Have you ever thought of starting a side business or building your own dream company?
With new industries appearing every year, what niches are the most promising? How to pick the one that’ll bring you the most joy and profit?
In this article, we’ll answer just that.
Using market predictions and IBISWorld reports, we’ll examine eight industries that are showing increased growth and profits in the UK entering 2024.
Table of Contents
#1. The humble supermarket
We can’t start this list without at least mentioning the industry leader in the UK. Reaching over £200 billion in revenue this past financial year, it’s clear that the supermarket industry is a force to be reckoned with.
From independent grocers to large chain supermarkets, there’s plenty of room for growth in this sector. Due to the COVID-19 pandemic, the online grocery industry is still popular and thriving.
As we leap towards a technologically advanced society, cybersecurity software development is becoming more vital than ever before. Companies of all sizes are creating useful and profitable cybersecurity tools. These can include:
- Enterprise-level security solutions;
- Commercial solutions like VPN, password vaults, and antivirus;
- AI-based threat detection software.
Wages and yearly revenue in the sector have grown over 10% in 2023 — it’s clear to see the big rush towards “big tech.” However, small consultancy and development firms are seeing major profits as well.
#3. The new Brexit economy
When one door closes, another opens — various industries are taking advantage of the UK’s departure from the EU. Start-ups focused on post-Brexit business are seeing considerable growth:
- Ireland/EU travel consultants;
- Brexit business law firms;
- UK-focused travel agencies;
- Supply chain management.
Find your niche and profit from the surging demand for UK-based services. So whether your business was affected by Brexit or not, an entire economy is already being formed post-Brexit for you to join.
#4. Bed & breakfast host
Let’s say you’re just looking for a side hustle to make some extra cash. If you have any unused bedrooms, apartments, or properties, consider becoming a bed and breakfast host. There are loads of apps to remotely manage bookings, the most common being:
With cheap cleaning costs, bed and breakfast hosting has an insanely large profit margin. Depending on the location of your property, you can capitalize on the increased interest in UK-based travel post-Brexit.
#5. Renewable energy development
It’s impossible to deny the inevitable impact that climate change will have on industry. As the “green wave” rolls in, get ahead of the race — the renewable energy sector is showing steady growth and is expected to explode in coming years.
Depending on your expertise, the renewables industry is vast and accommodating. From social initiatives and education programs to renewable energy development and production, the sector is incredibly promising for start-ups.
#6. Online Education
Education is moving online, and a number of industries have already popped up to take advantage of the migration. E-learning platforms are making huge profits, projected to reach close to £50 billion in revenue in 2024.
Do you have any marketable skills? Any lessons you believe to be valuable? Chances are, someone will happily pay for your course. Course creators can achieve incredible returns on video courses as short as a couple of hours long.
#7. Contract construction
Well, we can’t forget about the labourers out there — perhaps your next smartest move is to start contracting. In the UK, the second largest industry, worth over £200 billion in 2023, is contract construction.
With enviable wages, even individual contractors can make a whole lot more by working for themselves. The job includes more administration work than you’re probably used to, but it’s a promising move for individuals and smaller groups.
#8. Food & beverage
Okay, it’s pretty obvious that Brits adore a pub — if you feel more comfortable behind a bar than in an office, consider opening a new business in the UK’s favourite industry: the food and beverage sector.
Dip your toes into London’s creative culinary scene, or join the craft beer wave in Edinburgh. Apart from venues, small to large brewery companies are also profiting from the growing interest in artisan beers, wines, and spirits.
Are you feeling inspired to take on a new business niche?
Today, we’ve merely scraped the surface of the UK’s most promising industries heading into 2024.
Choose wisely, and you’ll see profits in no time!
FAQs about starting a business in the UK
What are the biggest threats to niche businesses?
Unlike larger, established companies, niche businesses, and start-ups face their own set of threats. At the tip of the iceberg are:
- Smaller growth potential than corporations;
- Issues maintaining long-term growth;
- Losing clients when markets diversify and fragment;
- More suitable products or solutions in the same niche.
Let’s be honest here — a majority of readers will be looking to start an e-commerce business, in which they sell and advertise their products all online. At the moment, the current top-sellers in e-commerce are:
- Beauty products;
- Eco-friendly alternatives;
- Health and fitness;
- New and used fashion.
The UK is a great place to start a business, thanks to various government funding schemes to receive financial aid. In fact, in Startup Genome’s 2023 Global Startup Ecosystem Report, London and New York are tied at second in the world for starting a business.
Luckily, the UK is incredibly lenient towards foreign-owned and run businesses. For a long time, the UK has been known as one of the easiest Western or Eastern countries to create a startup as a foreign citizen.
Will Brexit affect my business in the UK?
Undoubtedly, a vast majority of UK-based business is still being affected by Brexit. However, thanks to joining new trade groups like the CPTPP, international business within the UK is expected to lift off again in the coming years.