Sunday, May 07, 2006

Hot Industries

If you're thinking of starting a business today, you might think that the only hot industry is the tech industry--software, hardware, web-based applications and VOIP. Well, you'd be right. Well...partially.

Tech is enjoying a renaissance leaving the bad ole dot-bomb days in the dust. There are no shortage of companies and industries exploiting the Internet's capacity for reaching millions of people all over the world.

But, what if you are not a computer programmer, a web developer or a well-connected former employee of Google, Microsoft or Yahoo? Can you still create a successful business? Yes.

Here are a few trends and related business ideas that just might spark your imagination and help you select the right business for you.

A. Technology is sexy and sex sells! If you are adept at tech stuff, you can start your own software firm, social networking site or internet jukebox. But, technology is more than computers, more than software and more than websites. Technology companies have many of the same needs as traditional businesses, namely, staff, office equipment, employee services, administrative services, training and trash collection. So, if you want to do business in a tech-intensive market, explore businesses that support upstart or established companies.

Business Ideas:
1. Event Planner--Techies are notorious partyers--from Friday beer busts to product launch parties. If you know how to throw an out-of-this-world party, or bring the "big names" to see the latest release of a software program, you may have a business. Leading tech firms Intel, Google, Yahoo! and biotech biggie Genentech regularly shell out major bucks to keep their talented staff entertained.

2. Training/Seminar Companies--Techies may be great with computers, but they struggle with human contact. Help their employers by providing management, compliance and "soft skills" to engineers and IT staff.

3. Human Resources and/or Staffing Firms--Talent is the most valuable, and elusive, asset for every business. If you've got a knack for spotting it, or a rolex filled with talented friends, you might consider starting a staffing firm or being a lone contract recruiter specializing in technology industry. If talent scouting isn't your forte, but you can manage the heck out of payroll, employee relations, worker's compensation issues and benefits administration issues, hang a shingle and start your own HR outsourcing firm. Finally, if you're willing to take on the staffing and administrative burdens of a few hundred businesses, consider starting a Professional Employer Organization (PEO). You'll take on all of their employees as your own and they will pay you for the use of the staff and cover the costs of providing benefits and other HR services.

4. Business incubator-- Want first-look at up-and-coming startup businesses? Got a burning desire to help young tech entrepreneurs? Well, if you can provide low-cost office space, shared office services and access to professional services, you may be able to barter lower rents for a piece of the action. And, who knows, if the "Google killer" is one of your tenants, you might be a bizzillionaire when they go public.

5. Technical/Business Writing--Techies make a lot of great products that we mere mortals just don't understand how to use. That is, unless they hire a great technical/business writer to provide content for product packaging, instruction booklets and online help manuals.

6. Liquidators-- Ran out of childhood mementos to sell on eBay? Why not help tech firms get rid of old equipment and furniture and earn a bit of money. Sure, everyone with an eBay account can do this. But, anyone making any money on eBay knows that it takes a bit of management to make any money at it. And, it's all about the stuff! You might also consider live auctions that allow the public online and in your warehouse to bid against one another. You get a commission on everything you sell. They provide the product and pay the fees.

7. Web Communities--I'd be remiss if I didn't mention the hottest tech niche around...Social networking ala MySpace.com and FaceBook.com. If you've been toying around with an idea that you're sure will bring plenty of eyeballs to your website, and get them posting and talking, strike now! Sites that bring in millions of eyeballs are selling for unheard of dollar amounts, even without proving their potential to turn a profit.


B. Anything for Baby Boomers and Active Retirees! Baby Boomers are retiring in droves now, joining the already larger number of active, vital elderly Americans who are relocating, traveling the world, dating, dancing, investing and otherwise consuming.

Business Ideas:
1. Relocation Assistance--Gone are the days when all of the snow birds moved to Florida. Many seniors and Boomers near retirement need help finding their dream community and location. They want beachfront property in Costa Rica and lofts in Manhattan and RV's. You can locate communities that meet their need for recreational activities, assistance, proximity to cultural centers and/or lower cost housing. If you are truly a full-service establishment, you might offer "white glove" moving, packing, unpacking and cleaning services, so that your clients have only to show up at their new place.

2. Investment Services--You've seen the ads from AmeriPrise (AMEX). They are targeting Boomers who are the most properous generation ever. If you are a certified financial planner, or can pass the licensing exams, you might consider shifting your focus to Boomers and/or relocating your office/practice to an active seniors' community.

