The 18 Best Industries for New Businesses

The economy may still be recovering, but some industries are experiencing plenty of growth and low competition. Inc released a list of what they consider to be the best industries for new businesses. Although it is unclear exactly what criteria was used to narrow down their selection, the options are actionable. Many times, a list of industries is simply that:  a handful of top-level categories. Inc’s list provides granular detail that executives and entrepreneurs want to see, like naming “software as a service” and “education technology” versus “internet technologies” or even “technology.” “Green construction” can also be found on the list, which is unsurprising, but  it also silently acknowledges that not all categories within the green movement are necessarily sustainable.

Find the full list below:

1. Candy
2. iPhone apps
3. Health-care technology
4. Beer, wine, and liquor wholesale
5. Software as a service
6. Home health care
7. Yoga products are services
8. Technical and trade schools
9. Fast-casual dining
10. Green construction
11. Niche consulting
12. Education technology
13. Temporary staffing firms
14. Government services
15. Accounting services
16. Repair services
17. Self-improvement
18. And, of course, Energy

Did you see any surprises on this list? Did Inc leave off any other emerging industries. Let us know what you think by leaving a comment below.

How Wall Street Reinvented the Investment Bank

With President Obama’s speech to mark the one-year anniversary of the fall of Lehman Brothers, we had the opportunity to evaluate the progress over the last twelve months. Many of us are wondering what has changed, and if the changes to Wall Street have been substantial enough to stabilize a market.

Knowledge@Wharton spoke with Jeremy Siegel and Richard Herring, finance professors at the Wharton school, to analyze the situation. Surprisingly, their point of views are not similar.

When asked how Wall Street has changed, Siegel responded with:

We saw the whole concept of the investment bank totally changed. It killed itself as a standalone institution. It had to be absorbed by a commercial bank, as was the case with Bear Stearns, or in the case of Lehman, liquidated or take on a commercial-bank holding company status to get federal [funding] access … Even Goldman Sachs, the most successful of the investment banks, [did that].

By definition of a standalone entity, the investment bank may never return. Herring, however, questions if any existing entities will take its place, such as hedge funds. He also serves as an example that not everyone in the financial industry agrees the environment has changed much as it has to.

It’s changed surprisingly little … Some institutions will be paying record bonuses again. In fact, the U.S. government has set up a situation where [bonus systems] can be very easily arbitraged by institutions getting essentially federal money [while] taking risky positions and making easy profits. In one sense, we’ve made the situation worse.”

While the public has been watching to see how the financial industry will fix itself, the proposed reform from the President may deserve the most attention. And even if Wall Street has both supporters and critics of the Obama administration’s proposal, its likely that the most significant changes still lie ahead.

Photo credit: jpellgen

3 Ways Luxury Manufacturers Drive Sales During a Recession

Dollar stores, discount big box retailers and fast food chains saw the silver lining that comes with every recession, but they were not alone. Companies that manufacture luxury products refused to accept a decrease in sales with a drop in consumer spending power. Below are three examples of how luxury companies weathered the storm:

1.  ”Used” is such an ugly word; BMW focuses on pre-owned

BMW, among the best examples of a luxury automotive manufacturer, saw a decrease in sales caused by the recession. Instead of strictly pushing new sales, they reinvented the idea behind owning a used car.

According to Bloomberg, “U.S. sales of so-called certified pre-owned luxury autos rose 4.7 percent this year through August, bucking a 31 percent drop for new luxury models, according to researcher Autodata Corp. BMW, Lexus and Mercedes certified sales jumped 14 percent.”

• Takeaway:  Companies can retain the value of their brand without dropping prices. Provide or emphasize options that already exist at lower price points.

2.  Apple drops prices while introducing features

Earlier in the month, Apple introduced a refreshed line of iPod nanos with perhaps the most significant technological improvement since its introduction:  the ability to shoot and record video. And they did it with a $20 reduction in price.

• Takeaway:  Reducing prices alone makes a company look desperate, and the practice harms their brand. Reducing prices while adding features strengthens their brand while remaining competitive.

3.  Louis Vuitton/Ralph Lauren looks to the East

Reuters and Bloomberg report that LVMH and Ralph Lauren are looking to expand and penetrate China and Lebanon in the next few years, and their expansion has already begun. Companies like these want to lay the foundation for years of growth by increasing the percent of revenues derived from emerging markets.

• Takeaway:  All markets are affected during a global recession, but not all markets are affected or respond equally. Modern-day executives should pay attention to opportunities abroad.