Why is it so promising?

With some experts predicting that the Olympics will benefit the UK economy to the tune of £5.1bn, thousands of entrepreneurs are scrambling to get a slice of the action. With events taking place all over London, there are manifold opportunities for everyone from hotels to hot dog sellers, fashion houses to tour guides.

In fact, chief executive of LOCOG (the London Organising Committee of the Olympic Games), Paul Deighton, expressed his fear that business hasn’t recognised the level of opportunity available.

Every major sporting event triggers a boom in consumer spending. For example the Euro 2004 football championship boosted by the economy by £160m, even though the event was held in Portugal and England were knocked out well before the final. With this year’s Olympics taking place in London, and athletes such as Sir Chris Hoy and Jessica Ennis becoming national celebrities, the marketing potential for this year’s games is almost beyond estimation.

As covered by Startups last year, the Royal Wedding created all kinds of novel business opportunities, from face masks to Prince William impersonators. So, if you’re blessed with creativity and entrepreneurial spirit, the Olympics could be the catalyst to realise your business dream.

What are the specific opportunities?

First of all, you should be very careful about selling Olympic-branded merchandise such as flags, hats and t-shirts. The Games’ organising committee has this area sewn up, and will be extremely quick to crack down on any unofficial suppliers attempting to flog merchandise bearing the Olympic logo.

A hotel is another obvious way to capture the Olympic boom, but you may find no room at the inn with this one. According to Robert Holland, of the Bermondsey Square hotel in south-east London: “The press view on the spike (in hotel demand) is slightly over-exaggerated. The increased rate of hotel accommodation is largely accounted for by the travel companies, rather than the hoteliers in many cases.

Plus, if you’re setting your sights on the Olympics, it would be really hard to set up a hotel in such a short space of time. Overall, I’d say this was an opportunity missed.”

However, a business which allows people to monetise their existing assets during the Olympics might have more joy. Sites such as parkatmyhouse.com, and campinymgarden.com, are likely to generate huge returns for people willing to rent out their property for tourists drawn by the games. After last year’s Royal Wedding, and the sprawling bivouacs it fostered, it’s clear that millions of tourists are going to come from all over the world without booking any transport or accommodation, and you can meet this gaping need.

Who’s doing it?

Matthew Parker, londonrentmyhouse.com

“I set Londonrentmyhouse.com up back in 2007 to put 2012 Olympic visitors, media and athletes together with London homeowners, and also help Londoners make the most of a once-in-a-lifetime financial opportunity for a short-term private rental. I’m a web developer myself and could see there was no other website (at the time) with the idea, so felt this would be a great challenge.

“The BBC made contact within the first few weeks and did a story about the private rental idea, in other words the opportunity for homeowners. This gave the website a great platform and international recognition. Since then media contact has come from the likes of AOL, MSN, Yahoo, The Guardian and The London Evening Standard. Traffic has been busy over the last few years (particularly last year during the Royal Wedding), but the last few weeks have been crazy.

“Adverts and visitor contact with homeowners have gone up dramatically, and I’ve noticed an increase in competitor contact. For example, in the last week a Canadian silver medalist from the Beijing Olympics, as well as Spanish and Australian Olympic team members have been using Londonrentmyhouse.com to find accommodation. I have also been contacted by a new Facebook property portal called ‘Property Place’, wanting to use my data in return for exposure on their application.

“Going forward after the Olympics, I would like to expand Londonrentmyhouse.com into a general London private rental portal for Londoners who would like to offer private accommodation to tourists, students and business visitors, as well as tourists coming for major events such as Notting Hill Carnival, Wimbledon, The Queen’s Diamond Jubilee and the Lord’s cricket test.”

Published Jan 2012

Why is it so promising?

As we said in the mobile apps section, the smartphone market is growing out of all proportion. Around half the UK population now owns a smartphone, and with each unit costing up to £600, people are extremely reluctant to throw broken or faulty devices away – it’s much cheaper to get them repaired.

As smartphones become ever more complex, so the likelihood of faults increases, raising the prospect of even more demand for repair services in the coming years. And unlike the IT repair industry, which is populated by thousands of small businesses, the smartphone repair market is still at an embryonic stage, and you can realise real gains by being early to market.

