Editor’s note: This article was first published in November 2012 as a list of profitable businesses for 2013, and was later updated for 2014, although the body still refers to 2013 in places. The piece reflects the Spanish crisis of 2012-2014, with high unemployment, lack of credit and rising crime.
2013 is coming to an end, and in 2014 the situation will be very similar or even worse as far as jobs are concerned. So once again, for many people, starting a business will no longer be an option but the only option: with no jobs available, we’ll have to create our own employment. Those of you who know me already know I don’t like to sugar-coat things.
Entrepreneurs are not going to have it easy at all, and probably 80% of those who decide to open a business will fail, for various reasons we’ve already covered in different articles. That’s why you’ll have to try to be in the other 20%. Which businesses will be profitable in 2014?
Refuge businesses
First of all, against a backdrop of severe crisis and lack of credit, you should look for businesses with a low initial investment and grow gradually. The businesses we described in our earlier article “Businesses that work during the crisis” are still a good choice. There we set out some ideas for so-called “refuge businesses”: they won’t make us rich, but basically they would help us get by while we think of something else or while the crisis comes to an end.
Buying and selling gold, silver…
(Update, May 2014: we are ruling out this type of business for now.)
This type of business has grown at a staggering rate. That’s only natural: in times of recession, the streets fill up with “we buy gold” signs. Many families are pushed into poverty, and that’s when they start selling the few valuables they have left (or the many). Since gold becomes a safe-haven asset during the crisis, buying and selling this “material”, as well as other metals, starts to become very profitable. The ugly sibling of this business is the pawnshop, a service most of these shops tend to offer and which, in a way, can also get a family out of a tight spot.
Home-based businesses and businesses without commercial premises
These are ideal for those who can’t or don’t want to start out in commercial premises and can run the business from home. We gave five home-based business ideas in this article, from express clothing alterations to computer repair for individuals and companies. In another article we offered nine business ideas that don’t need commercial premises, and I’m pleased to say I’ve already received several emails from readers who started one of these ideas after it was published.
Low cost
2013 will be the year of low cost. Think of a low-priced product or service. This is often achieved by buying in large quantities from a supplier or factory and making sure you have a steady, massive flow of customers. One example is the toy shops that compete with the industry giants at Christmas. They cut their profit margin to the bone and, thanks to good advertising, achieve the effect they want on consumers.
Low-cost security systems: as the crisis deepens, crime will rise, so having at least some minimal security measures won’t hurt. If they’re cheap enough for everyone to afford, so much the better.
Changing the business model
Unfortunately, the trend will be for businesses to keep cutting prices to compete in the market, and in this battle the winner will be the business that has done its homework on cost control and efficiency to make up for falling revenue. Existing businesses will have to change their business model and reinvent themselves to create new ways and formulas for running viable, profitable companies. In this process, there’s business for professionals who can guide a company into this new situation.
Technology for businesses
You have to be on the internet, and you have to make up for the lack of local sales with online sales. In times of crisis we need to make ourselves known even more and reach places we had never even considered until now.
App developers for businesses will be among the most sought-after services because, among other things, it’s no longer enough to be on the internet; you also have to be on mobile. The ICT sector still has plenty of potential throughout this crisis.
Likewise, when we published the professions where there really is work, we saw strong demand for this kind of profession. Over time, each and every one of those services will end up being commissioned or outsourced to independent companies that cover them in full, so there’s work there, but there’s also business.
Tourism, R&D&I and sustainable technologies
In Spain we’re not much worse off thanks to tourism, a sector that, with construction gone, is what brightens up our GDP. This year, 2013, entrepreneurs in tourism and in R&D&I (research, development and innovation) will have the easiest access to credit (let’s hope they actually deliver on the R&D&I). We’ve already presented several tourism-related business ideas: wine tourism, which is on the rise in Spain, tourism for gays and lesbians, an excellent opportunity, or business tourism, something more innovative.
On the other hand, any idea focused on energy development with more efficient and cleaner systems will have the financial backing of the industry’s giants.
Biotechnology
There has been a considerable increase in small biotech companies all over Europe, another sector that is not expected to have much trouble accessing credit.
Languages
To find a job in Spain, you’ll have to take one of two paths. The first is to leave the country and look for opportunities abroad. The second is to stay and compete for a vacancy against 1,000 other candidates. Either way, you’ll need languages. There’s business in languages, and not only in preparing unemployed people to find a job, but also in teaching employees and company executives who will now need them more than ever, especially if their company is thinking of going international.
Renting clothes for special occasions
This ranges from renting out clothes as an individual to opening a shop specialising in second-hand garments. Renting wedding dresses, First Communion outfits, party dresses, tuxedos and so on is booming, because people are increasingly mindful about saving or simply can’t afford to buy a suit or a wedding dress for the occasion. Combining this business with clothing alterations could be one of the most profitable businesses right now, as long as you’re in a good location or manage to make yourself known.
And finally, don’t rule out franchising, a business system that has kept growing throughout this crisis.
And always remember to draw up a business plan, do proper market research and be very clear about the path you’re setting out on. Here are some resources:
- 15 questions to evaluate a business idea
- The 10 commandments for failing in business for sure
- How to find out which business is perfect for me
Featured image: Jan S0L0, CC BY-SA 2.0, via Wikimedia Commons.
.jpg){kind=link}