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When it comes to establishing your own business, California is as good of a place as any. It’s a paradise for any type of business! From big organizations, established mom and pop’s, and new entrepreneurs alike can prosper. There are hundreds of small to medium-sized businesses that fulfill all the requirements of the state’s inhabitants.
In this post, we’ll have a look at the 5 major industries that are influencing entrepreneurs to move to California:
1. Gas Stations
Car culture is deeply imbedded in the Californian state, gas stations top the list of the most productive businesses to begin. California has over 80,000 gas stations, which employ roughly 54,000 workers. As far as revenue for this industry is concerned, it has increased a massive 25% during the last five years. However, gasoline prices usually remain stable, profit margins are comparatively lower in this business as there is no room to increase prices and remain competitive.
The Californian government is also taking initiatives to promote zero-emission and vehicles that run on alternative fuel options. These initiatives are a great way to become a trail blazer for an electric car charging station. However, more than 96% of the California’s vehicles rely on petroleum-centric fuels. This dependence, along with mass transit system, indicates that the demand for gas stations will increase with the passage of time.
2. Cosmetology
California has many beauticians, stylists, salons, barbers and tattooists. Noticeably, the personal care industry is said to be the second largest industry with over 12,500 ventures in the state. In addition to that, the beauty industry has the biggest licensed population and is also regulated by the government. There are numerous Californian associations that support businesses which fall under the cosmetology niche, including the Professional Beauty Federation of California and other associations.
3. Thrift Industry
This group comprises of secondhand retail stores and thrift stores that deal in pre-used home appliances, fashion, antiques and furniture. Usually, consignment stores acquire lower overhead than other mega stores, but they’re not bound to buy inventory. Noticeably, there are more than 1900 retailers which employ over 17000 workers. Thrift stores have benefited from greater demand for lower priced merchandise recently with the trend of affordable and alternative fashion, not to mention, specifically high demand during economic stagnation and decline.
4. Real Estate
Businesses in California that hold expertise in leasing properties are very popular. California is the most populous state in the US and it is expected for their population to increase even more by the end of 2030. The demand for commercial and residential housing has increased the popularity of the rental business. According to Anton Halushka, the C.E.O. of CaliforniaMoversUSA, there are many big cities like San Francisco and Los Angeles where people prefer to rent a property instead of buying it. Places like Santa Clara are believed to be an economical short-term renting city, with residents moving in and out every day.
As far as stats are concerned, there are around 17000 lessors currently working in California in the real estate niche. All in all, it’s a $32.5 billion industry employing more than 75000 workers. Lessors generally work with a blend of different rental options such as commercial and residential buildings, storage, vacant lots, offices, etc. Individuals can seek information from real estate agent associations that provide details regarding legislative issues and other legal concerns without which they cannot operate their business effectively.
5. Ecommerce and Supplementary Education
Ecommerce, lesser known as ‘electronic mail orders’ involves companies that make use of the internet or print mediums to trade their inventory. While an online venture is easier to handle and there are less legal formalities compared with other businesses, it may require targeting specific markets to get the most out of the business. There are more than 5000 companies of ecommerce nature presently working in California with more than 55,000 workers employed. Companies making profits accumulated an average of $52.66 billion in 2012 alone. The growing tech industry in San Francisco has also supported ecommerce via resources such as software and apps.
Apart from ecommerce, education is also a thriving industry, generally owned by private firms in California. These institutions are engaged in providing basic, as well as advanced, teachings on important areas like math and science. California is the one state where there is a huge demand for supplementary education. Currently, there are over 6000 institutions of such nature that brought in over $5 billion of revenue back in 2012.
In conclusion, California is a great place with millions of opportunities for people moving from other parts of the US. Besides these businesses, one can also invest in electronic appliance stores, cafes, pizzerias, shoe stores, etc. to earn a financially stable living in the Golden State.
What other business ideas do you have in mind to start once you get shifted to the city of dreams? Feel free to share your opinions in the comments section below as we would love to hear back.
