Fastest Growing Industries for Small Business Owners
If you’re looking to become a business owner, get a head start by choosing one of the top growing industries.
Best Industries for Small Businesses
When looking to buy a business, many people look for industries they are interested in. While that’s a great approach, we also recommend taking the industry potential into account. It can be tough to gauge future success on past performance, but these industries have had great growth in the last several years, and are poised to continue to grow. If you are interested in acquiring a business in one of these sectors, contact us at Emerald Coast Business Brokers, and we can help you find the ideal business for you.
Fastest Growing Industries for Small Business Owners
Construction
In 2012, Sageworks, a financial information company, analyzed companies with annual sales of $5 million or less, and they found the industries with the most change. Construction-related companies showed great promise for continued growth appearing on the list many times. There were several specific sectors of the construction industry showing fast growth.
• Residential building construction topped the list showing 14.77% growth in 2012 (and don’t ignore the real estate industry selling all those properties).
• Architectural and engineering services were also a top growing industry for small business owners showing 11.4% growth.
• All of those properties require different contractors working on them, resulting in exterior contractors and foundation services growing at a similar rate, along with finishing contractors.
• If it’s a good time to be in construction, it’s even better to be in green construction. Companies that are developing and implementing environmentally friendly construction practices are growing based on demand. Not only are people wanting to help the environment, the government is providing funds to grow these industries as well.
• And don’t forget businesses that service the outside of those buildings. As the buildings are built, they require exterminators, landscapers, and other services resulting in 10.11% growth for that industry.
Technology
It comes as no surprise that tech companies are on the rise. With more specialized technology, companies in technological industries are poised to make record profits in the coming years.
• The biggest growth surge is in building custom software and servers, with 14.29% growth.
• Inc.com reported that the app creation industry is booming as well. Apple has reported over 1 billion downloads, and that’s not stopping anytime soon.
• Technical consulting services are growing, according to Sageworks, with 12.31% growth in 2012.
Companies want to implement technology, but are having to turn to consulting firms for advice and guidance. It’s a great industry for small business owners to create a niche.
• Because of government stimulus plans, health care technology is a growing industry. The government has pledged $19 billion to health information tracking, resulting in health technology companies to have amazing growth.
• Education technology is an industry with high demand and federal funding, a profitable combination. With schools looking to implement new technology, and have the funds to do so, it’s a great time to own a business in this industry.
Food
We are becoming a country of foodies. From the rise of food shows on TV, to the increased availability of specialty items, along with government subsidies for farmers, we are a nation spending money on
• Specialty food stores are on the rise, and they are a very profitable because of great margins and consumer demand.
• Fast casual dining is growing at an unbelievable rate. Owning a food truck or a restaurant is a great idea as people are turning to these types of places for quick, delicious, creative meals.
• Beer, wine, and liquor wholesale showed 18% growth in profits last year, according to Inc.com.
• You may not imagine that the candy industry is growing, but the sweet stuff showed growth in 2012. Candy historically does very well during poor economic times (think of chocolate as a comfort food!), so it grows even when other industries don’t.
• America’s favorite condiment is now hot sauce, making hot sauce production a booming industry projected with 4% growth over the next several years, according to The Huffington Post.
Self-Improvement
Americans are all chasing the ideal of being happy, beautiful, and having it all. Some of the top growing industries for small business owners are in the self-improvement sector.
• Yoga is growing at record paces. Sales of yoga-related products is reported to be $27 million annually, and a reported 15 million people practicing yoga. Yoga studios and apparel stores are great industries to be in.
• Guidance businesses, from life coaching to motivational speakers, are in high demand.
• As the population becomes concerned with health risks about traditional tanning, self-tanning companies are growing at a rapid rate.
Other Growing Small Business Industries
Many other areas are growing based on a number of reasons. It’s a great time to buy a business in one of these industries.
• Because of an aging baby boomer population, home health care is growing at a rapid rate.
• Companies are cutting costs and outsourcing much of their accounting, making accounting services a profitable industry.
• General freight trucking showed a 10.41% change in 2012, making it one of the top 10 growing industries for small business owners.
• With quality jobs being harder to come by, people are looking to learn new skills. This is resulting in great growth at technical and trade schools.
Why not capitalize on these growing industries and own your own small business? We can help you find the ideal business that will align with your interests and one of these growing industries. Buying a business can be complicated, but it’s often a better idea than starting your own business from scratch. We take the stress out and provide expertise throughout the entire process. Contact us to get started buying a business today.