The business environment can be volatile and considering the new reality generated by the pandemic, certain elements must be considered. Given the changing trends in Hispanic Entrepreneurs We believe that it is important to investigate what are the businesses you should not start in 2022.
Predictions for 2022
What works today may not work tomorrow, this must be taken into account when launching business ideas. Before venturing to undertake, trends must be managed and attention must be paid to the needs of the sector. With this you guarantee that the company succeeds or at least has the opportunity to develop.
If you want to start a business, it is undoubtedly essential to investigate which ones have suffered the consequences of the pandemic crisis. This has had an impact on many companies due to the change in the business landscape, in the habits and demands of consumers.
Knowing how the scenario has changed and the new trends will give you an idea of what you can or cannot do. We are waiting for the pandemic to end or for new waves to arrive, it will be another litmus test for the business world.
Business what you should not start in 2022
If we are realistic we have to accept that not all business ideas today are profitable. As optimistic as we are, some sectors have suffered setbacks in the last two years and by 2022 the outlook is not very encouraging.
Avoid sectors that involve working with a large number of people or that require transfers. It's about not taking risks business models that contravene the prevention measures of covid-19. Also those who have no chance of full recovery from the pandemic. All of these will oscillate between hope and uncertainty.
But what are those businesses that you should not start in 2022?
Tourism lowered its levels in 2022 to the unthinkable and has not finished recovering yet. So, if you plan to bet on this one, stop and analyze it very well. The only way to be successful is for your business to adapt to new needs. In this way it can survive if the crisis worsens.
The World Tourism Organization (UNWTO) announced that the industry lost 4 billion dollars. This is equivalent to between 1,9 and 2,7% of the world's Gross Domestic Product and more than 100.000 jobs in 2022 and 2021.
Although tourism growth is estimated due to the policies implemented and the air reactivation, the projection is not good in some regions. Latin America and the Caribbean are the areas that will do the worst this year.
The UNWTO focuses its efforts on the traveler having access to vaccination throughout the world. In addition to implementing coordinated procedures and the use of vaccination certificates to make mobility easier.
Those who want to risk undertaking tourism should be clear that customer preferences have changed. All the links involved in the business have to adapt to the new.
Travelers will continue to prefer to move within their countries, according to a global study by HomeToGo. International travel will also improve, with the most popular destinations being: Florida, Sardinia, Mallorca and the Baltic Sea area in Germany.
The restrictions will cause the booking window to be limited. For this reason, the priorities will be not to lose the money, reschedule without charges and be able to pay it. Uncertainty will remain in this regard.
They will demand places that give them experience and benefit from the local. Of great cultural, artistic, artisan and social attractions. But with widespread restrictions, screenings, isolation, quarantines and vaccinations, customers will tend to think twice about traveling. Besides, this generates a financial burden for the international traveler.
Likewise, there is the issue of the bans imposed on some countries by the pandemic. The balance in international travel is pending, which would be an important blocking stone for the nascent business.
Another of the affected sectors has been that of the events. The celebrations of weddings, baptisms, plays, concerts ceased as security measures were not complied with. The limitation of capacity has not been extended and the authorities require the vaccination certificate or PCR to be able to enter.
All this affects the success of event management and organization businesses. But if you insist on trying, the best thing to do is to be attentive to changes because at the present time the industry is very changeable.
Given the restriction, the organizers will surely increase the cost of tickets. This will make it more difficult for people to buy them due to the economic difficulties they face. Although they are open to leaving, the money factor will be the real limitation.
Another difficulty they must face is competition with specialized audiovisual platforms. In case you want to join this trend, you have to be less profitable.
The sector estimates that they will do the same number of shows as in 2021, but with only 75% of what they billed before the pandemic. Costs have risen, digital events will remain, reducing spaces, and companies will invest less due to the drop in their income.
Besides, another element made its appearance, and that is that other companies that are not in the field have launched to compete. Such is the case of audiovisual production companies and small startups.
