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Businesses That are Still Making Money in This Economy

Wednesday, November 3rd, 2010

Businesses That are Still Making Money in This Economy

What does it mean when I tell people that a business is recession resistant? Let’s look at this phrase more closely. To me the definition of a recession resistant business is a business that continues to thrive, grow, and make money in any economic condition. In my Economics class I studied NEEDS AND WANTS. Needs are things that we as consumers need to maintain our life styles and the daily activities, in other words “NECESSITIES”. Things like food, clothing, a roof to live under etc. Wants are things we want to have, but are not necessary to maintain our life styles or daily activities. Things like 50″ Plasma TV, fancy car, diamond ring etc. When the economy is good and people are making money, we tend to spend on our wants, however when the economy is bad, we tend to cut down or even eliminate wants, however our NEEDS never go away, so here is a list of industries that I feel are NEEDS Category.

Automotive Repair – Cars will be around forever and they require repairs and maintenance and regardless of the economic conditions, we will continue to spend money on our cars.
Children Businesses – Everything from tutoring to enrichment programs, after school programs, birthday parties, test preps. Parents will spend money on their kids well being.
Senior Care – Just like our children, we take care of our parents and grand parents. Whether they have illnesses, need help around the house, companionship one thing for certain, is that we will get old and will have special needs. This industry is one of the most stable and fast growing.
Fitness/Weight Management – Here is an industry that has been growing rapidly for the last decade and has gotten a great deal of media coverage. We as Americans are the most overweight people in the world and there have been plenty of studies done that have determined that obesity causes many other health problems.

Hair & Beauty Salons – I remember a Saturday Night Live skit where Billy Crystal played a character who used to say “Darling, I’d rather look good than feel good” Grooming is a necessity. Men, women, kids need hair cuts, facials, manicures etc. Most of us need these services, because of our professions, our jobs and schools.
Coffee Industry – You might be surprised by this category. Every morning, as I drive to work, I can’t help but notice full parking lots of cars, long lines at drive thrus of Coffee Houses. I myself stop every morning and afternoon to pick up a cup of coffee. With Specialty coffees, ice coffees and other drinks available today, this industry is a year round business which seems to thrive in any economy.
Pet Care – Pet industry is a billion dollar industry and pet owners consider their pets as members of their family, thus spend money on the well being of their pets, from grooming, training, spas, gourmet treats, camps, etc.

Last thought, most Millionaires did not become rich from a paycheck.

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