Every single year dozens of thousands of companies file for bankruptcy. In 2019, that number was 22,780. But during financial crises, the number of companies that go bankrupt skyrockets. At the peak of the housing crash in 2009, over 60K companies filed for bankruptcy when the economy fell into a recession, and interest rates were hiked. And based on how the economy is performing, we might face another huge crisis in the coming future. We are not sure yet, how bad it will be, but everyone agrees that it’s time to pay back our debts after printing trillions of dollars over the years. And that’s just the number of companies that file for bankruptcy. If we are talking about individuals, then that number is as high as 1.5 million on an average year. Most bankruptcies take place in new industries, industries that are still developing, such as crypto. The Crypto market has emerged as a result of the 2008 financial crisis. In fact, up until 2017, crypto was known only on the dark web since it was the only way to trade anonymously. But since it became mainstream, more and more people have entered the game. But we are not sure how exactly the future of crypto will look like. That’s why the number of bankruptcies and scams in this industry is pretty high. Remember the Internet back in the 1990s. Everyone slashed .com at the end of their name, pretending to do something related to the internet. Mark Cuban created an online radio and sold it for 5.7 billion dollars to Yahoo, making billions of dollars, at the same time bankrupting the internet giant back then – Yahoo. Yahoo was as big and as important as google is today. I still don’t understand how did they agree to pay almost 6 billion dollars for online radio. They could have replicated the business model at a fraction of that cost. A year later, the dot com bubble burst, and yahoo had to shut down the project. So, if you want to lower your chances of bankruptcy, maybe you should go for a more traditional business, an industry that has very low chances of experiencing such a crisis. Of course, there are plenty of such industries, from farming which is as old as humanity itself to manufacturing cars, but for most of you who are watching this video, that is probably irrelevant. Not many are striving to become farmers, although the industry is changing pretty fast. With vertical farming and new innovations, farming is turning into a high-tech industry that attracts the best minds in the world. Especially now, since we are in the middle of a good global catastrophe, we are more than ever trying to come up with different and more creative ways to solve this problem. Of course, it’s not going to be solved overnight, but in the long run, it’s definitely the industry that will keep only growing. But what are the industries that are both never will fail, at the same time, are much more practical to get in and build a small or a midsize business?
1. Content creation
Since the invention of the radio, we have found out that human attention is valuable. Radio is free, but they monetize your attention by displaying ads. By 1930, around 40 percent of US households had radios installed in their homes. That’s when content creation became valuable since there was a way to monetize it. Then the tv came out and revolutionized the entire industry. While only around 9% of Americans owned TVs in 1950, by 1960, that figure had jumped above 80%. We all have grown up watching tv. But it wasn’t easy to create content for tv and attract an audience since the initial investment was really huge. However, with the creation of the internet and later smartphones, content creation was now possible for anyone. All you have to do is pull out your iPhone and upload your content to platforms such as YouTube, Instagram, or other social media platforms. You can monetize it however you want. People literally make fortunes through Insta Reels leave alone TikTok or YouTube. With the invention of 5G and smartphones getting better and cheaper, the industry will only flourish.
2. Marketing
Imagine you start a clothing business. You will most likely be selling pretty much the same thing that everyone else does. You are either going to be creative and come up with your own designs and sell to high-end consumers or turn into a reseller and target the mass market. Either way, you are going to have a lot of competition. So the only way you can drag more clients to your store is by presenting your product in a better, much more appealing way. That’s where marketing comes into the picture. Being in sales today doesn’t mean being in the store convening people to buy more but rather but set up social media campaigns to target the right people with the right message to attract them to the store. Social media has definitely revolutionized the industry. It’s never going to be the same again since we have found out the importance and the value of the data. The data that we can collect can tell us who exactly is going to buy what. While, in theory, it looks like the industry is crowded, the reality is far from that. Because you really don’t need much to get into this industry. A lot of people have entered the game, but very few actually know how to drive sales. It’s not just about throwing money into Facebook but turning that money into clicks that turn into sales. While it’s a relatively new industry. It’s not going to be irrelevant anytime soon. As long as there is capitalism, which, to be honest, is the only system that has proved to be working over the course of human history, the industry is only going to grow.
3. Education
The global educational services market size is expected to grow from $2.8 trillion in 2021 to $3.1 trillion in 2022 at a compound annual growth rate of 10.7%. In fact, the US education market alone is expected to grow to 2.3 trillion dollars by 2028. The Internet has also reshaped the education sector, making it easier to spread the knowledge. Experts can share their knowledge through different platforms for a fraction of the price. If you had to go to college for any sort of education in the past, that’s not the case anymore. Sometimes buying a course for a few hundred dollars is far better than spending thousands of dollars in school and wasting your time. Especially when it comes to practical skills such as marketing, real estate or content creation.
4. Real estate
The real estate market is as old as civilization itself since there is always a demand for a roof. It’s definitely not an industry that you can quickly get in and build something unless you come up with something revolutionary like Zillow. And what happened in the last 2 years is an exception where prices first rose by 10 percent in 2020 and then by almost 20 percent the following year (2021). The last time we had something like this, it ended with a catastrophe that took down with it the entire economy. However, even if you purchased your property at the height of the housing bubble, your property would get back its value by early 2013 since the market recovered and began to grow. So everyone who purchased a property back in 2006 or 2007 has seen their house prices grow enormously. Real estate isn’t just about flipping houses. Of course, that’s always an option, even if you don’t have the capital to do that. We have explained how to do that in one of our previous videos, which link I will leave in the description.
5. Consultant
in difficult niches Have you ever done your taxes? It’s not easy, you have a million questions, and if it wasn’t for google, you would really struggle. But sometimes, even google can’t help you. Especially if you are a company, that’s where tax consultants, for example, come into the picture. You don’t want to avoid paying taxes, but at the same time, you want to pay as less as possible. Tax consultants are paid fortunes to help companies reduce their tax bills. Some companies like amazon avoided tax for almost 20 years even though the company was worth hundreds of billions of dollars. The point is, that the consulting industry is only growing but being a consultant in a crowded niche is a difficult business. It might be stable, buts it’s really competitive. That’s why it’s better to specialize in a niche that is in high demand but at the same time has high barriers to entry. These are just a few industries that aren’t just stable but are growing tremendously.