A growing trend within the business and finance industry is investing, with people looking at investing in other companies. Before you dive into the world of investment, it is crucial to understand which business sectors are the strongest.
After all, investing in businesses is all about investing in the right ones, and growing the money you put in.
For many savvy investors out there, they analyze the market in terms of ‘supply and demand’ researching into the businesses that show growing opportunity.
You can do this yourself by first examining the fastest growing small business industries, before narrowing down which small businesses you may want to be a part of.
Let’s look at the markets which are picking up steam, making excellent options for investment.
1. Financial technology
You may currently be hearing a lot of talk around FinTech at the moment, which is the growing business area of financial technology. It is already soaring in in 2019, as smart financial start-ups, such as Kabbage small business loans, are continually disrupting the financial sector.
For the remainder of this year and next, one FinTech area expected to boom is “insuretech”—new technology aiming to optimize the insurance industry. In a nutshell, there is growth around the way insurance is sold and how it becomes combined with other home services.
Alongside this, you can expect to see small businesses focusing on new ways to launch new payments on-the-go services, mobile banking, blockchain, and artificial intelligence (AI).
As our lives have moved to revolve mainly around the internet, the risk of online criminals, hackers, and privacy theft is only on the rise. Due to an increase in companies becoming hacked, they are having to now bring in law companies, as well as learning how to deal with the loss of future revenue from this activity.
The main way companies are falling victim to cybercrime is due to increasingly diverse forms and links popping up in inboxes. Viruses, malware, identity fraud, spam, and phishing is taking place every day, especially across major companies.
As a result, cybersecurity is an industry taking off massively. The need to protect our privacy becomes more crucial than ever, which shows signs that there is no slowdown in the near future for the cybersecurity industry.
3. Farming and agriculture
One of the biggest areas of growth over the past few years across the lifestyle industry is the demand for fresh produce, along with organic produce. This is down to more education on diet and pesticides. However, one of the main reasons that the farming and agriculture industry is booming is due to the rise in food prices across the world.
Due to weather issues, banned grain exports and a surge in fuel prices, the price of food (especially fruits, vegetables, and rice) has significantly risen over time, but the demand doesn’t decrease. It only increases due to the ever so quickly growing population. However, it does mean that there is one sector that will certainly thrive from surging food prices, and that is the investment opportunity. If you’re unsure where to start, look at companies such as Crawford Park Farming AG, who recommend that the best way to invest in farmland is through direct ownership.
The time has come for companies to start drip feeding us the newest technology: robots. Although this has been talked about for some time, lots of people are still in denial that we will live in a world where robots take over most of our jobs. But the thing is – it’s already started.
Various cities across the world have already rolled out the use of robots in certain industries. One of these industries is the food delivery industry. Robots are being tested to travel to people’s home, in which the customer opens the ‘robot’ with a key number they have been provided with, so they can release their food order. These robots are programmed to be able to move around on pavements, crossroads, and read precise GPS orders.
5. Electric cars
Entirely electric cars are another fast-growing industry. At present, the overall sales of electric cars are very small in comparison to our standard vehicles; however, governments are pushing for over 50% of our vehicles to be electric by 2030.
It’s been a slower growth area, but there is now an increase in new houses and business areas being built with electric charging points included. Love or hate the idea; it only looks set to grow.
The bottom line: Growing your money through investments is a great area to get your head around. It makes an important part of any personal finance strategy. However, although higher monetary, more immediate rewards come from the riskier investments, there is nothing wrong with starting off small and safe, and analyzing how you feel about an investment.