Small business ideas to start in 2022
Starting a business has always been unnerving because of the risks it involves. Still, recent technological advancements have made it easier to launch new ventures since many online companies need very little capital or infrastructure at the outset.
As economies show signs of recovery with the growing optimism post-pandemic, we have seen a wave of exciting new start-ups. However, while more accessible in some ways, it is essential to acknowledge that traditional low-risk businesses now come at a cost. For example, a hip coffee shop might have been a low-risk business back in 2018, but today, entrepreneurs need to consider the shift in how consumers think and act and build companies that support these personalised customer needs and demands.
Climate change and sustainability are just a couple of trends that influence consumer behaviour and will only continue to gain momentum as ethically minded consumers try to do their bit for carbon neutrality.
Given that approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first ten years, it’s vital to choose your industry and niche carefully.
So, what kind of businesses can be considered less risky in today’s complex and competitive environment?
Biodegradable and reusable products
As the world becomes more aware of the issues related to climate change, many entrepreneurs see eco businesses as both a worthy mission and a potentially successful endeavour.
A great example is biodegradable and reusable products that have become more popular due to their low impact on the planet. There really is no limit to business ideas for eco-friendly products; biodegradable phone cases, personalised tote bags, reusable face wipes, and beeswax food accessories.
Given the endless possibilities, this is one of the best small business ideas for 2022.
Clean, sustainable and gender-neutral beauty products
Alongside the awareness of environmental health, there has been a big push for the adoption of ‘clean beauty’ products in the cosmetics industry. Brands that include non-toxic, vegan, and eco-friendly products that have a low impact on the environment are more in demand than ever as consumer awareness is at its height.
Also, while the women’s beauty industry has always been widely popular, there’s been a growing demand for gender-neutral products. With men, transgender and non-binary individuals buying and using beauty products, this segment is expected to rise to $166 billion this year.
These positive trends are likely to continue, making them potentially great business opportunities.
Social media management
Social media usage is one of the most popular online activities, with an estimated 3.96 billion people using social networks worldwide in 2022, a number projected to increase to almost 4.41 billion in 2025. It’s no surprise that social media experts are more in demand than ever before, and companies are fighting to find the best people or agencies to manage their social presence.
Considering that this sector didn’t even exist only a decade ago, and in 2020, social media ad spending jumped by 14% compared to 2019, now is the perfect time to start a social media business.
Tech platforms for side-projects
The years spent home-bound during multiple lockdowns were an opportunity for most people to take a moment and re-evaluate their lives. While many decided it was finally time to quit unfulfilling jobs, others decided to power ahead with their side-gigs previously held at the back of their minds.
Finding new projects and managing extra income is also made easier by technology. In the United States alone, people make an average of US$10,972 a year from side-hustles like teaching, writing blogs/newsletters, renting out their homes, freelance programming and more.
Some entrepreneurs tapped into this opportunity; they developed platforms that offer freelancers and contract workers the channels and tools to connect them to work they otherwise wouldn’t have access to, helping them turn their hobbies into businesses.
This growing market is a great place to start for those considering a tech start-up. Online payment platforms, accounting software, niched project marketplaces and even forums or support sites that guide people through the process of taking on a side project and developing it into a business are all great ideas for a new small business.
Building a business has never been easy but kicking it off is no longer as daunting as it once was, thanks to technological advances and greater access to people and information. At the same time, many start-ups are prone to failure at the early stages as markets become quickly saturated, and consumers are bombarded with online ads making them almost immune to new businesses.
However, not all is lost. Many sectors have recently gained popularity and still have room for growth. Tech platforms that address real needs and the growing environmental awareness make these sectors viable business opportunities. Before building a business case, understand what problem you propose to solve, how consumers act and what they’re looking for. Most importantly, don’t get discouraged; there’s always room for a functional, well-thought-out product or service.
