For someone looking to buy a business, the biggest hurdle might be deciding where to begin. For a first-time buyer, the seemingly wisest choice might be to buy a company in an industry in which the buyer has experience. While there is truth to that sentiment, a buyer also wants to look at the growth potential for the particular business or industry. Below are 10 types of growing businesses in the current economy that any buyer should consider: Candy.
The candy industry is one of the most recession-proof industries. It’s an easy, cheap way for people to treat themselves. It is also a relatively cheap industry to enter for small-scale operations. Resale Stores. Resale stores, especially those focused on books, women’s clothing, baby clothing and specialty items, are a win-win for consumer and business owner alike. Owners can purchase directly from the consumer at an extremely discounted rate; consumers, on the other hand, are more likely to spend the money they have just received from the business on the business’s other heavily marked-up merchandise, often in the same visit. Consulting Services.
One silver lining of the recent recession is the creativity that was spawned by layoffs. Many unemployed individuals have had to rethink marketing their expertise. Companies that rely on a scaled-back workforce rely on these services as needed in lieu of hiring someone full time. The creation of these types of consulting opportunities does not seem to be slowing. Staffing agencies. For the strategic salesman, a staffing agency can be a great business purchase.
Companies rely on staffing agencies to pre-screen candidates and provide them with a workforce with no commitment. Staffing agencies receive almost a 50% markup on temporary hires, or a direct cut from a salary for a direct hire. Software as a service. The software market only increased by 5% last year. However, the niche market of software as a service increased by 20% in 2013. As businesses are relying on a smaller workforce, their need for software services that promote efficiency in all departments has risen. For those who are organized and tech savvy, this industry supplies endless opportunity. Alternative health care.
The juxtaposition of rising health care costs and more individuals looking into more natural remedies has created perfect market conditions for alternative health care. This industry looks like it will be expanding for the years to come. Energy. The need for rising domestic energy production coupled with economic stimulus for energy projects has resulted in a breeding ground for growth in the energy industry. For the tech and/or scientific savvy, this is an industry that provides endless opportunities. Government compliance. Government regulations aren’t going anywhere, and many times people need help interpreting these regulations and making sure that they are on the right side of the law.
One of the biggest sub-markets of government compliance consulting is health care. This industry is relatively inexpensive to enter, especially for individuals with prior experience and a circle of contacts. Self-improvement services. Over the past few years, people have increasingly been spending money on their appearance and fitness. And, market studies show that this trend isn’t going to be slowing down anytime soon. In fact, according to Entrepreneur, Anytime Fitness landed itself as the number one franchise to buy in 2013. Microbreweries.
Consumers’ desire for individuality and customization has catapulted microbreweries’ expansion and sales. Breweries providing good quality beer and a creative community atmosphere have almost cult followings. A buyer would need to have (or would need to employ someone with) brewing expertise. That said, this industry is still relatively new, and the possibility for growth is endless. Regardless of which business a buyer finally chooses, it is of the upmost importance that the buyer research both the company and the industry’s viability over the long haul.