I was thinking about this the other day, after listening to more economic news: what sorts of industries thrive in a recession?
1. Fast food: this is a no-brainer. People will visit restaurants less often as they are trying to reduce their discretionary spend and will substitute this with take-out. It is no wonder that Dominos, KFC etc are showing revenue growth in this climate!
2. Entertainment zones: Timezone, pinball palours and the like will do well as people reduce their spending on movies and turn to cheaper forms of entertainment.
3. DIY: what better way to save money then to fix things yourself? The hardware industry should be reaping the rewards of people deciding to try some DIY
4. Home based business ventures: people that sell home based business start up kits should do especially well in today’s climate. It is not surprising that more and more people are looking for new ways to make money.. and whilst we are on this topic…
5. Internet marketing: definitely! With people either being retrenched, disilluioned or with more time on their hands, they are turning to internet marketing in droves.
6. Hobby businesses: businesses that are started and run from the kitchen/study/garage are exploding right now. With people losing their jobs, more and more are starting up small hobby businesses at home.
7. Businesses supporting hobby businesses: from people creating websites for new home based businesses, to technical support and business advice, these businesses should do well off the back of the hobby businesses.
8. Franchises: People want to be more in control of their destinies and franchises fulfil this desire by providing an established business model with a recognizable brand.
What other industries do you think do particularly well in a recession? And if you are in one of the above industries, how has the recession affected you?
