Top Startup Businesses for 2013: Statistics, Predictions, and Startup Costs

In the first blog about business startups for 2013, we looked at potentially successful new small businesses with an eye to understanding what current operations are hot, according to the experts. When you look at new business ideas, this is a critical factor to consider for several reasons. It helps you:

  • Know your competition
  • Define your niche
  • Identify unmet needs
  • Avoid glutting the market


As you consider your business options for the coming year, here are some startup business facts that can help you make the right choices.

Top Small Business Ideas for 2013

Every December experts predict what industries and business trends have the best chance of success in the coming year. Pair these predictions with the critical factors previously mentioned and you have a better chance of choosing the right startup.

Some of the hottest industries you may want to consider fall into these six general categories, according to Inc. and Small Business Opportunities magazine:

  • Health (healthcare technology, home healthcare, yoga products and services, self-improvement)
  • Technology (iPhone apps, healthcare technology, SaaS, education technology)
  • Food (candy, wholesale beer/wine/liquor, fast-casual dining, personal chef, catering, street vending)
  • Sustainability (green construction, energy)
  • Services (niche consulting, temporary staffing, government, accounting, repair, pets, tailoring, handyman)
  • Education (education technology, self-improvement, technical/trade schools)


You may note some of the similarities in these top industry predictions and the small businesses we mentioned in our earlier article. That’s not a coincidence.

Now if you plan is to open a franchise instead of starting from scratch, you also may be curious about the top franchises for 2013. Interestingly enough, many of the top franchise businesses fall under these same industry categories, according to the “Entrepreneur 2013 Franchise 500®.” Here are the top ten:

  • Hampton Hotels Int’l (Hospitality)
  • Subway (Food)
  • Jiffy Lube (Service)
  • 7-Eleven (Retail)
  • Supercuts (Service)
  • Anytime Fitness (Health)
  • Servpro (Service)
  • Denny’s Inc. (Food)
  • McDonald’s (Food)
  • Pizza Hut Inc. (Food)


However, whether any of the previously listed industries or companies will have a stellar showing in 2013 will depend on a number of factors. For you, it primarily will be a matter of identifying that “unmet need” so you avoid “glutting the market” with the same old ideas.

Important Business Numbers for 2013

As you develop your small business, keep your eye on the numbers. Statistics and startup costs are two critical elements that will factor into your business success.

First, there are these small business survival rates:

  • 69% survive 2 years
  • 44% survive 4 years
  • 49% survive 5 years
  • 31% survive 7 years


These aren’t meant to deter you. Merely a cautionary tale to suggest that you prepare well before you open your doors for business.

A big part of any business operation is the financing. Therefore, the second part of the business number equation is understanding the cost of doing business. This financial calculation has a lot to do with whether you open a franchise or start your own shop.

Business Cost: Franchise vs. Startup

While there is no “universal method” to estimate business startup costs, the Small Business Administration post on startup costs offers these factors to consider when financing your new business:

  • Seed money. Money you need to bankroll your business. This might include fixed and variable costs. However, generally it is the cash required for one-time costs, such as incorporation, licensing, or location renovation as well as to keep the business afloat for the first 6 to 12 months.
  • Fixed costs. These are easier to budget because they don’t change from month to month. They include items such as your rent, utilities, and insurance.
  • Variable costs. More difficult to calculate each month, your variable costs include costs that change such as inventory, shipping, and labor.


In addition, if you choose to open a franchise instead of starting your own business, you will have these additional costs to consider:

  • Franchise fee. This will vary depending on the franchise you choose. However, experts estimate they average between $20,000 and $50,000.
  • Legal fees. It’s important to get legal advice before signing your franchise contract.
  • Build-out costs. In order to conform to the look and design of your chosen franchise you will have to purchase furniture, fixtures, equipment, and signage.
  • Inventory and supplies. Franchisors generally require you to purchase specific products and supplies to run your operation.


Whichever path you choose, it’s better to anticipate your needs rather than try to land a loan when you’re already in financial trouble. So be sure to plan and get the financing you need in advance. The Business Finance Store can help you with your financial needs.

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