3-Hospitality and transportation
This year you have to be careful with everything that involves bringing together many people. So that, entering the transport business will cause having to invest more in security measures and anti covid protocols. The measures will increase the price and reduce the number of people who can use it.
Meanwhile, the hospitality industry shows signs of recovery, however, it will have to be subject to the controls imposed by governments due to the pandemic. Undertaking in this will need a solid plan to anticipate the changes and come out successfully.
One of the things that helped the sector was delivery, but for it to work you have to constantly invest. For it to be moderately profitable, positioning campaigns have to be paid for by sales operators. As well as having aggressive sales prices.
The recruitment of personnel will have to be with certain conditions and more organized schedules. Employees who left due to business closures and poor working conditions will demand improvements.
On the other hand, kitchens and restaurants have to join the energy saving trend. This will mean that they must acquire machines to improve efficiency, which will impact costs.
If not, bars, restaurants, cafes and pubs will suffer a major setback when it comes to paying their bills. They still have time and capacity limitations that are also transferred to events and banquets.
They will have difficulties to obtain the usual ingredients and at the same prices. Inflation will impact the cost of raw materials.
McDonald's or Food Delivery Brands (Telepizza and Pizza Hut) consider that 2022 will be one of transition.That is to say, it will be by 2023 is that they estimate to fully recover if all goes well.
Challenges that all businesses will have
Covid-19 and supply issues will be major concerns for companies globally. This was the conclusion of the survey carried out by Eurochambres with the collaboration of the Global Platform of Chambers of Commerce.
Other threats are political instability, tighter financing conditions and fiscal crises. Aside from inflation, continuing fear of virus evolution is top concern. Hence the importance of increasing vaccination figures to curb outbreaks that would mean closures.
Business leaders in order to survive must focus on:
- Improve employee engagement and job retention.
- Explore alternative cash flows and protect existing ones.
- prepare for inflation
- Maintain planning for supply chain issues.
- Understand and adapt to changing customer needs.
How to prevent your business from failing?
We do not want to be pessimistic when we say that businesses you should not start in 2022. These businesses that will have many challenges this year are not necessarily impossible to develop. Everyone will face challenges, the fundamental thing is that you first think that the business idea has achievable short-term objectives. The market is still in a period of adaptation.
Paul Graham, founder of Y Combinator, which has promoted companies like Dropbox or Airbnb, recommends having partners to share responsibilities. He invites you to choose a good location and a small niche to avoid competition. Guide you through a successful startup, define your ideal client and choose a business model that focuses on the client.
He emphasizes that it is a mistake to put all the attention on making profits rather than serving the consumer well.
While, for Reid Hoffman, co-founder of Linkedin, failure is not important, but learning from it. Like Graham, he highlights the location of the company as an important point and having a team of experts. Even having a sales plan before the launch of the product or service and hiring flexible staff that adapts when the company evolves.
Instagram co-founder Kevin Systrom believes entrepreneurs need to make sure they have a smart, passionate team.. To be able to resolve complicated scenarios and contribute to building the organization in an appropriate way.
Offering a useful product or service will be essential to success. It is necessary to have defined the objective of the same, to whom it is directed and its value offer. At the same time, adapt to what the client wants, who are now looking for businesses that have a social impact and environmental sustainability. In this way we have to provide them with something that improves the social situation we have.
Entrepreneurs must undoubtedly keep in mind that technology will always be an ally. Applies to all businesses.
What business to start?
If, on the other hand, you do not feel that these are businesses you should not start in 2022. And you think we should always look at the positive. The crisis situation has also brought innovative ideas to undertake. Others open business opportunities adapted to the new reality and makes them much more affordable.
Now many bet on online education platforms, bitcoins, food delivery or fitness at home, etc.. Their success will continue this year due to their ability to make life easier and more fun. Only when I tell you that businesses you should not start in 2022 we think we sent an alert that can help you.
They also highlight the sale of smart mattresses, machinery rental between companies, electric bicycles at home, doctors at home. As well as biodegradable containers, home stylists, psychological therapy in taxis, hotels in nature, hotel cabins, baby clothes with magnets, among others.