Business trends: which business to open in 2020
The 26-year-old Swede Philip Tüsander was working on two mediocre businesses when he came up with the idea of creating a watch. He drew the design of the watch and the logo himself, in Photoshop. Philip named the brand Daniel Wellington.
Today DW is one of the largest watch brands in the world. Now the company earns $250 million a year, which is more than the annual revenue of VKontakte. At the same time, the cost of one watch together with its packaging is only $7.
Success comes to the one who acts. And today we want to give you a brief guide to action: profitable business ideas for 2019. By working with projects in a variety of niches, we can clearly see what’s going on in the market and which business will be relevant in 2020. We also analyzed the cool cases of the USA and Europe to find ideas that are not yet very competitive in the CIS.
Which business idea to choose
Starting a business is a big change in life, which is not always easy. The main difficulty in the beginning is choosing a business idea and strategy that are close and interesting. To make it easier for you to decide, you should:
Step 1: Assess resources: what you have and what you can attract
Think about money, time, mental strength, qualities of character. Starting a business, remember that it is a risk, and you should not invest in one project 100% of your resources. For example, if your start-up capital is small, it is better to start with a small business that does not require large investments. And if you know in advance that your management skills may not be enough, think of a partner who will take over some of the responsibilities.
Step 2. Think about your skills and desires
It will take a lot of effort to develop the business. Therefore, it is important that your idea is not only financially promising, but also interesting for you personally. For example, if you know that your city does not have a good quest room, but you do not know anything about quests (and more importantly, you do not want to know about it), it makes sense to look for another idea for a startup.
Think about what you are good at? Your area of expertise is ideal for a first business experience. If you’ve been with the company for several years and know you’re an expert in your field, try working on your own. For example, an experienced accountant can easily start a business outsourcing accounting services.
If you can not decide in what area you would like to open a business, we offer a simple exercise: write a detailed story about yourself in 5 years. Do not dwell only on business – write about your family, schedule, wishes, dreams, material values.
Perhaps this proposal seems to be funny. But, writing down your wishes, you will understand what is really valuable for you, and in what direction it is worth moving.
Step 3. Assess which of your interests and skills people are willing to pay money for
Choose from our article the ideas that best “lie” on your experience, skills and interests. Analyze which ideas from this pool are most in demand? Explore the demand, competitors, audience and answer yourself 2 questions:
Have you found any shortcomings in your competitors’ work?
Have you found ways to structure your work so as to become better than your competitors?
If you answer in the affirmative – most likely, your knowledge and aspirations are enough to do the job.
Ideas for small business for 2020
One of the main obstacles to starting a business is the lack of start-up capital. That’s why we have gathered 10 ideas for business with minimal investment.
As a start, the franchise business model is much more profitable than opening an independent project. Franchise will give you a number of advantages: an already well-known brand, a quick start and a proven business model. The risk of losses in this situation is much lower – after all, the owner, who gives the franchise, independently assesses how profitable will be your project.
Many establishments work on the franchise – from cafes like Chocolatierie to networked quest-rooms. Many brands of clothing or cosmetics also have franchising opportunities.
The important point here is to bring together a team of really competent teachers who can explain complex topics in an accessible way. Or maybe you yourself have a good understanding of a certain area and can share your knowledge? The most popular courses are those related to IT, foreign languages, finance, accounting and beauty.
There are more and more freelance professionals and interest in temporary work spaces is growing. After all, the cafe is often noisy, the houses are disturbed by relatives … Everybody wants to work in a cozy, light, comfortable kovorking – but near the house is often not.
This business idea also does not require large expenses: to create a coorking center, you do not need to buy a room – just take it for a sublease.
Despite the abundance of such agencies, good recruits are still in high demand. After all, according to the 2019 ProHR survey, 94% of employers have difficulty recruiting.
Many people are familiar with how recruitment works: someone from the employer’s side, someone from the job search. But still it is better to hire a professional HR, who will help to understand all the details of the process.
Sale of б\у equipment
Another profitable business idea is buying and selling electronics. You’ve probably come across such projects, especially Apple’s resellers.
Important points in this business – a professional who will be able to assess the state of technology when buying, and the availability of offline shop.
manicure – an idea for business
Manicure or eyelash extension at home
Probably the most common business start-up option for girls. The entry threshold is quite low – for example, good manicure courses cost about $250, and the same amount will be needed to purchase consumables.
Opportunities for growth here too: “stuffed” customer base, many masters open their salon.
There have been many hostels opened in cities of millions of people in the last few years. But the demand for hostels continues to grow, which means that it could become a rather profitable project.
Hostels in resort towns and PGT will be especially popular, as well as transport hubs. For example, there is a direct train to Budapest from Mukachevo (Ukraine) every day. This means that many tourists stay there overnight waiting for the train.
More and more people, organizing holidays or business events, refuse the services of expensive restaurants in favor of a free area and catering.
This idea is quite complex in the organization, but if you are familiar with this area – for example, worked as a cook, event agency or other catering, this business can bring you a good profit.
