Top 13 Industries for Buying a Business Today
Businesses are experiencing rapid change in the wake of the pandemic, and some industries are better positioned for growth than others. This article reviews 13 industries that may be attractive to potential business buyers. Owners in these industries are using creativity to adapt and better serve their customers.
1. Home Improvement
A recent Bank of America survey noted that among homeowners, “more than 70% have decided to tackle home improvement projects, with more planned for 2021.” Consumers are moving out of cities and buying homes, while others are moving into bigger homes.
This trend presents an opportunity for remodeling companies and for businesses that sell home improvement supplies and materials. Home improvement of older homes, in particular, is driving industry growth, and this could be a multi-year trend.
2. Business Services
Many offices today have staff working at home on certain days of the week, or they are moving to completely remote operations.
Businesses are outsourcing many administrative tasks that had been performed in-house. For example, Stamps.com offers online postage services to businesses, and FedEx provides shipping and printing help to business owners.
Workers, particularly those who work remotely, need their computers repaired and serviced, and Best Buy’s Geek Squad provides these services. A responsive service company that can solve problems quickly is in position for growth.
3. 3D Printing
As the technology improves, businesses are finding new uses for 3D printing, and the cost to use the service is declining. Your business can provide 3D printing services, or you can sell the hardware and software to other companies. Once you can create a prototype, 3D printing quickly becomes cost-effective.
4. Pet Products
The pandemic changed how people purchase pet products, according to Petfood Industry.
- Consumers want one-stop shopping and fewer shopping trips, which allows the purchaser to stay close to home.
- Some buyers will shift to online purchases, particularly if they’re loyal to a specific brand.
- Individuals that face economic pressure may switch to lower-priced brands.
Direct-to-consumer businesses can make it easy to buy pet products online, and buyers can select from dozens of brands. Pet owners are committed to their animals, and businesses that can address the owner’s needs can thrive in 2020. Additionally, there was a 15% national spike in pet adoptions in 2020, addressing an ever-growing market for this industry.
5. Meal Kit Delivery
Meal kits provide great food and eliminate the need to grocery shop and find recipes. The best firms are able to ship quality food with clear instructions and keep the food fresh in the process.
Green Chef and HelloFresh are two successful companies in the meal kit market. These firms provide healthy choices to match customer preferences. Meal kits save time and allow families to enjoy good food at home.
6. Home Beauty Products
McKinsey explains that sales in the home beauty industry fell sharply in March 2020, but have rebounded. Consumer research indicates that home beauty sales may outperform other discretionary categories, such as footwear and clothing.
According to the article, “skin-care, hair-care, and bath-and-body products appear to be benefiting from self-care and pampering trends.” Businesses that sell or manufacture these products may be attractive for buyers.
7. Video Conferencing Software
Video conferencing use has exploded in 2020, and a growing number of companies use this type of technology to communicate. Zoom and Google Meet are two firms that are growing rapidly in the video conferencing space. Consumers value reliability and ease of use, which both companies provide.
This industry will continue to grow as more people work or attend school remotely.
8. Health, Beauty, Fitness
Many people are dedicated to health and fitness routines and have continued to exercise as the nation has been on lockdown. Gyms started to reopen in June 2020, and customers use gym facilities for Pilates, Barre, and spin classes.
Spas are also a specialized customer niche, and you can drive customer traffic by offering a high-quality experience to local clientele.
9. For-Profit Universities
Temkin Group’s recent customer experience report notes that 73% of companies with “above average” customer experience perform better financially than their competitors. For-profit universities are using technology to improve the student experience and attract more students.
The 2020 economic decline may also increase attendance at these schools as people who are out of work decide to take courses.
10. Fitness & Health
The pandemic inspired many pivots in the health and fitness industry. CNN explains that businesses offering in-home options, including online video, can fill the needs of consumers who want to work out at home.
People are also buying more in-home equipment, including bikes. Firms that offer an alternative to brick-and-mortar gyms are poised to grow ahead of the curve in this industry.
11. Healthier Snack Foods
A large percentage of consumers want to eat healthily but also crave snack foods. Companies have entered the market to provide snack options for health-focused consumers.
Whole Foods and Trader Joe’s serve customers that want organic and healthy food choices, and snack food firms can reach their target customers by marketing to these firms for shelf space. Once in the stores, snack food firms must be able to deliver quality food products in a timely manner.
Hundreds of businesses use technology to solve customer problems. The market for technology solutions applies to every industry, so think about solving a problem that is poorly addressed.
Your solution could be repair and maintenance of a tech product, such as laptops. You’ll find a number of local repair shops that have a loyal customer base. The solution could also be a mobile app that allows the consumer to complete a task in less time.
13. Cleaning Services
Finally, there are the basic services that customers have purchased for years. For example, busy families and businesses frequently use cleaning services. Using a service saves time, and consumers want a consistent result each week.
HelpScout reports that more than half of Americans have scrapped a planned purchase or transaction because of bad service, and 33% of Americans say they would consider switching companies after just a single instance of poor service.
If you can provide a quality service, you can build repeat business over time.
Given all of these choices, it may be hard to decide on the right industry for your purchase. An effective business broker can help you assess your options.
Work With a Trusted Advisor
At Raincatcher, our business brokers focus on the client’s needs, not our own.
Our firm uses industry-leading proprietary valuation resources to value a potential business. We also use our extensive network to identify companies with growth prospects.
We will be your trusted advisor throughout the purchase process to ensure that you buy a business at an attractive price. Interested in speaking more about your next acquisition? Schedule a time today.