Top Ten Opportunities in 2008 for Personal BusinessesDawn Rivers Baker
May 19, 2008
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The U.S. Census Bureau started producing annual nose-counts of “nonemployer”
businesses — that is, firms with no paid employees other than the business owner
or owners — in 1997. Since then, their numbers have exploded. The total number
of U.S. firms grew by 21% between 1997 and 2004, and almost all of that growth
consisted of nonemployer businesses (also called personal or single-person
businesses or the self-employed).
You wouldn’t think that these smallest of small businesses could be such a
big deal and, individually maybe they aren’t. Collectively, however, they
numbered 20.5 million as of 2005, almost 80% of the businesses in the country,
and they raked in about 8% of GDP that year.
It seems that circumstances came together in the final years of the 20th
century to make the nonemployer firm a growing force in the U.S. economy. The
technology that lets a nonemployer firm communicate with customers worldwide and
operate a business on a 24/7 basis matured. In industry after industry,
technology has lowered barriers to entry as well. And, in a service-oriented,
knowledge economy, it became possible to construct a business with no more
inventory than the expertise and information lodged in a human brain. In many
ways, the 21st century belongs to nonemployers.
So, what are the best opportunities for these nano-businesses going into
2008?
Some of them spring from the way technology is changing how we work:
- 1. Virtual staffing agencies. You might be surprised at how
much money there is in human resources and that is true of virtual staff, too.
As more and more businesses are waking up to the virtues of telecommuting and
the costs savings in hiring independent contractors, there will be an
accompanying demand for all kinds of professionals who are willing to work
remotely.
- 2. Content aggregators. Just as firms like NetFlix,
Amazon.com and Rhapsody have found success in aggregating the Long Tail in the
movie, bookselling and music industries, opportunities now exist for all sorts
of aggregators who can create systems to help confused Internet users navigate
the bewildering wealth of niche information available online. That includes
content verticals (topic niches such as parenting, gardening, business and
entrepreneurship) as well as format-based horizontals (newsletters, blogs,
social networking sites).
- 3. Digital content producers. One of the virtues of the
online world is that it lets you create digital product that can be made once
and sold an infinite number of times. So, if almost-elastic profit margins
appeal to you and you are a reasonably good writer, an excellent opportunity may
exist in creating information products of different types at different price
points for different kinds of customers.
- 4. Business and personal coaching. When policy wonks talk
about education, they don’t usually mention the silent but growing problem of a
generation or two whose schooling has not prepared them for the world in which
they live. More specifically, most of us were educated to be employees and,
because of that, many have trouble coping with the unsupervised nature of
independence and self-employment. The rise of business and personal coaching to
meet that need is a trend that shows no signs of slowing.
- 5. Business services. Microbusinesses tend to want to focus
on their core competencies and outsource other business functions to independent
contractors and/or other microbusinesses. This creates a large and growing
market for all sorts of business services, particularly advertising, marketing
and public relations.
Another trend that will create opportunities for nonemployer businesses is
the growing concern about the environment, global climate change and energy.
- 6. Environmentally-friendly construction. The construction
business is, believe it or not, composed almost entirely of nonemployer
businesses; in fact, research from the 1990s found that 77% of the industry
consists of home-based businesses. As Americans become increasingly
eco-conscious, nonemployer construction firms that specialize in using
environmentally sound materials or in building especially energy efficient
properties are likely to find themselves in demand.
- 7. Oil and energy extraction consultants. This is already
one of the fastest growing segments in the nonemployer universe, both in terms
of number of businesses and in terms of revenue growth. Obviously, a certain
amount of training and experience in this line of work is a necessary
prerequisite. But, again, with the focus on domestically produced,
environmentally friendly energy sources, companies in the business of producing
oil products and generating energy will be looking for these consultants and the
guidance they offer.
- 8. Energy-related environmental consultants. Another notion
that is rapidly taking hold is for individuals to do their bit to reduce their
oil consumption. For starters, it is patriotic (reduce dependence on foreign
oil) and philanthropic (help save the planet). It will also reduce the costs of
living and doing business for everybody. Nonemployers that can help homeowners
and businesses to increase their energy efficiency, select alternative or
renewable energy sources, or change their processes and procedures to decrease
their carbon footprint should enjoy a brisk business in their chosen market.
Finally, there are those aging Baby Boomers.
- 9. Health care service providers. There are likely to be
any number of business opportunities for nonemployers in the health care
business in the coming years, especially in home health care, long term care and
hospice services. Here, the real opportunities are not in actually providing
care — in this industry, the only care-givers who really make money are doctors
and surgeons — but in helping patients and their families navigate the
administrative maze of long term care, insurance and various federal benefits.
And don’t forget the opportunities inherent in virtual staffing in this
particular niche.
- 10. Personal services. It sounds a bit science fiction when
you stop and think about it but there is a growing Sandwich Generation market
for personal services ranging from the traditional housekeeping/cooking to child
care to house-sitting to shopping to social organizing and more. Believe it or
not, as people get busier and busier, they are becoming more willing to farm out
bits and pieces of their lives to the hired help. This is not going to be
glamorous stuff but, if you choose the right service and the right market, it
can be both lucrative and even fun.
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