Within Philadelphia there are a number of exciting business opportunities that an aspiring entrepreneur can capitalize on given the rapid growth of this market. In this article, we discuss several different types of businesses and services that are in demand within Philadelphia:
Restaurants, Bars,
and Nightclubs
Foremost, one of the most exciting areas to enter within the Philadelphia market is the food and beverage
based businesses. Given the large population, there is always a substantial
demand for food as well as nighttime entertainment. Within many of the major
up-and-coming areas of Philadelphia,
there are a number of people that are interested in experiencing unique
cuisines. Additionally, the demographic profile of the Philadelphia metropolitan area is now skewing
towards younger people. As such, the demand for nighttime entertainment – which
includes bars, sports bars, nightclubs – is fast growing. As more and more
young people move into cities in order to find higher-paying jobs, the demand
for quality venues for nighttime entertainment and eating become greater. In
many areas of Philadelphia,
there are still retail locations that can accommodate a large-scale food and
beverage business affordably.
Professional Cleaning
and Janitorial Services
Given that there are many busy professionals within the Philadelphia area, the demand for clean
houses and offices is substantial. As such, janitorial and home cleaning
services are another very popular and economically viable business that can be
started at a moderate cost within the greater Philadelphia area. One of the nice things
about these businesses is that they generate highly recurring streams of
revenue especially when companies engage in janitorial services for commercial
and industrial enterprises. Given the high median incomes of the Philadelphia market,
especially among busy professionals, the demand for quality in-home cleaning
services is also very significant. These businesses can be started for as
little as $50,000 and they typically become profitable within the first year of
operation.
Accountants, Lawyers,
Doctors and Dentists
The large population base of Philadelphia
lends itself to having a number of professionals that need to render services
to the general public. This includes practices such as CPAs, attorneys,
physicians, surgeons, and dentists. In major metropolitan areas, the demand
among licensed professionals is always substantial. Additionally, the per-hour
billings are typically higher than that of when these services are rendered in
a suburban or more rural market. One of the other interesting things about
these businesses is that they enjoy high barriers to entry given the
substantial educational requirements of the owner.
Personal Transportation Services
Transportation services are also extremely popular in major metropolitan areas; especially Philadelphia which has a substantial issue with the amount of parking that is available for residents. Given that this is a major metropolitan area, many people opt to not have a car when living or residing in the greater Philadelphia metropolitan area (and especially within the city limits). As such, taxi services, limousine services, and other companies that maintain large fleets of vehicles for personal transportation are almost always profitable in this market. Additionally, with the advent of applications such as Uber and Lyft – these businesses can immediately begin to generate revenue once they acquire their vehicles.
Freight Transportation
Trucking and transportation businesses are also extremely important in the Philadelphia area given that many wholesalers and retailers need to move large amounts of merchandise throughout the city. Much like transportation companies that focus specifically on individuals that need to get from point A to point B – freight services are another highly profitable and highly economically stable business within the Philadelphia metropolitan area.
IT Consulting and Networking Services
Given that the greater Philadelphia market has a substantial business startup scene, the demand for high quality information technology services and information technology consulting is also significant. One of the nice things about owning an IT focused business is that they almost always generate highly recurring streams of revenue on a month-to-month basis for service contracts. These businesses are able to provide secure networks especially for businesses that handle a substantial amount of sensitive materials. One of the other great things that these businesses is that their revenues are completely immune from negative changes in the economy given that both companies and individuals need to have properly installed and maintained networks in their businesses and homes. This will continue to be a major source of growth within the Philadelphia area.
Coworking Spaces and Rentals
As relates to real estate, co-working locations are also very popular in this market. This is due to the fact that many people now work as freelancers or as small entrepreneurs and need to have office space on a short-term basis. Coworking companies have become extremely popular in almost all major metropolitan areas given the trends of more and more people working within the gig economy rather than having a full-time job. These businesses typically have moderate startup costs depending on whether or not the owner acquires the building that is going to be used as a co-working space. However, one of the slight downside to these businesses that during times of economic recession – their revenues often suffer a bit given that more people will seek to have full-time employment rather than operating as a freelancer or independent entrepreneur.
Real Estate Agents and Brokerages
Further into real estate, real estate brokerages are almost always able to remain profitable and cash flow positive in the Philadelphia market given that people are always looking for business space, home rentals, and to purchase a real estate. This is one of the most mature industries within the United States, and their revenues typically mirror that of the general economy and the housing economy as a whole. Given the substantial demand for real estate within this market, almost all real estate agents and brokers are able to make a decent living providing the services to the general public.
Property Management Firms
Finally as relates to real estate, property management firms are very much in demand in Philadelphia. There are a number of companies as well as wealthy individuals that own a number of properties that need to be properly maintained on a month-to-month basis. Property management firms always earn a highly recurring stream of revenue from providing the services on an ongoing basis. One of the common trends within this industry is to offer flat rate property management services rather than taking a standard 10% of aggregate rental fees. This is one of the ways that many newer property management firms are able to effectively compete with established companies within these markets. For individuals or companies that have the proper license to operate as a property manager business – there are substantial and lucrative opportunities in the Philadelphia metropolitan area for companies that want to be engage in this type of activity.
Pet Care Services
As with the rest of the millennial generation, pets have become an important part of daily life. Many people between the ages of twenty to thirty-five have decided to either not have children or start a family much later in life. As such, many people acquire a dog or cat in lieu of starting a family right away. As such, the demand for quality pet care services – including daily pet walking services – is substantial in this market. Although some people do bring their pets to work, this is very uncommon and most pet owners need to have their dog cared for during the course of the day while they are at work. As such, a pet care agency that offers both pet walking services as well as overnight care can be a highly profitable business for an entrepreneur that is looking to start a low-cost business. These companies are highly scalable.