Four profitable small business sectors for 2018

By Rafferty Gifford

The New Year is here and bringing resolutions with it, one of which may be to start that business you have been thinking about. Research has shown that 50% of start-up businesses fail within the first five years. This means that it is imperative to find a sector that is up and coming when starting your own small business. Whether you are bored of your 9 to 5 desk job or just looking to start an exciting new business venture, here are some of the businesses predicted to be big in 2018.

Micro brewery

You may have noticed there has been a rise of craft beers and ales on supermarket shelves over recent years. UK craft beer value sales grew 23% last year, according to CGA Strategy figures for the 12 months to April 2017. This continued growth has seen a sharp rise in people setting up their own micro –breweries and turning a passion for hops into a profitable business.

The number of new breweries rose by 18% in 2016 to 1,994 in the UK, taking growth in this sector over the past five years to 64%, according to a report by UHY Hacker Young. This growth can be attributed to the increasing popularity of craft beers, with many of the public now favouring these artisanal products over mainstream brands.

The equipment to start out may be a little pricey, however a Liberis small business loan would give you the money needed to set up. This is an industry that continues to grow, and is therefore one worth exploring in 2018.

Technology repair

The amount of technology that is available to the public is ever increasing, and due to the clumsy nature of humans, the demand for tech repair is on the rise. The market for phone and tablet repairs are already saturated, but as new pieces of consumer technology are introduced there is certainly an opportunity to profit from the damage of these new products.

For example, Drones. These used to be reserved for military use, however Drones have now become popular pieces of technology used by the general public.

They are great for taking aerial photos but as the inexperienced fly their new ‘toys’ higher and higher, it is inevitable that accidents are going to happen. Leaving many drones in need of repair.

A drone repair business could prove to be a popular addition to towns and cities over the coming years. Offering these repairs, either as single businesses or as an extension of tech repair business, is bound to bring in more customers.

Male grooming

Long gone are the times where a clean shaven man was considered the norm. Nowadays you would find it difficult to spot a man without some form of facial hair, from a little stubble to a full on bushy beard. Although barbering itself is far from a new phenomenon, there has been an upsurge in male grooming over the past few years. In 2015, Mintel predicted a growth of 11% over five years in this sector, making it £94million industry by 2020.

Although the high street is inundated with barbers and hairdressers, this rise in male grooming suggests there is money to be made in offering facial hair services, and in addition, the products to maintain good facial hair such as beard shampoos and oils.

This growth has created a business opportunity, by meeting the demand for beard maintenance products and services, barber shops that offers these amenities are likely to experience success in 2018.

Merging of shops

Each year it is reported that foot traffic is decreasing more and more. Retail Week reported that high street shopping figures slipped by 1.2% in August 2017 compared to 2016. Although this figure doesn’t seem too dramatic; the numbers are constantly slipping, largely due to people opting for the ease of online shopping.

If you have your heart set on, or already own, a brick and mortar shop don’t worry, in-store sales aren’t dead. The idea of physical shopping just needs to be reimagined to better suit today’s consumer.

Fusion shops, not an official term, have become popular in towns and cities, this is where two separate business ideas are merged into one establishment.

For example, ‘Look Mum No Hands’, based in London (main picture) is a bike repair shop but is also a bar/café. This allows customers to get something to eat or drink while they wait for their bike to be repaired. It also provides the owners with two streams of revenue – bike repairs and refreshment sales.

This is a great way of refreshing the high street and any existing physical stores that may be failing to thrive in a tough, internet ruled economy.

Rafferty Gifford is a digital marketing professional at Liberis