What Type of Small Business will Grow in the Future?

Successful small business owners or entrepreneurs adopt flexible strategies to manage their business growth under a changing market scenario. Flexibility in approach is a critical factor in handling uncertainties.

The recent pandemic has forced many small businesses to move to a leaner structure to increase their efficiency. Many small business owners were forced to integrate new digital tools with their operating system because of a rapid increase in technology-driven customers.

The increased Internet usage in India is creating new opportunities and changing the way business is done. Small business owners are now forced to look for more unique channels to connect with their customers. But is this shift a pointer towards the future? What is likely to be the future small business ideas scenario?

Future business will be technology-dependent. The roll-out of the 5G technology in India will bring in a paradigm shift in the operational structure of small businesses; the new service (5G) will accelerate the adoption of digital technology by both companies and consumers. E-commerce and direct online sales will become more prevalent as the preferred sales mode of customers. Technology adoption will be the key for small businesses to be more competitive and resilient in future. New startups in any sector will need a technology-based structure.

What are the best small business ideas of the future? Let us have a look:

Future Business Types

IoT applications, clean energy solutions, warehousing and logistics, product servicing, and freelancing are some of the segments that will influence small business in the future.

Serious entrepreneurs will undoubtedly spot the best small business ideas for the future among the various possibilities in these segments.

The IoT – segment will have a significant impact and will create numerous opportunities. Let us analyse the unique business ideas that this segment offers.

• IoT represents a network of connected devices; it includes digital machines, tags, objects, devices having a unique identifier (UID).
• When connected, data detection and the transfer happens for real-time monitoring, along with other applications like records, validation and more.
• Many applications, ranging from health to data processing to the way we park our cars, will become a regular part of our lives; these technological opportunities will pave the way for small business for the future.

1. IoT applications

Let's take a look at some of the areas where IoT will find extensive usage:

• Smart cities: IOT will provide smart lighting, automated parking, facilitate waste generation and check pollution levels, leading to safety of residents and efficient resource management.
• Retail: IoT devices can track consumer purchases in a store, manage inventory, and prevent thefts (thru RFID –Radio Frequency Identification Tags). In other words, IoT will help in complete retail management.
• Manufacturing units: IoT devices can help increase productivity by enabling automation and real-time data analysis. It can optimise control room activities in plants by integrated workflow management and detecting quality or process errors.

• Health and fitness: Real-time fitness trackers and health devices can monitor health conditions (blood pressure, heart rate, sugar level and more) and, in an emergency, can send alerts to a pre-set number. Remote monitoring of a patient's health is possible through the uses of IoT devices and can take real-time decisions based on such data.
• Banking: IoT enabled Banks can provide personalised solutions to their customers, and the process of documentation (for loans and other services) will become transparent and straightforward.
• Data processing: Edge computing, which stores data on a local apparatus (placed near the IOT device), can be used to sort and calculate the data before sending it for storage. Edge computing will reduce the bandwidth consumption of the IoT device.
• Artificial Intelligence (AI): Better utilisation of AI capabilities by businesses; IoT collected real-time data improves the accuracy of predictive analysis.
• Cybersecurity: The rise in demand for IoT devices and IoT apps comes with a security challenge to prevent hackers from data theft. Specific software and programmes which can upset the entire chain of connected devices and keep your data safe will be another business segment.
• Agri –applications: IoT applications are set to change the production practices in agriculture in India. Sensor-based monitoring systems for crops, soil, field, and water management will change the face of agriculture. Production efficiencies will improve, will optimise water (a critical resource) usage and crop, wastage will get reduced. IoT will also be used in livestock management. Immense potential and possibilities await the savvy entrepreneur of the future in developing software, applications and devices involving IoT.

2. Clean energy home solutions

Increased environmental concerns have speeded up the search for viable alternative sources. Home solar energy setups are gaining popularity among many profitable small business ideas. This low-cost, low maintenance equipment is helpful in remote locations and can serve as a back up in cities.

A well designed, easy-to-operating solar energy equipment for home use offers enormous business opportunities to future entrepreneurs.

3. Warehousing and logistics

E-commerce platforms and online sales will be the most preferred channel of sales of future consumers. Physical product management will require huge infrastructure, creating a large sub-segment and business opportunities. Storage, inventory and deliveries will be the vital support activities.

4. Product servicing

A technological world will mean a higher dependence on gadgets and devices, opening up a vast scope of service, including software issues. The influence of devices will be so significant that interruptions will severely impact both the system and the user.

Prompt, reliable and quality service will be in high demand.

5. Freelancing

The gig economy, as the temporary contract-based jobs are described, will increase manifold in future. The industry will approach freelancers and consultants for a specific solution- based job.

Graphic designers, systems experts, video editors, content creators and many more professionally skilled people will have enough short term assignments.

Several other small scale business ideas, which provide solutions, will also gain popularity in future. Child care or children's play areas is one such idea. With the number of working parents on the rise in every city, childcare is a profitable business option.

Scientific waste management is one more of many small profitable business ideas. Wi-fi enabled smart dustbins, which signal when the bin is full, are already in use in many countries abroad.

Recovering and recycling metal waste from discarded appliances and equipment is another profitable area. Drone deliveries, 3-D printing, Home cleaning services, Video communication applications are other emerging segments.

Best small business ideas for the future will be those which shall provide a ready solution to customers' issues to improve their quality of life. If you are a serious entrepreneur keen on starting a business, several unique business ideas will come to your mind once you keep an eye on market trends. Your passion and determination will make your business healthy with a prospect of flourishing in future.

Also read:

1) How small business promotes industrialisation?
2) Impact of Lockdown on Indian Economy
3) GST: Is this a benefit to the Economy?
4) How funding boosts Startups to redefine Indian Economy?
5) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. How to get started with a futuristic small business idea?

Ans. Choosing a product or service idea is the first step in starting your business; the item selection must be based on your interest and skill set.

Future business trends indicate a significant role of technology and specialisation. You need to systematically focus on the idea of your choice, do proper background research on the prospects, and then move ahead.

Q. Which new small business can start with minimum investment?

Ans. Any business will require investments in infrastructure, facilities, equipment, materials and human resources. Besides, you will need money for connecting with your prospective customers (product promotion).

Any individual-oriented, skill-based freelancing business requires no investment to start; but, you must have the necessary skill which can be of value to a customer.

Q. I manage my family grocery business. How can I make it grow in future?

Ans. You have to consolidate your customer base through better service. Invest in technology to be in touch with your customers. The requirement of products/brands changes with time; you may start an online trading platform to deal with additional items. Your online sales will be routed through a wholesale platform online; this will bring more business without investing in stocks. The mantra is to stay relevant to an emergent technology-driven customer base.