3. Concierge/Errand Services--Got a wierd love of running errands? Wish you could do more AND get paid? You can. You can provide specialized services such as medical transport and prescription pickup/delivery. Or you can do it all by providing a car service that will take seniors whereever they need to go, shop for gifts, take care of shipping needs, and even offer housekeeping services or meal delivery. Seniors can pay per trip or purchase a package of services via subscription.

4. Travel--Seniors are traveling more than ever! Some require special assistance and low-impact trips, while others want extreme vacations to exotic locales. If you are a world traveler who knows all of THE places to go, and can put together an unforgettable and age-appropriate trip, start a travel agency for seniors. Work with a network of providers to package tours, activities, meals, medical assistance.

5. Leisure/Continuing Education--Seniors and Boomers are going back to school. Some are earning new degrees, but most are taking classes on topics about which they are simply curious. Middle Eastern cooking anyone? Flash Animation? If you are an artist, a mason, a chef or a computer guru, you can offer courses in your specialty area at local colleges, community colleges, community centers and libraries.


C. Defense Contracting--The defense industry has never been hotter thanks to the war, terrorist attacks and immigration concerns. if you are an aircraft or computer engineer, know an inordinate amount about security or counter-terrorism, get a business card and go to work.

Business Ideas:
1. Consulting--If you are retiring or leaving a firm in this field, find out if they, like Boeing, has a program to retain staff as consultants. If not, take a good look around, and take lots of folks to lunch, on your way out. Find the need and fill it as an external consultant.

2. Research--Got a small business? Does your small business have the capacity to conduct lab trials or research on new weapons or technology? If so, you may be able to secure funds from the government or large contractors who want to get a product to market or to the front lines.

3. Equipment wholesale/retail--Does your company manufacture a product that can be adapted for use by soldiers in battle or in the middle of the dessert? Do you manufacture repellants, food rations, communications equipment, armour? If you don't own a manufacturing firm, you might consider becoming a manufacturers rep (an independent contractor) or contracting with manufacturers to be the sole retailer of their products to the defense industry.

4. Start-Up--Have your own amazing product that is specially designed or can be adapted for use by the Defense Department, well the government may fund you. The Department of Defense (DoD) SBIR and STTR programs fund a billion dollars each year in early-stage R&D projects at small technology companies -- projects that serve a DoD need and have commercial applications.
The SBIR Program provides up to $850,000 in early-stage R&D funding directly to small technology companies (or individual entrepreneurs who form a company).
The STTR Program provides up to $850,000 in early-stage R&D funding directly to small companies working cooperatively with researchers at universities and other research institutions.
Small companies retain the intellectual property rights to technologies they develop under these programs.


D. Education--Want to improve the education experience for all of our children, or simply the ones in your community? The education space has never been more competitive due, in great part, to No Child Left Behind legislation and the advent of charter schools.

Business Ideas:
1. Charter school/Faith-Based Schools--You may not grow rich in dollars, but your spirit will be rich. You can certainly earn a living, but the impact that you can have on education in your community will be amazing. So, if you are a licensed teacher, or former school administrator, or just have potential business partners who, you can apply for a charter in your state, write proposals for government and private funding, and start recruiting students.

2. Tutoring/Supplemental Education--No Child Left Behind legislation created an entryway for supplemental service providers into the education industry. Now, companies offering private tutoring, after-school and summer programs and other supplemental educational opportunities can provide their services directly to parents of students in at-risk schools, individual schools, or whole school districts. So, if you developed a can't-fail formula for mastering reading-writing-and 'rithmetic, and you can boil that formula down to a replicable and marketable product, now's the time!

3. Learning Materials--If you are a curriculum designer, or have a potential partner who is, you may be able to capitalize your talents by designing curriculum, classroom materials and activities, and/or supplemental materials that can be marketed to school districts, states, charter and private schools, as well as to parents.

4. Education Camps--Got an idea for a learning experience that will engaged kids and make them want to learn? Plan great, age-appropriate activities for kids, then market your program through schools, parent groups and community organizations as an alternative to a summer spent playing video games. Then, find a community center, or rent your own space, and you've got a summer camp.

5. Education Consultants (Assessment/Evaluation)--Assessments are a controversial topic in the world of education now that students must pass them in order to be promoted to a higher grade or graduate. If you are trained in assessment design and/or evaluation, and can write or validate an assessment, school districts, states, education research and development organizations, nonprofits and test publishers may be willing to pay for your services.

