Deciding to start a business is a big decision that shouldn’t be taken lightly (and should never be undertaken without a hefty dose of forward planning). There’s a wide range of factors to take into account, including how to finance your business and how best to market it, but one of the key early decisions you’ll need to make is which industry or sector you are going to place your business in.
Assessing the Industry
How best to go about making this decision though, especially if you don’t have a natural passion for any specific industry? It’s easy if you can bake a wicked brownie or cupcake and the local bakery has just relocated, but what if this doesn’t apply?
Well, one place to start is looking at how the industry you are interested in is performing and taking into account any current threats to it.
For example, if you are passionate about travel, possess the skills needed to create and run a travel agency, and are in the fortunate position of having finances in place, the question that you might find prudent to answer is: “Is it still wise to start up a new travel agency when an article in the Financial Times suggests that the industry will see a decline of travel agents in the USA by 12% from 2014 to 2024?”.
The same article by the FT also highlights the fact that other areas like insurance companies are under threat from evolving technologies; even industries that seem future-proof might not be when you examine the changes that technology brings about.
Looking to Success to Get Success
One area that has had incredible success in recent times is the gaming industry, which has experienced a huge amount of growth. Case studies of success are numerous. One of the leading brands to look at as a successful brand in a successful sector is Lottoland. Lottoland only launched in 2013 (which is hard to believe given the brand’s rapid growth), but they already have over 5.5 million customers and have been successful in finding a niche to appeal to customers through unique bonus features like DoubleJackpot, which enable users to double their jackpot winnings on any lottery.
Of course, such success has come by realising that there was a gap in the market for insurance-backed business models and it further highlights how improvements and changes in technology can create entirely new options that previously just didn’t exist.
Innovation to Excite
Think back to our example of travel agents seeming to be in decline and Lottoland showing that they have thrived in an expanding industry, especially with mobile gaming increasing its revenue, and we can see that the most important factor that can be looked at here is innovation.