The country's inflation rate has been accelerating rapidly. and this has led many people to speculate that we may be heading into another recession.
But we don't have to wait for economists to officially announce another crisis before we do something about it. To make more money and weather the incoming storm, we simply need to be prepared and be on the lookout for lucrative recession-resistant business ideas.
So without further ado, here are our top 5 recession-resistant business ideas you can venture into this year.
1. Asphalt Maintenance Services
When an economic crisis hits, you'd think that the first thing people will hold off on is maintaining their driveways or parking lots. But that has not been our experience. Even at the height of the pandemic and the supply chain woes, most asphalt maintenance owners were still fully booked during the season (even beyond!).
That's because asphalt is everywhere. Plus, it is affordable, durable, and easy to install. That's why most property owners choose this material to build their driveways or parking lots.
But no matter how meticulous a property owner is in maintaining their asphalt, it will eventually crack and deteriorate. It also needs to be sealcoated every two to three years to ensure that it lasts longer. That's where sealcoaters and crack repair specialists will come in handy.
Related: How to Make Your Asphalt Maintenance Business Inflation-Resistant
👉 How to Start an Asphalt Maintenance Business
So how do you start a sealcoating business and expand to crack repair and line striping later on?
Start small with our Driveway Sealcoating Kickstart Course, where we teach you everything you need to know about sealcoating driveways and fixing cracks.
Video: Driveway Sealcoating Kickstart Course
This course also covers basic sealcoating marketing and sales strategies, the equipment and supplies you'll need, and more! This is hosted by me and by Greg Francis of the popular YouTube channel, Sealcoating is Life.
But if you want to dive deeper into this whole sealcoating business, then check out our Build Your Own Business Blueprint. This is our most comprehensive guide not only on how to conduct sealcoating, but also on crack repair, pothole patching, and other asphalt maintenance and improvement services you may want to provide later on.
This blueprint has helped people get through the recession and the pandemic. Take Johnny Bublich for example, who started his business during the Covid-19 pandemic.
Learn more about starting your own asphalt business
How do asphalt maintenance contractors weather inflation and economic crises?
Asphalt contractors typically have two types of customers: residential and commercial ones. Commercial customers, naturally, have larger properties, so their jobs are more expensive than residential customers.
Ideally, you should have a mix of both customers. But if you're looking for bigger payouts and a more consistent business cycle, then acquire more commercial customers.
In some areas, however, residential customers offer a more consistent business for crack repair and sealcoating contractors. This allows business owners to generate more consistent positive cash flow to make sure their business stays afloat.
To survive a recession, we recommend that sealcaoting contractors build a financial safety net when times are good and business is thriving. And when computing your prices, factor in not just the price for the material you are using, but also additional business costs (e.g., labor, insurance, equipment, fuel surcharge, etc.).
To see how other asphalt sealcoating contractors are pivoting to thrive, join our free Asphalt Kingdom Roundtable.
2. Lawn Care Services
Like asphalt maintenance, lawn care and landscaping is one of the recession-resistant businesses you can start now. Even in the middle of a crisis, people can postpone buying new appliances or investing in new furniture. But neglecting their lawns? Not going to happen.
Homeowners want to maintain the beauty of their lawns because that's the first thing people see. Plus, many neighborhoods have strict HOA rules, making lawn care a must even when budget is tight.
Getting Started with Your Lawn Care Business
There are two paths you can take to start a lawn care business. First is to work for a lawn care business owner, gain some experience over the years, and eventually leave the company to start your own.
You can also take lawn care courses online or enroll in a course offered by your community college or trade school to get started.
Lawn care and driveway sealcoating can work hand-in-hand, because they both improve the curb appeal of the client's property.
Related: How to Start a Driveway Sealcoating Business
3. Handyman Services
The economy may not be in a good place, but people still need to have things inside and outside their properties repaired and maintained. That's why being a handyman is a surefire way to stay afloat and thrive in this economy.
As a handyman, there are so many services you can offer to property owners in your area.
These include cleaning gutters, installing accent lights, fixing windows, repairing doors, hanging Christmas lights, plastering drywall, attaching fixtures, and more. You can even expand your list of services to minor carpentry, painting, plumbing, and electrical work.
How to Get Started as a Handyman?
Same as lawn care services providers. You can become a handyman's apprentice to learn everything you can about maintaining properties before you strike out on your own.
But since you're going to be a jack-of-all-trades, we also recommend that you enroll in a trade school. Get a certification in plumbing, carpentry, property maintenance, health and safety, and more to ensure that you do things correctly and to boost your reputation among your clients.
4. Tools and Equipment Rental Business
The RY10 Elite crackfill melter applicator is a fantastic option for renting out
Everyone needs tools and equipment from time to time, but not everyone can afford them. The solution? Get them from a tool and equipment business instead!
But before you dive in, here are some things to remember. It's good to have prior experience with tools and equipment before you enter this business.
A background in construction or equipment retail can help you invest in the right tools and equipment. With an extensive knowledge on tools and and equipment,. you can give your customer the right input on which tool or equipment to rent.
How to Start a Tool and Equipment Rental Business?
As mentioned, a background in construction or related industries is something you can leverage when starting a tool and equipment rental business. No sense in starting a business when you don't know the difference between a miter saw and an asphalt and concrete saw, right?
The good news is you don't need a college degree to start an equipment rental business. But having a background in this business will definitely be helpful. Study the market first, then get the best tools and equipment you can afford.
In addition, purchase only best-selling tools and equipment, so you won't have a lot of inventory just sitting around collecting dust in storage.
Tip: A lot of equipment rental businesses do not carry asphalt maintenance equipment and tools. Make your business stand out among residential and commercial property owners who wish to conduct DIY asphalt maintenance by stocking up on sealcoating equipment, crack filling machines, and line striping equipment.
Check out the Asphalt Kingdom store to see the equipment and tools you can invest in.
Related: Asphalt Maintenance Business Tips: How To Dominate 2022 Webinar
5. Junk Removal Services
Homeowners and commercial property owners still need to throw out broken appliances and other trash even during an economic crisis, so junk removal is definitely a good source of recurring income.
How to Get Started in Junk Removal?
Garbage collection services are one of those businesses where you don't need a degree or even a lot of training. But there are a few things you need to have to make this venture work and be successful. Here's an overview:
- A fairly large vacant lot for your trucks, trailers, and the junk you will collect. It's better if you own it, but you can also lease if you don't have one.
- A heavy-duty pickup truck and dump trailer.
- Permit, insurance, and license.
- A working knowledge of how to run a garbage removal business.
We hope this piece has helped you find the right recession-resistant business idea that will help you boost your income and cope (or even thrive!) during an economic crisis. If you choose asphalt and want to learn how to start an asphalt sealcoating business, then get in touch with us. We're more than happy to walk you through our many resources for starting your own asphalt business.