Making a million is a milestone - the defining moment of success for many entrepreneurs and an attainable goal for those tapped into today’s hottest trends. Entrepreneurs are keeping their fingers on the pulse of what’s hot in today’s marketplace. They are the trendsetters, the pioneers, the ones to watch as they lead the pack, followed closely by franchisors poised to capitalize on winning ideas and spread concepts nationwide.
Already dreaming about living the good life as a millionaire? I’ve compiled the most lucrative trends across several industries. But keep in mind that regardless of the route you choose - whether it’s going solo or buying a franchise - arriving at your first million in sales will require persistence, strategy and, in most cases, multiple locations. And in case you doubt it’s doable, we got the scoop from savvy entrepreneurs who went from zero to a million.
Fountain of Youth
With the first baby boomers starting to hit 60, America is fighting tooth and nail to stave off the signs of time. In 2004, Americans spent about $44.6 billion on anti-aging products and services, according to Business Communications Co. Inc., an information resource company. But that’s nothing compared to the $72 billion market it’s expected to mature into by 2009.
Why the sense of urgency? Vanity is part of it, and the fact that we’re living longer adds to the need for enduring youth. But there’s also the fact that many baby boomers won’t be financially able to leave the work force as early as their parents did and will have no choice but to stay vital and active, says Maddy Dychtwald, co-founder of Age Wave, a think tank focused on boomers and the aging of the population.
According to a study by the National Association of Realtors, the median age at which baby boomers expect to stop working is 70, but 27% say they never intend to stop working. Dychtwald predicts that this will open up all kinds of opportunities to entrepreneurs — such as those who can create wellness centers and bring together a variety of health and nutrition specialists under one roof.
Jeni Garrett is one of those entrepreneurs providing a mind and body oasis to baby boomers desperate for rejuvenation. In 2001, after enjoying the benefits of spa visits herself, Garrett, now 28, founded The Woodhouse Day Spa, a luxury spa in Victoria, Texas. A year and a half later, she set her sights on turning the brand into a household name.
She first planned to open more company-owned locations, but Garrett soon turned to franchising to spread the concept. “With our business model, you really need an owner/operator present because of the staffing issues and to do the marketing initiative,” she says. “Franchising lent itself very well to that.”
To move forward, Garrett knew the foundation had to be solid. She chose a top-notch franchise lawyer and streamlined operations, even ordering the fixtures for the franchisees. With her franchise system in place, she has positioned herself perfectly to accommodate the growing clientele of baby boomers.
To further meet the needs of this segment, she added a menu of services that boasts 15 holistic, all-natural treatments that focus more on wellness than pampering. She is enjoying success with a multimillion-dollar business as more boomer women — and men — make the spa experience part of their lifestyles. Says Garrett, “We’re seeing [spas] move from a level of luxury to a level of necessity for wellness.”
The Sweet Life
The nation’s sweet tooth is becoming more insatiable, driving everything from the franchising industry, where cookies and ice cream concepts are growing categories, to the fine-dining industry, where diners are staying more often for the grand finale.
Dessert has become such a significant portion of the food industry that it’s warranted its own annual trade show since 2003. Meanwhile, according to Hudson Riehle, senior vice president of research at the National Restaurant Association, almost 1 in 3 fine-dining operators reported that consumers bought more desserts last year than in the two previous years. In an increasing number of cases, high-end desserts are stealing the spotlight, as entire independent restaurant concepts are being founded on the premise of tasty, upscale indulgence.
Paul Conforti and Kim Moore, 36 and 40, respectively, researched the restaurant industry for a year while attending Harvard Business School before they opened the doors to their first upscale, dessert-focused restaurant, Finale Desserterie & Bakery, in Boston in 1998. Offering an exquisite menu featuring Valrhona chocolate, honey caramel gelato, nougat mousse and cherry almond Florentines, they are often credited with the distinction of starting the first high-end dessert concept.
Their focus is as much on high-quality ingredients as it is on the overall experience. Says Conforti, “Making sure [customers] have the best dessert of their life is important, but it’s also about the atmosphere, service, background music [and] cleanliness of the restaurant.”
They have since grown their restaurant concept into a $6 million-plus business and are about to open their fourth location this month. Planning to open three more locations in Massachusetts next year and to reach Washington, DC, by 2009, they are working toward their ultimate goal of going nationwide. With an idea as divine as upscale desserts, $1 million in sales can be achieved with only one location, and the proof is in the pudding: One of Conforti and Moore’s locations makes twice that much annually.
