5 Outstanding Ideas for a New Small Business in 2022
The startup surge that surprised many over the past two years seems to be continuing into the new year.
"There have been more new businesses formed so far this year than ever. Literally ever," writes Gene Marks in an article for The Guardian.
An estimated 1.4 million new business applications were filed with the government through Sept. 30, 2021, compared to 1.14 million during the same period in 2020 and 987,000 in 2019, he says, pointing to U.S. Census Bureau data analyzed by the Economic Innovation Group.
"It now seems almost certain that the elevated pace of business formation in 2021 will be sufficient to surpass the record-breaking total of 2020," the researchers said, according to Marks.
Several factors may explain the surge in new businesses, including a post-pandemic environment that created a niche demand for new services and goods. Plus, there's the availability of capital and low-interest rates.
Here are some hot ideas and industries for a new small business in 2022.
Pet Products and Services
"Markets like pet services have existed for years but are now exploding with possibilities," explains a post by Webflow. This San Francisco-based company provides software to build and host responsive websites.
The high demand for pet-related products and services is partly due to the increased number of pet owners in the U.S.
The 2021-2022 survey from the American Pet Products Association's National Pet Owners (APPA) reports pet ownership increased from an estimated 67 percent of U.S. households that own a pet to an estimated 70 percent.
Also, pet owners are spending more on their furry friends. According to the APPA survey, 35 percent of pet owners stated they spent more on their pet/pet supplies, including food, wellness-related products, and other pet care items, in the last 12 months than in the preceding year.
According to a post by Harriett Meyers for the American Kennel Club, pet industry sales exceeded $100 billion, marking an all-time high.
"This tidal wave of spending is expected to continue for the near future," the post says, citing a Morgan Stanley forecast that indicates pet industry spending will nearly triple to $275 billion by 2030.
Meeting and Event Planning
A pandemic may have paused onsite meetings and events, but a new business that provides these planning services would respond to a forecasted demand in 2022 and beyond.
Employment of meeting, convention, and event planners is projected to grow 18 percent from 2020 to 2030, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics.
"As in-person events become more popular as spaces reopen around the country, that interest will only continue to grow," says a blog posted by payments company Square.
A new business that exemplifies community-focused spaces is Fountain Haus, started by entrepreneurs David Brinkerhoff, Dan Meiners, and Ryan Overberg.
Set to open in early 2022 in one of the city's popular entertainment districts, the multilevel club and restaurant is a new space for the LGBTQ community, offering a variety of experiences in one location. "You can barhop without leaving the building," co-managing partner Overberg told The Kansas City Star. "You can start your night in the speakeasy with a nice cocktail, go dance, go to the rooftop to get some fresh air, go grab a bite to eat."
In Long Beach, Angie Evans and Kat McIver are an example of entrepreneurs with a community-focused space.
The two started out selling specialty coffee and pastries at local farmer’s markets in California before moving ‘Wide Eyes, Open Palms’ to a brick-and-mortar location, according to a Square Up blog. The blog says that the entrepreneurs frequently partner with the local small business community and the LGBTQ Center of Long Beach.
A Multi-Hyphenated Business
Another great idea for a new business in 2022 is a venture with multiple themes or a multi-hyphen space, such as Brother Moto, a motorcycle-repair-space coffee shop and lifestyle brand started by entrepreneurs Jared Erickson and Bobby K Russell in Atlanta.
It combines the welcoming environment of a coffee shop with their expertise and interest in motorcycles," says Erickson in an interview with Square editor Alise Bailey.
"I'd always found it hard to find a place to just hang out and be around motorcycles, Erickson said. "Coffeeshop environments are always welcoming, so we combined the two. It's a really inclusive environment, whether you're curious about motorcycles or just looking for good coffee."
Green Energy/Sustainability Products
There also will be opportunities for entrepreneurs in the green energy and eco-friendly industry in 2022.
New businesses in the U.S. with green energy solutions such as electric vehicles, solar panels, wind generations, rainwater harvesting systems, as well as energy-smart appliances and technologies will get government support, points out Ling Wong in a blog for Fast Capital 360.
"More people than ever are aware of the impact of their actions on the environment, and this is reflected in their shopping behavior," Wong writes.
Also, she says, research by GWI found 52 percent of consumers want products with less or recycled packaging, 48 percent want more affordable eco-friendly products, and 44 percent want products with more natural ingredients.