Small businesses are an integral part of the US economy, contributing trillions in revenue and employing millions. They are often customers, vendors, employees, and partners of larger firms.
Entrepreneurship in the USA has surged since the coronavirus pandemic, with 5.4 million new business applications filed in 2021. New opportunities are arising in the United States, but how do you get started?
Profitable Opportunities
Many people start businesses out of passion, leveraging their skill sets and resources to turn their vision into a successful enterprise. For others, it’s about finding the right industry to enter. Fortunately, several sectors make the most money. These include AI-powered tech services, e-commerce, senior healthcare services, C-suite consulting, digital marketing, and software subscriptions. These profitable industries thrive due to demand, scalability, and innovation.
Other lucrative business ideas include vacation rentals, which enjoy a steady stream of income from rental fees, and sustainable businesses, which benefit from consumer demands for environmentally friendly products. Those with significant resources may consider acquiring companies in these high-revenue sectors to boost their own investment portfolios.
Market saturation is a concern for most profitable businesses, but it can also be an opportunity for innovative entrepreneurs to differentiate themselves from the competition. By performing a competitor landscape analysis and positioning themselves strategically, these companies can survive even in saturated markets. Additionally, by identifying unmet needs and overlooked niches, these businesses can grow quickly and enjoy the highest profit margins.
Diverse Industry Landscape
The USA has a diverse business landscape, with many different sectors driving the economy. From tech-driven industries like e-commerce, software development, and artificial intelligence to new market sectors such as clean energy, telemedicine, and renewable beauty, these growing industries showcase massive growth potential. Nevertheless, success in these fields requires careful planning and innovative strategies. It is also essential to evaluate market trends and industry changes to identify niches within these sectors and develop new products, services, and marketing campaigns that appeal to consumers.
The service sector is another major contributor to the economy, employing over 6 million individuals and generating $4.0 trillion annually. While the majority of workers in this sector are female and from middle-class backgrounds, businesses have been working hard to expand diversity in their hiring practices. This has been especially evident in the professional service field, with firms focusing on recruiting candidates from all racial and socioeconomic backgrounds. The transportation industry, which includes rideshare companies like Uber and Lyft, is also a significant segment of this sector. This sector has been one of the fastest-growing among popular businesses in the USA, with drivers representing a range of demographics and geographic regions.
Manufacturing is another key segment of the economy, providing jobs for more than 12 million individuals and generating $2.3 trillion annually. This industry is thriving even as the nation shifts to a more sustainable economy, thanks to the growth of renewable energy and natural gas production. The construction sector is another strong component of the manufacturing industry, fueled by demand for housing and infrastructure developments.
In addition to these sectors, many diverse-owned businesses are making a significant contribution to the country’s economic progress. From leading innovation and community-focused initiatives to establishing new benchmarks for corporate social responsibility, minority, women, LGBTQ, and veteran-owned businesses are reshaping the economy and creating opportunities for all Americans. In a time when national politics and discourse seem increasingly divisive, these businesses are proving that inclusiveness is not only a business imperative but also an economic strength. In the years to come, these businesses will play a critical role in building a more inclusive economy for everyone.
Business-Friendly Environment
Known for its robust economy, diverse industries, and strong consumer base, the US is a business-friendly environment that supports growth and expansion. A transparent legal framework, an extensive network of free trade agreements, and cutting-edge digital infrastructure support efficient operations for businesses across key markets.
In addition, the country attracts global talent through flexible immigration policies, allowing businesses to tap into an expansive pool of skilled workers. The US corporate tax system is competitive with major global economies, with rates set at the federal and state levels (note that additional state-level taxes might apply). This business-friendly environment also facilitates easy access to investment capital.
Popular Business Structures
The choice of business structure will have significant legal and tax implications for a new small business. This decision should be made in consultation with an attorney and an accountant. The proper structure can limit personal liability, establish a formal legal entity, and manage business taxes. It also influences whether or not a business can issue stock and meetspecificn requirements for state registration and licensing. It’essentialnt to consider a few key factors when selecting a business structure, including the type of industry, number of owners, desired level of control, and potential future growth.
Choosing the best structure will depend on many variables, such as how much personal financial risk you are comfortable taking, how long you plan to be in business, and your ability to attract investors. A specialized attorney can help you determine the most appropriate business structure for your needs.
The most popular types of business structures are sole proprietorships, partnerships, limited liability companies, and corporations. A sole proprietorship is a legal structure that’s usually easy to establish and inexpensive to operate. It’s also simple to change into other structures, such as a partnership or LLC.
A partnership is a legally separate entity owned by two or more people who share responsibility for the business. There are three different kinds of partnerships: general, limited, and limited liability partnership (LLP). A limited liability company is a hybrid business structure that limits personal liability like a corporation while offering pass-through tax benefits like a partnership. It can be managed by its members or overseen by a management team that may include nonmembers.
For larger businesses, a corporation is an established legal entity with the capacity to own assets, hire employees, and enter into contracts. It can also be structured to make it easier for outside investors to invest. However, setting up and maintaining a corporation is often more expensive and complicated, requiring significant ongoing paperwork and fees.
It’s possible to start a business with no structure at all, but you’ll likely need to choose one if you want to earn income from the company, sign contracts, or file for state registration. Forming a business structure will involve some paperwork and fees, but it will save you money in the long run by limiting personal liability and managing business taxes.