Most news sources wavier on the likelihood of an upcoming recession. What’s not up for debate is that many of us are looking for more financial stability and ownership of recession-resilient businesses that may help weather an economic storm. While a recession could negatively impact many, not all businesses are at as high of a risk during an economic downturn. Not only do some types of businesses consistently weather hard economic times better than others, but, in some industries, a recession can be a good time to start a business because the cost can be much lower than starting one during a “booming” period.
The best way to position yourself for continued success amidst a recession is by working in a recession-resilient industry, or by building a better future through recession-resilient franchise opportunities, like with one of Neighborly’s® 19 North American brands.
What is a Recession-Resilient Business?
During a recession, consumers tighten their budgets. They will stop spending on products and services that they want, and instead focus on the ones they need. To successfully operate a business, owners need to provide essential products and services that people and businesses require regardless of the economic climate.
A recession-resilient business is one that:
- Provides a needed product or service (not a want),
- Solves a recurring need for the product/service,
- Often needs little initial investment, and
- Often has lower overhead to operate.
Why Home Service Franchises are Recession-Resilient Businesses
1) Home Service Franchises Provide Essential Services to Your Community
Entrepreneurs looking for recession-resilient business ideas should consider exploring trade and home service franchise opportunities for their investments. Of the pros and cons to owning a franchise, starting one that provides essential services and resources, such as those found in the home repair and maintenance industry, is an incredible opportunity that allows you to fill a need in a relatively stable industry.
Businesses in the home repair and maintenance industry include several services that consumers view as essential and will continue to be in demand, even during recessions. Home items breaking, malfunctioning, or other mishaps happen regardless of the state of the economy.
Unlike many other industries that can be disrupted by trends like online shopping, the home service industry should remain stable because the work must be done in person and often requires specialized expertise. This would mean that franchise owners can often expect a steady stream of customers, even during economic downturns, as people will always need help maintaining and repairing their homes.
2) Many Homeowners Prefer to Leave Repairs to the Professionals
Home services are always needed because often times it’s not something you can live without. Even during hard times, appliances, glass, plumbing, and other parts of the home can break unexpectedly. Often, repairs are an emergency need and require the help of skilled, knowledgeable professionals. Homeowners may choose to hire professionals for these issues, instead of trying “DIY” methods, to avoid the risk of spending extra time and money on costly mistakes. This remains true during any economic state.
HVAC franchises, such as Aire Serv®, are just one example in Neighborly’s hub of home service brands that provide essential services. Because when your AC stops running in the dead of summer, odds are homeowners will not want to wait to get it fixed.
3) Support Systems Can Help You Navigate Business Ownership During Economic Downturns
On top of serving a more stable demand base, a home service business can help you diversify your income streams to better prepare for unforeseen financial difficulties. At a time when you might be looking to lower your financial risk, one of the benefits of starting a franchise is investing in an already established system of procedures you can follow to help mitigate your operational risks.
Neighborly’s proven track record of success, along with the extensive network of support from other franchise owners, can help business owners succeed by guiding them through their early days of business ownership and beyond. This support is vital for growing entrepreneurs but can be especially crucial during uncertain times.
4) Franchise Opportunities Carry a Number of Advantages in Today’s Market
Opening a business during a recession can be daunting. However, many are attracted to this option as it allows business owners to work for themselves in a time when other industries may face layoffs or high unemployment rates.
It can seem counterintuitive but opening a business during a recession can also provide you with the opportunity to gain a competitive edge over others in your industry. Many existing businesses in non-essential industries may shut down, leaving a gap in the market for you to fill with your essential goods and services.
Best Recession-Resilient Businesses
Some of the best-performing businesses in a recession may include:
Cleaning Services
Cleaning services are one of the few businesses that flourish regardless of the climate. Many industries – including healthcare, education, hospitality, food service, and more – must follow strict laws and regulations that require them to maintain certain cleanliness standards for health and safety. These laws and standards remain, regardless of the state of the economy, making the demand for cleaning services more stable.
Cleaning franchises, like Molly Maid®, do not only support these commercial customers, but also have a stable base of residential customers. With more people now working from home, cleanliness and help from professional cleaners are top of mind for those juggling careers, home care tasks, kids, and other responsibilities from their homes.
Home Repair and Improvement
Regardless of the economy, things in the home break down over time. When money is tight, people are more likely to repair their existing items rather than buy new ones. Home improvements can also increase the value of a home, which is particularly important when a recession threatens to do the opposite.
Home repair and maintenance businesses include:
- HVAC: Heating, ventilation, and air conditioning businesses install and maintain ducts, furnaces, and cooling units in every house and building. Their services are needed in new home construction and older home repairs.
- Plumbing: The plumbing industry will generate an estimated $169.8 billion of revenue in 2025. A broken water heater, clogged toilet, or leaky pipe is an urgent issue for any homeowner, regardless of the state of the economy. If a plumbing franchise piques your interest, learn more about Mr. Rooter Plumbing®
- Electrical: Every home and business uses electricity, requiring the work of skilled and licensed electrical workers, such as those of Mr. Electric® franchises. Innovations, such as electric charging stations and smart home technology, are creating new opportunities and an increased need for installation and repair work.
Landscaping & Lawn Care
Commercial businesses will still require landscaping services during a recession, and also some homeowners, particularly those in HOA communities, who have to adhere to strict landscaping guidelines. Along with being a recurring service, landscaping is a business with low start-up costs and overhead. Businesses like Lawn Pride® and The Grounds Guys® can help regularly maintain landscapes to adhere to rules and regulations
Neighborly Franchise Brands are Recession-Resilient
Starting a franchise can help mitigate startup risks compared to a traditional business - one of the best perks of franchising that can benefit new business owners during economic uncertainty. Neighborly’s supportive network, proven business model, and continuous operational resources can make starting a home service franchise one of the best business ideas during any climate.
By investing in a home service franchise, franchise owners are choosing a business model that is built to last. With the backing of established brands, proven systems, and a market that never goes out of demand, home service franchises truly represent a recession-resilient business opportunity—one that can provide stability, growth, and peace of mind, no matter what the economy brings.
Be empowered to build the life you dreamed of and experience the benefits of business ownership.
Download our free Recession Planning for Your Future Guide to discover how you can achieve your professional and personal goals in a recession-resilient industry.
