Wednesday, May 21, 2008

THIS YEAR'S TOP 10 BEST SMALL BUSINESS


THIS YEAR'S TOP 10 BEST SMALL BUSINESS



This year's top 10 best small business opportunities list provides something for everybody, from the hot poker craze to anti-aging spas and smart clothing.

Each small business opportunity presented covers the birth of new industries as well as businesses in the later stage of development. Finding a small business opportunity is only half of the equation to owning a successful company. It's equally important to know if the presented opportunity represents the best for you. Take some time to explore your entrepreneur personality type and match it up with your ideal business.

As an added bonus this year, we have added a poll. Proceed to the last page and vote for the top business opportuntity of 2005 you like best.

Small Business Opportunity: The Business Coaching Craze


Over the past ten years, coaching has gradually risen to a billion dollar industry while outpacing the growth of the consulting business. How does coaching differ from consulting? "Coaches motivate people to action. They help them prioritize their projects and goals. They help them plan their work and work their plan---but they don't necessarily give them the actual strategies to execute, steps to take, business or marketing plans to follow, nor do they give financial or legal advice," states Janet Switzer in "How Experts Build Empires: Developing and Selling Coaching Programs."



One individual to discover the coaching craze is Action International's founder Brad Sugars. Action International has grown to over 600 franchisees who typically target small businesses with $500,000 to $10 million in sales. Action International charges $1500/month on a one-year agreement per client for 1 to 1.5 hours of coaching a week. Training includes a 10 day boot camp and 12 week academy.

Driving Force: Why is business coaching hot? "Over 85% of small and medium-sized businesses fail in the first five years. There is a huge market to help these small businesses. Also, it is not just the tools; it's the accountability that makes coaching work. Most business owners are not accountable to anybody," says Action International U.S. Sales Manager, Richard Bernstein.




Risks: Although the coaching profession has experienced strong growth, coaches can run into the same problems that have crippled consulting businesses. The heavy spending days of corporate consulting has reduced engagements from long-term to short-term with CEO's demanding a better return on investments. Business coaches will have to prove their value to small business owners.

Small Business Opportunity: The World of Business Brokers

Business brokers are the matchmakers of the business world bringing together buyers and sellers of small and mid-sized companies. "The majority of business brokerage firms handle the sale of everything from the corner dry cleaner to the local quick print to the local liquor store – and every thing in between." says Tom West, founder and former president of The International Business Brokers Association (IBBA).

IBBA estimates there are approximately 3500 business brokerage firms in America with surveys indicating that 35 percent are sole practitioners.


The field of business brokerage continues to match buyers and sellers each year. Sunbelt Business Advisors began franchising in 1993. Since 2000 the company has grown from 232 franchises throughout the United States and internationally to over 397 in 2004. VR Business Brokers of Ft. Lauderdale have also experienced rapid growth, adding 72 franchisees over 5 years.


According to Mr. West, earnings in the business broker field are "well above average and a six figure income is certainly attainable for many. Commissions range from 10 to 12 percent of the purchase price with firms charging a minimum fee of at least $10,000 to $15,000, for smaller businesses. The average price of a business that sells today goes for about $250,000 not including inventory or real estate."




Driving Force: Corporate downsizing and aging baby boomers wanting to cash out of their business for retirement provides optimism for the business broker industry.


Risks: Turning potential buyers into real buyers is the challenge of the business. Much like the real estate business, brokers need people skills and the ability to overcome rejection to be successful says Tom West.

Small Business Opportunity: Garage Organizer Services the Last Frontier

Throughout homes in North America, the impact of the home improvement boom has covered every square foot of the house except the most neglected and cluttered space, the garage. While large companies like Whirlpool Corporation have entered the high-end do-it-yourself garage organization market with its Gladiator™ GarageWorks line, the market is open for companies providing complete service including installation.


GarageTek is the industry pioneer with over 67 franchises in the business since 2000. GarageTek uses patented PVC wall panels providing durability and flexibility in design. With garage organizer installations costing from $1000 to $10,000, the primary market is upscale. Targeting the garage organization market means catering to the affluent male market.


Driving Force: According to Harvard Joint Center for Housing Studies, the Remodeling Activity Indicator (RAI) saw homeowner improvement expenditures increasing again to an estimated $129.3 billion dollars on home improvements and repairs. Driven by low interest rates and a solid housing market, home improvements continue to grow, making the new home improvement category of garage organization poised for more growth.


Risks: This business opportunity is driven by the booming real estate market and the low-interest rate environment. Can this housing boom continue? "Increasingly Americans view houses not primarily as places to live but as foolproof, can't-lose investments. The passionate faith that money poured into real estate will magically multiply is creating a self-fulfilling speculative frenzy that's bound to end badly," says Shawn Tully in Fortune magazine's feature "Is the Housing Boom Over?" Whether or not the boom is a bust, any smart business owner will run some worst-case scenarios to have a contingency plan in place.

Small Business Opportunity: Smart Clothes

Smart clothing conjures up images of space-age Jetson style apparel. However, smart clothing is more about functionality than far-out space suits. Smarter apparel encompasses the customization of clothing to special markets ranging from performance apparel, sun protection, and aging-friendly clothing.


Ernst & Young Entrepreneur of the Year Award winner, Kevin Plank, knows performance apparel is the best ticket. Plank has grown his company, Under Armour into a $100 million business. Under Armour is the originator of performance apparel with a line of microfiber clothing that pulls perspiration away from the skin to keep athletes cool and dry during physical activity.


John Barrow found business success in sun protection. Started in 2001, Coolibar offers a unique range of sun protective clothing, sun hats, and sun protective swimwear. The company website explains the benefits of this unique line of smart clothing, "Sun protective clothing is an excellent sun protection tool as it provides a physical block that doesn’t wash or wear off and can shade the skin from both UVA and UVB rays. Coolibar’s clothing differs from standard attire by blocking 97% or more of UV rays and providing an ultraviolet protection factor (UPF) of 30 or greater." The company has even received The Skin Cancer Foundation’s Seal of Recommendation.


Driving Force: A mature industry with most manufacturing moved overseas has left the apparel business in need of creativity and innovation. Consumers are open to ideas that meet their specialized needs.


Risks: The challenge of entering the smart clothing market is selecting a niche that's not too mainstream allowing bigger competitors to swallow market share before you get established. Conversely, a market too narrow can present problems with attaining break-even points and profitability. Success in the smart clothing industry will require the ability to outmaneuver large retailers who influence the apparel business. Selling to select markets (i.e. skateboard shops) and outsourcing the manufacturing process overseas can help to maintain profit margins.