What are the specific opportunities?

If you want to build a successful smartphone repair business, you’ve got to be familiar with the most popular models, and understand exactly how they work. The Android remains the dominant player in the UK smartphone market, but the iPhone is regaining ground fast, having increased its market share by 10% over the three months to November 2011.

In terms of your business model, you’ll need to decide whether you want to open a physical shop, or work from home and generate sales via your website. The choice will depend on your location, the volume of sales you need to generate to turn a profit, and your own profile. If you’re already established as an IT specialist in your local community, you may not need a shopfront to make people aware of you.

Who’s doing it?

Steve Pollitt, NokiaFix

“We’ve actually been going quite a few years now, but smartphones have changed the complexion of our business. They now make up a huge chunk of our business, particularly as we offer accessories too.

“We’re seeing a trend that people are buying fewer new phones. I think part of that is down to the networks – before the recession, people were getting a 12-month contract and a brand-new phone, but a lot of contracts are now 18 or 24 months, so phones are replaced less often. Plus there’s kind of a ‘mend not spend’ mentality in the current economic climate. A £30 phone might not be worth repairing, but with the iPhones, HTCs and BlackBerrys, people can’t afford to just buy a new one.

“If you want to start a smartphone repair business, you need to be really hot on screens and digitisers, because these seem to break quite a lot. It’s not rocket science – as the screens get bigger, there is a larger surface area to scratch or smash, hence the increased chance of wear and tear.

“When it comes to sourcing replacement parts, you need to get good quality where you can, because you only want to do the job once. Don’t try and scrimp; once you’ve found a supplier with good quality stuff, stick with them. Everyone uses eBay, and they see 3GS touchscreens for £5-£6, and they think you’re overcharging when you ask for £35. But good-quality replacement parts aren’t cheap.”

Published Jan 2012

Why is it so promising?

Everyone with their eyes wide open knows the mobile app industry is growing at an explosive rate. In 2010 Apple’s App Store sold 4.5 billion apps, while over 10 billion apps were downloaded. According to global market intelligence firm IDC, 183 billion apps will be downloaded by 2015 – that’s 26 apps for every person on the planet.

The immediate prospects look particularly exciting. According to Paul Skeldon, author of the seminal book on the topic, M-Commerce: “The app market is going to continue growing in 2012. More people have smartphones; there are more different types of smartphones creating different app markets; and we may possibly see a new apps market through things like Apple TV.

“More and more people are embracing the app. It’s no longer the preserve of young, well-heeled early adopters. Just watch the TV and you’ll see more and more mainstream brands advertising their apps. It won’t be long before you see them around older demographic TV programmes.”

In addition to huge demand, the market presents relatively low barriers to entry. App development is significantly cheaper than many other tech businesses, and you don’t necessarily need to hire staff; all you need is a computer and expertise. And, if you can get on the App Store or one of its equivalents, you won’t face the costs usually associated with international expansion.

What are the specific opportunities?

First off, there are two key opportunities. On the one hand, you can create an app and launch it on one or more of the available platforms. Alternatively, for those that have created apps already, there’s the chance to set up a development business to offer others your expertise.

In terms of popular app types, Paul Skeldon says: “Gaming apps are still the most popular type of app, the biggest sellers and the most widely used. This reflects the fact that apps are still really a young people’s medium. However, the big gaming companies such as EA Sports appear to have this area sown up. Rovio did 48 different games before Angry Birds became a success – that gives you an idea of how hard it is to create a viable gaming app.”

Mobile retail apps might present a more promising opportunity, given the recent explosion in mobile commerce. According to IBM, 11% of all online sales were made from a mobile phone in 2011, and the major retailers are reaping huge benefits from app development. In fact, by December 2011 the eBay mobile app had been downloaded 50 million times.

Drawing on his own experience in writing M-Commerce, Skeldon says: “Mobile retail is cheaper (than conventional games), and it’s more of a level playing field. Personally I think the main app opportunity involves something that aggregates the retail experience, as you see with price comparison resources. Amazon does it really well – you can buy pretty much anything through their app, and it’s actually easier to buy through their app than through a website.”

