Businesses must adapt quickly to the changing world and build new businesses. The Business Environment interviewed owners and managers of businesses to learn about promising trends, profitable ideas, and areas for entrepreneurship.
You must consider the changes in the environment that will affect the country’s economy when you decide to start a company in 2023. The state decides which priority areas are supported by enterprises. Many players are being replaced with others offering similar products. The market is changing and people are looking for ways to save.
Companies are continuing to digitalize, and they are expanding in ways that allow people to work and live online. There are “evergreen” business areas, which have a steady demand for goods or services.
17 experts attended the Business Environment survey — managers and owners of companies in areas such as accounting and finance and PR and consulting.
Dmitry Gachko, the founder of ITGLOBAL.COM Group of Companies, and IT Crimea technopark spoke about the prospects of entrepreneurs; Dmitry Turkevich, the founder of the platform to automate advertising purchase MediaSniper; Development Director at TenCAR cloud car rental Gleb Lubennikov
Irina Smirnova, owner, and CEO of Vash Accountant Group of Companies, shared her ideas about what type of business should be opened next year. Daniil Grunin, CEO of the SL-1 company group, was also a mentor and commercial director for Slava LLC Alexey Maksimchenkov. Inna Perchits and Alexander Elovkov were the financial directors at Neskuchnye Finansy and Inna Perchits.
According to the founder, and director, of the Center for Development and Leisure for Children (Umka) Elena Zatsepina; founder and head, the network of children’s languages centers (“Polyglotiki”) Elena Ivanova; founder and methodologist Diana Gladkikh; founder, of Done Media PR bureau and Done Media Kafedra education platform Elvira Galaimova
Aleksey Voiytov, the owner of the Kapibara international sushi bar franchise, suggested ways entrepreneurs can keep confidence in a time of instability. Nikita Nazarov, marketing director at Lifehacker Coffee; founders of the network Mamaboss TatyanaPopova; Maria Romanovskaya, founder of MI22 cosmetics brand
Promising business areas in 2023
Experts predict that the state’s priority areas, which it supports in the future, will expand. These areas include agriculture, education, and the defense industry. It also supports medicine.
For many years, the state has created a series of support measures to assist IT specialists and companies. This is a major reason why IT-related companies have seen growth in both the corporate sector and the service sector.
These business ideas were shared by experts:
- Provisioning IT services.
- Support of monitoring and tracking system development.
- Solutions in cybersecurity.
- IT infrastructure Web browsers, operating systems, and other software development. It is difficult to produce products that are similar to Western products, but which are not available in Russia. This is a response to the trend toward import substitution.
- Web 3.0 and crypto projects are based on blockchain technology.
- IT HR. All over the globe, you can find IT experts who are smart and capable. It is not easy to find such workers and maintain working communication.
Online and offline education
Online learning will be a growing market in 2023. New technologies are being developed. Online education for children has seen a rise in popularity.
Experts recommend looking at these areas:
- Training in, specialization in IT and SMM. People are learning skills that allow them to work anywhere in the world. There is a high demand for specialists in cybersecurity and artificial intelligence, such as programmers, developers, herpetologists, and programmers.
- Advanced training via remote access with an international diploma. You will need to adapt quickly to new programs and applications. Training courses that can help you will be highly sought after. Online schools should consider entering foreign markets.
- Training to learn and then get a job.
- Online education for children. Parents have been open to remote learning in the years since the pandemic. Distance learning is highly popular, whether it’s in the form of programs for preschool or additional education.
- Learning foreign languages. Customers are more interested in Chinese, Arabic, and languages from friendly countries.
- Services for children. Children’s development centers are home to specialists such as speech therapists, neuropsychologists, psychologists, and neuropsychologists. For years, they have not had to deal with a lot of clients. There is an increasing number of requests to consult vocational guidance specialists for middle- and senior-school-age children.
Elena Ivanova, founder and chief of the network for children’s language centers “Polyglotiki”,
Online business, including education, is gaining momentum against the backdrop of decreasing coronavirus restrictions. Pre-school centers place a lot of faith in face-to-face classes because they believe that it is easier to get to know the teacher.
This summer and autumn, the number of applicants for the franchise of Polyglotiki children’s centers is 20% higher than in the 2021 and 2020 periods. This business idea is for those who wish to create their own business using a proven model.
Substitution of imports
Russia’s policy of import substitution has opened up many niches for entrepreneurs, including software, components of industrial equipment, logistics solutions, clothing, cosmetics, and dietary supplements.
