If you were born between 1981 and 1996, or are currently in your late 20s to early 40s, you belong to Generation Y, commonly known as millennials. According to the business magazine *Fast Company*, your generation is expected to receive $32 trillion in inheritance over the next decade. With this potential influx of wealth, you may be exploring what kinds of businesses are best suited for your age group. You’re not alone in this search. *Fast Company* also reports that 60% of millennials identify as entrepreneurs.
What are the best businesses for millennials? Discover what appeals to this generation and what Gen Y entrepreneurs should consider when selecting a new business opportunity.
What Appeals to Millennials?
Many millennials grew up seeing their parents dedicate their lives to work. As a result, many are seeking a work-life balance in their careers. If that describes you, owning a business can offer flexibility.
This generation tends to be more socially conscious and prefers to invest in businesses and products that align with their values. A report shows that 83% of millennials want companies to support their social beliefs. When deciding where to shop, they are typically drawn to companies that reflect their social views. Similarly, where you spend your money is often where you will want to invest it, so looking for businesses with social responsibility is a common priority for millennials.
Millennials are also passionate about being environmentally friendly and making a positive impact. Compared to other generations, Gen Y is more vocal about the need for action against climate change, and they back it up with their spending. According to Nielsen, 75% of millennials change their buying habits to favor eco-friendly products.
Your generation values experiences over material things. Whether it’s attending a concert or turning everyday tasks, like getting a haircut, into a self-care experience, millennials prefer to spend money on experiences. For example, the barbershop franchise Scissors & Scotch has tapped into this trend. A routine haircut has become more than just a trim—clients enjoy a beverage while receiving the full barbershop experience.
What Industries Are Millennials Considering?
Given these factors, what types of businesses are millennials starting or investing in?
Self-Care
Spas, massage parlors, therapy centers, salons, and barbershops are all part of the self-care industry. Studies show that millennials spend more on self-care than older generations, and it’s reflected in the growth of the U.S. beauty and personal care market, which is valued at $91.41 billion according to Statista.
Fitness, Health, and Wellness
The fitness and health industry aligns with millennials’ focus on self-care and well-being. This generation is reshaping the fitness world, with many starting their own businesses and franchises. Millennials seek personalized and convenient workout experiences, which has led to the success of franchises like Orangetheory Fitness and F45.
Pet Care
For many millennials, pets are considered part of the family. This generation is highly dedicated to their pets, from training to grooming and veterinary care. As a result, pet-related businesses are thriving. The industry saw record revenues of $103.6 billion in 2020, and businesses like doggy daycares and mobile pet services are popular choices for millennial entrepreneurs.
Best Franchises for Millennials
Franchising is a great option for millennials looking to own a business. Franchises often offer a supportive culture and mentorship, which appeals to many in this generation. But which franchises are best for millennials?
Recession-Resistant
Millennials have experienced major economic challenges, including the Great Recession in 2008 and the COVID-19 pandemic. These experiences have shown them the importance of finding businesses that can survive economic downturns. Hair salons and barbershops, for example, offer essential services that people continue to pay for even during tough times. A franchise is generally a lower-risk investment because it comes with a proven business model.
Mobile Franchises
Many millennials seek flexibility, and mobile franchises offer that by allowing owners to avoid the constraints of a brick-and-mortar store. This flexibility can let you take time off when needed, such as attending a child’s event. Popular mobile franchises include those in lawn care, home remodeling, painting, and pet care. However, the downside of these businesses is that they often require you to be hands-on, such as painting houses or mowing lawns.
Absentee Ownership
Some millennials want businesses that run themselves so they can have more freedom with their time and money. Certain franchises offer this option, such as Scissors & Scotch, which allows semi-absentee ownership, enabling you to manage other jobs or businesses while owning the franchise.
Your Next Business Venture: Scissors & Scotch
Take control of your future by investing in a Scissors & Scotch franchise. It’s one of the best business opportunities for millennials because you are part of its target audience, allowing you to connect with your customers on a personal level. Scissors & Scotch falls under the self-care industry, offering a recession-resistant business model and the option for absentee ownership.
