According to the Small Business Administration’s latest statistics, about 66% of all new businesses only survive two years, while 45% survive for four years. With such slim odds, it’s a wonder how any entrepreneur can pluck up the courage to open his or her own new business.
One of the best ways to reduce that risk of failure, though, is to open a business in an industry with a proven track record of stability. Though there’s no such thing as guaranteed success anywhere in the business world, certain industries seem to weather financial hardships much more easily than others. This is likely because there’s a pre existing demand for their services, which will not likely falter any time soon.
Take the pharmaceutical industry, for example. People will always be getting sick, and so there’s always a demand for medicine. Pharmaceutical companies who manufacture medicines to fight illnesses, then, are recession-proof. Affiliate companies would also be recession-proof, as well. Take pharma packaging services, for example. Blister packaging is one of the most common ways to package unit dose pharmaceuticals in the United States. Without a safe way to package the products, medicine manufacturers would have a hard time distributing them, logically making pharma packaging services largely resistant to the ebb and flow of consumer spending.
Basically, any business that people will always need is going to be better equipped to weather downturns in the economy. Think tax services, funeral homes, liquor stores, pawn shops, or waste management services. After all, people will always need to pay their taxes, have their loved ones taken care when they pass away, want to have a drink, need a way to get some quick cash, or create garbage that needs taking care of. Each of these businesses caters to an inevitability, or a demand that’s nearly inevitable.
It’s these businesses that offer entrepreneurs a great chance at survival even when the economy is shaky.