A successful startup depends on good ideas along with timing, market conditions and competition for its growth. Therefore, it is important to know which industries have a good scope for innovation and new businesses. After extensive research and interviews, the list below has been compiled to give more information to entrepreneurs about the best industries among the fastest growing sectors of the economy.
Incidents of natural disasters and man-made emergency situations have led to an increase in demand for innovative solutions and industry level services which has boosted the funding in this sector. With the correct understanding of regulatory systems and technical skills for implementing or building mobile solutions, startups can easily excel in this industry. Entrepreneurs need to obtain any mandatory licenses and understand the regulations in place. They also need to establish a good reputation which can be difficult but is absolutely required in this field to develop partnerships with other disaster management agencies. Due to each crisis differing from others, startups face a large number of challenges while dealing with lives and property of people. New startups in this industry have to face well-established and government-funded agencies. The largest player in this industry is the nonprofit organization American Red Cross with a revenue of $2.7 billion in 2015 and the US revenue for this industry is expected to increase to $11.2 billion by 2022 rising from $10.1 billion for 2017 as per a report of IBISWorld.
Technological advancements and growth of niche markets in this industry have made it easier for startups to provide specifically tailored products and gain an edge over leading beauty brands respectively. Good marketing skills along with social media expertise are needed for entrepreneurs to succeed in the beauty tech industry as most cosmetic products and services are advertised through social media. Startups will need to spend large sums initially to build their inventory while those depending on traditional advertising will have to further expand the budget and update marketing strategies. Many startups have already entered this industry and are using effective social media strategies to gain more audiences whereas capital costs further increase the difficulty of staying in business. Beauty giants line markets such as organics offering opportunities to small retailers. Seed Beauty and Glossier are two major players as of present in the market and the beauty market in the US is expected to rise from $22.1 billion for 2017 to nearly $28 billion in 2022.
In the past decade, competitive gaming through online platforms has grown immensely in popularity. A few years ago, Amazon bought Twitch for $970 million which is a network to broadcast live events of video gaming and since then various major organizations have turned to invest and explore the eSports industry. As per research by Super Data, entrepreneurs entering eSports require a good understanding of the international markets as China and Europe contribute 68 percent of the total revenue for this industry. Jon According to Joseph Nguyen of DLCopmare, “Startups need to focus on adapting and reacting to demands by audiences for better content along with community engagement”. Upcoming startups need to partner up with major leagues and provide services to players before other startups. Startups in this industry further need to quickly adapt to changes in trends and tastes of audiences in this industry. Other than this, the start of franchised leagues has further made it difficult for new platforms and organizers to make an entry. The eSports industry within the US is expected to grow and reach $1.7 billion by 2020.
Social media platforms continue to be a popular and powerful source for influencers and agents to generate revenue. Entrepreneurs looking to enter this industry require powerful contacts along with spotting opportunities for endorsement. Skills to develop the brand identity of a celebrity, reach new audiences and spot rising stars are also necessary to grow in this industry. Despite requiring low initial capital, it is necessary to get the license of an agent from the labor commissioner of the state. Large agencies can make it extremely hard for newcomers to grab A-listed celebrities while many even pay to spread their content on social media through bots. Startups further need to educate their clients about FTC guidelines while facing high competition. The industry is expected to grow by 2.2 percent and reach a revenue of $10.8 billion in 2022 within the US.
Women’s Reproductive Health Care
The willingness of female users to make use of apps and devices to track their reproductive health has led to a significant rise in this industry. Entrepreneurs wishing to enter this sector should have in-depth medical knowledge about medical industry along with an understanding of needs of customers and patients. This industry also faces a large number of regulatory issues similar to other medical sectors which can prove to be a challenge along with building trust and credibility among users. Newcomers may be required to answer questions regarding their efficacy and must be able to change the consumer behavior when introducing methods to replace in-person treatment. Startups need to compete against all options for managing reproductive health which include physicians, telemedicine along with similar startups and companies. Modern Fertility and Maven Health are among the major names within this industry and the fertility market within the US are expected to grow with a compound annual rate of 4 percent till 2020.
According to research, nearly 74 million baby boomers will be requiring elderly care and assistance in the coming time which has led to companies trying to find must understand the fields of medical sciences along with at home care. The employees and founders must also be compassionate while being able to build trust among families and patients. Newcomers in this industry need to prove why their services or products are better than other major companies in this field while obtaining the required approvals. Startups need to face the problem of family caregivers in this industry along with a possibility for a downturn as the generation following baby boomers is comparatively smaller in numbers. Established agencies gain more customers due to previous trust and recognition while there are also numerous solutions available to people for finding caregivers. Home Instead Senior Care is a major player in this industry with a staff of more than 65,000 people. The industry generated a revenue of more than $50 billion during 2017 within the US and is expected to increase by about 42 percent by 2022.
Alternative-protein food product
Modern consumers want to get more proteins with their meals and technology further helps in delivering better tasting and visually pleasing products. People looking to run a startup in this industry should have technical skills for developing foods or have good collaboration with people who do. Startups need to manage the bad weather and pests. Emerging companies need a unique and better product along with regular upgrades in technology to keep growing and become successful in this industry. A large amount of competition is already present in this sector with new companies launching rapidly. The global market for the alternative protein food products was more than $4 billion in 2016 with an expected growth of 6.8 percent till 2022 as per market research.