Most people dream of obtaining financial freedom. Some achieve it by aggressive savings or investments; living below their means and budgeting; or entrepreneurship. If you are interested in gaining financial freedom through the last option, most business experts suggest you go mobile.
Small businesses—particularly mobile businesses—are on the rise. Since 2015, businesses that involve being on-the-move have worked their way to the front of the “most profitable industries” line. People are opting out of brick-and-mortar locations for traveling businesses, such as food trucks, auto and electronic repairs, car wash and detailing services, IT support, and personal trainers. The idea of having someone travel to wherever you are to provide their products and services is a win-win for most customers.
Mobile businesses are certainly not new, but they are considered the “it” businesses of today and in the future, along with “sharing economy” businesses. Loan officers attribute the recent surge in mobile enterprises to the low-cost of starting a traveling company. Forbes reports that large businesses or brick-and-mortar startup costs could potentially range from between around $30,000 dollars, to exceeding well over six figures. However, according to an article published by the U.S. Small Business Administration, an entrepreneur could start a small business for as little as $3,000 or less.
Voner Vanderhall, Southaven, Mississippis resident and the owner of The Vanderhall’s food truck, started his business on less than half of the estimated beginning price, at $75,000. He spent roughly $28,000 on his newly opened food truck.
“I did most of the labor myself to reduce costs,” Southaven says. “By doing so, I’m off to a good start.”
Business analysts believe convenience and accessibility are the main driving forces behind the success of traveling enterprises. Consumers also cite limited time, variety, and the quality of the quantity as reasons that patronize mobile businesses.
Being your own boss and making a profit can be difficult for a mobile business, just like a brick-and-mortar company. Therefore, mobile business owners must do their research to become business savvy. It is important that new enterprise owners also pick the right location for setup, supply an in-demand product, and offer competitive—yet affordable—prices. Several business publications, such as Business Insider, report that it takes about two to three years for a new business to turn a profit. That fact alone is a major indication of why on-the-move businesses must be knowledgeable and find success early on.
If a mobile business does not tickle your fancy, a company that adds to the sharing economy may work for you as an opportunity to become an entrepreneur; you could become the next Uber or Airbnb. The goal of this type of enterprise is to share resources and reduce operating costs. This type of business can be operated out of your home via a website or in a small office space. Their operational costs tend to be even lower than for mobile businesses or brick-and-mortar stores. Sharing economy businesses offer services like clothing rentals, vacation rentals, home improvement equipment rentals, and storage units.
Other enticing and profitable business ventures include online education services, freelance services, and child-oriented businesses. A study conducted by Intuit, a software company, indicates that 40% of the U.S. workforce will be freelance, temp, independent, or contract workers by 2020. With close to half the workforce turning into contingent workers, creating a plan to pursue your own small business seems to have a strong chance of becoming a reality.
This article was written by Chalise Macklin.