This guide outlines the business trends, detailing the shifts and changes you need to know for success. Organizations are facing rapid transformation and changes across all major sectors. There are also widespread global shifts, supply chain disruptions and challenges to tackle, along with shifting economic and political power, which means that the world is changing quickly and in unexpected ways.
Forbes recently reported that businesses and entrepreneurs need to adapt quickly and proactively if they aim to stay afloat. The business publication has emphasized how staying abreast of the latest business trends in commerce, including sustainability, the use of automated technologies and AI, and creating more agile organizations, will enable businesses to thrive in the face of significant changes and dynamic industries.
Business trends
Those who are aiming to establish a new business this year also need to know about the different types of business models available and how each choice may impact their growth and success. Every model has varying taxation requirements, legal and financial stipulations, ownership structures, and risk profiles, amidst other distinctions. Volusion notes that the seven key business models available today are sole proprietorships, partnerships, limited partnerships, corporations, LLCs, non-profits and co-ops. Sole proprietorships are the simplest business model, as these businesses are owned by a single person who takes full responsibility for every aspect of the business’s operation. This is arguably one of the most popular business models right now, considering that 45% of working Americans (and 50% of Millennials) report having a side hustle, according to a survey by Bankrate.
B2B, B2C and Subscription Businesses Thriving
eCommerce platform Shopify has also used data to weigh in on the most promising business formations and business trends. Consumer habits and behavior changed quite dramatically during the last two years, and the current stats highlight this. Shopify noted that the most thriving current business types include health and beauty businesses, subscription-based businesses like Netflix and Amazon Prime, and businesses selling both B2B and B2C products and services.
Shopify reported that 55% of health and beauty business founders reported being satisfied with their business performance in 2021, compared to an average of 38% across all business types. 63% of business founders who sold subscriptions were satisfied with their performance, compared with 55% of those who had non-subscription-based companies. Moreover, 62% of founders who sold both B2B and B2C were satisfied with their business performance in 2020, compared to only 53% of businesses who only sold B2C products.
Women Leading US Business
In terms of eCommerce business models, Salehoo notes that there are a number of promising B2B and B2C models to investigate during the coming year. They cite drop-shipping via online stores, selling branded products via Amazon FBA, wholesale sourcing and selling via Amazon, eBay or a private eCommerce site, and selling a private label product via your own online store as some of the strongest business models available today.
Statistics from Teamstage show that women-led businesses are thriving, with more than 10 million businesses in the US owned by women and 40% of sectors dominated by lady bosses. The number of female CEOs and board directors is on the rise too, with several countries introducing quotas to improve equality in the workplace. The aforementioned 10 million female bosses also contribute over $1.4 trillion in receipts, showing that female-led enterprises have strong odds of success in the business trends.
Establishing LLCs in Fast Growing Cities
LLC formation in particular is thriving in fast-growing cities like Delaware. According to Delaware Registered Agent, LLCs offer benefits like simplicity, security, tax exemptions, no double taxation, strong regional business laws and protections, and minimal formalities. Entrepreneurs can form a Delaware LLC by filing a Certificate of Formation with the Delaware Division of Corporations.
The document should include details such as the LLC’s name, the name and office address of a registered Delaware agent, the duration of the LLC, any additional information needed, and the date of formation, along with the name and signature of the person authorized to form the LLC. The form can be submitted online or mailed to the Division of Corporations along with the DoC’s cover sheet and a credit card number for a modest filing fee.
Austin, Texas is another fast growing city that continues to make headlines. It came as no surprise when big names like Apple and Elon Musk announced their move to the lone star state just last year. Business Insider reported, “ ‘On December 1, 2021, Tesla, Inc. relocated its corporate headquarters to Gigafactory Texas at 13101 Harold Green Road, Austin, Texas 78725,’ The shift brings Tesla closer to its sister company, SpaceX, and is part of CEO Elon Musk’s big breakup with the Bay Area.”
However, it’s not only the big players that are drawn to this booming state; more and more smaller startups are looking to settle down in Texas (the majority of them in Austin) in pursuit of business success. The reason? According to Business Texas, Texas was selected as the No. 1 state for small business job growth in 2021. Some of the reasons why it was voted No.1 include: a welcoming environment for new as well as seasoned entrepreneurs, a highly skilled workforce, favorable geographic location, lower taxes, and last but not least, affordability. In other words, while it’s a great place for enthusiastic business men and women to start and grow their empire, it is also the perfect and affordable place to start and raise a family. Simply put, it might sound like it’s too good to be true, but reports and evidence suggest it really is the place to be.
Sole proprietorships and LLCs are some of the most popular current business formations, particularly for entrepreneurs who are starting up small businesses, startups and side hustles in business trends. Rifkind Patrick states that business organization is one of the most important choices an entrepreneur can make regarding their companies, as the decision will affect numerous factors and each business’s future as a whole. They recommend that entrepreneurs align their goals with their business organization type and ensure that they understand the pros and cons of each form to give their startups a strong start and the foundations for ongoing success.
