AI-generated summary
The COVID-19 crisis has sparked debate over whether this challenging period could be an opportunity to launch successful startups. History suggests many thriving companies have emerged during tough times, so it’s plausible that some 2020 startups might become household names. Several business sectors, however, show particular promise during economic downturns.
Healthcare services stand out as recession-proof, especially amid the pandemic, attracting increased public and private funding. Financial advisors and economists also see rising demand as individuals seek guidance to protect assets and understand economic trends. Auto repair and maintenance businesses benefit since people prefer fixing old cars over buying new ones. Similarly, home maintenance stores flourish as homeowners undertake renovations themselves due to housing market constraints and prolonged stays at home. Home staging experts help sellers attract buyers in a competitive market, while rental agents and property managers thrive as more people rent instead of buying homes. Grocery stores experience surges as consumers cook more at home, and bargain shops gain popularity as shoppers seek affordable luxuries.
In sum, these sectors offer viable opportunities for entrepreneurs in 2020, balancing immediate demand with long-term potential despite the ongoing crisis.
It is difficult to make the right decision in times of uncertainty, but not infrequently taking risks is the first step towards success. Of course, always analysing the scenarios well to minimise risks.
There are those who think that in this year of crisis due to COVID-19 it can be a real opportunity to develop any business idea or launch a startup. And, realistically, in many cases it can be. However, history shows us that many successful companies can be born in difficult times. So the question is: Could there be promising startups from the entrepreneurial class of 2020 that will become household names?
Maybe yes, but it also maybe not. In any case, we bring a list of sectors in which achieving this is possible, to become a successful entrepreneur.
Business ideas in Healthcare Services
If any industry can be said to be recession-proof, it’s healthcare. Diseases are there, in good times and bad. So it’s easy to think that the healthcare industry isn’t likely to experience the same level of job cuts or losses.
This is especially true during the current economic crisis surrounding the public health response to the Covid-19 outbreak. As a focus of efforts to combat the virus, this industry is experiencing an influx of public and private funds.
Financial advisors and economists
People who have substantial assets want to make sure they’re well taken care of, especially during a recession. Financial advisors often see an increase in work as people become concerned about the stability of their investments and seek guidance on how to protect their assets.
Beyond personal finance matters, people are looking for advice and insights on current and future economic trends or paths to recovery. Economists may also see a massive increase in demand for their services and consultants, government policy advisors.
Auto Repair Maintenance
In tough economic times, people are less likely to buy a new car. Instead, they will repair your old vehicle. One of the best business ideas is auto repair and maintenance shops that get cash during a recession, when people will gladly shell out significant amounts on repairs to avoid a monthly car loan payment.
Home Maintenance Stores
Many people will choose to renovate or update their home on their own rather than move to a new home. More so in those cases in which due to the situation, they will be forced to stay at home for a long time. In addition, it should also be noted that in many cases, borrowing to buy a new home is often not an option for most people during a recession.
Companies in the business of providing tools and materials for home improvement, maintenance, and repair projects are likely to see stable or even increasing demand during a recession, as are many appliance repair service people.
Home Staging Business Ideas
It’s harder to sell a house during a recession, but some, for different reasons, may be forced to do so. People who specialize in Home Staging are thriving as the housing market becomes increasingly competitive.
Home Staging specialists can be real estate agents or interior design professionals, or both. A staging expert increases a home’s curb appeal by furnishing and decorating it to look its best to attract potential buyers.
Rental agents and property management companies
People who may not be able to afford to buy a home during a recession, and people who were forced to sell for financial reasons, still need a place to live. The answer for many, at least in the short term, is a rental.
Rental agents, landlords, and property management companies can thrive during a recession when renting is likely to become a more attractive, if not the only option available.
Grocery stores
For many, dining out during a recession starts to feel like an extravagance. Supermarkets often see an increase in sales as people choose to cook more meals at home and even entertain their friends at home more often.
During the 2020 Covid-19 lockdowns, restaurants have been forced to close or reduce operations for pick-up and delivery only. Grocery stores, on the other hand, have been designated as essential businesses and have seen a surge in activity as consumers stock up on essential staples ahead of quarantines and shift to home-prepared meals.
Bargain and discount shops
People cut back on luxuries during a recession, but that doesn’t mean they never buy anything that isn’t strictly necessary. There’s even an ironic economic theory called the Lipstick Index that holds that cosmetics sales will always increase during bad times because they’re a relatively affordable luxury.
That said, you can shop for a variety of other budget-friendly thrills at bargain and discount stores. People who would otherwise never walk into a dollar store reconsider their shopping habits when a recession hits.
