Top Ten Promising Small Business Opportunities for 2006
We continue our 2006 trends forecast series here at Small Business Trends. In this post we outline our own list of the top ten promising small business opportunities for 2006.
First, a few words about how I chose the top ten.
i) The list is limited to businesses that the mainstream can identify with. You won’t find specialized technology niches such as nanotechnology, biomedical devices, or RFID. While such technologies are important and are gaining ground, they have little relevance to the mainstream core of small businesses.
ii) The list focuses on businesses that can be started by the average entrepreneur who does not have a huge financial stake. Some can be started for virtually no investment or even a few thousand dollars. Others will take more than that. But none require millions of dollars in investment in infrastructure, warehouses, factories or equipment to get started.
That said, here is the Small Business Trends list of Top Ten Promising Business Opportunities for 2006:
1. Outsourced information technology services
- Small businesses do not have the staff internally to handle all their information technology needs. More and more they outsource slices of their technology needs. Even in larger companies it can make sense to outsource portions of IT services to experts. The concept of outsourced managed IT services is taking hold. Related to this is the growth of software as a service provided by a third party. Savvy small businesses are capitalizing on this trend. They are identifying niches where technology can be provided in the form of a service, and they are finding more willing takers.
Who’s doing it: Test Partners; Ever On.
2. eBay and Amazon related opportunities
- eBay selling continues to be core for at least half a million etailers, and has given rise to a whole follow-on industry of third party providers who offer services enabling eBay sellers to sell higher volumes by outsourcing backend functions. Something similar is happening at Amazon.com, for information products. Amazon has become a place for entrepreneurs and authors and musicians to sell their books, CDs and DVDs. And third party services are popping up to help these individuals get their wares into Amazon and to capitalize on Amazon’s marketplace.
Who’s doing it: WME Books; CD Baby; Seller Engine.
3. Pet-related
- There are 142 million dogs and cats as pets in the U.S. according to the Humane Society of the United States. Americans in particular are willing to spend money on their pets (see the nearby post on Pet Industry Trends). Hot areas of growth include services for pets such as pet walking and pet sitting, special gourmet food treats, and specialized medical care for pets such as chemotherapy and dental cleanings.
Who’s doing it: Kookies; DoggieDesigner; National Association of Pet Sitters; Pet Care Rx.
4. Food and beverage related niche industries
- Americans’ palate for food and drink has become more sophisticated and varied. Interesting ethnic foods and high-end gourmet foods are particularly in demand and hot right now. This includes everything from opening up a themed coffee house or, increasingly, a tea house. Or it can mean opening up a specialty bakery or gourmet food shop, or a cooking supply store.
Who’s doing it: Specialty Cheese; Ten Ren Tea.
5. Hobby and avocation-based businesses
- Some days it seems like everyone you meet is looking for ways to turn their hobbies into businesses. Hobby-based businesses have actually become big business in many cases. Just look around at how motorcycle dealerships, NASCAR racing, and craft stores have grown up. While the concept of a hobby-turned-business is not new, the widespread nature of it is. Nowadays it is not at all uncommon to hear of someone having a side business based on a hobby.
Who’s doing it: Scrap Girls; StarBoyz
6. Anything security related
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In today’s world of cybercrime and identity theft, we feel less secure, both online and offline. People are willing to pay today for services to help protect them from identity theft, for home security systems, and for shredding services to foil dumpster divers.
Who’s doing it: Entrust; Identity Rehab; Shred Works.
7. Services for seniors and retired people
- It’s no secret that the populations of America, the U.K., Europe, Japan and Canada are aging. Products and services designed specifically around the needs for older people continue to grow — everything from dating services for older individuals, to home health care, to jitney services to drive elders to appointments.
Who’s doing it: A Place for Mom; Adaptive Access; 50 Years Plus.
8. Information filtering services
- Never before in history has the average person had access to so much information and means of communication at their fingertips. But we are overwhelmed with information. We need services, technology, and sometimes even people — to help us filter all the information and find what’s relevant to us.
Who’s doing it: Del.icio.us; Rollyo; Puremail.
9. Hospitality businesses that create an experience
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Recreation in the form of travel is big business. Bed and breakfasts, catering services, and specialized tour services and destinations are big (guided hunting tours, ecological trips to observe nature, charity trips to spend two weeks helping rebuild homes destroyed in natural disasters, and similar experiences).
Who’s doing it: Serendipity Adventures; Ducky Bob’s.
10. Hispanic products and services
- Hispanics are now the largest minority in the United States – and the numbers will keep growing. Products that cater to Hispanic tastes and lifestyles continue to grow. This could be anything from Hispanic-style foods, to Spanish-language publications, websites and radio stations, to services appealing to Hispanic immigrants (such as money transfer and immigration assistance services).
Who’s doing it: El Restaurante Mexicano; Radiovisa.
December 24th, 2005 at 7:12 am
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December 24th, 2005 at 12:14 pm
Anita,
I would like to thank you very much for the most recent articles. They have been helpful as I continue to develop my small business strategies for growth and diversification.
