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.

Top 30 Innovations Over the Past 30 Years

The word “change” may never be the same.  For some, it’s change from the previous political administration.  For others, it’s global change and a new approach to each problem we encounter as a world.  But looking back over the last few decades, what would be the most significant innovations that changed how we live?

PBS’ Nightly Business Report celebrated its 30th year on the air with a special on the top 30 innovations in the past 30 years.  NBR solicited nominations from the public, and a panel of professors from Wharton sorted and awarded the top innovations.

From medication and technology marvels to those basic staples like LEDs found in every device, the list is not very surprising.

1. Internet and the Web
2. PC/laptop computers
3. Cell phones
4. Email
5. DNA testing and sequencing/Human genome mapping
6. Magnetic Resonance Imaging (MRI)
7. Microprocessors
8. Fiber optics
9. Office productivity software
10. Non-invasive laser/robotic surgery (laparoscopy)
11. Open source software and services (e.g., Linux, Wikipedia)
12. Light emitting diodes (LED)
13. Liquid crystal display (LCD)
14. GPS systems
15. Online shopping/ecommerce/auctions (e.g., eBay)
16. Media file compression (jpeg, mpeg, mp3)
17. Microfinance
18. Photovoltaic Solar Energy
19. Large scale wind turbines
20. Social networking via the Internet
21. Graphic user interface (GUI)
22. Digital photography/videography
23. RFID and applications (e.g., EZ Pass)
24. Genetically modified plants
25. Bio fuels
26. Bar codes and scanners
27. ATMs
28. Stents
29. SRAM flash memory
30. Anti retroviral treatment for AIDS

What’s missing from this list?  And should social networking (which affects people online and who have registered for services) really score higher than genetically modified plants (which fill the shelves of every grocery store)?

A Change in the Rapacious Executive

With unemployment on the rise and stressed out executives unsure where they may find their next deal, the business world has succumbed to an epidemic of an unusual kind:  politeness.

In an article from The Economist, one journalist writes:

Rudeness is out, and civility is the new rule in an uncertain world. The former kings of abrasive behaviour—Masters of the Universe bankers, hedge-fund traders, private-equity chiefs—have been humbled. On Wall Street, says a banker, “it’s now all about charm and openness and taking time with people.” Cocky young things straight out of the best business schools have stopped skipping interview appointments, recruiters say, and there is much less looking over people’s shoulders at drinks parties, reports one veteran. Many people, fearful for their jobs, are trying to burnish their contacts at other firms.

Upper-level management discuss the details of their annual strategies with vendors while employees from all levels exchange handshakes and greetings with unfamiliar faces.

Is it all a facade that we set in place during tough times?  Will it be a permanent change that we’ll see throughout the business world?  Unlikely, but business is easier when working with willing and cooperative coworkers.  Besides, those contacts may just offer the next step in your career.

Modern executives should be aware of the people they work with every day and decide for themselves if they can be more polite.  On the other hand, the best executives should be able to detect when someone is being nice to them for the sake of their career.

The One Question Google Asks All of its Products

Take a look at some of the web services Google has grown, bought or cultivated in its web arsenal.  We have their basic search, the AdWords network, YouTube, Maps and Streetview, Gmail, Documents and Calendar, just to name a few.  We also see some of those little products that don’t quite appear on the main page but they still support, like Google Earth, Chrome, Goog 411, Knol, Picassa and trends.

Some products are related directly to search and finding answers to information, but others (especially products like the now defunct Lively) entered into new worlds and industries.

How could Google possibly evaluate every product and whether or not to continue to support each initiative?  After all, many of Google’s products have yet to turn a profit.  Services like YouTube alone are run at a lost, and YouTube is probably a few years away from entering into the black.

In an article for the New York Times, senior vice president of engineering Jeff Huber says, 

“There’s no single equation that describes us, but we try to use data wherever possible [...] What products have found an audience? Which ones are growing?”

Ultimately, Huber says people at Google ask, “is there an interest in our products?”  If there is—like YouTube—it’s likely they’ll continue to support the initiative, even at a financial loss.  If there product hasn’t found a strong audience—like social mobile network Dodgeball—it’s unlikely they’ll continue with the service.

Secondary questions come in to play as well, such as “does this service solve a substantial problem?” or “did this product have trouble attracting Google employees for development?”

How anyone can use this question

Modern executives, bloggers and entrepreneurs can use the question of “is there an interest in my product?” for almost every new venture.  

• For online entrepreneurs:  Let’s say you took the initiative to launch your own social network  in your free time a few months back.  Take a look at the people using the network.  Are people relying on your service and using it regularly? Do you see consistently more account registrations than when you began?
• For modern executives:  Let’s say you developed a new process within your organization to reduce the amount of reports people are creating and, thus, reducing the amount of time people on your team spend crunching numbers.  Are people using your process?  Does your process actually address the problem you created it for, and does it do it well?
• For bloggers:  Let’s say you launched a new type of section on your blog, such as a fresh back of links every Friday.  Do you find your readers, through stat tracking software, reading those links?

