The answer to both questions is as simple as that catchphrase from the Watergate days: Follow the money.
Golden years, golden years, whop whop whop
By paying attention to broad demographic shifts, it's not all that difficult to pinpoint who has the cash and how they're likely to spend it. Then you can decide whether you possess the knowledge and talents to capture a slice of that market.
The most attractive market segment to target, in terms of both numbers of people and dollars, is baby boomers.
During the 2002-2012 period, the U.S. Bureau of Labor Statistics reports, the number of Americans aged 55 to 64 will increase by a whopping 43.4%. By contrast, those in the 35-to-44 age group actually will decrease in number, while the number of youngsters between 16 and 24 will increase by 7% during the same period.
The aging of the U.S. population, combined with an overall slowing in population growth, will lead to a relative shortage of labor and heightened competition among businesses for employees. This, too, creates entrepreneurial opportunities.
So, without further ado, here are seven market niches that, while not foolproof, should offer an entrepreneur a better-than-average chance of success.
Where the baby boomer money will go
The needs of an affluent and aging baby boom population are so predictable as to be nearly self-evident: Boomers need help investing their money and time, and as they grow older, will need help in meeting their physical needs.
Businesses that cater to the boomer market might include, but are not limited to:
• Real estate sales and services. Properties in temperate climates, particularly those within easy striking distance of the coast, are appreciating rapidly, in some case at a pace that almost amounts to hyper-inflation. Selling retirement real estate, or providing services to firms that do, is a growth industry.
• Financial services. Collectively boomers constitute the most affluent generation in the history of the world. Managing their assets will provide plenty of work for accountants, investment advisers, insurance agents, lawyers specializing in trusts and estates, and everyone in between. The government will do its part by keeping the tax code so indecipherable that that professional advice is always needed.
• Anti-aging and personal enrichment products. Boomers are suckers for the illusion of perpetual youth and already they're spending millions, if not billions, on products and programs that promise to slow the biological clock. Purveyors of such rejuvenators as nutritional counseling, the latest exercise fads and beauty treatments --- think Botox injections --- will suffer no shortage of clients.
• Retirement recreation. They can't really thwart the aging process, but by making the effort boomers will be able to remain active at an age when most members of previous generations were either pushing up daisies or confined to old folks homes. Few will be as extreme in their pursuits as former President Bush, who went skydiving at 80, but plently will be casting fly lines, swinging golf clubs and bicycling well into their golden years. Someone has to sell them those golf clubs, fly rods and bikes, and then teach them how to use them.
• Home health care. Inevitably, even baby boomers will slow down, and that too will create opportunities. Some boomers will be able to live independently but will require such support services as grocery shopping, chauffeuring, and physical therapy. Others, because of temporary or permanent disability, will require in-home nursing care, either part time or around the clock. Agencies that provide competent and honest help will be in demand. In fact, a significant market already exists caring for the parents of boomers, who themselves are living longer lives and possess plenty of disposable income.
Opportunities in helping ease the labor crunch
As America gets grayer, employers across the economy will have to scramble to find competent help. This will be especially true in industries requiring well-educated technologically oriented workers.
There are a couple of ways employers can get around the labor shortage without hiring new workers: Throw work to outsourcing firms and consultants, and/or use technology to increase work force productivity so that it takes fewer employees to do the job.
With this in mind, anyone bent on starting a business might consider:
• Outsourcing for businesses. You can either do the work yourself, if you have the required expertise in such areas as accounting, law or human resources, or you can supply temporary workers who can get the job done. Like an individual consultant, a temp agency with a particular "hook" --- in other words, the ability to provide competent workers a demonstrated, sought-after skill --- figures to do well in the current and future business environment.
• Information technology consulting. Think about it: A company can't find the skilled workers it needs to operate to capacity, and then you step in and tell them how to make up the shortfall using the latest technology. Enough said. No wonder the Bureau of Labor Statistics projects that, from 2000 to 2010, the 10-fastest growing jobs will involve computer technology. Clearly, the world is becoming more wired, and consultants who can help users adopt new hardware and software products and resolve problems will not have a difficult time finding work.
Article Resource: http://www.microsoft.com/smallbusiness/