One question regarding this post. What is the source of this top 10? Is this based on your own observations, a compilation of data from other forecasts or a scientific poll/study? I’m interested because I do agree with the list, just not sure why.
Thank you again and please accept my sincere good wishes for you and those you hold dear during the Christmas holiday. It was a good year, a year that I found Small Business Trends and the famous Anita Campbell.
Cheerfully,
David Francis
http://www.SoKy.biz
December 27th, 2005 at 11:13 am
[…] That said, here is the Small Business Trends list of Top Ten Promising Business Opportunities for 2006: […]
December 28th, 2005 at 12:00 am
Hi David, thanks for your kind words!
This list is my own list of small business opportunities that I see in 2006. It is based on my daily trend watching and analysis of the small business market. Remember, I do this all day. With writing several blogs and columns, moderating forums, editing books, and hosting a radio show — all on the topic of small business — I am immersed in small business topics all day long, virtually every day.
You may see some similarities in other lists of trends from other sources. That’s because we’re reviewing the landscape and seeing much the same type of trends. In many ways the Internet makes it one big melting pot of ideas.
Best,
Anita
December 30th, 2005 at 9:28 am
Excellent list Anita! Thanks Anne
January 1st, 2006 at 6:05 pm
[…] Anita Campbell’s Small Business Trends shares the top ten promising opportunities for 2006. […]
January 3rd, 2006 at 1:24 pm
[…] Second click-through took me to Small Business Trends and a post by Anita Campbell entitled Top Ten Promising Small Business Opportunities for 2006. This may be the same blog — I’m not sure — where I read about making money from hobbies as an upcoming trend, and decided to test the possibility by trying to monetize digital photography… and darned if #5 isn’t “Hobby and avocation-based businesses” […]
March 29th, 2006 at 11:30 am
[…] read the full article… […]
September 12th, 2006 at 9:24 am
Hello, I’m not sure if we can submit QUESTIONS here, but I happen to come across this site in a search over the internet for key small business to start in my area of the U.S. I currently live in Northwest Arkansas, one of the countries fasting growning areas. We have a very rapid growing mix of people moviong to this area, and I am very interested in knowing what small business are to to new extablishing area such as this?
November 3rd, 2006 at 8:14 pm
Since we are coming up on the end of 2006, it would be interesting to see a follow-up post from you on what panned out and which of these were flops (so to speak).
http://www.simplifythis.com/
December 24th, 2006 at 9:12 pm
[…] I’ve spent a lot of time on home organizing and researching for more information on Real Estate this past month. I’m glad that I am finally settled in my new home and I am ready to begin prioritizing most urgent tasks that will help me reach my goals. It’s strange how we’re having such great sunny weather during these fall months. I find that I am spending a lot of time researching on the Internet and also spending much time on reading emails. I hope to reduce that time by 50% as I plan on spending more time reading the Globe and Mail and also Vancouver Sun’s Real estate sections. Since I’ve spent much time researching Calgary, I’ve also started looking into the Calgary Herald’s website. In addition to real estate investing, another one of my goals is to build a small business. I found a good website that talks about the top ten promising small business opportunities for 2006: http://www.smallbiztrends.com/2005/12/top-ten-promising-small-business-opportunities-for-2006.html There are some really good archives in the “Small Biz Experts” section. I am also at present promoting my Travel and Cruise Consulting services. Part of the challenge is mustering up the courage to speak to people about the product/services you offer and the value you bring to the table. I found a great article about Business Networking: http://sbinfocanada.about.com/cs/marketing/a/networkingmm.htm From the article, it states: “If you want to gain the most out of business networking, follow the Ten Commandments of Networking! 1) Thou shalt drop the “what is in it for me?” attitude. 2) Thou shalt listen. 3) Thou shalt build a relationship. 4) Thou shalt give the first referral. 5) Thou shalt not tell others of the referral you require; thou shalt “show them” with a story. 6) Thou shalt be specific of the type of referral. 7) Thou shalt reciprocate when appropriate.
Thou shalt participate in the network executive, functions, and network time. 9) Thou shalt thank the person who gave a referral. 10) Thou shalt follow up on the referral within 24 hours. Business networking is productive and fun, and that is why it will always be part of the Bigger Picture.” Yet for some people, it can be gut wrenching just to think of approaching people in a big group setting. How do you do it? Do you just walk up and say “Hi, I’m _______(your name) from _______ (company).” Then you wait for a response. Yup, pretty much. Stand there, smile and be open. Better yet, approach them, introduce yourself and ask questions about them and their business. Try practicing in front of a mirror or with friends. Here are some great links to help you get prepared for business networking: http://www.sba.gov/managing/leadership/networking.html http://chinese-school.netfirms.com/business-article-business-cards.html http://www.networking-knowledge.com/art5.html Tip 1: It is Vital that you leave any meeting with at least one new contact! Tip 2: It is Vital that you send a follow up email/letter or do a follow up phone call. […]
April 28th, 2008 at 8:35 pm
is there anybody willing go english training in china as a small biz???
a china guy,singlton, from Huludao,a coastal city in northeast China