay to their employees. Millions of people have already lost their jobs as businesses are closing since they cannot afford the operational costs or lay off their employees to cut the cost. It is expected that around 2 billion jobs will be disappeared by 2030.
⇒ Transport
Transportation industries, majorly local transports are worst affected by this crisis. Ola, Uber, or even local auto and rickshaw pullers have completely lost their income source.
⇒ Construction & Real Estate
All the construction works of infrastructure and the real state have been impacted badly. Daily wagers are jobless now. This has affected the buyers and investors too.
More industries have also been affected, like Luxury products, Tech & Gadgets, etc.
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The Top Winning Niches | Recession Proof Niches
Here is a list of industries that are pandemic-proof and can survive during economic crises:
#1. Digital Products
Digital products, such as apps, software, tools, information products, are evergreen niches. This industry can survive in any crisis.
#2. Gig Economy
The gig economy means hiring and paying on a per-task basis. Instead of having a full-time employee, businesses are hiring freelancers per task or per-project basis. Fiverr.com, Upwork.com, and many such sites are giving a platform to hire gig experts. The gig economy is another booming industry and can sustain in any economic crisis.
#3. Online Coaching
The online coaching and training industry is expected to reach a total market size of US$319.167 billion in 2025. This industry is recession-proof, as teaching and learning will continue in any crisis.
#4. Home Gardening
Home gardening and organic farming is another niche that will sustain and boom even during and after the crisis. Now people are growing vegetables and fruits on the terrace gardens using hydroponics techniques. Organically grown veggies are in demand today.
#5. Mental Health
People are going through stress, anxiety, and turmoils during this crisis situation. Now people are more conscious about their mental health. So the demand for mental wellness is on rising.
#6. Spiritual Science
People are more conscious about meditation and spiritual healings. They are more curious to know about Vastu, Astro, and other Vedic sciences. This is going to be a booming industry.
#7. Gaming
The gaming industry is on the rising side now, as people and children are spending more time at home and playing games. This is another winning industry and booming in this crisis situation. VR Gaming has a huge scope in the near future.
#8. Healthcare
Due to the pandemic crisis, the healthcare industry and healthcare products are in high demand. As health consciousness has increased among the people, the need for health products and supplements has also increased.
#9. Affiliate Marketing
Affiliate marketing means selling other people’s products and getting a commission on each referred sale. Selling other’s digital products and tools is a multi-billion industry now.
#10. Alternate Energy
Alternate energy or Green energy is another winning niche. People are now looking for alternate energy sources such as Solar energy, Wind energy, and other natural energy resources.
#11. Alternate Medicine
People are also looking for alternate healing methods and not just conventional methods. Ayurvedic and natural therapy are in high demand nowadays.
#12. Data Science
Demands for Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT) are on the rising side. This industry will not be affected by this crisis situation.
#13. Cyber Security
As the dependency on the internet is increasing, and people are doing more and more transactions online, we are more prone to cyber threats. Cybersecurity, Ethical Hacking is need of today to counter cybercrimes.
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FAQs Related to Recession Proof Niches
1. Who will be the winners in a post-pandemic economy?
Those who adapt to the situation and make a decision to redefine their business and make a shift will be the winner. 2. What are the businesses that thrive in the recession? All the winning niche businesses mentioned in this article. Additionally, below are also recession-proof niches.- Education Industry
- Grocery Stores
- Finance Advisors
- Bargain & Discount Stores
- Funeral Business
3. What are the best small businesses to start in a recession?
Small businesses even thrive in a difficult economy. These businesses are called counter-cyclical or recession-proof businesses. I have shared the complete list in this post.Conclusion
Though all businesses can not go online; however, you need to redefine and shift to sustain the pandemic or any economic crises.
How quickly you adapt the things and make a decision will decide your survival in the situation. Successful businesses should have a combination of resilience and agility.
Jobs are the worst impacted industry during any pandemic crisis or global recession.
So, it would be best if you created a pandemic and recession-proof niche business that can sustain and survive during the crisis and thrive and boom during any adverse situation.
Cheers and Good Luck 🙂
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