When it comes to starting a business many entrepreneurs are excited by the latest trends. Unfortunately, in their attempt to chase what’s hot, they fail to see the best industries for starting a business.
We have identified a cross-section of businesses that include the best industries to start a business. The industries we have outlined have great potential and are still in their early days of development. These prospective industries are a great place to become a key industry player.
The industries we recommend are as follows:
Automated Guided Vehicles (AGV) (a.k.a. Robotic Forklifts)
Jeff Bezos created a stir in the Twittersphere when he discussed that Amazon could deliver products via drones. His theory is not that far-fetched given that Amazon did spend $775 million in 2012 to buy Kiva Systems, which manufacturers robotic-guided vehicles. These products streamline the process of packaging products and shipping them. These technologies essentially speed up the process of order fulfillment.
AGVs are used in many industries, however, their startup costs are quite high. While the costs are high now, it is not certain they will remain high due to the constant evolution of the product within this industry. In order to be competitive in this industry, one must be quite advanced in robotics and computer systems. While there is not extensive competition, some of the AGV players to date are America In Motion, Ward Systems, Savant Automation, Dematic Group, and JBT.
The housing industry is returning to a healthy equilibrium as supply and demand come back in the market. Green construction is flourishing, which promotes designs that are sensitive to energy-efficiency and environmental sustainability. This sector is greatly aided by tax credits assigned to relevant products. Within the next few years, more than half of all commercial and institutional construction will have a decided tint of green, according to the U.S. Green Building Council.
What makes this industry wonderful is that the government funds at least half of the green projects. Thus, if you want to remain competitive, you will need to be LEED certified. By becoming certified, you can combat the problem of scarce workers with your expertise by training others to establish a solid reputation. Companies that have gone in this direction have grown by an average of 15 percent annually.
Mobile Health or “mHealth”
Due to the increase in the aging population, increasing chronic illness, accelerating health costs, new regulatory reforms, and increased consumer demand for health information make the need for as much health information as possible to be available on mobile devices. The global mHealth market is likely to surpass $10 billion by 2018.
If you are interested in this industry, it is recommended to consult the Affordable Care Act in order to find out sectors have opportunities. One facet that appears to be promising is the idea of remote patient monitoring to save visits to the doctor. While this industry sounds very promising, it faces several security considerations. As more patient data is captured, companies could risk violating HIPAA.
Thus far, there is competition from companies including AirStrip, AliveCor, Telcare, and Informatics Group. By looking at these and other companies in the mHealth field you can get an idea where this industry is heading.
Since consumers are becoming more conscious of the health benefits of food such as kale and quinoa, various retail stores specializing in gluten-free and healthful foods are blossoming everywhere. Additionally, businesses that supply these health food stores have become prevalent as well.
Since 2003, there has been an average of 4,300 specialty food products launched. In 2012, specialty food sales topped $85 billion, according to the Specialty Food Association. The fastest growing segments of this industry are energy bars and shelf-stable beverages. Ninety-five percent of specialty food stores carry all natural products and 88 percent of stores are concentrating their efforts on locally grown foods.
In order to become a successful retailer in this industry, one must have to be able to differentiate from other stores. The location is essential to be able to target the customer who is willing to pay more for quality food. Prospective competition includes Whole Foods, Mom’s Organic Market (a regional player), and expansion of big-box retailers like Walmart.
Buy, Buy Baby (Products)
Baby products are some of the largest growing online retail sales in the business. Baby apparel alone will bring up to $6 billion in eTail sales this year. Many experts believe that this demand will continue to increase given the increase in birth rate and a rise in disposable income for parents. While diapers are typically a staple of this industry, one could prospectively become successful from holistic products pertaining to babies in order to carve themselves out a niche.
That being said, the competition is fierce in this industry. By 2018, there will likely be more than 6,000 baby product e-tailers. Consult brands such as I play, 4Moms, Babyhaven, and Happy Family Brands for guidance.
Decoding the Language of Business
There are more than 6,700 languages to be precise. As business becomes more global, the demand for people or companies who can facilitate communication gaps will grow. Additionally, the increase in foreign tourists to the U.S. and a growing Hispanic population in the U.S. promotes the need for those possessing linguistic talents.
As U.S. companies desire to expand into markets in China, Brazil, Russia, Eastern Europe, and the Middle East, there will be an increased demand for individuals or companies who are able to translate English-based sites into local languages. Current examples are U.S. health companies expanding into South America, Canada, Europe, and the Asian-Pacific market. Additionally, there is a high demand for translating official immigration documents including birth and marriage certificates and diplomas.
While this industry is promising, there is a threat of automation due to the advances in technology. There have been many apps developed for these purposes. There are roughly 50,000 translation businesses and 95 percent of them are individual operators. Thus, the opportunity to appeal this field is enormous.
The demand for digital forensic services is increasing due to the fear of data loss and the need to police potential corporate crimes. Aiding in criminal investigations is where this field is quite lucrative. Companies that can assist in investigations into phishing schemes, bank fraud, and child exploitation cases will be in high demand. The ability to recover data from compromised machines and networks is also promising.
Entering this field will be difficult because you will need the technical skills to be competitive. Additionally, you will need certain government clearances to get top security clearance work. Competition prospects here will be traditional IT services companies and large consulting firms including AccessData Group, D4, eDiscovery, and CaseDriven Technologies.
The greatest demand is from financial services, manufacturing, the federal government, retail, communications, and high tech. The key is to find the right size of business that has deep pockets. That being said, competition is fierce. One must carefully conduct their market research and target companies who do not have similar apps from other vendors.
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