In a country where they take a loan for weddings, event agencies are unlikely to be in trouble and if seriously, then qualitatively conduct event, given all the details – a very difficult task, which costs money.
If you have an interest in organising holidays but no experience, try organizing a friend’s birthday party or another small event to start with. Did everything go smoothly? Then perhaps this business idea is for you!
Shop for groceries
Despite the abundance of supermarkets, even in big cities there are areas where people have to go shopping far away. This problem is especially acute in new buildings, where shops simply did not have time to appear, and in the old central districts of the city.
When you open a shop, make sure that all the goods that people buy almost daily are sold there: vegetables and fruit, bread, milk, eggs, meat, etc.
Ideas for the Internet business for 2020
A project on the Internet is a great opportunity to start a business without serious investment. The absence of an office or offline shops saves money and allows you to offer goods at competitive prices.
Niche online store
Perhaps only the lazy one didn’t open his online store today. But IM can still be a profitable project, if:
Properly choose a niche
Opening a ten thousandth perfume shop is a good idea only if you can really offer unique prices, ultra-fast delivery or other buns. Otherwise, it is better to think of a narrower niche where you really lack a good IM.
Have some knowledge
To open a store will be useful knowledge about the specifics of the product you offer and at least minimal knowledge of online marketing.
Delivery of food from restaurants
Even large cities often do not have services that could quickly bring food from any restaurant. At the same time, the demand for delivery is huge – in almost any institution that delivers food, waiting time increases on Fridays and weekends.
Sale of things from foreign sites
Despite the fact that most sites abroad have delivery to the CIS countries, many people simply do not know about the existence of these sites or do not want to bother with ordering. The difference in price and quality of goods is often huge – for example, you can buy cheaper vitamins, food, cosmetics on American Iherb.
Start-up capital for this business is small – all you need is a certain amount for the first order. And, of course, a site or an account in social networks.
Real estate agency
Despite the high level of competition, the demand for real estate services continues to grow. This is due to the fact that many incompetent people work in this business. Perhaps, everyone who has ever encountered realtors understands what we are talking about.
If you have knowledge of real estate, an agency can be a quite profitable project. Agencies that specialize in offices and VIP-apartments are especially popular today (and commissions in this area are much higher).
An interesting idea for business in 2020, in which there is little competition. Copters rent for shooting parties, corporate parties, weddings and other holidays. Primary investment is buying a drone. To take no chances, start with a simpler model.
If you have a skill or important knowledge that you could share with others, online learning is your choice. Today you can find courses on the Internet for all tastes, from training Java-developers to the program “How to build harmonious relationships. If your knowledge can be transferred online – it’s a great option and a huge saving of money. You can once create a course and sell it for many years, periodically supplementing with relevant information.
Blogging is a great way to monetize what you live and love. Write or shoot a video about what you are interested in. This is certainly not a “real” project like the others. But there are almost no entry costs – you just need your head on your shoulders and (preferably) a little knowledge of Internet marketing. Recently, by the way, we wrote how to promote your blog.
Business ideas for small cities in 2020
Business in the province has its own characteristics, which are important to take into account at the planning stage:
Low purchasing power
In small towns, the labour market is small and salaries are low. So it’s just silly to sell exclusive, expensive stuff in the province. VIP-class beauty salons or fashionable expensive restaurants in such cities risk simply not to find their consumers.
But good for a small-town business idea that help save money. This can include repair of clothes and shoes, beauty salons with democratic prices, sale of б\у equipment, inexpensive cafes.
Shortage of goods
It is often difficult to find quality clothing, medicine or food in small communities. Analyse if there are enough shops and pharmacies in your city? Or maybe to buy clothes, city residents go to the local market or go to the shopping center of the district center? Think about what’s missing in your city, ask friends and acquaintances – so you can well find a promising idea for business.
Low barrier to entry into business
Huge plus small towns are small prices for rent, labor, advertising. Of course, the yield will be lower, but it will be easier to start a business in a small town.
There’s little competition
The competition here is clearly lower than in cities with a million dollars. Moreover, some niches may be free at all. So, if you choose an idea correctly, you can become a monopolist.
In principle, business ideas for a small city can be very different. All ideas for an organization can be divided into 4 spheres:
Services: tire service, car washes, beauty salons, clothes ateliers, minor repairs, services of specialists – plumbers, electricians, etc;
Goods: grocery stores, drugstores, household chemicals, construction goods, clothes, cosmetics, spare parts for cars;
Education: schools, courses, workshops, private kindergartens and schools;
Entertainment: inexpensive cafes, bowling, quest-rooms, various entertainments for children.
Summing up, we can say that almost everything can be adapted to a small town. The main thing – to create a business plan, taking into account the features of small towns.
And last but not least
Jeffrey Fox, author of How to Make Big Money in Small Business, believes that one of the main conditions for success is a thorough analysis of the niche and the product you sell. And we agree: no matter what idea you choose, it is always worth starting with an additional niche analysis.