Small business owners want their companies to succeed, and being part of one of the fastest-growing industries can be like putting your pace on steroids. A rising tide lifts all boats, and that can be exciting if you’re paddling in the waters of an industry trend.
We don’t have a crystal ball to report the types of products and services you should sell, but savvy business owners can look for a few clues.
3 Signs of High-Growth Industries
Booms don’t just happen; high-growth industries are the result of one of three types of movements. First is the introduction of new technology that creates innovative products and services. This technology can also cause growth in businesses that use or benefit from it. For example, virtual reality technology has created fun gaming products for sale, but it’s also being used for driver’s training and real estate home tours.
A change in regulations can also prompt industry growth. The availability of products containing cannabidiol (CBD) that is derived from cannabis, for example, has grown after several states changed marijuana laws. You can readily find companies that sell CBD creams and drops that are meant to reduce inflammation and anxiety.
Finally, changing consumer lifestyles and spending can impact growth in industries. One trend is sustainable, eco-friendly living. A GlobalWebIndex study found that millennials would pay extra for eco-friendly or sustainable products. This has impacted a variety of businesses, like those that install solar panels or sell reusable items that replace disposable ones. It can also give you an edge if you adopt sustainable practices in your business and share your efforts with your customers.
3 of the Fastest-Growing Industries
If you’re looking to expand a business, keeping tabs on the fastest-growing industries can help. The U.S. Department of Labor (DOL) puts out reports with industry projections based on job growth.
According to the data, healthcare is one of the high-growth industries, with some areas outpacing others. For example, mental health practitioners are expected to grow by 60% and home healthcare services by 49%. This is likely due to the emphasis on mental health as well as the aging baby boomer population that wants to age at home but needs medical services and help.
The retail industry is expected to grow by 24%. Sales have increased by almost 4% each year since the Great Recession, according to the National Retail Federation (NRF). E-commerce sales are picking up steam, and currently represent more than half of all retail sales growth, notes Digital Commerce 360.
Another fast-growing industry is construction, according to the DOL report. The residential and nonresidential building industries are both expected to grow by 11%. The U.S. population is expected to grow from 321 billion to 338 billion, which creates a demand for more housing. Complementary services are expected to grow as well. Plumbing, roofing and landscaping are expected to grow by 16, 12 and 10%, respectively.
Take Advantage of the Boom
If your business is already in one of the top growing industries, maximize on it by expanding your offerings. Talk to your existing customers and find out if you could be doing more to help them. Perhaps they have a need that’s not solved, and you could add it to your offerings. If you have a brick-and-mortar location, ask them in person. Otherwise, send a survey out with your next email marketing campaign.
Another way to take advantage of a fast-growing industry is to pay attention to your competitors. Review their website to see if they’re offering something you’re not. Then add your own unique twist. Waiting until a concept is proven can help reduce your own risk.
Make sure trends don’t pass you by because you don’t have the cash flow to seize the day. It helps to put funding in place, such as a small business loan, so you can take advantage of industry trends.
The same factors that create the fastest-growing industries can negatively impact others. For example, streaming services have lowered the demand for CDs or DVDs. And Uber has created competition for taxi or transportation services. If a new technology is disrupting your industry, you’ll need to evolve or risk extinction.
By paying attention to the trends and capitalizing on them, you can help secure your business’s place in the future.