Businesses That Never Fail? 12 Businesses with Amazingly Low Failure Rates [Backed by Data]

A recession could be on the way.

Surging probability of recession of triggering a recession.

Recession odds have skyrocketed and lots of people could be in trouble. But if you're smart, this could be your opportunity. In this video I'm breaking down 12 data backed recession proof businesses that actually thrive when the economy crashes. Wait till you see. Later in this video we are going to break down some real world businesses and their actual numbers and stories telling you whether these businesses are good or not. Number one, discount in thrift stores. Because people need everything else for less money. I'm thinking outlet secondhand shops. This includes resale clothing, books. Those already exist everywhere. I don't love that model but you could try it. Cheap household stuff. Basically places where people go to feel smart while spending less. So why does this thrive in a downturn? People don't stop buying but they do buy less than full price. Customers become value driven in a recession and thrift stores give them a way to do exactly that. During the 2008 recession, discount retail was one of the only sectors that actually crushed it. Small thrift stores across the country averaged a 31% sales increase in 2009. Big name retailers laying everybody off but but the rest of the world surviving, even scaling. Let's see if this local business has had success during a recession.

Hey there. My name is Charlie Acabello. I'm the owner of Rusty Rats antiques and Vintage here in Nashville, Tennessee. We have been open 11 years. I think our store is very recession proof and mainly that's because of our prices. 90% of our store is under $20. So you know, even during recession time people can afford $20 gifts especially when they're on a budget.

What are a couple cheap ways to start a discount or thrift store? We're beginning with a very tiny retail space, maybe even a market stall pop up or an online only store. Very small initial INV inventory, super niche and we want to source inventory affordably. How do we do that? Donations from the community, set up collection bins, host donation drives, shop estate sales, garage sales, flea markets. All things to find you low cost items to resell. You can also do the old school ebay, Facebook, marketplace, shopify. So that means you don't have to have a physical storefront. Now let's talk a bunch of the prices. You can see right here. We put together a little table for you saying how much each of these might cost for you to start and where you can go first. Yo, but I'm almost off sh t. I'm out right now. Number two, delivery and logistics services. If there's one thing the last few years years made crystal clear. Delivery runs the world doesn't matter if the market is flying high or falling apart. Goods still need to move. And that makes delivery and logistics one of the smartest recession proof businesses you can start. We're talking about couriers, package delivery, local trucking, B2B Freight, you name it. But you got to ask yourself, what's the data look like? So look at the 2008 recession. UPS and FedEx kept growing. FedEx even increased profitability. A lot of the analysts say the delivery industry will keep growing around 4.3% regardless of a recession. And during 2020, well, it boomed, right? That's when we all figured out we could order things online and never have to talk to another human again. So deliver demand exploded and everyone still got everything shipped. There's a ton of these for sale right now on Biscout. So I would probably look at buying one as opposed to starting one. Housekeeping, you want pal? Please go away. Let me sleep, for the love of God. Number three, cleaning services. Residential and commercial cleaning services are one of the most underrated, recession proof businesses out there. And not only do they survive downturns, they actually thrive in crisis. So I want to thank janitorial crews for commercial buildings, medical sanitation teams and specialty cleaners like think deep disinfecting services. We even did an entire video on cleanups, murders and homicides. That's a hell of a business. She does $12 million a year, by the way. Let's talk to a local small business owner. He says his business killed it in a recession.

Hey guys. Brandon here, co founder and co owner of Pink's Window services, started right here in Austin, Texas in the middle of COVID unemployment being around 15%. And this year 2024, we did right at about a million dollars. So we're super grateful for that. Controlling what you can control. So for us, it's getting three quotes a day. For us, just having a nice close rate that's above 45%. For us, it's going out. And being the mayor of window cleaning, what does that get you? That gets you a fantastic business for you and your family.

So what does the data say? Households may pause cleans, but businesses won't. They stayed really strong. In fact, in 2020, commercial disinfection services, they skyrocketed. There's something called OSHA standards, which are government regulations that mandate cleaning. That's why major janitorial firms like ABM Industries grew from 2008 to 220. Incredibly, in fact, one of the richest guys in the world, he built his entire business off of cleaning. Because when it comes to keeping a safe space, cleanliness next to godliness, little secret hack. I like to start in cleaning businesses with residentials. They're faster, easier to get, but they're not as sticky. So eventually you're going to move to commercial pet care and pet supplies. When the world goes on fire, some things get our top priority because people may cancel vacations, but they're not going to mess with their pets. I'm talking about pet food shops, rooming services, dog walkers, pet sitters. If it barks, purrs, squeaks or sheds, there's a business model around it. It's not just me saying that. Wait until you hear his story going on, everybody.