Moving forward

Make a list of each initiative/project that you are supporting.  Is there interest?  If not, what steps can you take to get more people involved?  Are you willing to wait a few additional months to see if there will be any interest?

The IKEA Effect: Why We Keep Failing Projects Alive

Even when signals and coworkers tell us that a project may not work, we push to finish.  We could have exhausted all resources and be well beyond our deadline, but we refuse to say enough is enough.

Why is this?  After all, our time could be better spent on our projects and more innovative ideas.  Michael Norton, for the Harvard Business Review, calls it “The IKEA Effect.”  Imagine assembling a complicated piece of furniture.  Regardless of how much you paid for the piece, you’re unlikely to give up assembling the item until it is finished.  It may take hours to put together a $20 chair, but you continue.  You don’t admit to yourself that you could have performed other tasks, or multiple other tasks, in the same time frame.

Norton adds:

Research conducted with my colleagues Daniel Mochon, of Yale University, and Dan Ariely, of Duke University, shows that labor enhances affection for its results. When people construct products themselves, from bookshelves to Build-a-Bears, they come to overvalue their (often poorly made) creations. We call this phenomenon the IKEA effect, in honor of the wildly successful Swedish manufacturer whose products typically arrive with some assembly required.

In one of our studies we asked people to fold origami and then to bid on their own creations along with other people’s. They were consistently willing to pay more for their own origami. In fact, they were so enamored of their amateurish creations that they valued them as highly as origami made by experts.

Modern executives should take a moment to consider the projects in their lives they’ve refused to abandon because of time commitment.  Unfortunately, sometimes personal relationships are the same way.  What are you doing, or have you been doing, that uses time better spent elsewhere?

5 Ways Microsoft will Imitate Apple to Survive in Retail

When Microsoft announced their decision to enter the retail space, many critics remembered the days of Gateway Country and the current Sony Stores who demonstrate products but move little merchandise. Perhaps the only reason why tech columnists are not entirely laughing is because Microsoft grabbed one of Walmart’s retail executives to help them enter the industry.

The list below reveals five ways Microsoft will have to copy Apple’s retail strategy in order to survive the industry.

1. Premium locations.  Apple, as a premium brand ignored, the conventions of big box computing stores and Gateway Country.  Instead of positioning themselves on the outskirts of towns and in desolate suburbs, they rented locations in the center of shopping districts and major metropolitan areas, like Manhattan or Chicago’s Michigan Avenue.  Apple’s are set up along side high-end fashion retailers, and the location matches their brand image.
2. Plenty of qualified sales people.  Technology is tricky, and Microsoft develops software and hardware for everyone, at every computer literacy level.  Microsoft will have to employ approachable, knowledgeable, patient and charismatic sales associates that push features and remain advocates for the Microsoft brand.  Above all, these people should be willing to educate customers so they can make the best decision for their needs and expectations.
3. Training events for adults/summer camps for the kids.  Apple pulls people into the stores to show them the software, let them play and tweak the little devices, and ultimately learn how their tools help people live better lives.  Microsoft will have to demonstrate to the public how Windows Vista, and Windows 7, has the same impact. Hold events, and let customers come together to learn about the products and meet people who are trying to same things.
4. Unify the Online, Software, Hardware and Retail Experiences. Apple has done well to unify their image and feel across media and environments, thanks to a relentless set of brand guidelines.  Microsoft needs to pull their brand on to the same page as well.  With the retail stores, we could see the future of the Microsoft brand, and see how their entire brand will adjust over the next few years.
5. Move the merchandise off the floor and simplify the layout.  Big box electronic stores are set up like mazes in grocery stores.  Plenty of products are set out on shelves for customers to help themselves.  Apple, on the other hand, may have as little as a tenth of their inventory on the shelves.  Out of the 70 customers that may be swarming a store at any time, Apple may only have 30 demo computers on display. It works well because people are not overwhelmed by selection.  Think of a person looking to change the type of toothpaste he or she may use.  Standing in a grocery store isle reveals ten different brands, and each brand may have multiple types.  On the other hand, think of a person looking to buy a laptop at one of Apple’s retail stores.  They really only have two options:  consumer-level or professional-level.  The decision to buy becomes that much simpler.

What do you think? What does Microsoft have to do to succeed in the retail industry?

Renegade Goals

The first quarter of every year sends executives scrambling for a set of annual goals to submit to their managers. Goals have been shown to improve company performance in just about any organization in any industry.  The problem arises, however, when executives are blinded by the benefits of goals to see how they may fail to fulfill the objectives of a company.  In the worst situations, poorly conceived and executed goals are detrimental to an organization.