Starbucks (SBUX) revolutionized the coffee industry by transforming the beverage into the most necessary of luxuries, but numerous independents and ambitious franchisors have profited from coffee’s popularity and are riding on their own caffeine high.
According to Rob Stephen, immediate past president of the Specialty Coffee Association of America, a coffee trade association, opportunities in the industry abound. In fact, according to the SCAA and Mintel Group, the industry grew to an estimated $12.27 billion last year. So if you thought Starbucks had the market locked down, think again — many are drinking in their own share of the profits.
Eric Schmidt, 43, is the owner of a Dunn Bros Coffee franchise in Lawrence, Kansas, and although he just opened his coffee drive-thru in March, he’s already working on opening two more coffee kiosks and estimating total year-end sales to be in the low seven figures.
While he believes he could have reached this point with his own coffee concept, he has no doubt that buying a franchise helped him avoid many of the initial difficulties. The wealth of information available to him and the one-on-one assistance with finding the right location enabled Schmidt to get off to an impressive start.
But in moving forward, the defining strategy for success has simply been Schmidt’s own commitment and constant presence in the business and his community. From personally making sure that customers’ needs are met to being involved in local civic organizations and the nearby university, Schmidt makes sure all his bases are covered. “That’s probably the single biggest thing about it,” he says. “You have got to be completely involved in it from the day you open [your] doors.”
For those looking to establish their niche, Stephen identifies two trends taking place in the industry: product differentiation and point of view. In a market once defined by regular or decaf, coffee consumers now pay attention to the very farm where the beans are grown. Says Stephen, “You’re seeing coffee labels growing to three lines.”
Customers are also looking to retailers for opinions and overall expertise, so it is important for coffee entrepreneurs to be knowledgeable about the products they’re selling. Stephen believes that quality products, knowledge, point of view and a good location are the defining factors of success for both independent coffee entrepreneurs and franchisees.
So what’s ahead for the industry? Says Stephen, “We’re seeing a renaissance in iced and frozen beverages as a way to get to a part of the market that’s interested in soda or energy drinks.”
Seniors
While the industry to preserve vitality and youth among baby boomers is thriving, so are the businesses one generation ahead in the senior-care industry. Millions of Americans currently make up the “Sandwich Generation,” a generation of people raising their children while taking care of their aging parents. This is already creating a demand for assistance, both medical and nonmedical, but that need will skyrocket as the baby boomers approach an age in which they, too, will need outside help.
“People 65 and over will increase from 12% of the U.S. population to 20% by 2030,” says J. Kevin Eckert, dean of the University of Maryland, Baltimore County’s Erickson School of Aging Services. “It’s almost a no-brainer that the whole need for senior housing, for adaptive housing, for all kinds of services, businesses and products will be burgeoning.”
Topping things off, a large number of baby boomers won’t have their own families to turn to for assistance. According to a 2004 U.S. Census report, 19% of women aged 40 to 44 were childless — twice the percentage reported in 1976.
Home Helpers
Having watched his father struggle to care for his own brother, his aging grandmother and himself, Adam Brown was inspired to purchase a Home Helpers franchise. Getting the word out about his nonmedical and personal-care business was the most crucial step to securing his success.
He did so by advertising, visiting local businesses and hospitals, and joining networking groups to educate the community about his services. Says Brown, 28, “This is a referral-based business, particularly because you’re working with people’s family members, so there has to be trust.”
With 170 employees, Brown has positioned his franchise as a strong competitor in the Philadelphia area. After two years, he purchased a second territory and has since secured the “right of first refusal” for two other territories, which gives him first dibs before any other buyers.
After working from home for two years, Brown has moved his business into an office, has just opened a satellite office and plans to open additional satellites in the future. Although having a physical presence isn’t required, it has paid off: His franchise looks more established, and the neighborhood where the office is located is bringing in even more business. By reaching out to the community and expanding his territory, he has successfully grown his franchise to 350 clients and is projecting year-end sales of approximately $3.5 million.
Eckert sees a bright future on the horizon with the development of new homegrown communities where baby boomers can “age in place,” as well as new services and technological products to help individuals remain at home. Says Eckert, “We’re in for an exciting array of possibilities and real opportunities for people who are creative, innovative and have entrepreneurial sense.”
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