In the dynamic landscape of business and commerce, success is not just about celebrating our current business growth. Anticipating the trends that will shape the future of the operation is a key factor in growing a business. We watch the world racing forward into the digital age. An age that is marked by rapid advancements, changing consumer behaviors, and global shifts. Businesses that are destined for success are the ones that grasp the opportunities presented by emerging trends and industries.

Progressive entrepreneurs find it crucial to watch out for growth potential trends. They find it important to identify the advancements that are holding the power to transform sectors, redefine consumer experiences, and revolutionize business models. By understanding the forces driving these trends, they can craft strategies that will position them at the headway to success.

Here are some trends and industries with growth potential:

Technology and Digital Transformation

The technology sector has been consistently growing in areas like artificial intelligence, cloud computing, cybersecurity, and digital transformation. The COVID-19 pandemic has accelerated the adoption of remote work, e-commerce, and digital services, and that has definitely caused massive growth in these areas.

E-commerce

The shift towards online shopping and the convenience of digital transactions were major factors contributing to the growth of e-commerce. The pandemic has definitely contributed to the demand for online retail and contactless delivery methods. Accordingly, consumers have found it more convenient to shop from the comfort of their homes. And e-commerce has somehow evolved from a trend to a lifestyle.

Renewable Energy

As sustainability and environmental concerns continue to grow, renewable energy, including solar, wind, and electric vehicles, will experience growth. For example, during the past few years, the world has noticed an increase in investments and supportive policies aimed at reducing carbon emissions. Consequently, global renewable power capacity will definitely experience growth in years to come.

Healthcare and Biotechnology

An aging population and the need for innovative solutions to address health challenges have driven the healthcare industry to experience a major advancement in medical technology.

Remote Work Solutions

With the pandemic prompting a widespread shift to remote work, industries related to remote collaboration tools, video conferencing, project management software, and remote cybersecurity solutions have experienced significant growth.

Entertainment Streaming

On-demand content consumption has influenced the growth of the streaming industry. Video, music, and gaming audience are on the rise, and the industry is constantly coming up with new innovative ideas to meet the needs of a growing consumer base.

Health and Wellness

The focus on health and well-being led to growth in industries related to fitness, mental health, wellness apps, and personalized nutrition. After the pandemic, there has been significant awareness among consumers to explore options that will contribute to their health and sanity.

Sustainable Products and Services

As consumers become more environmentally conscious, businesses that offer sustainable products and services, such as eco-friendly packaging and ethically sourced products, have advanced and will continue to gain traction in future years.

Food Delivery and Meal Kits

The demand for convenience and safety during the pandemic has contributed to the growth of some industries that were not in demand in earlier times. It is noted that food delivery services and meal kit subscriptions have been in constant growth for the past few years.

Financial Technology

Innovations in financial technology, including mobile payments, digital banking, and blockchain, continue to shape the financial services landscape.

To summarize, while entrepreneurs watch out for new trends and industries it is important to remember the factors that contribute to growth. These contributors will often include technological advancements, changing consumer behaviors, regulatory changes, global events (such as the pandemic), and shifts in market demands.

BizReflections

Grace Nasralla is the founder and senior business blogger at BizReflections. She is a Co-Owner at HUDDLESPACE which provides small business owners with offices for rent. This year (2024), Grace launched a loose leaf tea brand and named it Brew & Scone.

www.bizreflections.ca

A very important decision that small business owners regularly have to make is whether an expense should be considered a business expense or personal expense. This is a very important topic and can have a large impact on businesses when they come under scrutiny during a CRA review or audit. Many businesses do not have set guidelines or policies on making these decisions and owners often have to use their personal judgement when evaluating whether an expense is business or personal in nature. The CRA has very specific guidelines on criteria that businesses should consider when making these decisions.

The most important criteria would be whether the expense was incurred to earn income for the business. This is a very straightforward way of considering whether or not the expense is related to business activities. The logic is that the expenditure was necessary and vital to business activities. Using this metric will ensure that business owners will minimize their exposure by accidentally expensing items of a personal nature.

During a review or audit the CRA will review the general ledger and, should expenses appear that are out of the norm for the business’ core activity, ask why the expense was claimed. Failure to provide a good and clean answer will often result in the CRA agent digging deeper into the books and records of the company and will likely result in an unfavourable outcome for the business.

The importance of separating business and personal expenses appropriately cannot be overstated. If business owners use the criteria mentioned above, they will minimize their risk of having expenses disallowed during a CRA review or audit. If the CRA investigates and finds a large volume of personal expenses, not only will they be disallowed but the entity may be subject to non-deductible penalties and interest, and those responsible may have other legal consequences including further audits of the shareholders’ personal affairs.

Remember, if the expense was incurred by the business to earn revenue for the business, it is allowable. If it is at all questionable, professional advice should be sought or it should be considered personal in nature.

Submitted By:

Jonathan Carter, CPA, CMA | KATA Accounting Solutions Professional Corporation | (800)491-4803 | contact@kataaccounting.com | www.kataaccounting.com

Tag: business activities

Factors That Drive Business Growth