Most people think of recessions as being all bad. Truthfully, for most people they are a time of cutting back on spending and attempting to make more conservative purchasing decisions. Though for a select group of industries, recession may actually lead to an increase in business, perhaps even an opportunity to thrive or grow the businesses extensively. (Find out what to do when the sun sets on a burgeoning market. See Tips For Recession-Proofing Your Portfolio.)

TUTORIAL: Starting A Small Business Tutorial

Accountants
Even during recession, both people and businesses have to pay taxes and keep their finances in order, and it could easily be argued that it's even more important in tougher economic times to keep these sorts of financial concerns in check. Accountants are very likely to experience an increase in business during recession, since many people and small businesses may require the help of a professional to ensure they're making use of all the tax benefits available to them, and that they have a clear understanding of their income and expenditures as the cash flow tightens. At the very worst, some people may require the services of an accountant if they're forced to file for bankruptcy.

Healthcare Providers
Even during recession, people get sick, that's one thing that definitely doesn't change because of tough economic times. For this reason, the healthcare industry isn't likely to experience the same level of cuts or job losses as in other industries because many people will still require this service regardless of economic conditions.

Financial Advisors
Those who have assets want to ensure that they're as well taken care of as possible, especially once a recession hits. Financial advisors often see an increase in workflow as people become more concerned about the stability of their investments and seek guidance on how to protect their assets.

Auto Repair and Maintenance
During tougher economic times, people are far less likely to invest in purchasing a brand-new car. Instead, many people will choose to repair their old car. Because of this, auto repair and maintenance shops can rake in the cash during times of recession when people are more likely to fork over a few hundred dollars for repairs than pay larger monthly sums toward a car loan.

Home Maintenance Stores (Not Builders)
Similar to the decision to repair your car rather than replace it, many people will choose to repair things in their homes rather than replace them. Instead of moving, do a do-it-yourself home renovation. Rather than replace the dishwasher, have it repaired. Companies in the business of providing tools and materials for DIY projects are likely to see an increase during recession, as will many appliance or home repair service people.

Home Staging Experts
In a recession, it typically becomes more difficult to sell homes. Some people may be forced to move to a new city where they can find work, and in these situations, a quick home sale can be important. Those who specialize in home staging can thrive as home sales become increasingly competitive. Home staging specialists might be real estate agents or individuals with experience in interior design. A staging expert increases the appeal of a home by playing up the strengths and downplaying the weaknesses. This can provide an edge up on competing homes that have not been staged for sale.

Rental Agents and Property Management Companies
Individuals who may not be able to afford to buy a home during recession, or for those who were forced to sell for economic reasons, still need a place to live. These individuals will likely turn to renting if they don't have other options available to them. Rental agents, landlords or property management companies can thrive during recession when renting is likely to become a more appealing option to those who are unable to take on a mortgage.

Grocery Stores
Everyone needs to eat, that's just a fact. When people don't want to pay a premium for restaurant food, they're more likely to start preparing meals at home. Rather than having social gatherings and parties in restaurants or bars, people may start to host home parties instead. For this reason, grocery stores will often see an increase in sales as people choose to cook more meals at home.

Bargain or Discount Stores
When people can no longer afford to shop 'til they drop, many turn to bargain stores so that they can still enjoy the feeling of treating themselves. It can be said that the sale of lipstick and cosmetics actually increases during recession. This is because these items are seen as an affordable luxury. Bargain and discount stores still allow consumers to shop without feeling the guilt of paying top dollar for discretionary items.

The Bottom Line
It has been said that the only two things anyone can be sure of are death and taxes. Even during recession, that's definitely true. However, accounting and healthcare aren't the only two businesses that thrive during recession. As many people make more conservative decisions with money and elect to stay put rather than move, choose "staycations" over vacations, put off buying new cars, clothes or avoid eating in restaurants, we see people put their dollars toward simpler, lower-cost decisions that help to make life more livable in the short term. (Find out where to turn when looking to invest in a tumultuous market. Check out Industries That Thrive On Recession.)

Related Articles
  1. Investing News

    Today's Sell-off: Are We in a Margin Liquidation?

    If we're in market liquidation, is it good news or bad news? That party depends on your timeframe.
  2. Investing News

    The 10 Fastest Growing Green Startups in 2016

    These social entrepreneurs adopt triple bottom lines that champion urgent environmental problems while generating returns for shareholders.
  3. Retirement

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  4. Entrepreneurship

    Multilevel Marketing Isn't Always A Scam, But It Often Is

    Nerium and Amway are popular direct sales companies that recruit new buyers and sellers to make a profit. Sadly, many direct sales firms are scams.
  5. Stock Analysis

    Are U.S. Stocks Still the Place To Be in 2016?

    Understand why U.S. stocks are absolutely the place to be in 2016, even though the year has gotten off to an awful start for the market.
  6. Investing News

    U.S. Recession Without a Yield Curve Warning?

    The inverted yield curve has correctly predicted past recessions in the U.S. economy. However, that prediction model may fail in the current scenario.
  7. Investing

    Retirees: 7 Lessons from 2008 for the Next Crisis

    When the last big market crisis hit, many retirees ran to the sidelines. Next time, there are better ways to manage your portfolio.
  8. Economics

    The 2007-08 Financial Crisis In Review

    Subprime lenders began filing for bankruptcy in 2007 -- more than 25 during February and March, alone.
  9. Economics

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  10. Entrepreneurship

    10 Characteristics Of Successful Entrepreneurs

    Do you have the qualities of a successful entrepreneur? Those who do tend to share these 10 traits.
RELATED FAQS
  1. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How does escheatment impact a company?

    In recent years, state governments have become increasingly aggressive in enforcing escheatment laws. As a result, many businesses ... Read Full Answer >>
  4. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  5. What does low working capital say about a company's financial prospects?

    When a company has low working capital, it can mean one of two things. In most cases, low working capital means the business ... Read Full Answer >>
  6. Do interest rates increase during a recession?

    Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center