America’s economy relies on more than just major, multinational corporations like Coca-Cola, Apple, Microsoft, and Google. Sure, these businesses generate billions in revenue each year and provide jobs for hundreds of thousands of Americans. At the heart of the American economy are business startups. Those bold entrepreneurs who believe deeply in their product or service could be the next Google or Coca-Cola, just waiting to change the face of the market. The big question facing all startups is this: does the industry need your product/service?
According to Forbes, there are a number of industries ripe for the picking in 2015. Small business owners are increasingly optimistic about the economic outlook in this country, but success depends upon a fertile industry. So, which industries are poised for the introduction of successful startups?
Best Industries: #1 – #5
The industries that made this list were judged by a number of factors, but for the sake of easy ranking, the primary indicator was the growth in each industry through the 12-month period ending November, 30, 2014. The following industries were identified as the top five for growth in 2015 (2014 growth listed in parenthesis):
- Electronic shopping and mail-order houses (20.5%)
- Software publishers (16.0%)
- Computer Systems Design and Related Services (15.2%)
- Investigation and Security Services (14.4%)
- Services to Buildings and Dwellings (14.0%)
The success of these industries highlights a few trends in America at the moment. First and foremost, Americans are conducting more business, shopping, banking, and other activities online. Companies that allow people to save time shopping for clothes and household goods are surging. Software publishers and computer systems design specialists are in demand as businesses look to meet the needs of consumers, as well as other businesses.
Additionally, the housing market recovery is powering the surge in building services. Certain regions of the country have hot housing markets where new homes cannot be built fast enough. In other regions where the recovery is gaining steam, homeowners who put off remodeling or improvements during the recession are finally making those upgrades.
Best Industries: #6 – #10
You might call this the bottom five in the top 10, but don’t think of these industries as sluggish compared to the one’s covered in the previous section. These industries are gaining momentum and the potential for future growth is high. The following industries round out the top 10 (2014 growth in parenthesis):
- Management, Scientific, and Technical Consulting Services (12.8%)
- Architectural, Engineering, and Related Services (12.2%)
- Employment Services (12.0%)
- Specialized Design Services (11.9%)
- Advertising, Public Relations, and Related Services (10.1%)
Again, many of these industries are related to the growth of each other, as well as trends in the market and the improvement of the overall economy. The growth of mobile and cloud computing, for example, is boosting various tech consulting firms and advertising/marketing companies. The improvement of the economy as a whole has brought an end to hiring freezes in many sectors. The need for more employees to meet business demands is pushing employment service firms forward.
Factors to Success
In reporting on these hot industries, Forbes noted a few key factors that enable a fertile environment for startups. Among the most important are low barriers to entry and little need for startup money. If you have (or can afford) basic equipment and have the right domain knowledge, you have an extremely high chance to succeed in these industries as a startup. For more information please feel free to contact us for a free 30 minutes consultation.