Harvard Business School released a working paper on developing goals likely to cause positive results.  The paper gives an examples of how choosing goals that conflict with objectives affect the organization, and they use everyone’s favorite American automotive narrative to illustrate their point:

In the late 1960s, the Ford Motor Company was losing market share to foreign competitors that were selling small, fuel-efficient cars. CEO Lee Iacocca announced the specific, challenging goal of producing a new car that would be “under 2000 pounds and under $2,000” and would be available for purchase in 1970. This goal, coupled with a tight deadline, meant that many levels of management signed off on unperformed safety checks to expedite the development of the car—the Ford Pinto. One omitted safety check concerned the fuel tank, which was located behind the real axle in less than 10 inches of crush space. Lawsuits later revealed what Ford should have corrected in its design process: the Pinto could ignite upon impact. Investigations revealed that after Ford finally discovered the hazard, executives remained committed to their goal and instead of repairing the faulty design, calculated that the costs of lawsuits associated with Pinto fires (which involved 53 deaths and many injuries) would be less than the cost of fixing the design. In this case, the specific, challenging goals were met (speed to market, fuel efficiency, and cost) at the expense of other important features that were not specified (safety, ethical behavior, and company reputation).

The paper ends with a checklist of how to assign goals properly:

• Are the goals to narrow/specific?
• Are the goals too challenging to achieve within a time frame?
• Do short-term goals harm long-term objectives?
• Will any goal increase the likelihood for an employee to take a risk, and is your organization comfortable and prepared with a risk management strategy?
• Could any goal encourage unethical behavior?
• Are goals established on common standards so they can be tailored to individuals while still remaining fair to others?
• Will goals positively influence the organization’s culture?
• Are employees intrinsically motivated?
• Considering your organization and industry, is learning or achieving a level of performance more important?

Establishing goals for an organization is not as simple as turning objectives into actionable statements.  Modern executives should view goals from multiple perspectives to check for clarity in how employees may interpret or act on a goal.  Above all, goals should push management’s strategy for moving forward while enforcing the organization’s guiding principles in the process.

Poaching Innovators From Your Customer Base

Media and tech companies may not need to look much further than their own customers for adding value to their product lines. According to a recent article in the Financial Times, companies like the BBC and Last.fm, an online music service owned by CBS, have held events to gather independent developers for a day of invention and creation. People are encouraged to use the companies’ online services to develop a new program or feature. The best creations are awarded with a cash prize, and companies are able to quickly and cheaply get ahold of creative enhancements for their products.

From the article:

Organisations as diverse as the Guardian newspaper, WPP advertising agency, travel site Lastminute.com and O2, the mobile operator, have all hosted unconferences in recent months. These low-cost events are for enthusiasts as well as professionals, who are all required to present as well as listen. Developers compete for prizes, including the possibility of their product being commercialised, while the host organisations can tap into a new pool of talent.

Young and small, old and large; companies across industries are investigating this trend and how it can affect their business. From a talent acquisition perspective, companies have the opportunity to pull a developer aside and discuss a potential position within the company.

These conferences, or barcamps as they are sometimes referred, or barcamps as they are sometimes referenced, will continue to become more popular as technology becomes more social and companies realize constant innovation is imperative to their survival.

Recession-Proof Yourself

In the December 2008 issue of CIO magazine, Meridith Levinson gave five suggestions for positioning yourself within an an organization to duck the swipe of layoffs.  These concepts are thrown around often, but it is more crucial than ever to have concrete responses and examples at hand.

1. Know your value and communicate it
   Be able to articulate your abilities and demonstrate how your organization sees a quantitative result from your work. Describe a few concrete examples of what you’ve done recently to reduce costs and increase revenue.  It’s not an easy conversation to have, and it’s even more difficult to develop a concise and eloquent response when cornered.  Start thinking about this question today.
2. Be a team player
   In addition to getting along with your team, you have to be willing to work cooperatively.  If it’s not something you do often now, look for ways to change.  Employees who sit in their cubicles/offices and quietly perform their duties are at risk.
3. Keep your ear to the ground
   If your department is anticipating layoffs, where would you like to move within the organization?
4. Adapt to change quickly
   For employees who keep their jobs (and it’s the majority), changes will be coming, both large and minute. Be willing to adjust on a moment’s notice.
5. Get out and lead
   There may be no better way to demonstrate to senior management that you are a promising employee than by taking the initiative to lead a group.  Look both within and outside your department, perhaps in areas that see highs and lows like business development. 

Leadership, flexibility, communication abilities and cooperation; we understand these skills and vital to succeed in an organization, recession or not.  What’s unfortunate is that there may not be any may to recession-proof yourself, much like how you cannot recession-proof a company or industry.  Being able to describe these abilities will be helpful to defend your position.  However, if your position is eliminated from the org chart, being able to provide examples of these abilities will be helpful in future interviews.

What’s Keeping Top Execs Awake at Night?

A recent issue of CFO magazine published the results of the Duke/CFO Global Business Outlook Quarterly Survey. The results are not surprising, as CFOs are more pessimistic than ever, but these numbers introduce objective support for a company looking to change.

The next survey may look even more grim. After all, this study was conducted before the fall of Lehman and the approval of bailout packages.

Next Page »