Financial experts can’t agree on whether or not a recession is imminent or if we’re already in one. An unclear financial future can make it difficult to plan ahead, especially if you’re considering starting a business. This guide covers a few recession-proof businesses to consider in Florida.
The housing market is often the most significant hit during a recession. Some homeowners may sell to seek more affordable housing. Others may move in with family or friends to share living costs. Many people shift toward renting during recession times, helping to keep property managers in business.
Florida is also made up of a large percentage of vacation rentals and residents who split their time between the state and another one. Property managers are important in managing these properties when the owners are away. A property manager is also a valuable resource for investment property owners, helping them choose the right tenants using background or reference checks.
Surprisingly, bookstores are at the top of the list of recession-proof businesses. Forbes even named bookstores one of the industries most likely to succeed during a recession. Books are a relatively affordable purchase that most people don’t cut back on, even when money is tight. In fact, buying and reading books can help families save in other categories, like going out or investing in an expensive sport. The great thing about bookstores, too, is that owners can shift their business model to an online one. Once you own the inventory and no longer have to cover lease fees or utilities in a storefront, the expenses for a bookstore can be very minimal. Sometimes, a bookstore business can be a side business, especially if you don’t rely on in-person sales.
Florida is also home to over 150 colleges, bringing the estimated number of students to over 44,000. Most U.S. and Florida colleges require students to purchase their own books and supplies, another factor sure to keep bookstores in business year-round. In fact, some bookstores make a large percentage of their earnings through buying and selling used textbooks to college students.
Construction laborers or home improvement contractors tend to have ample business, regardless of the current economy. Both residential and commercial properties will continue to be in demand. Properties of all types will also always require maintenance and upkeep, especially for projects requiring permits. Some homeowners may decide to sell their homes during difficult economic times, and working with a contractor may be an important part of earning top dollar.
Additionally, the demand for Florida residents buying and selling properties has stayed steady over the years. The number of short sales consistently stays low throughout Florida’s economic ups and downs. Of course, Florida is also prone to natural disasters, specifically hurricanes. The state’s construction laborers and workers are an important part of repairing and rebuilding after these events.
Florida does require contractors to obtain a Florida general contractor license before working on projects. Completing these requirements now can put you in an excellent position to accept businesses, even if a recession comes.
Car Rental Company
Historically, recessions have had minimal impact on the car rental industry. Small layoffs aren’t uncommon during difficult financial times, but car companies are among the least affected. Car rental companies have more flexibility in dropping prices to reach customers. They can also compensate for losses by selling their cars on the used car market. Florida can be an excellent destination for car rental companies. Since the state attracts millions of tourists each year, rental car companies typically notice little impact.
As consumers cut back, businesses must find unique ways to reach them. Marketing agencies can do well during a recession by offering fair prices and helping businesses adjust their current strategy to a more cost-efficient one. Marketing agencies that offer professional reputation services may do even better. A recession doesn’t stop businesses from receiving negative publicity, and PR companies play an important role in ensuring it doesn’t impact their earnings too much.
Travel is often one of the first industries to notice a steep decrease in sales during a recession. Since much of Florida’s economy depends on travel, affected businesses may need to turn to professional marketing strategies.
Rather than waiting until experts can agree on when a recession is likely, it’s better to prepare ahead of time. Choose a business type that tends to fare well through a recession, with bookstores and marketing agencies being a few great options. Obtaining licensure as a general contractor also allows you to help homeowners, property managers, and insurance companies following a Florida hurricane.