What types of business do well in a serious economic recession/depression?

Question

For example.. I read that in the USA Great Depression, even barbershops suffered and went broke cause people used friends and family to cut their hair rather than spend money they didn't have or needed for the living essentials...

..but what kinds of businesses can survive and do relatively ok during a serious long-term economic downturn?

Also surprisingly I read some luxury goods companies still do well in a recession/depression... as the mega rich still want their fix of the good stuff.

Thanks.

Answer 1

Good question. One can look back at the 1920s Depression era---and can prepare for the awful truth: not many businesses did well.

I personally think the U.S. is headed snowball straight for a serious depression--as overtaxed families, caught in unstable and ever climbing mortgage loan / credit card traps, are losing their beloved homes by the thousands EACH DAY (and the foreclosure total has risen sharply during the Bush presidencies!!!).

New home construction is all but completely dead.

Government bungling on domestic issues--focusing on a useless war is also to blame.

Prep up; American life is about to get REAL UGLY soon--with far more businesses flushing down the toilet than did in the 1920s.

Answer 2

I love your question and it is very, very insightful. These days any entrepreneurs, who do not think along this line, will find themselves in the quagmire of sudden failure.

Yes, barber service maybe an essential during good times but not during recession. So you have to think of the minds of people - during recession, they will want to find way of getting out of it, they will want to look for ways to change jobs, improve their financial life.

Some will find ways to relocate to another town or country entirely. Now ask yourself this question:

"Can I provide any these essential services or create the products to meet their needs?"

If you can do this, then you will make lots and lots of money. Now we are in the days of internet, it means more people will surf the net searching for those solutions online.

Here is the way I will go about it as an entrepreneur and I am already doing it. I will set up an affiliate marketing resources selling essential products and services. But as an affiliate marketer I will never have to worry about product creations or shipment.

Now see few resource pages below:

http://webmasteraffiliateprogram.biz/

Answer 3

Surprisingly, the liesure industry - particularly brewers - so it's not just the luxury end of the market.

Answer 4

Debt collectors, pawn shops and supermarkets (people still have to eat)

Answer 5

i bet funeral directors did pretty well during the great depression