The New Year is approaching, and as part of your ‘New Year, New You’ mantra you may be thinking of starting your own business. According to The Daily Telegraph, 50% of start-ups in the UK fail within 5 years, which is why it may be helpful to look at the most profitable sectors when looking to start a small business.
Here are some small business sectors which we predict will be popular in 2018:
It is no secret that in-store sales are declining year on year, many consumers now choosing to shop online due to being able to compare prices, having access to a greater product selection and convenience. According to Retail Week, shopper numbers slipped by 1.2% in August 2017 compared to 2016, and although this figure doesn’t seem huge, it is an ongoing downwards trend.
That said, this doesn’t mean that the brick and mortar shop is dead, but instead it needs to be reimagined.
Fusion shops could be 2018’s answer to boosting footfall. The concept is based around merging two ideas to create a new shopping experience that suits today’s buyers. For example, a florist café. Flower Power based in Stevenage is a florist that has a café inside, allowing people to pick flowers for a bouquet and enjoy a coffee while the arrangement is put together.
Similarly, the Stripes Bicycle Company based in Woburn Sands offers bike repairs and clothing to buy whilst also offering coffee and cakes, allowing you to relax with a brew while your bike is being worked on.
We can see this being a new trend for retail in 2018, expanding and merging in order to survive the footfall decline.
With the rise of the hipster came the rise of craft beers and an increased number of the people making them.
A report by UHY Hacker Young showed that the number of new breweries in the UK rose by 18% in 2016 taking growth in this sector over the past five years to 64%. This is due to the increasing popularity of craft beers, with many of the public now favouring artisanal products over mainstream brands.
Of course, starting your own micro-brewery is a little more difficult, and expensive, than home brewing bottles of Schraderbräu in your garage. However, with some funding it is definitely a possible venture. You could consider crowd-funding to fund your concoction or simply opt for a small business loan to give you an initial cash injection, to help get your idea off the ground.
A craft brewery is definitely a small business worth delving into if you have a passion for hops, simply due to the sheer profitability and growth that doesn’t seem to be slowing.
Food trucks/Street Food
Thanks to shows such as Man vs Food and Diners, Drive Ins and Dives, the public have been teased with amazing, original fast food, a far cry away from the chain fast food shops and greasy chippies on the high street.
Food Trucks/street food used to be confined to music festivals and markets in the UK, but are now becoming increasingly popular. They can often be found at street food specific festivals, and are becoming increasingly popular within the wedding market.
The popularity of street food comes from the public’s desire to see fresh ingredients prepared in front of them, as well as the variety it offers. With UK street food industry – now worth £600 million and growing at an impressive 20% per year, it makes it a sector worth exploring in 2018.
Barbering is not a new thing, its roots tracing back all the way to 3500BC, however over the last few years there has been an upsurge in male grooming, particularly in hair care. Mintel predicted in 2015 that the male haircare market is set to grow by 11% over 5 years, making it a £94 million industry by 2020.
Although there are already barbers on every high street, this increased interest and steady growth in the male grooming market suggests there is money to be made by starting a specialist barber shop. We are not referring to the bog standard ‘short back and sides £9 hair cut’ kind of establishment, but the more artisanal barber shops, particularly those that have a focus on facial hair.
According to YouGov, in 2016 44% of men sporting facial hair had full beards, up from 29% five years ago. As a result, you may have noticed a rise in beard brands and products such as The Bluebeard’s Revenge, Bulldog and L’Oreal’s new beard range ‘Barber Club’. These brands show that male grooming is showing no signs of dying down.
This growing trend creates a business opportunity, meeting the demand for beard maintenance products and services, as their popularity continues to rise. A barber shop that offers these services is likely to experience success in 2018.
As the amount of tech the public has access to increases so does the need for someone to repair it. There will always be a demand for screen repairs for smart phones and tablets due to the clumsy ones among us, but what about new tech?
Drones have become commercial products fairly recently and are no longer reserved for the military and large corporations. They are being bought by hobbyists, photographers and tech enthusiasts as items of recreation. You may sometimes see a drone whizz overhead when out and about.
The increased availability of this type of technology means there is undoubtedly going to be accidents and malfunctions that need to be repaired. A drone repair business could prove to be a popular addition to towns and cities over the coming years.
Similarly, VR headsets have burst onto the scene in recent years and are a bound to attract damage with people throwing themselves on the ground and into objects whilst immersed in the experience.
Offering these repairs, either as single businesses or as an extension of a pre-existing mobile repair business, is bound to boost clientele.