Experts named the following as one of the most promising business ideas:
- Cosmetics are now available. Russian cosmetics brands are already making a splash in the beauty market. However, more than 80% of foreign products are available on shelves so import substitution is a major issue.
- Manufacturing of medical accessories and components.
- Local production of consumer goods (FMCG), and toys for children. Tailoring deserves special attention. Russian brands are increasing in number due to the demand for trendy, high-quality clothing.
- Produce spare parts for automobiles and industrial equipment.
- Business related to large industries.
Nikolai Morozov, executive director of Profit:
Russian manufacturers will not only engage in import substitution but will also create a new demand among the Russian people for goods previously exported to foreign markets. These companies will expand their product ranges, and improve their marketing strategies and technological equipment.
The Omsk enterprise Profit Sibirskaya Bereza has increased its range of solid Birch Parquet and launched it on the Russian market in 2022. The domestic consumer now has a wide selection of birch plywood in various sizes, colors, and laying methods.
Parallel Import and Related Directions
Both B2B as well as B2C continue to demand foreign-made products. It was imperative to find reliable suppliers and efficient ways to ship products.
Experts look for promising ideas
- Parallel import of large and small household electronics, gadgets, and appliances.
- Importation of sports shoes, and ammunition.
- Supply of machinery and equipment components to industries, spare parts for machine tools, and cars.
- Logistics for the organization of the process.
- Cargo transportation. Companies and individuals are ordering more goods with delivery.
- Marketplace business. These websites allow you to sell a variety of imported products. Generally speaking, the marketplaces are actively growing.
Consulting and other services
New areas are developed by businesses, and new people become a reality. There is a steady flow of clients who are experts in the fields of law, and jurisprudence, and representatives of other helping professions.
These are the most popular services:
- Consulting in logistics and consulting in new markets.
- Financial consulting. Consultations on optimizing and reducing costs, and refinancing debt obligations.
- Support and assistance in legal matters.
- Anti-crisis management. Small and medium-sized companies in turbulent environments need support to optimize business processes, implement management standards, and make operational improvements.
- Services in the areas of marketing, advertising, and PR. Some promotion channels are no longer effective, while others have been updated and need new strategies. Both entrepreneurs and executives are more careful about how they spend their advertising budgets.
- Online consultations and medical services
- Psychotherapists, coaches, and psychologists. These specialists are more popular because they can help with anxiety and dealing with uncertainty.
- The beauty industry offers services. The beauty industry isn’t slowing down.
A segment of the economy that is business-oriented
Business Environment interviewed experts who placed different areas of economic activity into separate blocks. This is because of the increasing trend toward cost-saving and frugality among the population.
Current entrepreneurs and leaders are among the promising ideas for the next years.
- Catering for the public. Fast food, canteens, and coffee shops, as well as coffee vending.
- Discounts on Clothing and Food
- Budget dentistry.
- Services at affordable prices. This trend offers an opportunity for entrepreneurs to consider what services and packages they can offer to customers at no cost or minimal risk to themselves, both existing and new.
Construction and repair
The area’s business prospects received mixed reviews. The demand for second and new homes has dropped. However, the state supports developers and their services are highly sought-after in certain areas of the country.
It is possible to start a business for residential property repair or construction at the same level as medium-sized and small businesses. These services will be in high demand.
Many operating entrepreneurs believe that a business can only be successful if it is managed ethically and professionally.
Experts identified the following areas as relevant, outside of the categories above:
- Storage business.
- Exposed animals – Hotels and shelters
- Directions for the agricultural sector. This is where government support can help businesses develop and implement their ideas.
Overview of new measures and restrictions for business support – 2022
Ideas for new business models
Experts focused on business ideas at different scales, from new directions for the nation, which are designed to replace foreign ones to global innovations.
Participants in the Business Environment Survey also pointed out a fundamentally different approach to business organization. This involves the flexibility and adaptability in the underlying model, as well as the ability of entrepreneurs to quickly and efficiently redirect resources to growth points.
These ideas were offered by experienced business executives and owners to help you plan for 2023.
- Business in vacant niches. Budget packaging for perfumes and cosmetics is one example. There is not much choice in creams and perfumes.
- Science-intensive Technologies: Digital, Additive (3D Printing of objects from various materials) with high-precision laser systems and devices.
- Creation of research laboratories and production of herbal cosmetics. Many Russian endemic plants are used in cosmetics, but they are not widely used. It is costly, but it is promising to open laboratories to study these plants’ properties. Given the success of Russian brands, such research will be in high demand.
