- How we chose and vetted these businesses
- What you should pay attention to when choosing a business to buy
- The market size and potential for growth of the businesses
- How these ideas apply to the United States specifically
You’re out to buy a business, but which one should you buy in 2021? The fact that you have that question on your mind shows that you understand that not all businesses are created equal.
While one can give you more freedom with your time but take a while to generate profits, another might be immediately profitable but consume a huge chunk of your waking hours.
There are other deciding factors for buying a business in 2021 besides time and profits. We’ll dive into factors so you’re on track to make the right choice. And then we’ll show you the choices of the best businesses to buy that we’ve vetted.
Let’s dive in.
How We Chose the Businesses We Vetted
When looking for a business to buy, these factors should guide how you choose:
This is a measure of the returns on invested capital a business can bring in. We’ve equated this for each specific business in comparison to its industry average.
For instance, Shopify noted that the average profitability of general retail brands hovers around 20-25%. That’s the percentage of the total revenue the owner gets to keep. But a profit margin of 45% is a great result.
This number isn’t the same for all industries. So we noted that and equitably separated underperformers from outperformers.
2. Ease of doing business
Shopping with credit cards and other cashless ways is constantly on the rise. So, customers usually look for businesses where various easy yet secure payment options are available.
But payment convenience is just one aspect. People have different preferences in how they want to interact with a business.
Some like to use phone calls to book a service before visiting the place of business, others like to fill a form online and get a quote, and some will prefer to chat with the salesperson on social media.
Whatever the case may be, convenience is the new norm, and businesses that make provisions for it are more future-proof and resilient to changes.
3. Resilience and innovation
We can all accept it's better to buy a business that isn’t stuck in time; one that evolves with modern technology, socio-cultural changes, and socio-economic advancements.
One that evolves with modern technology, socio-cultural changes, and socio-economic advancements.
Adaptability adds a measure of resilience that keeps any evergreen business afloat while still delivering on its original promise. We used this factor to choose businesses that are better positioned to thrive through changes.
Best Businesses to Buy in 2021
1. Food and grocery
In fact, grocery sales accounted for 92.1% of the total store sales in 2019. Therefore, there’s a solid chance you can sustain revenue growth by purchasing a food and grocery store.
Food and groceries include fresh fruits, vegetables, cheeses, meat, milk, etc. These grocery items are crucial purchases for every household. Online grocery shopping hasn’t reached full adoption yet, but you can buy a store and maintain an online outlet to stay with the trend.
Online grocery shopping hasn’t reached full adoption yet, but you can buy a store and maintain an online outlet to stay with the trend.
2. Pet supplies
Although it is a niche market, its popularity is growing exponentially. Pet supplies include food, clothing, carriers, carriages, pet houses, etc.
85 million US citizens have a pet in their home, making a whopping 67% of the total population. The most intriguing fact to note is that 95% of American pet owners treat their pets as part of the family. Therefore, they love to shop for and groom their pets.
Besides, the sales of pet supplies industries have grown to $4.54 billion, with an increasing growth rate of 2.7%.
3. Departmental store
A departmental store is like shopping for everything under one roof. It includes shoes, clothing, food, grocery, jewelry, household items, accessories, etc.
Department stores offer a comprehensive shopping experience to the users, and the trend is going nowhere in the coming years. Mostly, women and young adults shop at department stores.
4. Prescription eyeglass centers
With the growing use of gadgets and increased screen time, more people tend to wear prescription eyeglasses. According to the Vision Council of America estimates, more than 75% of adults wear some kind of vision correction. The percentage of people who use eyeglasses is around 64%, and it is indeed not a neglectable percentage.
Why prescription eyeglasses centers? It is one of the services 99% of users will never look online for. They will walk down to your store and choose the vision correction gear on the spot.
5. Party supplies store
Party supplies store is again a niche market, but you can purchase the party supplies business to pair it up with some sort of event management service.
Although the global lockdowns had put a limit on the large gatherings and meet-ups, it has a bright side. A lot of people still arrange close gatherings in their backyards and need party supplies for it.
The market is not saturated yet, and you can grow exponentially by pairing up party supplies stores with other side services.
6. Car wash service
Again, a service that requires a brick and mortar building, literally. Car owners rarely look for car wash services on the internet. Instead, they prefer to commute around and find a good service station for recurring car washes.
You can augment this with a local SEO strategy so that customers in your area who prefer to check online for a car wash service first before driving down there can find you.
7. Health and medical supplier
Just like grocery and food, health and medical supplies are also a necessity of life. The niche of personal care is also associated with the health stores, as more people prefer medicated shampoos, cosmetics, and personal care products over artificially prepared ones.
Besides, most people rush to the pharmacies when they need medicine instead of looking online for medicine and waiting for it to be delivered. The North American medical supplies market is also expected to reach a value of $131 billion by 2027, with a CAGR of 6.7%.
It clearly means that you can leverage the market growth forecasts and reap profits in a medical store.
8. Food trucks
The food truck business is growing exponentially due to the increasing costs of real estate in big cities. If you have an artistic taste for food but not enough capital, affording a brick-and-mortar location might be impractical.
A food truck is a great solution that is physical yet mobile. You can take the food truck anywhere like local events, farmer's markets, local town squares, etc.
