There are more business ideas in the world than you've had hot
dinners, but which business is going to make you rich in 2012? Read
on for some inspiration as to the best businesses to start here and
now.
Despite what the analysts say, there's never been a better time
to start a business. In 2012 the conditions are perfect: sluggish
economic growth is forcing consumers to seek out new products and
services and the government is pulling out the stops to get
start-ups, well, starting up.
Meanwhile, free sources of help and advice are everywhere and
hardware is getting cheaper by the day, meaning you can start a
business in 2012 for the price of a laptop and a mobile phone. And
you can get all sorts of software to do things like run your
accounts and advertise your business for next to nothing.
Conditions are right; now you just need a good idea - but what? Of
course the answer is to assess your skills: what can you do that
people are prepared to pay for? Are you good at selling products,
or do you have knowledge that you can pass on as a consultant?
Everyone is different, and so is every business.
But if you're still wracking your brains for ideas, we have laid
on a few examples that could be particularly successful against the
unique backdrop of 2012.
1) Holiday homes
Trouble in the Eurozone, rising air fares and the ever-present
threat of industrial action means more people than ever are opting
to holiday right here in Blighty. 'Staycations', as they are
popularly known, rose to eminence in wake of the credit
crunch.
In 2010, the newspapers were full of reports about millions of
Brits turning a brave face to the weather and marching off on
camping or B&B holidays. So it was in 2011 (according to a
recent survey, around half of us considered staycationing that
year) and so it seems it will be again in 2012 - only now people
are more comfortable with the idea.
The trend has sprouted into a thriving industry and some of the
UK's best known entrepreneurs have piled in. Simon Nixon, the
millionaire-many-times-over founder of moneysupermarket.com, has
invested heavily in plush five-star holiday accommodation in the
form of Simon Escapes.
The reasoning, he says, is that property (in this case huge houses
in beautiful settings) is an asset that you can sell when the
market is strong; but in the meantime you can make thousands of
pounds a week by renting it out on short lets.
Most of us couldn't replicate the scale of Nixon's business, but
it still makes sense on a less grand basis. All the more so if you
have property in London, because rents are going through the roof
spurred on by the thousands of people flocking to the Olympic
Games.
2) Pound shops
It's a sick fact that there are now more pound shops than book
stores on Britain's high streets. But as one star falls the other
is shining brightly, and demand for goods at knock-down prices has
never been stronger.
This 'coup de tat' is reflected in some pretty stark figures: the
number of pound shops is going up by 15 per cent a year and now
there are well over 3,000 in total. Demand is high, the stock is -
by definition - cheap and the time is seemingly right for this
retail niche.
And, believe it or not, there's room for a profit too. In
October, Poundland reported record turnover of £624m, 26 per cent
higher than in the 12 months to March the same year. Operating
profits also jumped to £31.7m, a 34 per cent increase.
But here's a caveat. The biggest risk to the pound shop boom is
inflation, which is currently charging ahead at more than five per
cent a year. In other words, things that cost £1 in 2011 will cost
around £1.05 in 2012.
Add the effect of rising input prices to creeping taxes, such as
VAT, and margins could get tight very quick. Poundland is doing
very well for now, but that £1 ceiling can't last for ever - and
'Onepoundtwentyland' doesn't have the same ring to it.
3) Microbreweries
In a climate where policymakers are waging war on alcohol and 40
pubs are going bust every week, starting a brewery doesn't sound
like a brilliant idea. Beer drinking is becoming less and less
popular, with cider and wine picking up the slack.
And yet around 100 new breweries are starting up every year.
Despite the fall in overall volumes being drunk, produce from
microbreweries is up around nine per cent. Why? Because beer from
microbreweries is all the rage.
People like to buy local and enjoy the multiplicity of flavours
on offer, while many more like sampling ales that few others have
tried before. Microbreweries give pubs a chance to offer variety
and they spice up the act of buying a pint.
The market for local ales is growing and even the youngsters are
getting involved. Better yet, ale drinkers make for loyal
customers. When Scottish independent brewery BrewDog made shares in
the company available via its website, it sold £500,000-worth in
two days.
It eventually raised more than £2m in exchange for eight per
cent of the business, a massive inflation of its £3.3m turnover.
However, investors were seemingly attracted by fringe benefits: a
lifetime discount on BrewDog beer and the opportunity to influence
the future course of the business.
4) Weather-dependant businesses
Apart from matters relating to the economy and the Olympic
Games, a third massive challenge for the UK could be brought on by
the recent unusual weather conditions. November was the driest
since records began and meteorologists expect unseasonably warm and
arid weather to continue into 2012.
The result could be a drought next summer, unless we get some
seriously heavy rain before then, and the Environment Agency is
already putting plans in place to make sure all parts of the
country have enough water.
It's not a great time to be an umbrella salesman, then, but
entrepreneurial as well as meteorological skills will be required
to sort the problem out - and you can bet the government will be
willing to invest in businesses offering solutions.
Meanwhile, extended periods of warm weather starting earlier and
ending later in the year will create a number of new markets for
businesses. Summer fashion brands - punting t-shirts and warm
weather accessories - can sell stock at premium prices for longer,
while
UK holiday lets (see point 1) should see an upturn in interest
too.
In addition, be prepared for sales of deck chairs, barbeque ware,
silly hats, bottled water and beer (point 3) to go through the
roof. Even the humble ice cream man gets a cut when the weather's
good. Is 2012 the time to make a leap into the 99 industry?
5) Funeral homes or accountancy practices
"Nothing is certain but death and taxes," said Benjamin
Franklin, and so far he hasn't been proved wrong. If all else fails
then these two stalwarts of business will always be in demand. At
least until people stop dying or the government bans tax, and
neither seems likely in the next 12 months.
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