Who’s doing it?

Alistair Crane, CEO, Grapple Mobile

“We started up in early 2010, and our vision wasn’t specifically to focus on mobile retail. We were relatively agnostic, we just wanted to work with large brands. It’s the market that’s pushed us into m-retail, and we’re now a specialist in this area.

“Over the last two years we’ve done close to 100 mobile apps, working with the likes of the Post Office, driving currency exchange sales, and McDonalds, which is using apps to drive promotions using location-based services. We’ve been recognised by the likes of the Startups Awards (where Grapple was named Mobile Business of the Year in 2011) and the Mobile Entertainment Awards, which is great.

“Every app is different, but there are some common features, which can be divided into two key categories: explicit, which users can see, things like vouchers and social network integration; and things that users don’t see, like in-app analytics which enable clients to track all the data from all their apps.

“Mobile retail apps are really popular for several reasons. Brands are getting more into the idea that there is a reason to treat mobile differently to in-store retail, and we’re seeing an increasing tendency for our clients to deliver offer-specific promotions through mobile apps. Starbucks, for example, has been offering extra shots of coffee to app users. Also, apps are trackable, and provide an ongoing one-to-one connection with your customer base. You’re not intruding on them; because they’ve downloaded in, they’ve opted in to your offering.

“With things like discounts proving ever more popular, retail apps are going to see increasingly demand in 2012.”

If you have a fair amount of technical know how, or an awesome idea for a mobile app, read our full-length guide on how to start a mobile apps business.

Published Jan 2012

Why is it so promising?

If you can slash through the crowd and carve your own niche in social gaming, the rewards are endless. Zynga, creator of the popular game Farmville, was recently valued at $1bn, and it isn’t the only success story. For example UK firm Playfish, founded in 2007, has recently been snapped up by gaming giants EA for $400m after creating two popular Facebook games.

With Facebook devotees now spending a billion hours a month playing games on the social network, and the site expecting to hit one billion users by August 2012, it’s easy to see why this sector is such big business. The social, collaborative aspect of social gaming lends itself to viral growth, enabling popular games to grow exponentially and realise huge returns for their developers.

Big brands are using social games as a marketing tool through techniques such as in-app ads, and “gamification”, which enables brands to promote their products directly through the games.

According to research carried out by Enders Analysis in November 2011, the UK social gaming market will be worth around £400m by 2015, which explains why there is considerable interest from the investment market. Over two-thirds of all Britain’s internet users can be classed as ‘casual gamers’ so the potential audience is huge.

What are the specific opportunities?

Traditional games involving puzzles, battles or challenges remain popular, as Ella Romanos, managing director of interactive production and game development company Remode, says:

“In terms of social and network gaming, there’ll be a lot of opportunities in terms of free-to-play. A lot of the games tend to copy each other and target a certain demographic, and there’s plenty of opportunity to reach new people. There’s much more potential now playing in real-time with your friends.”

However, while the potential rewards are vast, you’ll have a tough job breaking into this market. The shadow of Zynga looms large over anyone trying to compete with it, and each month brings a flood of Chinese, Japanese and Korean start-ups, all capable of producing low-cost, high-quality games.

Another option is social betting, allowing people to bet on live events against their friends, and banter with each other as the spectacle unfolds. The competitive-yet-friendly aspect of betting dovetails perfectly with social networking, and it seems people are happy to part with real money to enhance the gaming experience. According to a study published by PopCap Games last November, over 30 million people have bought virtual currency on social games, using real tender.

A number of social betting pioneers are seeing huge success. For example, German internet start-up Crowdpark has enticed over 500,000 people to its Facebook-only gambling game, Bet Tycoon, in just nine months; meanwhile Betable, a company which describes itself as “Twitter for betting”, has been thriving ever since completing an eye-catching $3m funding round in summer 2010.

There’s no real limit to the amount of events, spectacles and competitions you can include in your betting platform; indeed Betable’s USP is that users can bet on absolutely anything. In addition to staples such as football, darts and racing, you could include TV shows such as Strictly Come Dancing and The X Factor – tapping into the ever-growing army of women now playing social games. Smarkets, Passoker, and Picklive are other recent entrants and PlayON has just gone live, so there’s still much to play for.