Brandon with Runway Mobile. Here we are, the world's first and number one mobile dog gym service. I'm here at Austin, Texas as Rumpy's first franchisee and we have been warmly received by dog owners, shelters and rescues alike. A team of 10 plus coaches, dozens of shelter and rescue partners, and over 300 weekly and bi weekly recurring clients. One thing I can say to others that are looking to get into the industry is you have to be undeniable. It's up to you to make sure that your service is not seen as a luxury, but rather a necessity. Now run Buddy Mobile. We've done a great job of making sure that our clients understand and see firsthand the benefits that our service offers.

During a downturn. People are looking for emotional care and often this is a period where people will get pets in recessions actually doesn't make sense because it would cost you more money. But often pet purchases go up. This is especially true if you've got a pet business in the rich people category, which I always like sell things. Rich people, they pay more and they keep paying. So even if people downgrade their, I don't know, cable package, they'll still keep getting Fido's nails clipped because they need to. Now the data isn't just a feel good guess here in 2024 record breaking $150 billion spent on pets. So I think this wasn't just a one time boom for pets. It's actually pretty systemic. There's a local vet here in Austin that does something pretty beautiful. One, they do subscription services. So continuously making sure that you pay every single month, a decreased rate for check ins. If we compare pet services with pet services for rich people, you got a really nice business. In recession Next, home repair and maintenance services. This business literally can't be ignored. Pipes burst, heaters fail, power goes out. You can skip a gym membership or cancel Netflix, but toilet overflows. You're going to be following somebody. This is the ultimate recession proof power of home repair and maintenance services. So what does it exactly Think Plumbers, electrician, H vac techs, roofers. You're not actually going to care about inflation if your ceiling is leaking. But here's the data. In 2008 and 2009, construction slowed way down. Tradespeople, they actually stayed busy. Plumbers, H Vac techs and electricians were still working full time because essential repairs just can't wait. We actually own a business that does this now. It's called Resi Brands. They have a handyman franchise with all the steps included and a team that teaches you each step of the process.

Hey guys, my name is Jay, co founder of Monty's Handyman Services. The beautiful thing about handyman services is that we're always in demand. Things break, somebody's got to fix them. The average home in the US is about 39 years old, which means older homes, more repairs, that means more business for me. No matter what the economy is doing, people need Handymen. In our first six months did over $150,000. That's starting from scratch. Since then we've just continued to grow and expand. Super fun to be in a business that helps other people get things fixed, get things built and make their dreams become a reality for their home.

