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A recession is not a distant threat.
According to a 2023 Deloitte survey, more than 60% of global businesses expect a recession to impact their revenue, and nearly half are accelerating their digital investments to stay competitive.
Businesses are working hard to “recession-proof their incomes and business models.” Many assume there’s no way to profit in an economic downturn.
However, this is not always the case. It may seem contradictory, but businesses can survive a recession if they approach it strategically and have the right tools. They can at least avoid losing revenue and keep their business afloat.
A mobile app is one way to ensure your business’ success. It is one of the most important moves you can make to recession proof your business to remain afloat in these difficult financial times.
Companies large and small may be affected by a recession. These are the top business factors that can be directly affected by a recession.
Business owners will likely be hit hard by low-to-no orders or services during a recession. In times of economic contraction, business processes will experience a decline in aggregate demand, which can lead to a decrease in sales. In addition, you might experience a severe slump and have to deal with bloated inventories.
As the equity markets close to debt costs and new issuance, your business’s financial health could be in uncertain, risky times. Fully operating companies can’t quickly shed their capacity from either human capital or machine perspective. Technology investment is required in both cases.
Small and large businesses may need to reduce layoffs in order to control costs and meet reduced demand for their products and services. Many companies, including Coinbase and Tesla, have recently announced job cuts and frozen hiring. In addition, Netflix, the entertainment industry’s tycoon, which was supposed to be in recession-proof mode, cut more than 450 jobs in one month.
It is difficult to determine which businesses are doing well when the recession strikes such large companies in the business cycle. However, we can learn how to survive a downturn in business and sustain our businesses.
Inflation increases with the rise in costs of everything, including business essentials. As a result, it might be more difficult for businesses to generate the same sales as usual, so you will need to reduce costs.
This stage is less attractive for businesses, as they are less likely than in later stages to invest in new products. As a result, employees may be laid off and overheads reduced to offset a drop in profits.
Cash flow reduction vendors and customers might find it harder to pay their bills on time during a global recession. Businesses might have to spend more time tracking invoices and delay supplier payments.
As a result, sales can fall, and customer demand can spiral. In addition, people are spending more and tightening their belts, which can decrease demand for goods and services, particularly in non-essential categories like recreation and hospitality.
Businesses often have to pivot and change their business in order to reduce cash flow and decrease demand. Depending on the business, this could mean scaling back operations or holding off significant investments.
A service provider might change how it offers products or services due to the economic downturn. It may also consider changing the roles and duties of its employees.
Recessions can be a very negative experience for anyone. They can be challenging for businesses, but they also offer an opportunity to change strategy and focus more closely on customer needs.
Customers still have wants and needs even in a recession, as seen during the COVID-19 period. While people may not visit physical stores as often or make large purchases, they continue to use their smartphones frequently.
This shift creates space for technology and mobile apps to play a critical role in keeping businesses relevant. During the pandemic, brands like Starbucks and Domino’s relied heavily on their mobile apps to drive digital orders, loyalty programs, and contactless payments. Similarly, Netflix sustained growth by offering affordable, on-demand entertainment when discretionary spending declined.
A mobile app can help your business remain visible even when traditional buying habits change. Businesses can survive a recession by introducing new product lines or services that align with economic realities.
With the help of technology, AI-driven insights, and digital solutions, companies can continue serving customers at a lower cost.
Key actions businesses can take include:
Recessions also often result in reduced market competition. Businesses with higher costs or limited digital presence may struggle, creating opportunities for recession-proof businesses to gain visibility. Mobile app development platforms and AI-powered tools make it easier to adapt strategies quickly and meet evolving consumer needs.
Brands that remain accessible, helpful, and customer-focused during recessions are more likely to build long-term loyalty and retain customers even after the economy stabilizes.
There are many mobile apps, each with unique functionality and serving different needs. However, all of them will provide the right benefits for your company.
Also Read – How Much Does It Cost to Develop a Mobile App?
Even if you don’t want to spend extra energy on lead generation, your mobile app amalgamating digital technologies can help bring in new leads. Customers can download mobile apps for free and have them delivered directly to their phones or tablets. In addition, the app allows customers to browse your brand, services, products, and other information.
You can get new leads by simply letting your app be known. The more they know, the more interested they will become in your business. You also have a captive audience to notify about new offers, loyalty rewards, and other specials.
Customers are hardworking people who will show you how they react to your business. You can see how they use your app. You can get to know your customers by seeing what they do and what they like.
This is a great way to ensure that your business remains profitable in times of economic crisis. After all, they are the reason you’re still in business. So spend time getting to know them to enhance the overall customer experience.