Who’s doing it?

Dave Nevison, co-founder of Bodugi.com:

“Bodugi started because I’ve been in the betting game as a punter for years, I used to work as a professional gambler, and I wanted to tie in my traditional betting and bookmaking knowledge with the social media experience of my kids. It could give betting firms a new relationship with their clients. All our punters can chat among themselves, and some people aren’t even aware that there’s a bookmaker involved.

“We launched Bodugi in March 2011. It’s a stand-alone site, but we’re integrated with other social media channels – you can click on the Facebook or Twitter icon and post a link specific to your gaming group to your feed. There’s a chatroom on our site, which allows you to have in-play banter with your mates, and on certain games we have a live leaderboard, which updates as the game progresses.

“We’ve already got 8,500 people signed up, and we’re hoping to secure an investment from a strategic partner within our space, which should enable us to accelerate our growth.”

Published Jan 2012

Why is it so promising?

Britain has always held artisan craftsmanship in high esteem; the UK has long had the biggest cultural industry in the world as a percentage of GDP. But, right now, things are getting even better. With the explosion of pop-up shops, the revival of fairs and markets, and a cultural shift away from bling and labels towards quaint and quirky boutique designs, the arts scene is in the middle of an extremely lucrative renaissance.

According to figures from the Crafts Council, the total UK market, encompassing both active and potential buyers, comprises 26.5 million people. And it’s never been easier to get a craft business off the ground. According to Doug Richard, former Dragons’ Den panellist and founder of the School for Creative Startups:

“The problem for a craft producer over recent years has been that you can’t build to a large scale, and you can’t serve a huge marketplace. But the web is changing the latter fundamentally. For example Notjustalabel, a platform for young designers, wouldn’t have existed 10 years ago. Now people can represent themselves globally, and still be small and independent.”

Furthermore, a series of advice and mentoring schemes have been developed, such as Crafted, so there is plenty of support available if you choose to go down this route.

What are the specific opportunities?

Jewellery making, ceramics, glass-blowing, textiles – whatever your craft, hand-made chic is in. It is also the perfect business to start off part-time, from home, allowing you to test the water and learn what sells before taking the plunge into full-time entrepreneurship.

The sector or specialism you choose to pursue will obviously depend on your own skills and knowledge. There’s no point starting a pottery business if your main specialism is jewellery design. In terms of competitors, there’s little difference between any of the major industries. According to recent figures, 34% of contemporary craft businesses operate in the textiles sector, with 30% specialising in ceramics and 21% in jewellery.

Furthermore, it’s hard to pinpoint one specific sector within this space, because all the major trades appear to be flourishing. A 2009 report from Mintel forecast 11% growth in the UK’s jewellery and watches market between 2010 and 2015, and at the moment this bullish prediction appears justified. However there has been equally significant growth in other sectors; for example, thanks to the efforts of start-ups such as the Cambridge Satchel Company, Britain’s boutique bags have captured the attention of celebrities around the world.

Whatever you choose to do, it’s important to keep in mind that this is not a hobby, it’s a commercial operation which has to be scalable. You might enjoy making, say, tables or wooden toys – but will you be able to ramp up your production levels to keep up with demand? If not, you’ll need to think about employing other people to share the workload.

And you also need to consider your sales and marketing strategy. As we said earlier, there are loads of exciting routes to market. In addition to Notjustalabel, NotontheHighStreet promotes dozens of start-up and home-based designers in a range of sectors, from weddings and childcare to toys and home furniture, while Etsy and Folksy specialise in hand-made wares. Similarly, ASOS provides a fashion marketplace for boutique as well as big designers. If you speak to the right people, you’ll give yourself a great chance of flying start.

Who’s doing it?

Dickie Wilkinson, DWRM

“I’m a designer and I work with silverware, specialising in cufflinks. Although I don’t make a lot of my own products, I do insist on having every product made in the UK.

“We started the business when I met Doug (Richard) at the School for Creative Startups in September 2011, although I already had some samples. I wouldn’t say it’s fully taken off yet, not in terms of sales anyway, but I’m now stocked in four stores, including one on Jermyn Street in the heart of London.

