For some industries the recession presents opportunities and even an increase in sales, rather than risks. Is Grovelands is a recession-proof industry?
For some industries the recession brings with it opportunities and even an increase in sales, rather than risks.
Some goods and services are a necessity, meaning people will buy them regardless of any changes to their financial circumstances. An obvious example is food. People will still buy staple foods such as milk, bread and butter.
Despite this, the restaurant trade, although selling an essential good, is among the first sectors to suffer when customers’ disposable income is jeopardised – because there is such a mark up on the cost of eating out rather than eating in. One exception to this is fast food, which offer meals roughly as affordable as home-cooked meals.
This means that food manufacturers, supermarkets and convenience stores are also recession-proof.
Other businesses selling non-discretionary goods or services include post offices, healthcare businesses like pharmacies and home maintenance services such as plumbers and electricians.
In a corporate environment, you could class staff training as a discretionary, or non-essential, cost as it’s a long-term investment. Arguably you can send your staff on a training course and yes, it may improve their skills a little, but if you didn’t train anyone for a year, the business is unlikely to suffer greatly as a result.
Grovelands places professionals in the regulatory risk and compliance market in the financial services sector. This sector is always going to be regulated, so organisations are always going to need skilled professionals in regulatory roles. You could therefore conceivably say, that Grovelands is in a recession-proof industry.
E-commerce businesses and those ahead of the technology curve are likely to survive the recession – customers can often find lower online prices than in high street shops and internet shopping is more convenient. There are also a lot of bright spots in digital and social media, and other high technologies. For example, smartphone sales are on the increase.
Other businesses that prosper in a downturn include cheque-cashing shops, such as Cash Generator, and payday loan websites.