Written By: Lindsey Vandenberg | Digital Marketing Specialist | Updated November 2023
The economy is ever changing, and experts have predicted a potential recession in 2023. However, an economic downturn has yet to happen, but many experts still believe a recession could happen in the next few years. While the prospect of an economic downturn is concerning, indicators suggest it’s still a good time to start a business.
Online platforms like freelance marketplaces, website-building programs, and social media make running typical business services more accessible and inexpensive. These technologies make it a good time to start a new business venture even during economic slowdowns.
In the first three quarters of 2023, there has been an increase of $47 billion in spending for services, and a $36.7 billion increase in spending for goods, according to the Bureau of Economic Analysis. This is partially due to inflated costs; however, the increases show that consumers are willing to pay for what they need. Knowing that consumers are willing to spend despite financial concerns, future business owners should consider launching companies in tech, healthcare, and home improvement industries.
As we see record inflation increases on the cost of goods, gas, and utilities, service-based businesses prove to be low-cost alternatives to product startups or tech companies. Plus, business ventures without additional office space, employees, or anything more than a computer have little overhead costs.
More than 50% of the homes in the US have been built before 1980 meaning homeowners are likely to continue investing in home repairs and improvements. According to data from the Bank of America, households in the US spend an annual average of $3,000 for home improvement projects. Meanwhile, more than 20% of homeowners will invest $5,000-$15,000 for home improvement products and projects.
Businesses offering home improvement services are bound to see an increase in revenue year over year. The market for home improvement services grew more than 60% from 2012 when the market size, measured in revenue, was $143.5 million to a massive increase of $235.2 million in 2022, according to The Farnsworth Group.
While the home improvement industry is seeing high profit margins, it’s important to see specific data for the types of home services offered. According to Google search data, concrete services prove to be one of the top sectors with an increase in search of 24% year over year since 2019.
The onset of the Covid Pandemic in 2022 has driven a surge in new business creation driving the number of new businesses up. According to the US Census Bureau, there is an average of 4.4 million businesses started every year. Knowing this information, the question is how do new business owners stand out in such a concentrated market? Franchising!
There are many values of franchising; established brand, proven business model, and access to more financing are the three most important items in franchising that you do not get when starting your own business. Franchising has been a viable and, in most cases, a financially appealing option for many people seeking to become their own boss. Why start from scratch when you can invest in an already successful business?
Sam The Concrete Man is the national leader for residential and commercial concrete services. With 30+ years of experience in the concrete industry, we have pioneered a business model that works for each of our 70+ locations across the United States. When you are a part of the franchising family, you are offered endless support and a work/life balance that every business owner strives for. Give back to your community one concrete job at a time!
Franchise Development VP: Ronnie Musick
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