Tattoo parlors reported good business during the Great Recession.
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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.
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.