How Can You Start Your Own Business? The Most Lucrative Industries for Founders and Successors

Traditional vs. Innovative Business Models

When starting a business, there are fundamentally two paths: establishing an innovative, novel business model or entering proven, traditional industries. Both approaches have their advantages and disadvantages.

Innovative business models promise high growth potential but also come with significant risks. Developing a market-ready product, convincing investors, and acquiring the first customers require not only time and capital but also a high tolerance for risk. Additionally, the success of novel concepts is difficult to predict.

Traditional industries, on the other hand, offer the advantage of a proven business model with predictable returns. Especially within the German Mittelstand, there are numerous established companies seeking successors due to demographic changes. Choosing succession instead of founding can therefore be an attractive alternative.

Lucrative Industries for Self-Employment

1. IT Services and Software Development

Digitalization remains a strong driver for new business models. Particularly, IT companies offering specialized solutions for specific industries or functional areas can achieve attractive margins. Current growth areas include:

AI-based solutions for business processes
Cybersecurity services
Cloud migration and optimization services
Industry-specific Software-as-a-Service (SaaS) offerings

The consolidation wave in the German IT landscape also presents opportunities for acquiring existing IT firms. It is important to consider which multiples are typical for IT companies to perform a realistic valuation.

2. Craft Businesses with Future Prospects

Contrary to some expectations, the crafts sector still offers excellent prospects for self-employment. The skilled labor shortage and demographic trends have created a situation where many businesses are seeking successors.

Particularly promising craft businesses include areas such as:

Energy efficiency and renewable energies (solar, heat pumps)
Sanitary, heating, and air conditioning (HVAC)
Electrical engineering focusing on smart homes and e-mobility
Specialized construction trades

The proper valuation and sale of craft businesses is a science in itself. Even without a traditional craft apprenticeship, career changers can succeed if they have commercial expertise and are willing to familiarize themselves with the industry's specifics. The business succession in crafts offers particular opportunities here.

3. Health and Care Services

Demographic changes and the increasing demand for health services make this sector a growth market. Promising areas include:

Outpatient care services
Specialized medical care
Prevention and health management
Digital health offerings

Although regulatory requirements create relatively high entry barriers, the stable demand and the potential to gain competitive advantages through digitalization and efficient processes make this sector attractive.

4. Services for Sustainable Business Practices

The trend toward greater sustainability opens numerous business fields:

Energy consulting and management
Sustainability consulting for companies
Circular economy and resource efficiency
CO2 offsetting services

Companies with a sustainable profile can not only benefit from growing demand but also increase their company value through sustainable business practices. The integration of ESG criteria is increasingly becoming a value driver in company sales.

5. Specialized Retail and Services

While general retail is under pressure, specialized concepts with high advisory competence and complementary services still offer good prospects:

Premium food retail with regional products
Bicycle retail with repair services and e-bike specialization
Specialized hardware stores (e.g., for sustainable building materials)
Hybrid craft concepts (sales + service)

An interesting option is also acquiring an Amazon FBA business, where logistics are outsourced and the focus is on marketing and product development.

6. Services for the Silver Economy

The growing number of older people creates new markets for specialized products and services:

Senior-friendly housing and remodeling services
Leisure offerings for seniors
Household-related services
Mobility concepts

These markets are characterized by stable growth and low economic sensitivity.

7. Special Niches with Growth Potential

Attractive niches with above-average growth and return opportunities are often found in seemingly saturated markets. Examples include:

Car wash facilities with innovative concepts
Funeral homes with modern approaches
Specialized continuing education providers
Technical inspection services

When valuing such niche companies, industry-specific factors influencing value should be considered. For example, there are special multiples for car wash facilities or value-enhancing factors for funeral homes.

Buying Instead of Founding: The Attractive Alternative

Instead of starting a company from scratch, acquiring an existing business can offer numerous advantages. The question found a company or buy one? should therefore be carefully weighed.

Advantages of Business Acquisition:

Immediate Revenues: An existing business generates income from day one, whereas startups often require a lengthy ramp-up phase.
Proven Business Model: The functionality of the business model has already been demonstrated, reducing the risk of failure.
Established Customer Relationships: Existing customer relationships and a recognized brand name significantly ease market entry.
Existing Employees: Qualified employees with industry experience are already on board, which can be a major advantage, especially in times of skilled labor shortages.
Better Financing Opportunities: Banks often prefer financing acquisitions over startups because historical earnings data is available. The question how do I finance a business acquisition? is often easier to answer than financing a new business.

