In this post I highlight 10 Industries to invest in 2020. If you desire to own your own business this year, the tips here will help you make informed decisions.
The type of business you chose to do is a critical to your success as an entrepreneur. Most aspiring entrepreneurs make the mistake of believing that selling what people need is the silver bullet in choosing a business idea.
They often get over confident that they can get into any industry, sell any product or offer any solution and become successful at it.
It really doesn’t work that way!
Have you ever observed a fisherman ply his trade? He looks for the deepest part of the river to cast his nest? Why? Because he knows that is where the big fishes are!
Here now is my list of top 10 industries to invest in 2020
#1. Financial Services
Financial Services is top on my list of industries to invest in 2020. Someone told me that the money is in the money and I agree.
There are a lot of money to make in financial services. Every body desires to live a good life and to do so one has to be able to afford most of the things he needs – food, clothing, shelter, access to good education, quality health care, vacations and things like that.
Living a good and happy life requires money. “Money answereth all things”, wrote the greatest King that ever lived, King David in the bible book of Proverbs.
Every sector in financial services can make you money in 2020 and they are many…
Asset Management, Investment, Savings, Loans, Consumer Finance, Brokerage Services and Insurance are all hot areas that will remain so for many years to come.
Find a product, service or solution to help make financial services delivery easier and better. Think of a solution or service to improve financial inclusion or bring the poor segment of the society to the financial system.
Initiate a financial cooperative, investment club, thrift collection, loan services, etc.; or develop an app that make things easy for people rendering such services. You will definitely smile to the bank.
#2. Technology and Innovation
Technology and innovation have been described as the 4th industrial revolution. Opportunities here are massive as technology innovation becomes core to all types of businesses.
Three key technology will drive business transformation, impact life, society and the environment in the next three years. These are Artificial Intelligence (AI), Internet of Things (IoT) and Robotics.
The winners are those entrepreneurs who get creative. They adopt technology to disrupt existing business models by making services better, enhance benefit or make things work faster.
According to a study by KPMG, healthcare, media, transportation and retail are industries that will witness the greatest disruptions or transformations in the next three years.
You need not reinvent the wheel, Just get creative.
The healthcare industry will always be a lucrative one. The reason is that good health is a primary need of man. People will always spend money to maintain good health, keep fit and live longer.
In America, national spending on healthcare is projected to grow faster than GDP at roughly 6% annually up to 2026. Similarly, healthcare related occupations is projected to grow at 18% within the same time period.
That is huge opportunity.
Any product or service that will help people live longer and healthier life is a money making opportunity for entrepreneurs.
Some of the services may require special training, others may not. Medical tourism, medical fairs, equipment sales, medical waste recycling, sperm bank and herbal remedies are some of the business concepts an entrepreneur can explore in healthcare.
#4. Real Estate and Construction
Projected at 8 billion by the year 2025, the world population is growing rapidly and so is the need for infrastructure. The United Nations projects that there will be 10 billion people in the world by the year 2050.
That is ten billion human beings that will need housing, recreation facilities, business places, shopping centers, play grounds, et cetera.
Which sector is responsible for providing these things? Real Estate and Construction Industry!
Can you see the opportunities? Real Estate and construction business will continue to expand as the world population grows. Investing in real estates comes with so many benefits.
It not only store value but also appreciates in value over time. It provides significant amount of passive income and offers enormous amount of tax benefits. This is the reason every wealthy person you know have real estate asset in his portfolio.
The good news is that there are many ways to invest in real estates. So if you don’t want to deal with the issues of managing real estate business or you are one who find dealing with tenants boring; settle with earning passive income by exploring one of the investment options.
The common challenge for many people is that investing in or starting a real estate business may require huge capital outlay and the processes may be daunting for the average person. The good news is that you can easily acquire useful knowledge by accessing relevant resources online, many for free.
Education will continue to be a thriving industry as more and more people seek knowledge. And with all the technological changes taking place, knowledge will become more critical.
People will always want to learn and equip themselves with new skills in order to become relevant in the new space, the space of software, robotics and artificial intelligence.
The opportunities exist in connecting different kinds of people, professionals, executives, etc with new sets of 21st century skills to help them get more sophisticated jobs, deliver better service, become more efficient and more profitable.
Beyond traditional learning, opportunities also exist in non-traditional education. Entrepreneurs who set up systems to provide solutions that make learning better, faster and more efficient are in for the money. And here I consider virtual learning, app based delivery and tutor finder services.