Above that, if you’re lucky enough not to be in trendier cities like Boston or San Francisco, the overwhelming crowd will be welcoming for you. Since it is a considerably new market, the ordinances, business licensing, and safety standards are also different for the food trucks.
9. Butcher shop
The local butcher shops enjoy the advantage over the grocery stores as fresh meat is readily available at the butcher shop — an essential commodity for non-vegans who still make up 95% of the population.
The quality of meat, freshness and local sourcing are major concerns for most meat buyers. Butcher shops can choose local farms for sourcing, and the network helps you grow the business.
10. Healthy bake business
Vegan food, sustainable sourcing, and health consciousness have increased overall. This also applies to bakery products as more informed consumers prefer to buy healthy baked products.
Although it is a niche market at present, forecasts show a considerable increase in market size. The market of vegan baking ingredients is expected to grow at a CAGR of 5.6% during 2019-2025.
The same goes for healthy bakery products and vegan bakery products. The physical storefront is also necessary for bakery business as the health-conscious consumers are more concerned about food safety compliance and health standards.
11. Cosmetics store
Undoubtedly, the beauty and cosmetic products sale through online channels has increased exponentially in the past few years. However, 56% of consumers are reluctant to purchase cosmetics online as there is no option for physical testing.
Beauty-conscious consumers are always looking forward to feeling the products, checking the ingredients, and comparing the substitutes before purchasing. You can get an idea about the market size as American households spend an average of $170.3 on cosmetics. In the past 5 years, this amount has grown.
12. Coworking space
The world has been introduced to 100% remote working during the pandemic era, and many people have overcome the barrier of being their own bosses. Therefore, more Americans are confident to start their own businesses online and need coworking spaces.
A coworking space is preferred by many remote workers as you can stay organized without being in actual office settings. The bright side of the industry is that the USA leads the world in the coworking spaces market in terms of area coverage with 80 million sq. feet of workspace. The phenomenon is becoming popular and growing across the globe too.
13. Consultancy Firm
When we say consultancy firm, you have unlimited options. You can purchase a business consultancy firm, law consultancy, tax consultancy, audit consultancy, accounting, bookkeeping, personal health, mental health, etc.
Ever since businesses have existed, problems have coexisted. Consultancy firms related to business matters are not going anywhere. You can combine the online and offline channels to meet up with the technology advancement in the consultancy business.
The personal consultancy firms can include marriage/relationship, real estate consultancy, wedding consultancy, nutritional consultancy, educational, personal development, etc.
Just so that you know, the U.S. has a 93% market share of the consultancy industry in North America.
14. Coffee shop
A café or a coffee shop is also one kind of business that is not going to be out of the scene in a very long time. You can sell coffee and confectionaries as most people visit the cafes during their commute to the office or school in the morning. 65% of the coffee consumption in the U.S. takes place in the morning, and a large number of people prefer to visit a nearby café for this pick-me-up.
15. Bridal gowns and accessories
Brides dream of this big day. They have specific expectations, plans, and ideas about the wedding gown, accessories, etc., and some go as far as sparing no cost to make this day super special.
According to Brides American Wedding Study in 2020, the average cost of a wedding gown is around $2,349. The market size of wedding gowns and accessories was reported to be $58.4 billion in 2018. The expected growth rate from 2019 to 2025 is 5.6%.
You can help the brides get the right dresses for their big days. The margin of success in the business is high as bridal dresses are seldom shopped online, and brides prefer to visit physical stores for their dresses and accessories.
16. Daycare center
Daycare centers are schools for babies and toddlers where working parents can leave their kids during office hours. A daycare center is a 100% physical business that has grown in past years and will grow in the future too. As more Americans are getting back to their offices, daycare facilities are indispensable for people living in busy cities.
Print Shops have become popular as the art of customization has picked up. From printing t-shirts to mugs and other personal goodies, people like to customize almost everything they have.
Besides the premium printing services, you can also offer customers to walk in and complete their printing jobs. It is more like providing them a facility to print whatever they want. It is also a profitable business that will grow in the near future. Also, the idea is resilient and goes hand in hand with technological advancement.
Other Business Ideas
The list of best businesses you can buy in 2021 for profitability and growth prospects does not end here. There are so many other businesses that you can buy.
Some of the other businesses are:
- Rent-to-own services
- Home Services Businesses
- Fitness and gym center
- Private school
- Cloth designer
- Salon and nail care center
- Pet shelters
- Gas stations
- Car rentals
- Fabric alteration business
- Massage therapist
- Farmers’ market
- Mobile phone repairs
Each industry has its own pros and cons, but we have tried to vet the businesses that have the most growth prospects. Even then, some businesses are specific to the skill set of the owners.
For instance, if you want to purchase a one-person mobile phone repairs business, you must possess the skill before you step in. Similarly, consultancy services also require personal skills to run the business.
For more information and to learn how you could acquire one of these businesses or another one, reach out to our team members.
Acquira is a business acquisition in a box service. We help entrepreneurs buy businesses and we invest in them and their chosen businesses. We are here to help ensure that each business we work with is posed to make the biggest positive impact possible for its owners, employees, and community.