Smartphone usage is on the rise across all demographics, with 25% of the world unable to leave their home as they did in the past. As a result, the mobile space is experiencing a massive explosion in users, whether video calls to family members, Zoom-powered barbeques, or movie streaming in bed.
Data suggests that smartphone usage is increasing by 80%, with older generations investing in smartphones to keep connected. This means that there is a massive market for mobile apps.
Also Read – Is Your Smartphone App Spying On You?
Your app will help you build a better relationship with your customers. They will be more comfortable coming back to you as you adapt to their needs and what you have. You will have a better reputation as you impress and provide what they want. Loyalty rewards are a great way to do this! !
You can sell a service or an item inventory directly from the app listing and details. This is great for customers looking to see what you offer, even if it’s not right now.
Your mobile app will allow you to give your customers something they want to use. This will not only save you money, but it will also keep your customers focused on you and not the competition.
Modern businesses will need mobile apps to succeed. So focus on the details of your mobile app to ensure you get the business you deserve.
Recession and downturn can be attributed to one thing: lower economic activity.
Simply put, there are fewer people who do business. If you are open to seeing the opportunities this presents, you will realize that now is a great time to launch a mobile application and get noticed.
Apple’s App Store used to see more than 1000 apps added each day before the pandemic. Although no data is available on the current number of apps being added, it is safe to assume that this has decreased significantly.
Combining a frozen economy with millions of people on lockdown and glued to their phones makes for a great opportunity. These market conditions and the right mobile app developers make it easy to see how a new, highly engaging mobile app could do well.
Smart companies have quickly adapted to changing customer requirements. Fitness apps are growing in popularity and signing up new users every day. Headspace, a meditation app, is gaining lots of goodwill by providing free subscriptions for front-line healthcare workers.
Other apps were created to help parents, students, and teachers with sudden homeschooling needs.
What did the result look like? Nearly two-thirds of all categories of apps have experienced a global revenue increase since April. Your users will be more loyal if they are able to get in on the action now.
This Covid-19 pandemic has caused a shift in consumer behavior, as expected. These changes are largely due to restrictions by the government, but they offer crucial insight into how markets may change over time.
Video conferencing is a popular option for many people. This creates opportunities for platforms or new apps with similar features to gain a permanent place in their long-term arsenal.
We also saw, and continue to see, an immediate shift in high street shopping towards online. This will mean that digital advertising opportunities will naturally arise.
Restrictions imposed by almost every government have led to a narrowing in many markets. This should translate into a more targeted list of options for your company. This market behavior can guide your business strategy and plans for a mobile application.
1. Go mobile-first for customer engagement
2. Use AI to track behavior and demand
3. Focus on retention, not just acquisition
4. Automate support with chatbots
5. Offer value-based pricing and discounts
6. Monitor app performance regularly
In times of severe recession, it is important to follow the basic principles of business recession hygiene. This includes long-term strategies and advanced planning. These recession-proof business ideas in 2026 can make a big difference in your business’s success during economic downturns.
Below are the best businesses to start during a recession to help protect your business and leverage technology, AI, and digital solutions for growth.
People out of work during the recession need support to get on their feet again.
In 2026, creating a resource platform or online community powered by AI for job matching, skill recommendations, or networking can help. Sponsorships, successful recruitment, and advertisements can all help you make money.
In addition, you can also offer consultancy, skill development programs, or professional services via a mobile app or AI-powered platform, making it a sustainable, recession-proof business idea.
eCommerce continues to be resilient when focused on essential or niche products. In 2026, low-investment stores selling digital products, subscriptions, or essential goods can survive and even grow during recessions.
Using AI-driven recommendation engines, chatbots, and automated inventory management enhances efficiency. Using mobile apps and digital solutions ensures your eCommerce store stays competitive and recession-proof.
Because customers need skilled tradesmen to manage their homes, they are always in demand for plumbers, electricians, and carpenters, regardless of economic conditions. It is possible to start an online platform or invest in mobile app development for a skilled contractor.
In 2026, AI scheduling tools, mobile apps for service bookings, and IoT-enabled maintenance solutions allow contractors to efficiently connect with customers.
These tech integrations make skilled trades a reliable recession-proof business idea.
The food and beverage industries are also known for being resilient to recessions. But tech-enabled models thrive in downturns.
Such recession-proof business ideas include starting an online restaurant, delivery service, or cloud kitchen supported by AI-based delivery optimization, inventory forecasting, and customer engagement apps.
