‘Building services’ has been named in the 10 best industries in which to start a business in the United States this year. According to an article published late December by Mary Ellen Biery , a contributor to Forbes magazine, US small business owners are reportedly the most optimistic they have been since early 2008.
Even though formation of businesses with more than one employee has declined over the past 30-plus years, the number of sole proprietors is rising again with Americans believing there are good opportunities for starting a business.
Many entrepreneurial-minded Americans will undoubtedly be preoccupied with starting their own business in 2015, and it’s a fairly good time to go after this ambitious resolution, according to James Noe, an analyst with financial information company Sageworks.
“Despite some recent hiccups in the stock market, the economy appears to be churning along at a positive pace, with GDP, the unemployment rate and access to capital all headed in the right direction,” Noe noted. As a result, now may be as good of a time as any to take the plunge into entrepreneurship, he added.
Many entrepreneurs already have a business idea in mind. But if you’re looking for industries where it might pay to start your own business, Sageworks compiled a list of industries that have both above-average revenue growth over the past year and typically low upfront investment requirements.
“Not only are these industries hot,” explained Noe, “but most of them also require little in the way of start-up money and may have low barriers to entry, as long as you have the right domain knowledge.”
Sageworks first analysed financial statements to identify private-company industries that have been growing sales at a higher rate than the average privately held company over the past 12 months (8.6%). Second, Sageworks screened the industries for those that typically require little upfront investment.
“A lot of these industries can be started with a computer and an apartment,” pointed out Noe. “Most of them do not require an official office space or a ton of upfront staffing.” This minimal upfront cost, combined with their above-average revenue growth, makes these industries prime candidates for lean start-up operations in the New Year.
The list, drawing from financial statements filed over the 12 months ended 30 November 2014, includes online retailers, software publishers, investigators and security service providers, as well as providers of building services, including pest control, cleaning and landscaping.