Hot Industries for Entrepreneurs
Despite the challenges of the pandemic, the number of jobs that were created in 2021 was higher than expected, and small businesses still managed to grow. This is a great time to start a business, as the economy is still recovering. According to the Small Business Administration, the recovery from the pandemic was evidenced by the uptick in the number of new businesses. In 2022, it is time to start a new business in one of the following industries. A comprehensive analysis of the data collected by the Small Business Administration over the past five years has revealed that there are several industries that are growing and require more time to develop.
If you’re a truck driver, now is the time to consider becoming an owner/operator. This industry is still recovering from the effects of the pandemic, and it has a wide variety of options. Shipping is a great industry to start a small business. It involves transporting various goods, such as raw materials and manufactured products. Due to the pandemic, more people started moving to other countries. One of the best recession-proof businesses during the pandemic was the Two Men and a Truck franchise. This company was able to maintain its locations despite the effects of the pandemic. This kind of business does require many business licenses and permits, but it’s a booming industry.
The automotive repair industry is on the fast track to recovery. According to a report by IBISWorld, the industry has grown by over 3% annually over the last five years. It has an estimated $8.1 billion market. The rise of the automotive repair industry can be attributed to several factors, such as the increasing lifespan of cars and the increasing number of people who are taking their vehicles in for regular maintenance. Due to the nature of the industry, startup costs in this sector can be higher than average. Before committing to this venture, take the time to thoroughly understand your financing options.
In 2020, the insurance industry was hit hard by various factors, including the pandemic. However, despite the challenges, IBISWorld reports that the industry’s revenue grew by 4.7% over the course of the year. This is largely due to the rise in demand in the housing and health insurance markets. Independent insurance agents are becoming more prevalent. Franchises like Farmers Insurance have also grown at an accelerated pace in 2021. As the industry continues to evolve, new players such as Embroker and Lemonade have entered the market. If you’re planning on starting a brokerage or an insurance agency, you’ll need to first obtain an insurance education. Most states require that aspiring agents complete a certain number of hours of training before they can even take the exam.
STORAGE AND WAREHOUSES
This year, the fastest-growing industry was storage units and non-residential buildings. According to a report by IBISWorld, this sector grew by 80.73% over the course of the year. A survey conducted by The Parham Group revealed that over a decade, self-storage properties failed less frequently than those in the property industry. One of the most prominent companies in this industry is UNITS. However, falling rental rates could limit the profitability of this industry. A successful self-storage business depends on the location of its facility and the number of middle-aged and middle-class individuals in the area. According to Storable.com, the ideal location will only be supported by the area’s limited competition and high volume of drive-by traffic.
It’s safe to say that many people dream of retiring and starting their own bed and breakfast. Due to the rise of boutique lodging experiences, this industry has experienced a steady growth rate over the last five years. The number of hotels and motels has also increased due to the availability of loans from the Small Business Administration. Even if you’re not ready to start a bed and breakfast, the hospitality industry has plenty of potential. Deciding which type of hotel will best fit your budget and lifestyle is very important, as it can be hard to switch to another type once you’ve committed to it. Getting the necessary financing is also an important aspect of starting a bed and breakfast.
Originally published on MurryEnglardCPA.net on March 30, 2022