If you opted to delay starting your own business over the last year, then 2022 may be the perfect time to take the plunge. And with the new year just around the corner, you'd be wise to start considering which type of business you'd like to start.
But what is a good business to start anyway, and what businesses are needed in the future? Here, you'll find answers to all your most important questions so you can get one step closer to starting your entrepreneurial journey.
Why Start a Business in 2022?
It's no secret that the last couple years have seen a surge in new businesses. In 2020, 4.4 million businesses were started in the U.S., a number that not only broke every American record but also represented the highest yearly total in the developed world:
2021 turned out to be a similarly prolific year for entrepreneurs, with nearly half a million new business applications being submitted in October alone. And while we don't yet know if that trend will continue in 2022, we do know that experts are predicting GDP to increase by 5.5 percent and consumer spending to increase by 4.7 percent.
All that is to say that if you opt to start a new business in 2022, you could find success. But before you can do anything else, you first have to decide which kind of business you want to start.
What Is a Good Business to Start in 2022?
Let's discuss what you really want to know: What are the best new businesses to start in 2022? We've analyzed the data to find out — here's what we discovered.
The Accommodation, Food and Retail Industries Are Booming
As vaccination rates increase and restrictions in many regions loosen, the industries that were hit hardest by the pandemic are now seeing significant growth.
For instance, business formation applications for accommodation and food services businesses have increased by 75 percent since 2019. With many people excited to travel and eat out again after months of restrictions, it's not hard to see why.
Although not a new business, we can see an example of this with one of our own customers, Here & Now Travel. After making it through the pandemic, owners Alex and Elise Coleman have a whopping 22 international trips on the calendar for 2022.
So if you've always dreamed of opening your own travel agency, hotel or food truck, then now might be a good time to do it. The amount you'll need to get up and running varies greatly depending on the type of business you want to open, from as little as a few hundred dollars for a travel agency you run from home to as much as a few million for a new mid-sized hotel.
The amount you'll earn varies too — for instance, food trucks in medium cities generally earn between $5,000 and $16,000 per month, while popular ones in large cities can earn up to $50,000 per month.
The Gig Economy Is Growing
Ride-sharing drivers, babysitters, dog walkers, food and grocery delivery drivers — all can be considered gig workers and all are part of the gig economy.
In the U.S. alone, some experts predict the gig economy will grow to $455 billion in 2023. And with a plethora of apps and platforms available to help workers get started, it's easier than ever to join in.
You can generally start taking gigs with little to no initial investment, making gig work easily accessible. As far as salary, gig workers earn about $33,000 per year on average.
Most New Businesses Are B2C
If the results of Salesforce's 2021 survey of entrepreneurs are any indication, a good business to start is any that caters to customers rather than other companies.
This is known as a B2C (business-to-consumer) model, as opposed to a B2B (business-to-business) model. As the survey discovered, 80 percent of small businesses started in 2020 or later target individual consumers. Nearly 34 percent sell physical products, and about 17 percent sell in-person services:
So if you want to build your own business selling physical products or professional services, you're in good company.
If you choose to start flipping consumer products, for instance, you can get started with a small investment and make anywhere from $100 to $5,000 per month.
If you opt to sell in-person services, the amount you make (and cost of starting your business) will vary greatly depending on the field you choose. For example, pet groomers make an average of $17.63 per hour and aren't required to have formal education, while legal consultants make about $40 per hour and need years of education.
Tradespeople Are in Demand
Skilled trades will be more valuable than ever in 2022 — just ask tradespeople themselves. As per a survey of nearly 2,000 tradespeople, 77 percent of them believe there is a shortage of the skilled trades. That shortage doesn't exist because tradespeople are unhappy, though. On the contrary, 83 percent say they're satisfied or very satisfied with their work:
The takeaway is simple: If you enjoy working with your hands and can take the time needed to learn a trade, then you may find success as a self-employed tradesperson.
To get started, you'll need to research the amount of education and training needed for your chosen trade. This can range anywhere from a few months of on-the-job training for construction laborers to years of education for electricians.
Side Hustles Offer Unparalleled Flexibility
A side hustle is similar to a gig (and can even involve doing gig work), but it can offer more flexibility in that it isn't limited to a certain time frame.
Side hustles also often have the benefit of being cheap to start. With many, you simply need to make a free account on a specific site.
How much can you expect to make? The answer to that question varies greatly depending on what you choose to do. With a YouTube channel, for instance, ads can generate about $18 for every 1,000 video views. Or if you become an established freelance content writer, you can make an average hourly wage of $26.
Best New Businesses to Start in 2022: The Bottom Line
2022 is poised to be another exciting year for small business owners, and if the past year has taught us anything, it's that Americans' entrepreneurial spirit is stronger than ever.
So if you're wondering which business is best in the upcoming years, the options outlined here may provide some inspiration:
Accommodation, food and retail businesses
B2C companies selling physical products or in-person services
Carrie Buchholz-Powers is a Colorado-based writer who’s been creating content since 2013. From digital marketing to ecommerce to land conservation, she has experience in a wide range of fields and loves learning about them all. Carrie is fond of history, animals and beauty in equal measure. In her free time, she enjoys knitting, playing video games and exploring Colorado's prairies and mountains with her husband.