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What 5 Businesses Will Survive in Any Crisis? Keep it.
Five Stable Pathways in a Turbulent Economic Ocean
Economic crises are an inevitable part of world development. From the Great Depression to the COVID-19 pandemic, history shows that some businesses not only survive turbulent times, but thrive. How do we define these crisis-tolerant areas and why do they remain stable even in the most challenging economic environment?
Understanding crisis-tolerant business is not just a theory, but a practical tool to ensure financial stability in an unpredictable world.
What makes businesses resilient to crises?
Before considering specific areas, it is important to understand the factors of crisis resilience:
- Meeting basic needs – essential goods and services are always in demand
- Anti-cyclicality – some areas thrive during periods of economic downturn
- Low dependency on credit and stable cash flow
- Flexibility and adaptability of the business model
- Diversification of products and customer segments
Charles Darwin (adapted to the business context)
5 business areas that are resistant to any crisis
1. Food sector
Even in the most difficult times, people do not stop eating. The food sector covers a wide range of opportunities, from farming and manufacturing to retail and food delivery.
Insight: During a crisis, consumers are more likely to abandon restaurants in favor of home cooking. According to McKinsey, during the 2008 crisis, sales of premium products decreased by 31%, while basic products showed an increase of 8%.
Promising niches include:
- Long-term storage goods
- Delivery services of products and ready meals
- Local farming
- Food processing technologies
Health is always a priority, regardless of the economy. According to the World Health Organization (WHO), global health spending grows by an average of 3.9 percent annually, even during recessions.
Modern medicine: stability and innovation in any economic environment
Promising directions:
- Telemedicine and Digital Health Services
- Manufacture of generic drugs
- Long-term care for the elderly
- Home medical equipment
- Preventive medicine
3. Utilities and basic infrastructure
Electricity, water, waste management, telecommunications – these services are in the category of non-reduction consumption. Companies in this sector have stable cash flows and are protected from sharp fluctuations in demand.
Innovative opportunities: Alternative energy is becoming an attractive destination even in times of economic downturn. According to the International Renewable Energy Agency, investment in renewable energy continued to grow during the 2008-2009 financial crisis.
4. Education and retraining
Crises often stimulate the growth of the education sector. In a competitive labor market, people tend to improve their skills or learn new skills.
Key segments with high sustainability:
- Online education and distance learning
- Professional retraining programmes
- Short-term intensive courses in digital skills
- Corporate educational programs
- EdTech and Learning Software
5. Crisis services and consulting
Crisis consulting is a business that thrives in times of economic turmoil
Some businesses not only survive the crisis, but thrive because of it.
- Legal services for bankruptcy and restructuring
- Financial consulting on crisis management
- Audit services and optimization of business processes
- Psychological support and coaching
- Debt collection services
Strategies for adapting business to crisis conditions
Even if your business does not fall into these areas, there are strategies for improving resilience:
- Diversification of income sources
- Formation of a financial safety cushion (6-12 months of operating expenses)
- Optimization of operational efficiency
- Focus on customer loyalty (Retention is 5-25 times cheaper than attraction)
- Flexible business modelable to adapt quickly
Economic crises cannot be fully predicted, but we can prepare for them by choosing sustainable business lines and adaptation strategies.
The five areas considered demonstrate outstanding sustainability, as they are focused on basic needs or offer solutions to problems that arise during crisis periods.
Start preparing for the next crisis today, and when it comes, you will not be among the panickers, but among those who are implementing a prearranged plan.
Glossary of terms
Anticyclicality
The property of an economic indicator, process or phenomenon changes in the opposite direction to the general cyclical movement of the economy. Anti-cyclical businesses often thrive during economic downturns.
Diversification
A strategy to reduce risk by allocating resources among different types of investments, products or market segments in order to reduce dependence on a single source of income.
Generic drugs
Pharmaceutical preparations bioequivalent to original medicines produced after the expiration of patent protection. Usually they are much cheaper than the original drugs.
EdTech
Educational technologies – the use of technological tools to improve the educational process. Includes software, applications, online learning platforms.
The restructuring
The process of making significant changes to a company’s structure, assets, liabilities or operations to improve efficiency or overcome financial difficulties.