So what's a real world example here? Roto Rooter national plumbing chain Steady revenue since start. This is the kind of service that people always want. Grocery and food ret Now I think this is one of the most promising businesses in a recession. Small neighborhood grocery stores, local produce, even discounted food retails or mini market seems boring. But when the economy tanks, this is what keeps making money. When a recession hits, people stop going out to eat, right? They ditch a lot of the doordash, they cancel that $18 salad order and they start cooking at home. And that shift alone drives up grocery sales. What kind of grocery stores? Well, the data tells us in particular we want to go discount. Dollar General up almost 10%. Kroger grew every single store's sale during every single quarter during the recession. Now if you're not crazy at this point, you're going to say I don't want to start a grocery store. That seems like a lot of work. There's lots of cheap ways to start a grocery store with little Cash one Open a mini convenience store small neighborhood grocery on a budget. These formats are less space, lower rent, smaller inventory. Also farmer's market or even a pop up grocery in a community space. Minimal overhead, no long term lease. You can actually test the demand. First. How do you keep your startup costs low? You use basic shelving, refrigeration, minimal innovations. Think like those Halloween stores, but for grocery I'd also obsess on initial inventory. So we want to make sure we kind of go niche before we go wide. Here's a bunch of ways you can start. Here's the costs specifically outlined and I think you'll see we can still start small before we go and take on, I don't know, Whole foods and Bezos, which might be hard. If you're thinking about starting a business or buying one during a downturn, you're already ahead of the curve. Recessions create opportunity, lower acquisition costs, less competition and more motivated sellers. But here's one thing that can instantly make or break your new venture. Your domain name. You could find a great business, improve the ops, stack the offers. But if your online presence screams amateur, good luck building trust. That's why smart entrepreneurs are using DOT Online, a modern domain extension built for businesses just like yours. So whether you're launching a product, reviving a local brand, or creating a one person media empire, your domain should be clean, credible and available. Unlike cluttered URLs or weird extensions, it actually helps with search and brand recall. In fact, over 3.5 million businesses are already using dot online. The kicker? You can get yours for just 99 cents. Just use the link below and code CODY@www.get.online. build your recession proof business and give it a recession proof brand while you're at it. Now let's get back to the video. Carl, see if you can figure out what's wrong with this thing. It ain't got no gas in it. Next we're talking auto repair shops. No one wants to buy a new car when the market's crashing. But guess what they have to do? Fix the one they already own. We're talking garages, mechanics, mobile repair vans, brake shops, tire centers, Yantarias. For my people out there, what does the data tell us? 2007 to 2009, new car sales dropped 40%. That's a 27 year loan. Meanwhile, AutoZone, same store sales up baby 5%. Why? Because everyone's fixing instead of replacing. You don't actually have to be the one that knows how to fix all of this. You could go buy one of Them on something like Bizkout, you could go take over and apprentice somebody else's. So it doesn't mean you always have to do the job to make the money. Cheap and creative ways to start an auto repair shop. If you don't got much cash, I'd go mobile. You're going to see this trend a lot. This eliminates the need for renting or buying a shop that's expensive. You can travel to customers, homes or workplaces. There's a lot of convenience and flexibility here. If you have access to a personal garage, start your business from home. And I know people are going to be like, but the licenses and the certificates. Listen, most small businesses start out of their homes. You can use a garage rent free if you're providing more users for a service overall. So build up that customer base before investing in a commercial location. Let's break down startup costs. You can see here we gave you lots of ways to think about this, but I want you to know that you can start wherever you are with what you got. Is there a project you're working on?

I know more than you.

