Choosing the right business idea is the first hurdle in joining the ranks of entrepreneurship. If you aren’t sure what you want to do, but know you want the independence of owning your work life, starting your idea search with the target market makes sense. You likely are very aware of the type of people you would (and would not) like to deal with on a daily basis. Thus, developing business ideas based on who your venture will serve makes perfect sense.
As the country recovers from the current economic devastation, a few specific target markets will emerge as strong opportunities for new small businesses to tap. Five of the best of these markets are:
Senior Citizens
The over 55 population is growing fast and it is a much broader market than ever before. The 55 to 75 year old crowd is healthier and more active than previous generations. Many plan to continue working, at least part-time, and some are looking to finally pursue the work they have always dreamed of doing. They are relatively technologically savvy — a good percentage are active on the internet, own smart phones, and have played the Wii. The older portion of the senior crowd is living longer and wanting to stay in their own homes as long as possible. Opportunities abound to serve this market, from senior citizen-focused gyms to in-home, nonmedical services to temporary staffing. Be creative, talk to the seniors in your area, and scope out a few viable business ideas targeting this untapped market.
Youth
Kids and teens control the spending of enormous amounts of cash, even in this difficult economy. In addition, the typical response to a recession is to make family a higher priority, so the next years will likely see a burst in kid-focused products and services. Over 7 million high-school age kids play sports and just as many are involved in other extracurriculars. The questionable quality of the public schools across the board also provide opportunities for supplemental education businesses, such as language, arts, and technology camps or schools.
Entrepreneurs
The current economy will recover on the backs of entrepreneurs. This means that millions of Americans will be bootstrapping startups and looking for ways to outsource critical tasks. If you have a skill that new business owners might need, set yourself up as a freelancer…it’s a better deal for both parties. In addition, the lifestyle of a entrepreneur provides many business opportunities. Many will be working from home, many will be working from their cars, and all of them will need to outsource some portions of their business as they grow.
Wealthy
The rich among us are always an excellent market to serve, as long as you understand their motivations. They tend to prefer high-end, fashionable products of excellent quality. In services, they are looking for ways to free up some time and reduce their to-do lists in the most convenient manner possible. In general, the wealthy are willing to pay a premium price for quality, efficiency, and image, so be sure your company culture is developed to meet those high standards.
Foodies
The foodie community is on the rise and startups with a focus on this market have innumerable niches to choose from. From training courses to modern catering to kitchen gadgets, the field is wide open to entrepreneurs with a little knowledge and a lot of willingness.
In addition to these five growing target markets there are dozens, if not hundreds, of other groups on which to base viable business ideas. Think about who you are, who you enjoy working with, and who you best understand and relate to. From there, developing a solid startup idea is merely a matter of identifying needs within that group.
About the Author
K. MacKillop, a serial entrepreneur with a J.D. from Duke University, is co-founder of LaunchX and authors a small business startup blog.
