The world is constantly changing, and with transformation, the economy shifts. New industries emerge, and old ones adapt or disappear. Some have explosive growth, while others are slow and consistent. As an aspiring entrepreneur, staying updated on current trends and potential markets is essential.
Here, we’ll look at the ten fastest-growing industries that offer promising startup opportunities. And the best part? They’re all local, providing an advantage of understanding the market and building strong customer relationships.
1. Landscaping
A landscaping company is one of the best local businesses you can start. That’s because the real estate industry is among the biggest contributors to American GDP, representing 15-18%. According to the National Association of Home Builders, consumption spending on housing services contributed 12-13% of the national GDP. Among the significant homeowners’ spending is lawn care services.
You can only imagine the potential growth of landscaping in expanding cities with new housing developments daily. What’s more? States such as New York mandate every property owner to maintain lawns and clear any debris, according to the New York Times. That means that landscapers have a guaranteed customer base.
The sector provides an opportunity for you to shape and beautify local communities. And it’s not the only avenue of generating income. A landscaping company can offer various services, including lawn care, tree trimming, and landscape design. You can also provide equipment installations such as a residential irrigation system and outdoor lighting.
While most people do landscaping for aesthetics, it also helps control erosion. For example, hydroseeding promotes quick plant growth to reduce soil erosion on steep slopes. Therefore, you play a part in enhancing environmental sustainability. The best part about landscaping is the relatively low startup costs, making it an accessible option for aspiring entrepreneurs.
2. Roofing
Another fast-growing and best local industry is roofing. With a constant demand for new roof installations, repairs, and maintenance, the roofing business is an attractive option for any local roofer with an entrepreneurial spirit. In addition to residential properties, commercial buildings also require roofing services regularly.
According to IBIS World (a trusted industry-market research foundation), the U.S. roofing contractors‘ market size was $57.7 billion in 2022. It is forecasted for substantial growth in the upcoming years, with a predicted value of $39.64 billion by 2031. You can be part of this growing industry and cater to the local community’s needs.
One of the significant advantages of starting a roofing business is the recurring revenue stream. Roofing contractor services are not a one-time need; you need to provide repairs and maintenance services, meaning you will establish long-term relationships with clients and generate steady income. With proper training, equipment, and quality work, your roofing company can become a trusted and reliable option for homeowners and businesses in your area.
Additionally, residential roofers can offer a range of services. For instance, you can specialize in various materials such as metal or shingle roofs. You can also provide solar panel installations, gutter cleaning, and skylight repairs. The potential for growth and variety in this industry is limitless.
3. Plumbing
Plumbing is among the most essential services in the United States. Firstly, it saves lives by enabling the provision of clean water and proper sanitation. Secondly, it helps maintain the comfort of homes and businesses with functional bathrooms and kitchens. Plumbing also helps channel water away, preventing property damage and saving billions of dollars from losses.
According to the Better Business Bureau, plumbing is the fifth-largest construction category, with a staggering market value of $124 billion. It has a projected annual growth of 1.7%, representing a stable and lucrative industry. As an entrepreneur, these numbers should motivate you to dive head-first and build the best local plumbing service.
With aging infrastructure, new construction, and constant repairs, the plumbing industry constantly demands skilled professionals. This demand is not limited to major cities; small towns also require reliable plumbers. As a local plumber, you can benefit from word-of-mouth referrals and establish strong client relationships.
Plumbing services are diverse; you can specialize in a specific area, such as commercial or residential plumbing. You may also offer gas line repairs and installations or water piping and drainage services. Your business will flourish in this ever-growing industry by providing excellent customer service and quality plumbing work.
4. Fencing
Fencing is also a growing industry, especially in suburban and rural areas. With a surge in housing development, starting a fencing company is among the best local businesses for a first-time entrepreneur. You will need an initial investment of between $3,500 – $8,800 for your startup.
Fencing can be lucrative, primarily if you offer services such as gate installation and repairs. Remember, fencing serves different purposes – privacy, security, and aesthetics. For instance, custom fence installation allows homeowners to personalize their property. At the same time, it gives you the opportunity for higher pay and growth. This variety allows for upselling and cross-selling opportunities to your clients.
The potential for growth in this industry is immense, with new housing developments and demand for high-quality fences. In a 2021 report, Grand View Research estimated that the sector has a market value of $8.20 billion. They also projected that it would expand by an annual compound growth rate of 5.0% from 2022-2030. That only means more opportunities for you to grow your business and establish yourself as a reputable fencing contractor.
The fencing business has its fair share of challenges. For instance, it is a physically demanding job. You will need strength and endurance to handle the equipment and materials. However, you can overcome these challenges with a qualified team and equipment and build a successful business.
Additionally, competition from big-box fence contractors retailers can be stiff. However, with proper marketing techniques and service packaging, you can stand out and attract local clients. Fencing is a promising industry with countless opportunities for growth and success for small businesses.
5. Food Restaurants
You can’t go wrong delving into the food industry. Food will always be in demand because people must eat. With ever-evolving food trends and a diverse population, the restaurant business is a safe bet for entrepreneurs. According to the U.S. Department of Labor, it is one of the biggest employers in America, with over 13.9 million jobs.
You can start a restaurant if you have enough capital or go for a food truck if you want to start small. In either case, it is crucial to research and evaluate the local market’s needs and competition before setting up shop. You can use online resources like government websites or social media insights to gather data about your target audience.