In addition, mobile app development for orders and loyalty programs strengthens customer retention and is a great way to generate revenue and engage customers. This makes it a recession-proof business opportunity.
Digital education, healthcare, and software solutions are highly resilient in recessions. AI-powered tutoring platforms, telemedicine apps, and cost-saving SaaS solutions help people access essential services while saving time and money.
Investing in these digital solutions and mobile apps makes your business adaptable and a strong recession-proof business idea for 2026.
You must take the bull by its horns to set up a profitable business. It will be easy to enjoy the advantages of a weaker economy with no competition.
A financial crisis is not something you want to be in, but some of the most successful and influential businesses around the globe were born during a recession or due to an economic downturn. Uber and Airbnb are two examples. These are five reasons, with five examples, why it is worth starting a business in a downturn.
Everyone wants to save money during times of recession. Everybody, including you, wants to save money by choosing cheaper products and services. This is why the time is right to disrupt any market by developing an innovative idea.
If you are able to help people save money and provide better services via fintech app development for their daily needs, there is a good possibility that you will be able to build a loyal customer base.
You can establish a healthy relationship by becoming their advocate during difficult times.
You can increase the price or add product features as the economy improves. This will make these customers happy because you have helped them before.
The world was in crisis when Uber, the ride-hailing service, was launched in 2009. People in the USA wanted cheap ride-hailing options because of the economic downturn. They also wanted to get rid of the expensive and royal cab system that was nearly failing in major US cities.
Uber then made a huge entry to solve the problem during a recession. Uber offers all three benefits: cheap, convenient, easy-to-book cabs, and easy booking.
Everyone wants to start their own business when the economy is strong. Many budding entrepreneurs jump into the market without any planning. They succeed in the short term but then fail later. In a recession, fewer people jump into the market, and there is less competition.
Strong economies attract more competition. Even though all that seems to vanish in a crisis is actually a space for those willing to take a chance. If you are looking to set an example and show courage in difficult situations, it could be the ticket to getting your business on the list of unicorns.
NerdWallet, an app that allows you to manage your money in a recession, is the best example of a company that took advantage of no other competitors on the market.
NerdWallet launched in 2009 when nobody was looking to start a personal financial company. Existing players were also too “hamstrung” and were already laying off employees.
Investors looking to invest in innovative and strong startups are something that doesn’t seem to stop even during financial crises. Angel investors look for promising prospects during times like these to move their money out of stock markets and invest in lucrative ventures.
It is enough to show your competitive advantage, market position, and evidence that your target market is looking for the product or service you plan to offer.
Brian Chesky and Joe Gebbia had the idea to rent an air mattress from their San Francisco home in 2007. They didn’t know that December of the same year would bring about a great recession, which would open up new opportunities.
Both of them started Airbnb in the midst of the recession. This disrupted the market for short-term housing for people who wanted affordable accommodation. They received funding from top-level VCs in 2009 and saw tremendous growth.
Startups launched in a recession should be designed to be efficient and lean from the start. As a result, you will be able to offer your services at a lower price than your competitors if you are starting in a recession. This is a win-win situation.
Your business can survive if it generates less revenue than you expect. Therefore, these operating practices should be retained even if the market recovers. This will allow you to increase overall revenues as customers are more willing to spend again.
Your business will survive if you grow and develop it when customers are less confident, and businesses limit their services.
Netflix is an excellent example of a recession-proof application. Experts believe that Netflix is a recession-proof app. It was founded in the years before the dot-com boom. In 2000, it almost succumbed to financial hardship when it made itself available for purchase in exchange for $50 million of Blockbuster’s rejected proposals.
Netflix managed to weather the storm by leveraging the creative minds of its employees to take the on-demand video streaming market lead, leaving behind brick-and-mortar competitors.
Tough times can lead to difficult issues. A current need or pain often causes these problems, and there is rarely an immediate solution. Find out how consumers deal with this issue and who offers the best solution. This will allow you to define your services and get them to switch to you.
Your business should be seen as an innovative and better option. No matter what substitutes are available, demonstrate how your solution can be more prompt, reliable, and affordable. You will be a winner.
Warby Parker is an excellent example. It was nearly impossible to find affordable glasses online a decade ago. Instead, they capitalized on the opportunity of their clients’ shrinking budgets and nurtured Warby Parker to become a successful business as well as an online pioneer.
You’re not the only one feeling this insecure in these uncertain times.
Techugo, a top-notch software development company understands that you may have many questions. Our team can help you with any questions about building a mobile app, getting it to market, or managing digital businesses.
Book your first consultation today to learn how we can help you and your business overcome the downturn using mobile apps.
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