A lot of industries exist. There’s the human resource and recruitment services, clothing manufacturing, and the tourism industry - to mention a few. All these industries provide founders with many options. It makes it easier to find an answer to the question of what industry a founder should launch their startup in.

Although there are many great options, a couple of industries still stand out from the bunch. These industries breed a good number of small and large companies. They also appear in very many regions. 

We must highlight that it is difficult to pick out these outstanding industries from the bunch.  The reason for this is that there is tight competition between industries. Secondly, industries leading in one region don’t always lead in other regions. This is due to varying customer preferences and demands in different regions. 

Nevertheless, we have put together a list of the top 5 industries where launching a startup could easily prove productive. Here, have a look at it.

Top 5 Industries To Launch Your Startup

Technology Industry

Technology is a crucial part of every modern business and organisation. Being so, the industry is one of the most popular out there, with a market value of nearly $6 trillion. 

The tech industry focuses on designing, manufacturing, distributing and implementing technological devices. It also involves the various services related to the use of technologies. Examples include legalities and safety. 

Launching a startup in the tech industry will mean choosing from an endless list of subcategories. Some subcategories are Edtech (educational technology), Fintech (financial technology), and software publishing.  Also, there’s gaming and virtual reality, and cloud computing and artificial intelligence.

Real Estate Industry

Real estate is another top industry a founder should fix their tent in. It involves the processing of physical properties including home residences, industries, and agricultural lands. 

The real estate industry surpasses many other industries. It reached a global valuation of about $326.5 trillion as of the year 2020 and this figure is believed to grow even further in 2022. According to Globe News Wire, major factors responsible for the increased valuation of real estate are reduced interest rates, speedy urbanisation, and growing population numbers. 

Startups launching in the real estate industry can choose to either develop, market, trade or manage the residential assets. 

Marketing Industry

As more and more startups spring up, their need for the marketing industry grows. And speaking of new startups, Africa for example, saw tremendous growth within the last three years. 

In 2021, the continent reportedly raised $4.3 billion - a value that was two and a half times that of the previous year. High investment values like this dictate the presence of numerous new or scaling startups. 

These new and existing startups need to reach their unique set of customers and clients. It is at this point that the marketing industry comes to the rescue. 

Like its name describes, the marketing industry handles “marketing” of corporate and individual businesses. It communicates or relates the products or services of one company, business, or individual to another company, business or individual. 

Finance Industry

The finance industry “encompasses banking, leverage or debt, credit, capital markets, money, investments, and the creation and oversight of financial systems.” And since most of the world’s businesses are migrating to the virtual environment, there is a change in the way financial institutions operate and how transactions are initiated, processed, and recorded. 

The banking industry which falls under the finance industry holds tangible proof of growth in the latter. These last few years, the sector has been trailed by challenges including “competition from FinTechs, changing business models, mounting regulation and compliance pressures, and disruptive technologies.” Nevertheless, banks and financial institutions are progressing.

Much of this progress is the result of new technologies and systems. Some of these new technologies include cashless ATM transactions, and payments using QR codes. On the other hand, 

the new systems include climate or weather derivatives which work just like insurance, and central bank digital currencies (CBDCs) which are centralised tokens resembling cryptocurrencies. 

The wide scale impact of the finance industry gives an opportunity for new innovative startups to jump into the market. These startups can deliver financial law services if they wish to stay off fintech since it has a lot of competition.

Retail Industry 

Another top industry we will look at is the retail industry. This industry is suitable for the launch of product-based startups. Retailing is all about the trading of goods and physical products. Its major targets are businesses, individual consumers, and administrations.  

A number of platforms exist for hosting a retailing business. Some of these platforms are business-to-business (B2B), consumer-to-business (C2B), and business-to-administration (B2A). 

The large size of the retail industry is associated with the number of platforms available to businesses in the industry. But that’s not all. Online retailing activities are blooming in many regions of the world. This is known as e-commerce. 

In 2021, e-commerce activities produced well over $5 trillion worldwide. The revenue figure as at 2022 is $7 trillion. This figure is expected to double by 2027.   

Conclusion

Launching your startup in the right industry cannot be overemphasised. It’s as important as choosing the right type of soil to plant a particular crop. What happens if this is not done correctly? The crop doesn’t grow well, and similarly, the startup doesn’t develop into what it should. 

Founders can familiarise themselves with their preferred industries by understanding three things. The competition, the buying and distribution patterns, and everything about other industry participants. This will set the pace for drafting a workable business strategy. 

Understanding the industry and making solid plans has two benefits. It ensures that the startup survives and performs well in the long term. It also prevents startups from having to pivot along the way.