The inflation rate has just been announced last Wednesday. It has been reached the highest level at 9.1% since 1981, according to Labor Department Data . And it doesn’t look like things will improve any time soon, says Sarah House, a senior economist at Wells Fargo.
According to data from the US Bureau of Labor Statistics, about 20% of US small businesses fail within the first year. 50% of the businesses end at their 5th year, and after 10 years, two thirds of businesses have been closed.
You might want to start a business now, or even have the business plan. You don’t have to worry, there are certain type of business that have higher success rates. It even will flourish even during the recession. Below are the 5 types of the best recession proof business that you can try.
1. Laundromats
This type of business has an amazingly low failure rates. According to Laundrylux, it has 95% success rate over a 5 year period. No matter what is the situation out there, people still need to wash and dry their clothes. What is interesting about this business is it can be a source of passive income too. The machines will do all the hard work of washing and drying the clothes. And your customers do the work of loading and unloading the clothes, and you will enjoy the income.
2. Rental Property
Starting a rental property business during this recession season is a brilliant idea. People need house to live and stay, no matter what is the condition of the economy. At the affordable rental rate and proper house condition, you can offer your house to people. The tenant won’t bargain much if they really need the house. Even Andrew Carnegie famously quoted, “99% of all millionaires become so successful owning real estate.”
Real estate property has 85.3% success rate according to Advisor Smith, a commercial insurance company who examined statistics from the US Bureau of Labor Statistics.
3. Self-Storage Facilities
In going through recession, people will limit their expenses and more things to be kept at home. They won’t be easily throwing old things and practise recycle more often. So, a place to keep all those things are highly needed. Self-storage facilities is one of the best business that you can consider trying. This is because it has a remarkable 92% success rate.
With the advancement of technology, the self-storage facilities are becoming easy to conduct and take care of. People can now use their phones to book the storage unit. Then can obtain the code to unlock the unit, and simply move their stuff in. No onsite manager is needed.
4. Delivery Business
As the emergence of the gig economy and ecommerce, transportation or delivery business has become one of the major lucrative type of business nowadays.
At 74.6% success rate according to Advisor Smith, this business can be from the large truck that transporting goods. Or, the personal car of ours for Uber or even bike like Gojek. But bear in mind of every type of business have risks. And different type of transportation have different type of risks.
5. Vending Machine
This one is the most favorite and maybe the easiest recession proof business to start with. With a relatively low capital to start, you can start with one vending machine. You can deice to locate at one popular spot like tourist attraction places, shopping malls or even students hallways. Before you know it, it can generate thousands of dollar for your passive income.With 90.5% success rate, vending machine business is definitely one of the business you should be planned of, according to Drop’s vending.
Conclusion
These 5 above are among the recession proof business which you should look out during this economic crisis year. Of course, no business is guaranteed 100% success. Proper business model, preventive measures and contingency plan need to be in place. Good luck in your journey of starting a new business.