One of the keys to success in this industry is offering a unique dining experience. You must stand out to create the best local restaurant, whether through a creative menu, exceptional customer service, or a distinct ambiance. Maintaining consistency in food quality and service is also crucial to keep customers returning.
Furthermore, the restaurant industry offers a variety of opportunities for growth and expansion. You can open multiple locations, provide catering services, or even start your food product line. The possibilities are endless with a strategic approach and a clear understanding of your target market.
Remember, in the restaurant business, customer satisfaction is vital. Building a loyal customer base and maintaining a positive reputation can go a long way in terms of success and profitability. So, prioritize your customers’ needs, focus on hygiene, and continuously improve your offerings to stay ahead in this competitive industry. Overall, the food business offers an exciting and profitable venture for first-time entrepreneurs ready to tackle the industry’s challenges.
6. E-Commerce
With technological advancement and increasing daily bustles and hustles, many households are looking for convenient shopping online. For this reason, E-commerce is another fast-growing and best local business for first-time entrepreneurs. With the rise of online shopping and digitalization, e-commerce has grown significantly in recent years. In the third quarter of 2023 alone, e-commerce sales reached $271.7 billion, representing a 0.9% increase from the previous quarter, according to the U.S. Census Bureau.
Starting an e-commerce business requires minimal startup capital compared to traditional brick-and-mortar businesses. You only need to invest in a website, marketing, and inventory. However, you can also launch your startup with existing e-commerce giants such as Amazon or Etsy.
One of the main advantages of e-commerce is its flexibility. You can work from anywhere and run your business on your terms. Moreover, you can cater to different niches and target markets, from selling handmade goods to dropshipping products.
However, e-commerce can be competitive. You need a robust online presence. That means significant investment in SEO, social media marketing, and compelling content to attract customers. Find ways to differentiate your brand and build a great customer experience.
Despite the challenges, e-commerce has endless potential for growth and success. With continuous technological innovation and changing consumer behavior, entrepreneurs always have new opportunities. By staying on top of market trends and constantly evolving your business, you can establish yourself as a top player in the e-commerce world.
7. Technology Start-Up
Technology remains one of the most lucrative industries for entrepreneurs. Innovative tech products and services have become the backbone of the American economy. Statista reports technology contributed nearly two trillion dollars to the U.S. GDP.
Your tech firm doesn’t need to be the next tech giant to be successful. Start small with a unique idea or service and build your way up. One of technology’s advantages is scalability – you can start with minimal resources and grow as demand increases.
However, starting the best local tech business requires specialized skills and knowledge. It’s essential to have a strong understanding of coding, software development, and other technical aspects. You can also seek guidance and mentorship from experts in the industry to help you navigate potential challenges.
In addition to creating innovative products, it’s essential to establish and sustain a robust online presence and build a loyal customer base. Utilize social media platforms, attend industry events, and network with potential clients to gain exposure and attract customers.
Lastly, keep up with the latest tech trends and continuously innovate. Technology is a rapidly evolving industry, and staying ahead of the curve can help your business thrive. With determination, hard work, and the right strategy, your technology startup can become a successful venture.
8. Marketing
Every business needs marketing for brand promotion, making it an essential service for entrepreneurs. Every year, big companies set apart massive budgets to outsource marketing specialists. As technology advances, the marketing industry evolves significantly, offering various opportunities for small business owners. There are countless avenues to explore in this field, from digital marketing to traditional advertising.
As a marketer, you can specialize in various niches, such as social media marketing or email marketing. To be the best local marketing company, you may offer a full range of services to cater to different clients’ needs. However, you need a strong understanding of consumer behavior, market trends, and emerging technologies. It’s also essential to have excellent communication skills and think creatively to develop effective marketing strategies for your clients.
Furthermore, networking and building relationships are crucial in this industry. Ensure you collaborate with other professionals to expand your reach. Invest in continuous learning to stay updated on the latest marketing techniques and tools.
Marketing provides a diverse range of opportunities for entrepreneurs. You can help businesses grow and establish your successful venture by leveraging your skills and creativity. As long as companies need to market their products and services, there will always be a demand for marketing agencies and professionals.
9. Shipping and Delivery Services
The rise in e-commerce presents more opportunities than you can imagine. With more people shopping online, there is a growing demand for shipping and delivery services. Whether it’s delivering packages for small businesses or food delivery for restaurants, this industry offers plenty of potential for entrepreneurs.
According to IBIS World, the delivery service industry revenues hit $158.6 billion in 2022. Your local shipping and delivery service business could take a piece of that pie. With the right approach, you can cater to businesses and individual customers.
Starting a delivery service requires minimal investment compared to other industries, making it an attractive option for first-time entrepreneurs. You can start with a bike and grow to a fleet of delivery vehicles. However, you need reliable transportation, insurance, and permits to operate legally. Additionally, customer experience is crucial in this industry – timely deliveries and good communication are critical to success.
To stand out in this competitive industry, consider offering additional services such as same-day or subscription-based delivery options. As the demand for online shopping services continues to rise, so does the need for reliable shipping and delivery services. You can build the best local business by providing top-notch services and continuously adapting to customers’ needs.
As an entrepreneur, it is essential to consider all factors when choosing the best local industry to venture into. Factors such as potential growth, demand, startup costs, and competition should significantly influence your decision. With proper research and planning, any of these industries can lead to a successful and fulfilling business venture.