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Written by Jen Glantz; edited by Stephanie Hallett
2022-07-28T17:51:21Z
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- With a possible recession looming, I'm shifting my investment strategy.
- I want to invest in businesses that will thrive no matter the economic climate.
- I'm looking into tattoo shops, funeral services, and laundromats as possible opportunities.
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For the past few years, I've been investing in individual stocks and index funds, but I wanted to branch out this year and start to invest directly in companies that I believe will continue to be profitable if a recession sweeps the rest of 2022 or 2023.
After doing some research and speaking to friends who are investors, I decided on three unusual (for me) businesses that I want to put my money behind. Here's why I feel these companies and sectors are recession-proof investments that will hopefully have me seeing really good returns.
1. Tattoo shops
During the Great Recession in 2009, many tattoo-parlor owners said that their businesses were booming, even calling them "recession-resistant."
While it can cost an average of $50,000 to start a tattoo shop, the average tattoo artist can bring in over $50,000 a year, making it a profitable business to invest in.
To invest in tattoo parlors, I'd either call local shops or contact tattoo-parlor franchises and see if they're willing to take on a micro-investor.
2. Funeral services
While it may seem a bit gloomy to invest in funeral services, it's a business that is typically recession-proof, since people are always in need of a place to bury and grieve their loved ones.
Many funeral homes charge a base fee of around $2,000 (for standard services) and offer add-ons (flowers, caskets, urns, etc.), which can cost around $6,000 to $7,000 or more.
According to some reports, the average gross profit margin in the funeral industry is 62.5%.
For this type of business, I am considering investing in funeral ETFs or individual stocks within the funeral industry as a way of becoming an active investor in this business category.
3. Laundromats
One business that I've been eager to invest in is laundromats. Not only is this a business that can provide a high return on investment, but laundromats are often recession-proof because they provide a low-priced service that people need multiple times a month.
According to the Coin Laundry Association, the average US laundromat can "generate cash flow" of between $15,000 and $300,000 a year.
To invest in a laundromat, I plan to contact local stores or laundromat franchises and see if they are open to taking a micro-investment from me in 2022.
Jen Glantzis the founder ofBridesmaid for Hire, a3x author, the host ofYou're Not Getting Any Younger podcast, and the creator of the Pick-Me-Up andOdd Jobs newsletter. Follow her adventures on instagram: @jenglantz.
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