Working for yourself is one of the most difficult, yet most rewarding things you can do. You have the freedom to set your own schedule and do things the way you want, but there is also a lot of ambiguity. There are many things you will not know and have figure out along the way, and that’s okay.
Often times, we get so excited to start a business that we forget to do research and be realistic with ourselves. You may want to be the next Apple, or create a revolutionary pen that shoots lasers, or a collar that allows your pet to speak, and the list goes on. All these ideas sound awesome when think about them and their potential. You daydream about how everyone will buy into it and make you rich. But it can also drive you crazy not knowing which idea to start. Instead of choosing an idea first, choose a market and build on it. Taking a look at your market options first may help you narrow down your options on what industry will be most profitable and has a positive outlook.
If you’re already a business owner looking to tap into new markets, want to put your money in stocks, or invest in companies someday, it is imperative to stay afloat and be aware of market industries along with their projections. The world is changing rapidly, and everything that is being released into the market already does or eventually will influence other industries. Below are the top three markets that have been most successful this past year and continue to have a promising future in years to come.
Approximately 90 percent of Americans value their overall health. That is a huge opportunity for a product or service that will make someone’s life easier. We often see people on social media promoting diet supplements, detox teas, and cleansing masks. There are fit bits, juice cleansers, anti-aging creams and many products that are aiming to satisfy the increasing demand for clean and transparent products, free of chemicals and additives. As fitness trends such as CrossFit, yoga continue to grow, so does the industry. Between 2008 and 2014, gym memberships grew by almost 19 percent and continued to escalate each year after.
In addition, the aging baby boomer population is a large demographic consisting of 76 million people that are looking to stay active, spend time with family, and have the financial means to invest in their health. By 2017, an estimated $4.3 trillion is expected in health spending, including Medicare, Medicaid, private health insurance, physician and care services, and more. This health industry is expected to account for 18 percent of consumption by 2024, and reported to add more jobs than any other industry.
Emphasis on Artificial Intelligence (AI), Virtual Reality (VR), drones, and automation. All the crazy things we’ve seen on movies and TV shows are closer than we think. Maybe we’ll even be able to travel through time some day. For now, we can experience it through virtual reality. With these technologies we will be able to improve scientific research, information processing, analytics, surveillance, and ultimately enhance multiple aspects of our life through technology.
As of 2015, the number of millennials goes on to surpass the baby boomer population, with over 83 million representing a quarter of the U.S. population. Interactive technologies are what drives this generation’s productivity and efficiency. The vast amount of extraordinary devices already out in the market raises Millennials’ expectations for faster, more powerful, and long lasting tech devices. Think of Siri on steroids. These advances in our society will allow us to put what is already out there into better use. The U.S. tech industry currently stands at more than $1 trillion dollars in revenue. According to Forrester, the market is expected to grow between 4-5% rates in years to come.
This month, citizens in the state of Nevada will be able to vote on energy deregulation. Right next door, Californians will be able to decide towards state regulation on nuclear power plants. Across the coast, people in Florida will be able to decide if they want to own or lease solar power. All throughout the country, people are realizing the importance of preserving our resources. In addition, renewable energy has a smaller impact on the environment, and is less expensive than a traditional energy source.
Early in 2016, this market was expected to grow an estimated 119 percent due to the demand for renewable, clean energy sources. In addition, the price fluctuations in oil and gas almost two years ago almost forced companies to innovate new ways of producing oil. Consumers are increasingly becoming aware of the benefits of solar, alternate oil sources, and the importance of conserving water. The government and industry companies continue to look for ways of implementing cleaner, cost-effective solutions through the use of technology and desire to protect our climate.
After you’re done examining a market, the resources available, and its potential, it will be easier to decide whether you want to go for the pen that shoots lasers or the talking collar for pets. Be sure to take a look at what your competitors are doing and not doing. Find ways to be different than them and make your product or service value stand out. Once you get a good understanding of your market and can validate its potential, a substantial amount of work is out of the way. Then, start setting up your business plan and when you’re ready, come apply for investment!
About the Author
Helena Lagos was born and raised in Tegucigalpa, Honduras, and moved to Las Vegas at the young age of ten. From a young age she knew she had a passion for business, and also lived in Curacao and Italy, which led her to pursue a career in International Business and minor in Global Entrepreneurship. Through her studies at UNLV and involvement with RVF, she aspires to start her own business and become a venture capitalist.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of RVF or UNLV. In addition, thoughts and opinions are subject to change and this article is intended to provide an opinion of the author at the time of writing this article. All data and information is for informational purposes only.