6. Education Management Organizations--A few states are finally beginning to see the wisdom in allowing professional management organizations to manage and operate public schools. Though this trend is slow-moving, it is taking off in the unlikeliest places, in Louisiana, for instance. If you are an accomplished school administrator and can amass a team of education administration and institutional management gurus to help troubled schools improve test scores, and otherwise ensure that students are well-educated and provided for, you may be able to get in on this opportunity.


E. Medicine/Biotech/Pharmaceuticals--Okay, if you aren't a scientist, or researcher, you may think it's a stretch to get into this industry. No worries. There are several ways to break in.

Business Ideas:
1. Marketing/Sales--If you can help market a new drug to doctors, or to potential investors, you can make a mint in this industry. Biotech firms spend billions on R&D and patents, hoping to find, if not a wonder drug, then at least, a saleable one. If you know how to get the word out to the right people, those who will prescribe or recommend the product to patients, or those who will bet a few million on the new product's success, act now!

2. R&D labs--Though most drugs are researched and tested in-house at the big pharmaceutical firms, many are also outsourced to smaller R&D labs for fast-track testing leading to FDA approval or patent-able product. If you currently own a small R&D lab, have a crack team of well-credentialed researchers/scientists, and an impeccable reputation for producing scientifically-sound studies, reports, trials, you can market your firm to large pharmaceutical and biotech firms and make millions of your own.

3. Nurse staffing--There is a great shortage of nurses in the U.S. Hospitals, HMOs, and other organizations in the medical industry are willing to pay salaries heretofore unheard of for RNs and LPNs, so if you are a nurse who would like to contract your services to HMOs, malpractice attorneys, private clinics, insurance companies, hospitals, private companies with on-site clinics or home healthcare and assisted living communities, jump on this cash wagon! Another way to cash in on this opportunity is to source and recruit nurses for these organizations.


F. Environment/Organic/Green--With the success of organic foods and retailers like Whole Foods, there's never been a better time to roll out your special recipe for organic kids' meals, design bio-degradable caskets and packaging, or clothing made of recycled plastic.

Business Ideas:
1. Organic Food--You can go the mass retail route and sell your meals through supermarkets and Wal-Mart, or you can go the foodservice route and offer your items directly to schools, daycares and other organizations servicing children. Finally, you could open a boutique retail shop of your own and offer your creations along with other organic goodies to fussy parents in well-heeled communities.

2. Sales/Marketing--If organic vittles are not your thing, you might consider offering "green" products, or technology, or environmentally-friendly products. Products sporting "good for the environment" or "green" labels are doing especially well in most every market--from constuction (think solar panels) to cars to cleaning products. Consider adding these types of products to your existing line, or starting a business to sell these products to environmentally-conscious consumers.

3. Consulting--Wherever there's a new market trend, there's a need for a consultant. If you are an expert in designing environmentally-friendly processes, systems, buildings or other products, or if you can cook the best organic meals ever and design a menu, there's someone out there who may need you to help them re-design their products or services in order that they be able to sell to consumers who are willing to pay a premium for good products that are good for the environment and/or their health.

Resources:
Charters Schools Development Center: www.csdc.org
Center for Education Reform: www.edreform.com
Organic Trade Association: www.ota.com
California Certified Organic Farmers (a great source of info on the industry): www.ccof.org
Small Business Administration: www.sba.gov
Department of Defense: www.defenselink.mil
Information on Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs: www.sba.gov/sbir/
American Nurses Association: www.nursingworld.org
Event Planning: www.meetings.com/Solutions/dsp_industryAssociations.asp
R&D Magazine: www.rdmag.com
Recruiters Network: www.recruitersnetwork.com
National Association of Physician Recruiters: www.napr.org
National Business Incubation Association: www.nbia.org
Society of Human Resources Management (information on HR outsourcing/consulting): www.shrm.org
National Investor Relations Institute: www.niri.org
Government Grants: www.grants.gov
American Educational Research Association: www.aera.net
US Department of Education/No Child Left Behind: www.ed.gov
Marketing Executives Networking Group: www.mengonline.com
Travel Industry Association: www.tia.org
American Society for Training & Development: www.astd.org
International Association for Continuing Education & Training: www.iacet.org