All right, next we got home improvement at hardware stores. Let me ask you this. What happens when people can't afford to move, remodel, or hire a contractor? They grab a wrench, they roll up their sleeves, and they do it themselves. Unless they're me, because I don't know how to do any of that. So that's why hardware and home improvement stores don't just survive recessions, they thrive. What does the Data say? By 2023, home improvement spending had gone up 30% since 2015. Why? Staying home more means fixing stuff more. And when the job market's shaky, fixing your own deck becomes the weekend plan. Now how would you start this on the cheap? Well, I might do ebay or multiplatform resellers. This is actually really cool. Tons of entrepreneurs build businesses around sourcing used tools from like garage sales, auctions, estate sales, and reselling them on ebay, Facebook, marketplace, et cetera. These resellers then cross list their inventory on a ton of different platforms. Maybe some like Vendu, to maximize reach and sales. Example, there's full time ebay resellers who specialize only in like hand tools or vintage tools. And then they actually are all over YouTube telling you, okay, I bought this for $2 and I'm selling this for 1200. Like, this guy buys tools for pennies at garage sales and resells them on ebay. I think there's a real world where tools Become a serious business. Like there's a CPG business there. There are huge businesses built off the back of just starting by reselling somebody else's healthcare services. Recession or not, people still get sick, they still need meds, and they still show up for care. So what is this? This is like local pharmacies, walk in clinics, urgent care centers, home health providers, even small doctor's offices or mobile med services. These aren't nice to haves. Often these are must haves. And you could throw some nice to haves in there. I mean, I just got bamboozled for like 400 bucks for an IV and they came to my place and they told me there was all this fancy stuff in it. I was gonna get better. Probably should have just taken an aspirin, but needed a hug, got a $400 infusion. Let's run the numbers. 2008, when everyone else was getting laid off, healthcare added jobs. CVS Pharmacy up 14.6%. That's nearly $90 billion during a recession. Why? Because people kept getting prescriptions filled and medical visits didn't slow down. Recession stress even increases demand for mental health services, checkups, chronic care. There's lots of cheap ways to do this, and I don't mean cheap as bad service. That's not. That's not what we want to say here. Let's say you don't have the cash or expertise to start this one. Can you partner with one that exists and just help them market it? Can you then ask to buy a part of the business through the new revenue and sales you do? This is how we teach people to buy businesses, just using what's called your sweat equity. We can show you how to do that in our business. Buying beginner kit, if that's helpful for you. So healthcare in a recession, I think it's a win. Let's talk about accounting and tax services. Way less fun than feeling better. But when the economy crashes, the IRS doesn't give a shit. You still got to file. This is tax Prep firms, independent CPAs, bookkeepers. These are the folks making sure your business doesn't get nuked by bad math or missed deductions or you personally. In a downturn, that skill becomes critical. The old saying is, nothing is certain except death and taxes. And I think that's right. You know, the data shows that when unemployment neared 10% in 2008, accounting sector actually added jobs. Yes, employment and accounting and bookkeeping grew and H and R blocks. Tax segment up 8.5% of revenue during the first half of 2009. Because tax deadlines don't care about your recessions. Small businesses, they keep outsourcing bookkeeping to avoid costly mistakes. And there's all this new technology that we use for it. Like we have a portfolio company called Carry that helps with this. There are tons of companies that help with bookkeeping. And yet I don't think that we are ever going to get rid of the human touch. Hey, big guy, how to go in there? I missed? Oh, hell no. Okay. Child care services. If there's one thing that ever takes a break for a recession, I hear it's your children. I hear you got to keep those little mini common causes alive. That's why children's businesses are one of the most recession resistant businesses out there. So let's, let's break it down exactly what we're talking about here. Daycares, preschools, home based babysitting services. Anywhere working parents can drop off their kids so they can keep working. And when the economy tanks, the need doesn't go away. Because when a recession hits, one parent may lose their job or both parents have to work just to stay afloat. Either way, they need somebody to help watch the baby. The data says childcare businesses increased by more than 6% a year. And it looks like all the way from 2008 to today we have seen an increase in this industry. Now how do you start one of these on the cheap if you don't have much money? Well, one home based daycare, actually it started in your house. I think parent cooperatives are really interesting too. Several families share the costs and the profits and responsibilities. Each parent contributes a little bit. You pay the staff some, but they also are responsible. It's also kind of nice. You got like your own little commune, you know, Then you can have specialized or niche home services which would be like, like after school programs, language classes, music lessons, art or STEM workshops. We actually have Sean who bought a business through our community. He bought an education business. And that education business was just that. It was after school lessons on how to get into college. And he grew that business sizably. So whatever your unique skills are, you can focus on that. You can stand out. And if you want to see a bunch of the ways that we shake out cost wise, we got a little table here just for you. You can go from low to high on starting your own childcare business or buying one.

Ladies, back me up.

Hey, Sassafras Glo.

Am I right?

They agree with me. Whatever happened to the customer is always right? Sassafras glow. Mix it up. Alright, beauty and personal care companies. We're talking budget friendly salons, barbershops, nail studios, low cost cosmetic products. This is one of the sneakiest businesses on the list. When the economy tanks, you know what I thought people would cancel like their lipstick purchases, haircuts, mani pedis, but actually there's something called the lipstick theory which means the exact opposite. Why? Well, when people can't do the really fancy thing, they still want to feel a little fancy, so they want to do a small thing. So what does the data say? During the 2001 and 2008 recessions, sales of lipstick, nail polish and other low cost beauty items actually increased. All the sales across L' Oreal were up 5% globally. This is that lipstick effect I was talking about. So I tell you to look it up yourself, but instead I'm going to give you a small business owner.

Hey y', all, My name is Lillian Ladd and I am the business owner of Lovely Lilies, which has been in business a little bit over eight years now. During COVID when lockdown happened happened and we were potentially nearing a recession and a lot of people asked me like, are you scared you know what's going to happen? And my honest answer was no, I wasn't because even though numbers were down, I was still consistently seeing two to three clients a day. Inevitably people are going to want to look and feel their best. I think that when you feel your best, you really are your best. And I think that's a main thing that makes my business recession proof in the future.

We underestimate that during a recession. Darren Rothschild was right, one of the richest men in the history of America when he said buy when there's blood in the streets, even and especially if the blood is your own. I think the same thing is true for start a business in a recession, even when it's scary and everybody's telling you not to. That's it. 12 recession proof businesses that don't care what the economy is doing. And if you do care what the economy is doing because you want to make more money, you got to subscribe to this channel. We got you no matter what the market looks like.