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10 recession-proof businesses to buy

loan building

Here are 10 of the most recession-proof businesses, some if which actually perform better during a downturn.

Bargain stores

Everything-for-a-pound shops probably don't feel the pinch too much. People don't tend to cut down on shower gel, toothpaste, sellotape and so on and doing so wouldn't make that much difference to one's budget.

Everything-for-a-pound shops probably don't feel the pinch too much

Pawnshop

Actually prosper during downturns, especially now that bank credit is harder to find than Wimpy restaurants.

Healthcare business

Suppliers of medical goods or services are well insulated as people don't stop falling ill because of recession, however inconsiderate this might seem.

Care home

Could you take your grandmother out of that retirement home with the saintly staff, luxurious facilities and spectacular vistas out the window? And put her in a cheaper, cramped, less reputable residence? Or would you change your car? Exactly.

Funeral parlour

Needs no explanation.

Debt collection business

Likewise. Not the nicest of professions to work in, but impeccable recession-proof credentials.

Retailer of affordable luxuries

People don't necessarily cut out luxuries. If anything, people value them even more during tough times and will guard them jealously. Affordable versions of luxury brands can perform well as people downgrade to save money.

Newsagent/convenience store

Cutting out newspapers or magazines, chocolate bars or packets of crisps, bacon or bread makes a neglible difference to the daily budget. People need to eat. And most smokers are too addicted to cut back!

Home maintenance business

Plumbers, roofers, electricians and the like are resilient in a recession because many of them fix problems that, quite simply, can't be left. You can't get by if your lights don't work, there's a leak in the roof or your kitchen is flooded. Even minor problems are worth dealing with, people often surmise, as it's better to nip something in the bud early before it deteriorates and becomes more expensive.

Car repair and parts garage

A car is a necessity, not a luxury, for many, so expensive though it is, fixing a broken-down vehicle can't be avoided. And sales of cars are falling off a cliff so the age of the average car is growing, increasing the scope for breakdowns.

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