“Jewellery and ceramics are traditionally the two main professional avenues for arts and crafts, because there will always be demand for them. But the explosion has been towards the knick-knack things, inspired by Kirstie Allsop and the have-a-go-yourself attitude. People will increasingly go towards bespoke and commissioned work, and I noticed a lot of other arts and crafts businesses moving towards this at the School for Creative Startups.

“Thankfully, my business has scalability. I can ramp up to a bulk order for a department store, but also offer limited edition and bespoke. I come from a tailoring background, so that range of service was always there. We’ll increasingly see that bespoke element entering all aspects of arts and crafts in the next few months.”

If you’re a skilled craftsperson with an eye for what sells, read our step-by-step guide on how to start a craft business.

Published Jan 2012

Why is it so promising?

Almost two decades ago, the cast of Friends introduced Britain to the delights of a casual natter in a coffee shop. Since then, this languid pastime has become a cultural phenomenon, and coffee shops like the iconic Central Perk beloved by Joey, Chandler and co can now be found on every UK street.

In the last decade, the number of branded coffee houses in the UK has risen three-fold, driven by an exponential increase in demand. According to Mintel, around 57% of UK consumers now use coffee shops regularly, enticed by the emergence of upmarket chains such as Starbucks, the increasing availability of ‘gourmet coffee’, and the popularity of coffee-fuelled sitcoms such as Friends.

The financial value of the industry is huge. In 2010 coffee shops were worth around £5bn, while last year total UK coffee sales were £2.1bn, 10% up on 2010 and twice the level of 2005. In 2009 the British Coffee Association predicted that the market would grow by almost 25% in the five years to 2014, and so far this eye-catching forecast seems well-founded.

With consumer titles such as Which? propagating the idea that independents provide a better cup of coffee and a more intimate atmosphere than the major chains, much of today’s demand focuses on boutique outlets rather than the big boys. In 2010, the number of independent coffee shops was almost equal to that of high-street giants such as Starbucks, Costa and Caffe Nero. In London, 35 independent bars opened last year, compared with 56 big-chain branches – and the gap could narrow further in 2012.

What are the specific opportunities?

When we talk about independent coffee shops, we’re invariably referring to self-consciously boutique outlets which serve high-quality coffee, and allow guests to eat in as well as take away. According to Mintel, around 47% of coffee shop users prefer to ‘sit in’ with their drinks, while just 8% take their coffee away, so you’ll need to offer a comfy, cosy area for people to lounge and chat. Meanwhile, offering WiFi so customers can hold meetings, or listen to bands in the evenings, could help to make your venue a popular destination within the community.

Another option in this sector is to become a mobile barista. These have become increasingly common outside stations and commuter routes in recent years, and give you the option of moving to markets or other locations during the day or at weekends.

Mintel’s stats also reveal that, of those who regularly consume hot drinks beyond the confines of their home, around half favour cappuccinos, lattes and mochas. So it’s essential that your coffee shop provides each of these three staples. Hot chocolate, filter coffee and traditional tea are also fairly popular, but there’s significantly less demand for cold drinks and smoothies. If you want your coffee shop to fly, it’s best to keep your drinks hot.

Finally, you need to think about the amount you charge. Although footfall in the coffee sector has soared in recent years, the amount individual consumers are spending has actually fallen – from an average of £3.50 in 2009 to £3.18 in 2011. So you’ll have to strike a delicate balance between premium quality and affordable pricing.

Who’s doing it?

Stephen Chiverton, The Coffee House Lymm

“I’m from Lymm, a small village outside Manchester, and before this I worked in music retail, where I met one of my business partners. We opened around six months ago, and we’re surpassing expectations. We were looking to break even in the first six months, and we’re doing better than that.

“Opening a coffee shop wasn’t a lifelong ambition. I looked at the buildings available in Lymm, and thought that this one would really suit a coffee house. The shop itself is quite a big unit, so we’ve designed it to be open and spacious. One of the top complaints we used to hear about coffee houses was that the tables were too close together, so we’ve deliberately left plenty of space between them, which seems to be a great feature.