- Development of infrastructure for domestic tourism. For years, millions of people have traveled to Turkey, Egypt, and other countries, but not to Kamchatka, Altai Baikal, Dagestan, or Turkey. These places will have more people, so it will be necessary for hotels to be built, glamping to be organized, and rental cars to be available to all levels of fitness.
- Design of ethical consumption solutions.
- Organic and Eco-products production.
- These platforms allow you to bring new products onto marketplaces and enter new markets. Marketplaces allow small businesses to find buyers in Russia and the CIS countries.
- Digitalization of offline advertising channels Already, there are efforts to improve outdoor advertising for businesses to count conversions and ROMI.
- Design of AI solutions and smart devices for businesses.
- Ergotherapy for children. This is a combination of rehabilitation methods that are based on pedagogy, psychology, biomechanics, and physical therapy. It’s used to improve the activity and development of people who have lost their ability to move or live in the way they used to.
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Ideas that require minimal investment
Experts say that it is a sensible solution to the current environment to invest in areas with low operating costs, complex supply chains, and a large staff.
Acting entrepreneurs should be cautious about investing in ideas that require little capital. Most likely, a startup or MVP will not require much capital. Further scaling will take a lot more resources.
Experts did not see the possibility of creating a low-cost enterprise. Managers and owners of companies believe that every business, particularly large, needs to be fundamentally invested. You will need funds to modernize and rebrand a pre-made asset. You will also need funds to keep the business afloat in case of sales declines or other unforeseeable circumstances.
Optimists identified a variety of directions that required minimal to moderate start-up capital.
Promotion, business, and helping to consult
In high demand are experts in legal advice, market analysis, and business management, and building a PR strategy. These activities can be started by people with the right expertise. For remote consultations via the Internet, you will need to invest in equipment and services.
The services of marketers are in high demand. This includes agency employees and freelancers. Private traders require the same investment as consultants. Training in related fields or advanced training can be added to the costs.
Services for children
Children’s specialists and helpers can rent small offices, or come to their client’s homes. Large investments in the class organization do not need art therapy, sand therapy, or fairy tale therapy.
Many franchise opportunities offer lump-sum payments and royalty rates of varying costs. You can select a franchise that has a low operating cost and offers a relevant product. To open a children’s center, franchisees can spend as little as 500,000 rubles. The average investment pays off in 6-9 months and the monthly net profit is 200,000 rubles.
Hobbyists looking for business lines
It’s easier to make a hobby a source of income than it is to create income through a new activity. It’s worth betting on improving goods and services.
Over the years, guidelines for healthy food have been evolving. There are many options: Ready-made diets that can be made vegan, hypoallergenic, or healthy sweets. It is easy to create a menu or prepare homemade sweets, whether you are at home or in the workshop.
Minor household repairs fans can either be self-employed and work for themselves, or join a business and form a team. There is no need to purchase expensive equipment.
Experts recommend paying close attention to cargo transport for customers who need bulky goods to be delivered from factories and warehouses or moved from one apartment to another.
Another option for starting your own business would be reselling electronics from China.
These are the most lucrative business ideas for 2023
Managers and owners of businesses saw this opportunity to earn high profits in these areas.
- FMCG production.
- IT projects.
- Opening a luxury beauty salon. In the beauty industry, there is a general rule: The salon’s level determines the amount of profit. They spend more on the interior, logo, uniform for masters, and promotion strategy. The average check will be higher.
- Sales and finance training.
- Businesses that specialize in maintaining mental and physical health.
It is not a good idea to open a business.
Experts believe it is a deliberate failure to think within the framework logic with the prefix “not”. Their ideas suggest that it is possible to succeed year after year in every field of business. It is important to plan your finances and weigh the risks. You also need to have a solid team.
However, owners and managers of businesses have several ideas that might not work in current circumstances.
- Catering business. Large catering businesses and expensive establishments have become unpromising in recent years.
- Event agencies. Entertainment events without meaning will be less popular.
- Film rentals and cinemas.
- International tourism, travel agencies, and hotels
- Companies with foreign companies and countries that are unfriendly to them.
- Export and import of products by enterprises that are unable to forecast high-risk situations.
- Projects are not in the vital category.
- Real estate services.
- Projects that have a long payback period.
Entrepreneurs now have a shorter planning window. Experts recommend that entrepreneurs start these activities in 2023, as they will return quickly to their investments. Current activities should be focused on the prospect for up to one month. If necessary, it is recommended to switch to manual mode and work “here” and “now”.
Managers and owners of businesses consider ethics to be a key component of their business and key to its success. Experiential entrepreneurs agree that these ideas are worthy of being implemented if you want to make money with your favorite business.