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10 best markets for small businesses and home businesses State Local Governments Hispanic Market

Whether you are looking for a market for your new business or a market to expand your existing business, here are some growing markets that you should consider:

1. Small Business

In the US alone, there are about 25 million small businesses today. Small businesses represent a large market that may be the only major source of growth over the next 10 to 15 years. They are a very good market for their fellow small businesses.

The problem with the small business market, however, is that they are hard to reach. Small businesses cut across industries, making it difficult to craft a single marketing message to reach them. More importantly, they often lack resources and have very limited time. Their buying priorities are different, and focus more on value. Many of these small businesses are also home-based -- the sole proprietorships that, in most cases, have no employees and are run by an individual out of his or her home. In fact, according to the Bureau of Census' Survey of Business Owners, almost half or 49 percent of the nation's businesses are operated from home.

According to the Bureau of Economic Analysis, expenditures of state and local governments have grown from $411.9 billion in 1984 to $1,490.3 billion in 2004. It is expected to grow to $2,396.9 billion in 2014.

The local government is a big market that small businesses can tap. Small businesses can win thousands (if not millions) of dollars a year in local government contracts. The challenge lies, however, in knowing the ins and outs of selling to the government and understanding the government procurement process.

3. Growing Hispanic Market

One of the fastest growing consumer segments in the United States today is the Hispanic market. The number of Hispanic households is estimated to increase at a faster rate than any other group in the United States, continuing a demographic explosion that began several decades ago. Assuming that growth rates persist at their current phase, it is estimated that Hispanics will account for nearly one out of every five American residents by 2012. As such, opportunities abound for small businesses that consider implementing new approaches and strategies to target the Latin Americans.

However, it is important to note that this young, burgeoning market is extremely diverse. There are extensive demographic and economic differences among the Hispanic household population. Native-born Hispanics who have lived exclusively in the United States have different consumption and buying patterns than the immigrant Hispanics. US-born Hispanics speak English fluently and more likely to have grown accustomed to American tastes and living. The large influx of new immigrants, on the other hand, prefer information in Spanish and more likely to shop in stores where personnel can speak Spanish to them.

4. Gay Community

The gay and lesbian market may be offbeat for some, but it is one market that even the big boys are checking out. In fact, there are now about 175 Fortune 500 brands including American Airlines' AAVacations.com, Volvo and American Express that advertise specifically to gay and lesbian audiences.

Big companies are no longer ignoring the power of the gay consumer because of this group's tremendous buying power, which was estimated to be about $641 billion in 2006. While on average they do not earn more than other Americans, this market has also more disposable income (hence bigger buying power) because fewer are raising children. Setting aside any moral objections or issues about this group, GLBT is a market that small businesses can consider.

5. Burgeoning Consumer Debt

Americans today owe more money than they make. Consumer debt as of October 2006 is now at a record $2.378 trillion, according to data from the Federal Reserve Board . A May 2006 study by the Center for American Progress shows that household debt levels have reached 108.4 percent in 2005, exceeding household income by more than eight percent. Data from USCourts.gov show that there have been 1,112,542 bankruptcies as of fiscal year ending September 2006.

American families borrow more money to keep pace with the rising cost of living. The problem is compounded by the weakening of the labor market, flat wages and falling incomes while prices for critical ticket items such as health care, housing, college education have increased substantially.

The problem of growing debt presents many opportunities for small businesses. One such business that thrives in this situation is a home-based collection agency. There is also a growing need for credit counseling businesses as well as debt consolidation companies.

6. Growing Number of Obese People.

There is an ?besity 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?9 years are also overweight.

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, ?et 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? 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? 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 ?he 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!

10 best markets for small businesses and home businesses State Local Governments Hispanic Market

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