Financial armageddon has been postponed. Despite the gloom, know this: There’s still money to be made in high-growth businesses with low barriers to entry and terrific prospects for entrepreneurs willing to put in some hard work.
IBISWorld, one of the nation’s top market research firms, has identified the high-growth businesses with the best money-making opportunities for entrepreneurs and investors right now:
• E-commerce and online auctions: With anticipated annual growth of 12.1 percent to 2013, this sector has huge opportunities to buck the economic trends. Newly thrifty Americans are going online in ever-increasing numbers to search for the best deals on everything.
This industry has low entry barriers and the cost of purchasing, establishing, and maintaining a Web site is low, making it an encouraging prospect for new entrants, says Toon van Beeck, senior analyst with IBISWorld. Just keep in mind that the costs of establishing, and maintaining a more advanced e-commerce site with enhanced functionality and features is much more significant.
• Video game retailing: As an industry experiencing 11.4 percent annual growth, video game retailing is a lucrative business right now. With low barriers to entry and modest initial capital requirements, this industry is well-suited for new business owners. Plus, securing contracts from game wholesalers is relatively easy these days, and the only significant barrier for new entrants is the cost of buying stock for initial sale.
• Services for the elderly and disabled: Growth and demand is steadily rising here (7.1 percent annual rate), and it is a trend IBISWorld expects to continue as the baby boomer generation approaches retirement age – spurring renewed demand like never before for age-specific services. Startup costs are much higher in this line of business, however, since you must invest in and often modify premises, hire qualified nursing and auxiliary staff, and buy or lease specialized equipment. Other entry barriers are low, and tax concessions and rebates are available for nonprofit organizations. Currently, 86 percent of industry players operate without having to pay taxes – a significant incentive.
• Community food services: Dismal economic conditions have produced a rapid rise in the need for community-based food services. For new entrants, this $5.3 billion industry offers profitable opportunities. Characterized by low barriers to entry, minimal capital requirements and excellent growth, community food services are both a noble and lucrative industry to enter. •
Daniel Kehrer can be reached at
editor@business.com.
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