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6. Growing Number of Obese People
There is an “obesity epidemic” in America as more and more Americans,
both young and old, are becoming overweight and obese. According to the US
Center for Disease Control, about 65 percent of adult Americans are
overweight or obese, while an estimated 16 percent of children and
adolescents’ ages 6–19 years are also overweight.
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With the sheer number and continued growth of this population segment,
opportunities abound for businesses that may want to cater to the overweight
or obese people. Some of these businesses may include products or services
that can help them improve their quality of life and mobility. Businesses
can also provide dietary products and services that may help this group
control their food intake and lose weight. How about a service offering
party packages consisting of healthy treats for an obese child to replace
those yummy goodies traditionally part of birthday celebrations (e.g. cakes,
ice cream, pizza, etc.)? Plus-sized apparel, not just for
women but for children and men as well, also have a sizeable market
potential.
7. Prison Market
Prison has become more than a place to
lockup felons, criminals and other misfits of society (including those
wrongly accused, of course). The prison system is a hot growing market full
of business potentials, estimated to be about $37 billion serving more than
2 million inmates. States spend more than $30 billion annually for their
prison system and about $5 billion is spent for the federal inmates. This is
a sector that never runs out of customers -- in fact, a study showed that 52
percent of released convicts were back in jail within three years! This is a
tremendous market to crack!
The needs of this sector of focuses on a variety of
things, including security, medicine, education, food service, maintenance
and technology. Some of the businesses that have penetrated this market
include prepaid phone service serving both inmates and their families
(Outside Connection http://www.outsideconnectioninc.net/ ); electronic and
hardware security products including modular prefab prison cells (Compudyne
http://www.compudyne.com/); and a consulting/training service to prepare
white collar criminals how to survive in prison including coursework,
physical and mental training, self-defense and even role-playing
(Incarceration Optimization Program International in NY http://www.iop-nyc.com/index.html)
The downside of this sector is the tremendous bureaucracy
and government contracting process that a small business has to crack to be
able to do business with the prison system. There are also the ups and downs
of dealing with the federal and state budget system. Plus the sector is
known for sticking with what works and slow to adapt to new technologies and
innovative ideas. Nonetheless, this is a sector that is ripe with all sorts
of possibilities and opportunities.
8. Specialized Pet Products
Pets have become big business. American pet owners are spending more on
their pets, from gourmet food products to clothes and accessories.
Think about Paris Hilton with her Tinkerbell, or Britney Spears with her dog
Bitbit. Pet owners (or as they like to call themselves, “pet parents”)
pamper their pooches and kittens, as pets are increasingly seen as family
members, not just animals.
The humanization of pets is one of the factors
that stimulates the demand for pet products, and ensures that pets sit in
the lap of luxury. Hence, gourmet pet food products, upscale pet grooming
boutiques and stores, and even clothing retailers for pets have emerged to
serve the demand from a predominantly upscale market.
Becky Marshall has found a growing niche in gourmet frozen treats market for dogs
with her Chilly-Dawgs.com business.
If you are thinking of going into the pet business, one clue as to the
demographic of your target audience can be found in one of the direct mail
lists provided by Direct Magazine. The magazine’s Canine and Kitty corps
lists include more than 2.5 million dog owners and 1.1 million cat owners,
the average age of which is 46 with a $61,233 income. Of those who buy from
the Internet, the magazine’s list includes more than 1 million individuals
with a $100,000 income.
9. Changing Face of Baby Boomers
The baby boomers of today -- those individuals born between 1946 and 1964
-- are not the grandparents of yesteryears. They are not some demure
grandmothers sitting on a rocking chair. Instead, they are active, busy and
generally are doing a lot. Some are even going back to work, or starting new
careers! If you are looking for a market to serve, there are tremendous
opportunities in targeting the baby boomers. According to the Bureau of
Census, the "baby boom" propelled the largest percentage increases of any
age group in the 1990-2000 decade.
A Merrill Lynch study entitled “The New Retirement Survey" reveals how
baby boomers will transform retirement. The study finds that boomers are not
interested in pursuing a traditional retirement of leisure. Instead, the
majority of boomers plan to keep working and earning in retirement, but will
do so by cycling between periods of work and leisure, thus creating a new
model of retirement.
Richard Busch, nearing the
age of retirement, even decided to change careers from journalism to
pottery, and now operates a successful pottery business with his Glenfiddich
Farm Pottery!
As such, services or products that cater to the changing perspective of
baby boomers about retirement are growing. This is a large, growing, and
under-served market. Opportunities are aplenty for small businesses as these
baby boomers are leaving and buying new (often smaller) homes, moving to
senior communities or even deciding to stay put. Many of the baby boomers
are looking for specialized, unique, even high-end services – which a small
or even home-based business can provide. Some possible services include
eco-tours, home remodeling, financial services, specialized spas and even
kayaking.
Another profitable niche to consider is an apparel business targeting
senior women. Women over the age of 50 are estimated to stand at about 50
million in the United States today — a baby boomer woman turns 50 every 14
seconds. As a woman ages, her spending power typically increases — but
marketers' interest in dressing her decreases! Only a few retailers are
actively targeting this important market segment.
10. Lifestyle Changing Habits
Millions of consumers are changing their dietary and lifestyle habits.
The change may be a result of an effort to lead a healthier and longer life,
or a direct response to a health need. Some consumers are reducing their
caffeine consumption, switching to organic foods, driving ecologically
friendly vehicles or opting for recycled paper products. Other lifestyle
changes may include people exercising more at home, which offers
opportunities for businesses engaged in remodeling.
Small and home-based businesses may focus their businesses around the new
interests, attitudes, opinions, and way of life of consumers. This consumer
segment would welcome products that supported their alternative lifestyle,
from mortgages on ecologically built and run houses to foods grown
exclusively in organic gardens.
There are many more possible businesses and good market niche
for home businesses. The key is to observe closely, understand what people
need and address those needs through quality products and services. Then
you'll hit the homerun!
BACK TO PART 1
About the Author:
Isabel Isidro is the co-founder and VP-Managing Editor of
PowerHomeBiz.com. One of her newest projects is the website
WomenHomeBusiness.com, which is a collection of real-life stories of women
(and men, too) who operated home-based businesses and made it big. Visit her
PowerHomeBiz Small & Home Business Blog
Updated January 2007
Originally Published
November 2005
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