During an economic downturn, many people and businesses face tough financial challenges. As the psychology of fear and the realities of monetary strain occur, people look for ways to lower the cost of living.
Nonetheless, not all industries are equally affected by economic decline, as some recession-proof sectors remain resilient while others prosper even more. This gives them a unique chance to become business owners and capitalize on assisting society through tough times.
Here are six businesses that can thrive during a recession:
Discounted Goods Stores
While consumers cut back on leisurely spending, they still buy plenty of affordable luxury items to replace them. Some of the most popular comfort goods include cosmetics, liquor, accessories, household products, children’s stationery, and candied snacks.
These are sold at discounted goods stores that stock mostly bulked items priced lower than regular retailers. Also, bargain stores in the e-commerce sector continue flourishing as shipping can be cheaper than the gas needed to drive to a store. In this case, selling affordable goods to customers can be a lucrative business to start during a recession.
Aspiring entrepreneurs who want to gain knowledge can enroll in the ecom good life course to learn how to succeed during economic uncertainty.
Trade And Repair Services
When spending is reduced during a recession, consumers often opt for fixing and maintenance rather than replacing worn-out or damaged possessions. So, many trade and repair businesses often see an uptick in service demand.
Many skilled tradespeople, such as electricians, plumbers, auto repairers, mechanics, and roofers, take the opportunity to find work as independent contractors and earn extra income from their skills.
However, business acumen is still necessary to make a small fortune during a recession. That’s where reading about programs like recession profit secrets review can help determine if it’s the right resource to help navigate business and wealth building during an economic downturn.
Food And Grocery Stores
Restaurants are among the first businesses impacted during a recession as consumers cut back on eating out and ordering takeout. So, supermarkets and grocery stores often record a surge in sales from people buying food to cook at home. Furthermore, grocery stores are naturally recession-proof because they provide essential services.
This is especially true for small family-run grocery chains and locally grown produce at farmers’ markets where grocery prices are generally lower than the large retail outlets. Buying groceries online is preferable to driving consumers looking to save money on gas. Investors can take advantage of this by investing in food delivery businesses.
Financial Services
Industries that deal directly with money and finance thrive during a recession because employed and asset-owning people will implement new personal finance choices to stay stable during economic challenges. Thus, financial managers, accountants, credit counselors, consultants, and economists are in higher demand to help people protect their assets and investments, manage debts and pay off taxes.
This also assists in recovery for those who undergo bankruptcy, layoffs, and business closures. Furthermore, government policymakers and high-net-worth individuals turn to economists, financial advisors, and consultants for advice and forecasting a revival of the economy’s future.
Healthcare Businesses
As another essential service, healthcare remains largely unaffected by an economic downturn. This includes professionals such as physicians, dentists, and primary care providers, as well as healthcare administrators. Patients are also likely to still meet their healthcare needs even in financially troubled times.
That said, the industry could be more recession-proof, as mass job losses can result in people losing employer-based healthcare. This can impact smaller municipal hospitals and clinics servicing local areas as fewer people affording healthcare could lead to small-operated practices and facilities closing, reducing salaries, or hiring less staff.
Nevertheless, healthcare is among the safest and most stable industries to invest in or start a new business venture during challenging economic times.
Home Rental Agencies
People being forced to sell their homes or rethink buying a house is common during a recession. Therefore, the best short to medium-term solution is to rent a place to live.
Home rental companies can expect more tenants when housing becomes unaffordable, while homeowners and property managers start businesses as landlords. Moreover, real estate investors have more options than ever for finding valuable properties and increasing their assets, especially in higher-income areas where the renting market prices tend to be more stable.
Conclusion
The six businesses that can thrive during a recession provide essential services and means for businesses and consumers to reduce living costs. The healthcare and grocery store sectors keep people fed and healthy, while discounted goods, tradespeople, and home rental companies provide relief to minimize spending and housing prices.
Finally, financial services increase in demand as society seeks counsel for managing their money and staying secure during the economic downturn. Starting a business in these industries could lead to lucrative profits.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