#6. Entertainment and Recreation
After all the hustle and bustle trying to make money and live good life, people seek entertainment. In fact, people demand it. And entertainment is so wide.
Music, movies, video production, animation, special effects… Big companies are going into entertainment and the industry is one yet to be fully disrupted. Talk of Netflix, Amazon Prime, Disney, are some of the big players in the business of facilitating entertainment.
The growth of social media has created new breed of entertainment that is gradually becoming a multi billion dollar industry. I am talking about social media influencers with platforms like YouTube, Instagram and Facebook. In addition, comedy has become a huge sub sector and never before has stand up comedians made so much money than now.
You need not be in the main stream entertainment to eat a piece of the entertainment cake. Just think of a solution, product or service around the mainstream and create a company to deliver that service.
#7. Energy and Power
Energy is critical to life. We need energy to power our homes, offices, factories, markets, recreation centers. Vehicles, trains, air crafts, machines, home appliances need energy to function.
There are questions around traditional energy sources and the impact on the environment. Though these traditional sources or non renewable energy such as gas, oil and coal still account for the majority of world energy supply, the movement is towards renewable energy such as solar, wind, hydro power, biomass.
Nations and corporations now invest billions of dollars in cleaner and renewable energy sources. But even as a small scale entrepreneur, if you can come out with solutions to service the big players in this industry or to meet a tiny need in the sector, you can be making millions if not billions.
The energy sector is capital intensive and so you have to connect with people and professionals to help in funding. You also must develop relationship with government because you will need them for licensing and concessions.
#8. Transportation and Logistics
Two factors will continue to drive the opportunities in transport and logistics and these are the growing global population and the increasing popularity of e-commerce.
The number of people that need transport to move around locally is huge and so also is is the rate of migration. More and more people travel to different parts of their local countries and many others migrate outside their countries to many parts of the world in search of better life … the greener pastures.
The demand for mass transit systems, personal vehicles, aerospace, rail and water transportation will continue to be hot and so are the ancillary or support services around the industry.
Many people now shop online and big online stores like Amazon and Alibaba ship goods all over the world to their virtual customers. :Local online stores are also springing up as more and more people take to online shopping for its convenience and sometimes lower costs.
This is increasing the need for more delivery service operators, shippers and air freight service providers. Can you make delivery better or faster, can you improve the logistics of online shoppers? It could be a simple solution or software that help the major players to make their service better.
Then you are in the money.
#9. Food and Food Processing
We have seen that the world population is growing astronomically. These billions of people will not only need shelter or have the need to move about or learn new skills, they will also need food.
Even the animals we keep as pets or breed for meet will need to eat. The food industry is a big one and value chain is wide. People don’t just want to eat, they want to eat healthily.
So if you think of solutions that makes food production better, easier, faster and healthier or its delivery better. Think of cost effective way to make food available and you are in to make millions.
The food industry will not go away.
Agriculture is one of the lucrative industries to invest in 2020. Any difference between food and agriculture? some may want to ask.
Yes, the former is derived from the later but agriculture is more expansive. While food business basically entails the packaging, processing and making available food for people to eat. Food itself is a product of agriculture. Agriculture encompasses production, research and development and will include technical concepts like genetic engineering, plant breeding and plant protection.
The opportunities in the sector is huge including crop farming, animal husbandry and horticulture, A smart entrepreneur will develop systems to make agricultural production better. One entrepreneurs are doing is by applying technology tools to improve seedling and increase yield.
Others are applying technology to marketing of agricultural production and raising funding for agricultural projects.
What services, products or solutions can you think of to help improve agricultural production and projects within the value chain. Can your solution make it better, faster, more profitable or easier for consumers to access.
Create it, implement it and smile to the bank.
Let me conclude by emphasizing that we are in a digital age and as we begin a new decade in 2020 the impact of technology will become so pervasive that any business that’s not online will be missing on massive opportunities.
Already we have started seeing this but in the next decade those who have digital skills will be in high demand to provide services to these industries highlighted here.
Is there other industries you think should be included in this list? Let’s have your comment below.
Buchi provides small business owners with strategic, financial, and digital support to help them build strong, successful and profitable enterprises. He is a Blogger at night and by day, Team Lead at Stalwart Investment Partners Ltd, a research, business and investment advisory firm.