7 Businesses That Will Continue to Boom Post-Pandemic
The COVID-19 pandemic has changed how we work, interact with others, and how we spend our leisure time. The pandemic has been difficult for restaurants, movie theaters, and live entertainment venues, however, some industries have thrived.
Many of these high-growth businesses provide products and services to people who work at home. Global Workplace Analytics provides a forecast of work-at-home trends after COVID-19, and notes the following:
56% of the US workforce holds a job that is a least partially compatible with working at home
By the end of 2021, 25-30% of the American workforce will be working at home multiple days per week
Working at home is so valued, that over a third of employees would take a pay cut to work at home, according to recent surveys. Businesses that provide tools to make home-based work more productive are in position for growth.
Here are Seven Business Niches that are Poised for Rapid Growth After the Pandemic:
1. Virtual Meeting Applications
Zoom, Google Hangouts, and Microsoft Teams have all experienced a sharp increase in usage during the pandemic, both for business and personal use.
The pandemic has forced businesses to assess the need for in-person meetings, and many types of meetings will remain virtual moving forward. Businesses can save time and travel costs by meeting virtually, and the strategy is also more convenient for employees.
Cybersecurity must be a priority for any business with remote workers.
Proofpoint offers a cybersecurity threat report, which points out that research and development (R&D) professionals, along with marketing and public relations staff, are the most at risk for malware and phishing attacks.
A successful attack can disrupt company operations, and the business may lose valuable data. Even worse, a cyber attack may result in stolen customer information, including bank account and credit card numbers.
Companies need products that protect against cyber attacks, and employees need training on managing files and using the cloud.
3. At-Home Fitness
Consumers were forced to change their workout routines when the pandemic hit, and hundreds of gyms were closed for months. The closures created a huge opportunity for companies that provide at-home workout options.
Peloton provides high-end stationary bikes and live online instruction, and the firm has more than 3 million users. Fiscal year 2020 revenue grew 100% to $1.8 billion.
Another home fitness app, Mirror, offers over 50 different types of live, online courses using a wall-mounted video screen. As the quality of at-home fitness products improves, a growing number of consumers will choose this convenient option.
4. Online Teaching, Training
Millions of grade schools, high schools, and colleges shifted to online classes during the pandemic. Learning from home puts pressure on adults to supervise children working online. Parents feel a bigger burden, and managing a child’s schoolwork is frustrating. Companies that make the process easier will build a loyal following of parents and educators.
A number of schools will continue online learning in some form after the pandemic, and businesses that provide tools to learn from home will benefit.
Consumers are increasingly using apps to learn new skills remotely. Calm, for example, is building a following of people interested in meditation. Duolingo, the language-learning app, saw a 148% increase in the number of new users between March 9thand March 30thof 2020.
Did you purchase more gifts online during the 2020 holiday season? The pandemic has changed how customers shop, and e-commerce will account for a growing percentage of retail sales.
The Adobe Digital Economy Index measures transactions at 80 of the top 100 online retailers in the U.S. Consumers started buying many essential items online when the pandemic began, and online purchases of grocery, apparel, and electronics continue to increase each month.
Adobe expects 50% of online spending via smartphones in 2021 and 2022. Smartphones make the buying process faster and easier for consumers, and e-commerce firms will see their sales increase.
6. Food Delivery
Individuals want to support their local restaurants during the pandemic, and food delivery services are meeting this demand.
Forbes expects online food delivery to become a $200 billion business by 2025, and several companies are benefiting from this change. As an example, Uber Eats food delivery sales more than doubled during the second quarter of 2020.
According to gamesindustry.biz, global viewership of video game usage and live streaming increased by 10% on Twitch and 15% on YouTube Gaming during March of 2020. Also during March, Verizon noted that online gaming increased by 75% during peak usage hours in North America.
Gamers are also purchasing more items. In August of 2020, U.S. gaming sales increased by 37% year-over-year to $3.3 billion.
Perform Due Diligence Before Buying or Selling a Business
This information can help you make informed business decisions. If you’re considering a business purchase, take a look at industries that will grow after the pandemic. On the other hand, owners with businesses in these niche markets can demand higher prices for a business sale.
Whether you’re planning on buying or selling a business, it’s always a good idea to work with a certified business broker. Contact a professional business broker at Raincatcher today for more information.