Even with limited personal capital, there are options: buying a company with little equity or financing a business acquisition with low equity are feasible approaches.

Success Factors for Business Acquisition

For a successful acquisition, you should address the following questions early on:

Personal Suitability: Do I have what it takes to buy a company? You should answer this honestly before embarking on the entrepreneurial journey.
Systematic Preparation: These 5 steps for a successful business acquisition should be known and implemented.
Realistic Valuation: A thorough business valuation is crucial for success. Besides financial metrics, non-financial factors such as market position and future prospects should also be considered.
Comprehensive Due Diligence: A detailed due diligence covers financial, legal, tax, and commercial aspects. The costs of due diligence should be viewed as an investment in your own security.
Industry Knowledge: Even as a career changer without professional experience, a business acquisition is possible but requires especially thorough preparation and, if necessary, the involvement of specialists.

Practical Approach to Self-Employment

Whether you are founding a company or taking over one, a structured approach significantly increases your chances of success:

1. Self-Assessment and Goal Definition

Clarify what you want to achieve with your self-employment. Material success, self-fulfillment, flexible working hours—the goals can be diverse and influence your decision on what business to start.

Also, honestly reflect on your own strengths and weaknesses. A successful entrepreneur does not have to excel in all areas but should know and compensate for their deficits. The question of what makes a successful entrepreneur is crucial for your long-term success.

2. Market Research and Idea Evaluation

After clarifying your personal prerequisites, evaluate various business ideas or acquisition targets:

What market potentials exist?
How intense is the competition?
What unique selling points can you develop?
How scalable is the business model?

When acquiring an existing business, it is also important to assess which development potentials have not yet been exploited and how you can further develop the company. Using succession as an innovation driver can unlock significant value creation potential.

3. Securing Financing

Financing is often the critical factor for self-employment. Depending on the industry and project, various financing forms are possible:

Equity and assets
Debt capital in the form of classic bank loans
Funding programs such as the KfW Entrepreneur Loan or ERP funding
Mezzanine capital like subordinated loans or profit participation rights
Seller financing in business acquisitions

Especially for young entrepreneurs, there are options to take over a company as a young entrepreneur, even if personal financial resources are limited.

4. Developing a Business Plan and Strategy

A solid business plan is important not only for capital providers but also serves as a roadmap for your entrepreneurial activities. It should include financial figures as well as strategic orientation, marketing concepts, and milestones.

For business acquisitions, an integration plan is also important to structure the first 100 days after the takeover. The first 100 days are critical for long-term success.

5. Building a Network and Involving Experts

Entrepreneurial success is rarely a solo project. Surround yourself early on with a network of experts and like-minded individuals:

Tax advisors and lawyers for legal and tax matters
M&A advisors for business acquisitions
Industry experts and mentors
Networks and associations for experience exchange

The involvement of external advisors is not an unnecessary expense but an investment in your own success.

Special Features of Online Business Models

Digital business models are very popular because they often require less capital and offer higher scalability. However, when valuing online businesses, different criteria sometimes apply compared to traditional companies:

Traffic sources and their sustainability
Dependence on individual platforms or technologies
Data protection and compliance aspects
Technical infrastructure and maintenance effort

The digital transformation can also be an important value driver when acquiring traditional companies. The digitalization of SMEs with AI offers significant potential to increase efficiency and competitiveness.

Conclusion: The Right Path to Self-Employment

The question of what business to start has no universal answer. It depends on personal prerequisites, financial means, and individual goals. What matters is thorough preparation and making your decision based on a solid information base.

Acquiring an existing company offers significant advantages over founding one: from immediate cash flows to established customer relationships and well-coordinated teams. Especially in the German Mittelstand, demographic changes create interesting opportunities for successors.

Regardless of which path you choose—startup or acquisition, traditional or innovative industry—a careful plan, realistic assessment of your own abilities, and a willingness to continuously learn and adapt are key success factors for your self-employment.

If you need support in finding a suitable acquisition target or have questions about financing and valuation, we are happy to assist you. Leverage our expertise to successfully shape your path to self-employment.