Can a “Hot” Industry contribute to the success of your startup?

Can a “Hot” Industry contribute to the success of your startup?

So how can you boost the probability of your start-up’s success? To start, it helps to enter a “hot” industry where there is room for new businesses to flourish.

By way of example, the top 25 public companies in the gaming industry made $54.1 billion in revenues last year, according to research-firm Newzoo. The 2014 totals represent a 10.4 percent increase over the prior year, which indicates the gaming industry is poised for growth.

According to Inc.com, below are the most promising industries for start-ups in 2015:

• Food e-commerce: Buying food online is not yet commonplace, but consumers have shown a willingness to try new services that make their lives easier.
• Legal marijuana: While new businesses are operating in unchartered territory, the possible rewards are significant.
• Gamification services: While relatively new, the notion of using game elements in non-gaming fields to engage employees and customers is gaining traction.
• Agricultural software: The software sector, which helps farmers boost profitability, is expected to grow from $1.5 billion today to $2 billion in 2019.
• Relaxation beverages: The energy drink industry is taking a chill pill with the growing popularity of drinks intended to have the opposite effect by promoting sleep and relaxation.

There are several common themes that unite these industries. First, they all capitalize on an unmet need. For instance, the food e-commerce sector is responding to Americans’ desire to eat healthy without having to spend a lot of time, i.e. trekking to their local farmer’s market. Many of the hottest industries, including agricultural software and gamification services, are also adapting existing technology to new fields.

Of course, simply entering a “hot” industry does not mean your start-up enterprise will be successful. From assembling the right team to creating a comprehensive business plan to choosing the right legal entity, there are countless steps that entrepreneurs must take before they hit it big. To get on the right track, it is advisable to consult with an experienced business attorney.