Recession Resistant Franchises: Which Industries Are More Durable
With the holidays right around the corner, businesses great and small are looking forward to projected boosts in sales and a strong finish to the calendar year.
However, another economic event seems to be simultaneously brewing on the horizon. Amidst endless supply chain issues and federal interest rate hikes, some economic experts are concerned that we are once again headed for a recession (in fact, some think we’re already there).
With this in mind, entrepreneurs may be looking to invest in businesses that can survive a recession – or even get a boost. Today, we take a look at some franchise opportunities you’ll want to investigate if you want your business to last the next fiscal year.
What industries can best withstand recessions?
While an economic downturn affects everyone, there are some industries that contain more recession-resistant franchises than others.
These resilient franchises often follow similar formulas – incorporating low overhead costs and consistently high demand. Online freelancing and other jobs that anyone can perform from the home office will likely make it through any economic climate due to the lower daily upkeep costs.
The businesses that withstand the test of time also tend to offer services and products that help people take charge of, and improve, their own lives. These organizations may offer assistance in personal matters, such as financial planning and beauty services. These ventures can give a confidence boost to workers who may feel the stress of the economic sector, since they are empowered to make changes they want to see.
Home improvement contracting is a great marriage of these ideas. Often, owners of such businesses are able to work from home, which removes most real estate and maintenance costs. At the same time, as professionals invest in smaller methods of improving their lives, remodeling businesses may see an uptick in sales. Even though no one can force the economy to constantly be in the consumers’ favor, there is always satisfaction to be gained from turning your house into your dream home.
What businesses thrive during a recession?
Although it may sound counterintuitive, some ventures are more than simply recession-resistant franchises. On the contrary, some tend to boom during these times.
These lucky companies usually fall into one of two categories. The first revolves around things that people with full-time jobs need, such as home maintenance, car repair, and childcare. These lines of work keep working class citizens healthy and on the job without forcing them to buy new, expensive products. When times are tough, you’re likely more willing to drop money on fixing a leaky faucet than embarking on a lengthy cruise.
The other type of business that succeeds while many others fail are typically markets with little “treats” for adults, such as candy and alcohol. In all likelihood, a professional aiming to maintain their financial status during times of inflation and high unemployment won’t be shopping for a designer handbag or sports car, but they may be open to purchasing some chocolate to take the edge off a long day.
Is there such a thing as a recession-proof business?
As previously mentioned, no one escapes entirely unaffected from an economic recession. Higher costs of living can reach into every sector. However, there remain plenty of opportunities for entrepreneurs to establish franchises that will stand the test of time, and may even come out the other end better than when they started.
Investing in a home remodeling franchise is a great business opportunity that can thrive in nearly any economic environment. Every home has a kitchen, and kitchens are often considered the heart of the home, and homeowners are willing to invest in a space to make it more functional and appealing. That’s where you come in.
At Kitchen Tune-Up, we understand that you want to build your business into something great. For this reason, we offer a well-rounded training program and ongoing professional support, so that you feel capable and confident from day one.
We want you to make your Kitchen Tune-Up franchise your own. You can choose whether to work from home, in a retail space, or a balance between the two. You can also rest easy knowing that your territory is protected so you don’t need to worry about competing with a fellow franchise owner.
At Kitchen Tune-Up, we work to value and strengthen our franchisees, so that you can continue to do the same for your community. To learn more about opening a franchise in your area, learn more here.