6 Industries That Will Thrive Despite the Coronavirus-Induced Recession
Our global economy has changed drastically in the past four months. And while unemployment is up and companies are closing, many new businesses will emerge out of this pandemic.
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Several notable companies started up during the 2008 downturn, including Airbnb, Uber, Venmo, WhatsApp, and Instagram. As investors, we are always seeking the next deal and opportunity. While real estate is an incredible way to grow financial independence, it is still a good idea to diversify.
Besides, knowing that the COVID-19 recession will bring on lucrative possibilities for growth, why not take note of the current thriving markets?
If you look at how industries like airlines, hotels, and travel halted amidst the virus, you can start to imagine what people will do instead.
No one is going to stop enjoying life or lose their desires or needs. People may not be flying now, but they will drive. There is still a desire for adventure and escape. We know that vacation rentals in these areas will likely do well.
The significant shifts in how we live will result in many businesses closing and many others opening to fit the demands of today’s marketplace. Start looking for opportunities during COVID-19 and beyond with the list of essential services.
When the economy shut down, every business had to stop working except those that were deemed necessary. There are likely a lot of opportunities for those sectors to grow now, as COVID-19 isn’t going away anytime soon. After reviewing the list, use your imagination and logic to make your next move.
Here are some markets that stand out as big winners.
Cleaning & Maintenance
This month I invested in a laundromat! I’m very excited about this opportunity amidst COVID-19 for several reasons.
One thing that will not change for people regardless of a global pandemic is the need to clean their clothes and homes. People may even clean more now because they have more time to do laundry and are doing less shopping for new items.
The previous laundromat owners spent money to modernize the space and make it a place you would want to hang out. They also added concierge services for people who wish to have their laundry done for them.
It is a good model, and now is a good time to purchase operations from people who want to retire or need to get out of their current situation. Naturally, we also bought the building!
Caring for seniors is a need that will never cease. According to the United States Census Bureau, all baby boomers will be 65 before 2030.
The demand for housing for the elderly is greater than ever. With COVID-19, residential assisted living facilities will be more popular than ever. Social distancing is more critical for the elderly and they may require additional care and supervision from now on.
There are so many ways to add value to this senior care industry. In addition to purchasing a nursing home and managing it yourself, you can provide services, equipment, or supplies to support the operation.
Nutritional Supplements & Healthcare
With a global pandemic underfoot, people are looking for solutions to stay healthy. Any sort of nutritional vitamins or medication to keep the virus away will be popular. According to an article published by Harvard Public School of Health, while there is no proof that supplements can stop COVID-19, “Inadequate intakes of essential minerals and vitamins need to be avoided at this time, and supplements can help fill some gaps.”
Any work in the healthcare system is also going to be a robust market during these times. People are more conscientious than ever about staying healthy, and most of those who catch COVID-19 will need healthcare when they are infected.
If you start to think outside the box about how to support medical workers, hospitals, or COVID-19 patients and their loved ones, you could tap into a great business opportunity.
While staying home, what will people do with all the free time?
I can tell you what my 14-year-old son does. He wants to play video games.
His current gaming equipment costs $1,500. That price doesn’t include all the add-ons and extras. My son loves it, and he socializes with his friends via headset. Gaming was popular pre-COVID-19, but this stay-at-home push is sure to bring in significant revenues and possibilities.
Young people aren’t the only ones who love video games either. U.S. News & World Report shared how many video game stocks have soared over the past few months.
When everyone is at home and online, a virtual business offers endless options.
The value of Amazon’s stock has exploded since the virus. Also, Zoom video conferencing and Fastly are working to satisfy the need to work virtually and stay connected. Many online companies will continue to emerge in coaching and many other technology fields, according to The New York Times.
If you ever wanted to have a stay-at-home business, now is the time to find a need and get marketing on the internet to find your audience.
Again, think of people at home and what they will be doing. Are you working from home? Do you need a new computer for your home business? Maybe it is time to update that audio equipment?
Staying ahead of the curve in terms of anticipating how customers will now make their purchases is more important than ever. Best Buy was able to open its stores strong in May by offering curbside pickup, and technology is going to continue to play a huge part in our world in the future.
When no one wants to leave home, they need services that will bring items to them. My 18-year-old daughter was able to sign up on the Grubhub app in 30 minutes and hop into her car to start working. People may not be going to meetings or out on the town, but they are ordering in.
The need to bring items and food to our homes is an indication that UPS, FedEx, and other carriers will thrive now. Forbes sees all these services as markets that will grow despite the coronavirus-induced recession.
People are always going to need things; they just aren’t necessarily leaving the house anymore to get them.
With all the changes occurring in the wake of the coronavirus, there are several growing markets and opportunities.
Just as there is always another property, there is another booming market to explore. The key to taking advantage of these markets is to stay one step ahead of the curve by considering people’s needs and what they will value most as they adjust to the changing times.
Are you thinking of investing in any other industries?
Let us know in the comments below.