As we navigate our way through the challenges of recent years, you might be asking yourself, "should I start a business in 2024?" In the face of economic uncertainty and shifting global dynamics, the idea of starting a business in 2024 might sound like a daring leap of faith.
What if we told you that 2024 might just be the perfect moment to turn your entrepreneurial dreams into reality? In fact, in the evolving landscape of entrepreneurship, 2024 presents itself as a promising chapter for those with a dream of starting their own business.
From the growth of remote work to an increase in the need for "side gigs" and "home-based hustles," there has never been a more opportune moment to take the leap.
1. Opportunity for Side Hustles
With the rise of remote work and the gig economy, side hustles have become increasingly popular. In fact, roughly 50% of adults in the U.S. have at least one "side gig." Looking at the demographics more closely, Gen Z leads the way with 62% starting a side gig last year. This trend is expected to continue into 2024 as more people look for ways to supplement their income and gain financial stability.
Why the sudden increase? In the past, one of the biggest hurdles of starting a business was the risk and fear of losing income from leaving a primary job. With the rise of the gig economy, that is no longer the case. More people than ever before are looking for ways to make money outside their traditional 9-5 schedule.
Many entrepreneurs or prospective business owners may also pursue a side gig as a way to test the waters on a new career direction, or maybe to work in an industry they are passionate about, something their regular full-time employment would never allow them to do.
In fact, with the rise of remote work and an increase in flexible schedules, 2024 might be the ideal time to start a business that offers a valuable service or product people want and need - like those found in the home services industry.
2. Work-Life Balance and Career Growth
Another compelling reason to start a business in 2024 is the possibility of greater work-life balance. Unlike traditional 9-5 jobs, as a business owner, you have the flexibility to set your own schedule. It is true that the early stages of owning a business may demand more time and effort, but over time, you can create a work schedule that suits your lifestyle and personal priorities.
For example, many business owners enjoy spending more time with their families, traveling, or scaling their business at their own speed and comfort level. This often allows them to balance their lives and prioritize their time, allows them the ability to allocate energy toward things that are important to them.
With more autonomy over your time and career, you may find that you can seize greater control of your personal and professional development, creating new skills and improving old ones, and growing a successful business.
3. Growth in Recession Resilient Industries
If we're being honest, another big deterrent that keeps people from starting a business is the state of the economy. All signs point to economic growth and stability, but enough uncertainty remains that may cause hesitation to take on the challenge of owning a business.
There are many industries that have proven to be more resilient despite economic downturns and could offer a safe haven for business owners in 2024. The home services industry is one such sector, largely due to the essential nature of the services provided. In fact, recession-resilient industries like home services often experience stability and even growth during economic downturns.
How is this possible? It's because home services, such as cleaning, plumbing, electrical repairs, HVAC maintenance, and pest control, are essential for homeowners. These services are required to maintain the safety, functionality, and comfort of homes, making them services people will continue to need regardless of economic conditions. In fact, the CAGR of On-Demand Home Services is expected to be 49% from 2020 to 2025. This makes a home service business one of the best options for entrepreneurs in 2024 - and beyond. And home services should be more insulated from the impact of emerging AI-driven shifts in demand.
4. Skills Shortages
The retirement of baby boomers and the aging demographic presents a growing market opportunity, and entrepreneurs with relevant skills can capitalize. As more experienced individuals retire, there is a growing demand for skilled workers and business owners to fill these roles.
The resulting skills shortages indicate a high demand for certain expertise or services. In fact, starting a business that caters to the needs of industries with shortages can lead to a steady customer base and potential growth.
For example, one industry where the shortage of skilled labor drives up demand is the home service industry. As the industry continues to grow, it also continues to face labor shortages. More than 40% of employers in the home services industry report a shortage of skilled workers. As a result, 2024 looks to be a great time to start a home services business!
5. Success in Franchising
Starting a business comes with a fair share of challenges. But entrepreneurs can skip a lot of the startup headaches by choosing to start a franchise business instead. In fact, franchising is one of the most popular ways to start a small business - and it's not hard to see why.
Franchises come with well-established and proven business models, reducing the risk to owners often associated with starting a business from scratch. Plus, franchisors provide training, ongoing support, and access to resources that can be invaluable, especially for first-time business owners. This support can greatly enhance your chances of success and help you better navigate times of economic uncertainty.
You may even be surprised to learn that financing a franchise can be easier than other types of businesses! That is because banks and lenders may be more willing to provide financing to franchisees due to the franchise's established track record (and lower overall risk).
Unlock Your Entrepreneurial Journey in 2024 with Neighborly®
Now that you know why 2024 may be the perfect time to start your entrepreneurial journey, it's time to discover how Neighborly can help get you on your way. The team at Neighborly is here to help by offering aspiring small business owners’ valuable insights that can help you decide if starting a franchise business in 2024 is right for you.