I put my hands up on my hip, when I did, you dip, we buy the dip.

Buying the dip simply means taking advantage of low prices, which is common in a recession. A recession is a dip in the economy, usually from a seasonal change or a one-time event.

Recessions tend to be cyclical, which means they will occur every few years (and not just once). Every recession is there is a significant decline in economic activity that can last for months or even years.

Economist say that a recession is officially when there is a negative gross domestic product (GDP), a lot of unemployment, low retail sales, etc. So what does it all mean?

It means the economy sucks and may it suck for a long time.

Should you start a business during a recession?

If you are thinking about starting a business, you can wait until the economy rebounds. However, it’s not necessary.

It’s my opinion that you should start a business in a recession (if that’s what you want). There’s no rule against starting a business in a recession. It’s also not a dumb idea to start a business in a recession.

However, you should have a safety net in place. So, I wouldn’t quit my job and start a business in a recession. I would also make sure that I maintain some source of other income while starting my business in the recession.

What should you not do in a recession?

Don’t expect a recession to come and go without any affects. Even if you are just starting your business, it’s important to think about the long-term effects of recessions.

So, here are some tips to stay above water. First, you should avoid taking on any new debt in a recession. So, I don’t think you should go out and buy a new car or co-sign a loan on your (internet) boyfriend’s house (that you’ve never met in person).

Besides that just a bad idea anyway. Have you ever heard of this guy?

You should also be smart about keeping your debt-to-income-ratio (DTI) down. DTI compares the amount of money you owe each month to the amount of money you earn. So, it’s the amount of your gross income (before taxes) that’s used to pay your monthly bills, e.g., rent, mortgage, credit cards, etc.

Have you ever heard that expression that something cost an arm and a leg? Well that’s what happens when you sign anything with a ARM (adjustable rate mortgage). An ARM is a loan with an interest rate that changes over time.

I personally wouldn’t sign this type of loan, even in a good economy. But I understand why it may have its benefits.

ARM loans remind me of some businesses that charge their rates based on what bills it has due that month. So, the customer pays more or less depending on the owner’s bills. Yeah, I’m not a fan, but I’ll move on.

I’m a Taurus so I like stability and keeping my money. So, that’s two strikes against ARM—unpredictability when it comes to paying out money.

The last thing you shouldn’t do is make risky Investments. I understand that you want to make more money and making money involves some risk. However, if it’s sounds too good to be true, it’s probably not true.

So, research your Investments. Also, don’t invest all of your money in risky Investments. If you decide to put money into a risky investment, then you should diversify your portfolio. Make sure you don’t put everything you own into it.

What industry will survive a recession?

The reality is that there will always be some industries that survive recessions.

Have heard that cockroaches will survive the end of the world? I mean they seem to live forever and have done so for over 300 million years!?!

Well, I’m not trying to gross you out or anything. But I want you to think of these businesses as cockroaches since you can’t really get rid of them.

Food and Beverage Industry

I think the number one thing that we all can’t live without is food and beverage. If we don’t eat, we will die. Unless you’re like Prahlad Jani (who didn’t eat or drink and lived until he was 90 years old), most of us will need food to to survive.

In the food and beverage industry, you can focus on food delivery, vending machines, or grocery stores. For example, you can open a smaller grocery store or become a distributor for grocery stores to help them fill their shelves.

Healthcare Services

As long as there’s a human race, we’re always going to need health care. It’s a fact.

A large part of this industry deals with seniors. Often, seniors are not able to care for themselves. So, you can possibly fill a gap in services that seniors need.

For example, some seniors don’t have the means to travel to a doctor or a way to get medication. Some seniors also may not be able to care for themselves without assistance.

So, a person could create a business that delivers food or medication to seniors. Also, a busines that provides home health care services to seniors should survive any recession.

Pet Care

People love their pets. People (love to) spend money on their pets. People also think of their pets as their family. I think you get the point.

The pet care industry made a whopping $103 billion dollars in 2020. Wouldn’t you like to get a piece of that? I know I would.

So, if you want to open a pet care business, you can provide grooming services or sell essential pet products.

Auto Repair Services/Plumbing Services/Renovation Services

In a recession, people may not spend money on new cars. However, we’ll all need to repair our cars at some point.

We’ll also need to fix any issues that occur within our house such as a leaky faucet, broken toilet, etc. Also, all homes (or buildings) require repairs at some point. So, people will always need to repair and fix their car and their house.

Baby Products

Another industry that is booming is the baby products business. Let’s face it. During a recession (or pandemic), a lot of people were having sex. Lots and lots of sex. And a lot of this sex created a lot of babies.

The baby care products industry was worth $67 billion dollars in 2020. The (not so) shocking part is that this industry will increase by $20 billion dollars by 2026.

That’s a lot of babies who need a lot of baby care products.

Child Care Industry

Another industry related to baby products is child care. All those babies conceived will need somebody to care of them. People still work outside of the home. Even if they do work inside their home, they’ll need someone responsible to watch over their children.

Freelance Writer

As long as there’s marketing and websites and everything between, there will always be a need for writers. Freelance writers are an important part of a lot of Industries.

Having the ability to hire someone to write your marketing ads, website content, or internal documents, e.g., training manuals, is a huge industry. So, if you love to write, you may want to join this multi-billion industry.

Cleaning Services

Let’s face it. We’ll always need cleaning companies. Especially in a pandemic or a recession, cleaning services are important.

It’s important for all businesses maintain a clean facility. This can include medical facilities, stores and shopping centers, beauty salons and spas, restaurants, and hospitals.

Financial & Accounting Services

Another industry that is going to last until the end of time is financial and accounting services. Everyone has to deal with taxes. Also, a lot of people will likely turn to an accountant (or financial advisor) to manage their finances

Taxes are inevitable along with death *long sigh*.

Funeral Services

This industry isn’t the life of the party. However, it’s a necessary part of life. Everyone at some point is going to die. It’s unfortunate.

However, a lot of people will need this service. Also, a lot of people want to send off their loved ones with a beautiful service.

Wrapping It Up

Don’t let a little recession stop you from pursuing your dreams of entrepreneurship.

I think the best thing you could do is start a recession-proof business or a business that has evergreen services or products. Evergreen is anything that will always be in demand, e.g., bottled water.

So, I don’t think you should sit on the sidelines and wait for the recession to end. There will always be a reason to not start your business—busy personal life, busy day job, etc.

Recessions are going to happen, but life goes on and so should your business. So, I think the best option is to choose a business that can withstand anything.

The bottom line is that recession-proof businesses (and entrepreneurship) will always be in style.

Would you start a business in a recession or would you wait it out?