If you were born between 1981 and 1996 or are in your late 20s to early 40s, you’re considered a part of
Generation Y, commonly called millennials. According to the business magazine Fast Company, your
generation is predicted to receive $32 trillion in inheritance over the next decade. With all that extra
incoming you might be checking out what types of businesses are fit for the age group. You’re not alone
in the search for the best businesses for millennials. Fast Company also reports that 60% of millennials
identify as entrepreneurs.
What businesses are best for millennials? Learn what appeals to this demographic and what Gen Y
entrepreneurs should look for when choosing a new business opportunity.
What Appeals to Millennials?
Many millennials watched their parents dedicate their lives to work. As a result, many are looking to find
work-life balance within their careers. If that’s you, business ownership is an excellent opportunity to
This generation leans towards being more socially aware and wants to invest their money in businesses
and products that support that. A report finds that 83% of millennials want companies to align with their
social values. When it comes to where they shop, they’re typically drawn toward those companies that
support their social views. Likewise, where you spend your money will likely be where you want to
invest it, so finding business opportunities that offer social responsibility is a common trait for your
Millennials look for ways to be eco-friendly and make an impact on the world. Compared to other
generations, Gen Y talks about action against climate change more. This group is also more likely to put
their money where their mouth is. According to Nielsen, 75% of millennials change their buying habits to
favor environmentally-friendly products.
Experiences over things. That’s what your generation prefers to spend their money on, whether going to
a concert or making routine tasks like a haircut a full-on self-care experience. One brand to capitalize on
this is the barbershop franchise, Scissors & Scotch. Their clients’ monthly haircut is no longer just a trim;
instead, it’s the full workup. Clients enjoy a beverage with every haircut at a shop that gives nostalgic
What Industries are Millennials Considering?
Considering those millennial-appealing factors in mind, what businesses are millennials investing in or
- Spas, massage parlors, therapy, salons, and barbershops are all self-care businesses. Studies show that millennials spend more money on self-care than older generations. It shows in the industries’ revenue growth as the U.S. beauty and personal care market is worth $91.41 billion, according to Statista.
- Fitness, Health, and Wellness
- The fitness and health industry goes along with your generation’s emphasis on self-care and desire to invest in it. Millennials are reshaping what the fitness industry looks like, hence why so many are jumping in to open their own businesses and franchises in the market. Adults in your generation look for individualized and convenient workouts, allowing franchises like Orangetheory Fitness and F45 to thrive.
- Pet Care
- Lastly, millennials see their pets as their kids. This generation is extremely passionate about their pets, from training to grooming and vet visits. Businesses centered around our furry friends are popping up everywhere because of this. As a result, the industry is booming and experiencing a record revenue in 2020 of $103.6 billion. Doggy daycares and mobile pet spaces are some of the great businesses for millennials to run.
Best Franchises for Millennials
Franchising is an excellent choice for businesses for millennials to own. The advantages of franchising
include providing a collaborative culture and mentorship that millennials prefer. So, what are the best
types of franchises for millennials?
- Recession Resistant
- This generation has weathered the economic storms of the Great Recession in 2008 and the COVID-19 Pandemic. You’ve all seen how economic downturns can cause businesses to crash and burn. This is why you should consider a franchise that can supply financial stability in any economy, like a hair salon or barbershop. Haircuts are an essential and specialized service that people won’t cut out of their budget. Overall, a franchise is a low-risk investment because it comes with a business model that’s already shown success in other markets.
- Mobile Franchises
- Ideal businesses for millennials to operate offer flexibility. Mobile franchises provide that because, as an owner, you’re not locked down to the business hours of a brick-and-mortar store. Instead, you can take a Friday afternoon off to enjoy a daddy-daughter dance or cheer on your kids at their basketball game. Examples of industries with the best mobile franchises for millennials include lawn care, remodeling, painting, and pet care. Unfortunately, the downfall with these types of businesses is that they’re typically owner-operator. This means you’re on a ladder painting a house or pushing the lawn mower in the heat of the summer.
- Absentee Ownership
- Some millennials are looking for businesses that operate themselves so they have the flexibility with their time and money to do what they want. Some franchises allow this, while some don’t. For example, Scissors & Scotch allows semi-absentee ownership letting you continue with another job or business.
Your Next Business Venture: Scissors & Scotch
Take ahold of your future by opening a Scissors & Scotch franchise. We offer one of the best businesses
for millennials to invest in, as you are the shop’s target audience. As a result you can connect with your
customers on a personal level. We fall under the self-care industry, but offer you a recession-resistant
business opportunity and the chance at absentee ownership.
Bring the nostalgia of a classic barbershop with a new-age twist to your town today. Get started.