14 Best Small Businesses to Invest In for 2023
What is the best business to invest in for 2023? The COVID-19 pandemic has impacted nearly every industry, and we’re in a unique moment in time as a vaccine may start to put an end to the pandemic.
Finding a business to invest in takes time, and the pandemic has created many opportunities for buyers. Here are 14 of the top businesses to invest in for 2023:
Property & Real Estate
More new homeowners capitalized on low-interest rates during the COVID-19 pandemic, and they’re looking for ways to either improve or make use of their new properties.
1. Vacation Rental Management
As the pandemic ends, the vacation industry may benefit from pent-up demand for travel and leisure. Home rental firms, travel websites, and vacation rental apps may see a huge increase in business.
2. Home Improvement
Millions of people are spending more time at home during the pandemic, and consumers are spending money to make their homes more comfortable. Home construction and remodeling firms can benefit from this trend, along with tradespeople (carpenters, plumbers, etc).
3. Property Maintenance and Service Businesses
In addition to home repairs, consumers have an increasing need for cleaning services, and heating and cooling (HVAC) maintenance. As the pandemic ends and workers return to the office, the demand for commercial cleaning and maintenance will increase sharply.
Global Workplace Analytics provides a forecast of work trends, which found that a large portion of the workforce will continue to work at home after the pandemic, at least part-time. 56% of workers in the U.s.hold a job that is compatible (at least part-time) with remote work, and a number of workers now prefer to work at home.
Several industries can take advantage of the continued interest in working from home.
4. Managing Cybersecurity
Supporting remote workers must include effective cybersecurity. All workers are subject to cyber risks, including malware and phishing attacks. A company’s data must be secured, particularly if the firm processes customer payments online.
Once cybersecurity controls are in place, workers also need training to use the systems properly.
5. Home Fitness Products and Services
People who work from home may also exercise at home, and many successful companies are providing at-home fitness products and services. When the pandemic ends, many people may decide to not return to working out in a gym, and may decide to save time and money by working out at home.
6. Online Training
The online training industry was growing before the pandemic started, and the convenience of remote training will continue to attract customers moving forward. Firms can succeed by offering interesting content, great visuals, and presenters who can keep the attention of an audience.
Other Growth Industries
COVID-19 has changed how we spend money on dining, software, and how we purchase goods online. Investors can take advantage of these trends.
7. Restaurants Using Commercial Kitchens
Restaurants were hit particularly hard by the pandemic, and inside dining business fell off dramatically. Many restaurant owners have a loyal customer base that they want to serve, but they also want to avoid excessive expense right now.
Chefs, caterers, and food trucks are renting commissary kitchen spaces, where the users share cold storage and kitchen equipment. Food service businesses avoid the fixed cost of leasing restaurant space and can serve customers through delivery, carry out, or at an event location.
8. Software as a Service (SAAS)
Think about the number of apps you use each day. Consumers use software apps to connect online quickly and to work more productively. SAAS firms also create tools for the entertainment and leisure industry.
9. Ecommerce Firms
The pandemic has shifted customers to online purchasing, and eCommerce growth is accelerating. Ecommerce growth has been uneven, and businesses that can serve customers globally can grow faster. For example, India’s eCommerce purchases are 6.5% of retail sales, while China has four times the eCommerce rate of sales.
Companies can succeed by providing secure payment tools, fast delivery, and responsive customer service. These businesses can also gather market data to identify customer preferences for retailers.
10. Investing in Health-Related Industries
PWC points out that the pandemic delayed care for patients, and the strain of isolation has increased the need for mental health care. Technology was changing how medical care was delivered before the pandemic, and these changes will continue.
Health care represents a large portion of the economy, and some businesses are positioned for repad growth.
11. Providing Elder Care Services
Census.gov reports that: “By 2030, all baby boomers will be older than age 65. This will expand the size of the older population so that 1 in every 5 residents will be retirement age.”
The demand for elder care will grow rapidly to address the need of the aging baby boomer population. Elder care business is driven largely by referrals, and companies that provide great care can increase their customer base.
12. Medical Courier Businesses
As the population ages, the number of medical deliveries will also increase. Local pharmacies, in particular, need the ability to deliver prescriptions to patients, and many deliveries are time-sensitive. Medical courier businesses can meet the growing need for deliveries.
13. Digital Technology
Doctors and other medical professionals must enter large amounts of data to document patient care, and to file insurance claims. The more time required for data entry means less time with patients. If a business can streamline their data entry process, health care workers can save time and effort.
14. Virtual Care Businesses
PWC also notes that 95% of large U.S. employers cover telehealth and virtual care services. Companies that can deliver a better virtual care experience will gain market share.
Choosing the right business investments is challenging and requires a large financial commitment. Make the most informed decision by working with a business broker that you can trust.
Work With a Professional Advisor
The business brokers at Raincatcher have over 30 years of experience working on thousands of business sales. They help buyers find remarkable enterprises in which to create their own legacy.
Reach out to the experts at Raincatcher today for more information on investing in 2023.