By Tim Garrett
Why is Southern California a hotbed for certain types of business ventures? The unique combination of climate, culture, people, and several other factors makes the area nearly recession-proof for certain types of for profit and not for profit enterprises. Of course, no specific entity is 100% immune to powerful global and national economic forces. But the fact remains several sectors appear to be much more resilient to downturns than others. What do these winning organizations have in common?
They all tend to enjoy high demand no matter what the rest of the economy is doing. In fact, most offer always needed services or cater to consumer demands that persist even in the worst of times. Massage therapy and plastic surgery are two perfect examples, as are tax preparation and precious metals brokers. Here are pertinent facts about each one of the four that shine a light on why they tend to survive in good times and bad.
Massage Therapy
As long as human beings have kept written records of their activity on earth, every society has had people who specialized in giving massage. Not only does the service help customers with overall wellbeing and the daily challenges of a stressful lifestyle, but they are in even higher demand when the economy is in a slump. Far from being a discretionary expense, doctor ordered massage sessions are a fact of life for those who suffer from chronic back pain, tension headaches, and dozens of other ailments.
In fact, the demand for trained, licensed therapists is relatively constant year after year. For ambitious, talented individuals who take their time to build a solid client base, the job can turn into a rewarding full-time career. Plus, with the local region’s reputation for being a health and fitness mecca, massage studio owners can look forward to steady business for years to come.
Plastic Surgery
While it seems counterintuitive at first glance, plastic surgery practices enjoy steady demand for certain kinds of procedures even in the worst of recessions, and in good times, their financial performance is even better. Less invasive treatments and reconstructive surgery are two examples that enjoy almost constant popularity among consumers. What’s more, working people with higher-than-average incomes seek out such services regardless of the local economic climate. Indeed, the region has long been a hub for the industry. That’s why a professional practice with a solid reputation can expect both short-term and long-term profitability.
One of the main reasons, however, for the recent expansion of the plastic surgery market is payment splitting, thanks to third-party financing with companies like Cherry. Simply put, patients can divide their total bill into multiple payments, usually between 3 and 60 months. Owners like the fact that they can offer 0% APR options to attract more customers, convert more consults into booked procedures, enhance overall revenue, get more patients, and receive full payment upfront. And because financing plans are fully integrated with Allē, the well-known loyalty program for BOTOX® Cosmetic, JUVÉDERM® Collection of Fillers, and other products. For today’s plastic surgeons in SoCal, a patient’s ability to split total fees into manageable monthly payments is the gold standard of financial arrangements.
Tax Prep
For individuals and businesses, laws are constantly changing and highly complex are the biggest downside of the annual or quarterly taxation circus. But for independent preparers, that kind of confusion translates into opportunity. Even with the advent of online DIY tax prep apps, demand for skilled human preparers has never been better, particularly for those who offer year-round financial planning and investment advice. No matter the inflation rate or current unemployment numbers, people want to make sure they pay the lowest legal amount of tax possible.
Independent, licensed preparers thrive in the region’s commercial landscape that includes enterprises of all sizes and millions of private citizens who need help completing their federal and state returns, whether on a quarterly or yearly basis. While some practitioners are CPAs (certified public accountants) or enrolled agents, who can represent their clients in tax court, most are not. But nearly all of them hold college degrees and are experienced in working with one or more of the top taxation software packages.
Precious Metals Brokerage
Metals brokers, who primarily deal in silver and gold bullion with private clients, do quite well under almost any circumstances. Sometimes considered the ideal example of recession-proof entrepreneurs, they can even enjoy higher profits during troubled times, when investors look to the shiny assets as a safe haven. In SoCal’s financially active centers of LA and San Diego, brokers move silver and gold every day, taking their cut out of the markup over the spot price.
For owners, overhead and startup costs are quite low. A reliable vehicle, a small inventory, and low-cost marketing are all it takes to operate a successful full-time concern. Some entrepreneurs in the niche prefer to carry other products, like platinum and cryptocurrency, in order to expand their client base and boost profits.
