Many experts in the field of Business Development predict that 2020 will be another great year for start-ups.
It has never been easier to start a business in Europe – and more and more people of all ages are ready to run their own business and experience the freedom and opportunity that comes with it. If that is you, you probably ask yourself which sectors will be the most profitable and stable to create a business in.
The largest trend in any sector is clearly towards niche businesses. Targeting a particular market segment with a particular clientele is replacing the broad shotgun approach. We can see more and more soft marketing without a call for action. This works through focused community building, with experiences and lifestyle over product-specific messages.
The “Having to sell” approach is increasingly being replaced by the “Allowing to buy” approach. This forces many businesses to rethink their strategies and opens new doors for dedicated entrepreneurs.
Here I give you my trend predictions, based on my own research and through working with entrepreneurs and start-ups.
Services for start-ups
Over the past few years, there has been a big trend towards coaching and entertainment, and the IT sector especially has produced many new enterprises. This trend will most likely continue, but I believe there is the sector of Start-up Services, which is neglected a lot but will play a bigger and bigger role in the years to come.
This assumption is based on the fact that there are more owners of smaller businesses. Most of them are probably very good at what they do but lack a lot of experience and knowledge in the day-to-day running of a business. We have seen in other countries like the United States a steady increase in service-related companies, supporting all these new entrepreneurs with their businesses, and this trend is happening in Europe too.
Investment into Tech Companies will flatten out
Europe has never been strong when it comes to Crowdfunding or VC Investments, but over the last few years, there has been a massive number of bad investments. That means the screening process will become far more complex, which most likely results in less mass investment. Specialist companies targeting niche markets will have a much higher chance to get investment than companies following a broader approach.
E-Commerce is changing
The number of people starting e-commerce businesses has grown much faster than the market itself. That means things are going to be tougher. To make it will take much longer and a more substantial investment. Currently, we can see new e-commerce areas being developed, targeting markets outside the mainstream. The introduction of new online payment schemes (Square, Bitcoin currency, Apple/Google payment options) allows smaller amounts to be managed online without huge costs eating on the profit. This will open new markets for products below 10 euro.
Data is King
Google and Co have reached a point where information is available in an instant for free (almost). But this amount of information also comes with problems that need solving. For data to have any impact, it has to be relevant to the need of the market, and that is an area of massive growth. Data Management Software and Services are on the rise and provide a huge potential for start-ups in that field.
Offline vs Online
There is a big trend towards offline experiences. More and more people are tired to live their lives sitting in front of a computer. Consumers are looking for ways to get the same experience in the offline world. This area is growing, especially in education and young people development. But services related to the ever-growing older generation are also on the up. This goes much further then just services but extends into education, entertainment, health, fitness and community building. The need to develop and to contribute doesn’t stop when you’re 65 years old!
I hope this will give you some direction on where to look for your adventure.
What will be your business?