7 Growth Industries If You Are Considering Acquiring A Business
Are you considering acquiring a business? Here are seven growth industries to consider if you are buying a business.
It goes without saying that starting or acquiring a business during a recession may not be the smartest thing to do. However, history would suggest you are wrong. Some of our strongest and most successful companies started during a recession. For example, Hewlett-Packard started out of a garage during the Great Depression.
If you’ve decided to start or buy a business, one of the best strategies would be to choose an industry that’s performing well in spite of the recession. An analysis of data by Sageworks’ found seven industries that are experiencing growth anyway.
These seven industries are as follows:
- Vehicle maintenance. Auto-repair shops increased sales by an average of 2.4 percent over the past 12 months. In contrast, car dealers saw their sales drop 9.7 percent in the same period.
- Home remodeling. Sales rose 4.6 percent in the past year for contractors such as electricians, plumbers, and heating specialists. On the flip side, homebuilders saw their sales fall at least 5 percent in the same period.
- Food stores. Grocery stores’ average sales increased 6.7 percent in the past year, while sit-down restaurants saw sales fall 3.9 percent.
- Specialty schools. In 24 months, technical and trade schools had top-line revenue growth of 7.8 percent, up from 5.9 percent in 2007.
- Dentists. The average dentist’s office saw sales increase 7 percent in the past year, up from 5 percent in 2007.
- Certified public accountants. The average revenue at accounting firms grew 10.2 percent in the past year, making the accounting industry among the top 20 sectors in the country by sales growth.
- Personal-care services. Skin-care specialists, nail salons, barbershops, and hair salons saw average sales grow 4.5 percent in the past year.
As you consider your options make sure you understand your personality, the skills you bring, and your resources. Your options include starting your business from scratch. This can be the least expensive option but you have to come up with an idea that’s currently not in the market and hope you can execute to make a profit before your capital runs out. See how to buy a business in California for more information.
If you acquire an existing business or buy the rights to a franchise, do your research. If you look at buying the rights to a franchise, make sure you interview as many franchise owners in that system as possible as this will give you great insight into determining the success of that franchise. Franchising is a great option for a business owner who doesn’t want to do everything and is particularly attractive to those that have worked in Corporate America and developed highly specialized skills.
The franchisor brings the skills and experience they have developed over the years and generally brings this to you at a much cheaper price than you can acquire on your own. Before you invest too much time looking at a franchise, make sure it’s available in the area where you live. If the territory is sold, look for another opportunity.
There is a range of businesses listed for sale by following this link: Buy a business for sale. If I can help, give me a call today at (916) 570 2674.