“In terms of demographics, we get a lot of elderly customers, but also 25-35 year old women with young kids, and local businesses. The majority of our customers are women, but it’s not particularly pronounced. When we launched our business, we wanted to create a generally warm and relaxing atmosphere. It wasn’t gender-specific.

“Cappuccinos and lattes are our biggest sell, because those drinks can’t really be recreated at the consumer’s house. But we also have a siphon coffee machine, a Japanese invention which looks a bit like a chemistry set, and the coffee we get from that is selling well. And we do food, which is an important part of the business – a lot of coffee shop customers want light bites.”

If you’re a people person and you can meet the costs involved with setting up a coffee shop, this could be the venture for you. To find out more, read our full-length guide on how to start a coffee shop.

Published Jan 2012

Why is it so promising?

Having first risen to prominence in the 1980s, frozen yoghurt is very much back in fashion. Seen as a less calorific alternative to ice cream, ‘froghurt’ is also touted as a means to alleviate indigestion, and an all-round healthy snack.

The big retailers appear reluctant to stock frozen yoghurt, so there are obvious gaps for small, cult eat-in stores, or for aspiring franchisees of the big global brands that are beginning to make headway in the UK. Because of the perceived health benefits, if you provide great customer service there’s no reason why loyal consumers won’t come back for their favourite yoghurt again and again.

In Britain, annual sales of frozen yoghurt are currently around £4m, but the potential is huge. In America, the market is worth around £4.9bn, and the UK market is forecast to reach £150m in value by 2013.

At present the market is concentrated in London, based around five market leaders: SNOG, Tutti Frutti (currently the world’s largest frozen yoghurt franchise), Frae, Pinkberry (a successful US brand which has launched two franchises in London), and Yuforia.

However, word is spreading, and the big players are preparing to move with it. Yusri Othman, the master franchisee responsible for the UK arm of global frozen yoghurt brand Tutti Frutti, told us: “In terms of expanding, I have a couple more outlets in Manchester coming up next month, and we want to partner with major brands such as Harrods.”

What are the specific opportunities?

Although the UK market is young and full of promise, there are three key questions you must ask yourself before you can enter it. The answers will determine the specific type of business you create.

First, you must ask yourself how you will cope with the pronounced seasonality of a frozen yoghurt business. Demand tends to soar in summer before contracting sharply when the weather gets colder, so you’ll need a plan for when the shop is empty. Some market leaders have begun selling waffles, or soup, to get through the winter months.

Then you’ll need to ask yourself how you plan to enter the market. Fitting out a stylish, roomy store, of the type pioneered by SNOG and others, can be extremely expensive – one expert we spoke to said it costs between £70,000 and £110,000 to furnish a frozen yoghurt store, on top of £8,000 for each dispensing machine.

If this sounds like your dream business but you don’t have the funding required, franchising may well be worth a look. It can often be easier to raise bank finance for a franchise business than a conventional company, as you are buying into a proven brand and business model that has already been profitable elsewhere, lowering the risk of default.

If you want to do it more cheaply, you could enquire about concessions in nearby shopping malls – however you should be prepared to cede a huge chunk of revenue to the mall bosses every month. At the same time, with a number of shops on UK high streets currently standing empty, 2012 may be the ideal time to negotiate favourable deals on rent, which would not have been possible before the downturn.

Finally, you should ask yourself how you plan to stand out. Frozen yoghurt is synonymous with colour and vitality, so your brand needs to reflect this. In addition to the three staple flavours (vanilla, chocolate and strawberry), you should explore more exotic alternatives such as blackberry and mango, which have both performed well for existing retailers. And you should also think about how you present your service. The name of your company, the uniforms of your staff and the furniture arrayed around your premises will all play a key role in sculpting your brand image.

Who’s doing it?

David Packham, Samba Swirl

“We launched our first store last April, and we now have two premises, in Islington and Battersea, with a third on the way. I’ve previously worked in the City, but my business partner comes from the US and she’s very familiar with the frozen yoghurt market there.

“We’re self-service, unlike brands like SNOG and Pinkberry which are based on you going to the counter and people serving you the product. Our self-service is designed to be more than just a machine. It’s a whole experience, with all manner of different flavours and toppings, a fresh fruit counter, and dispensers all along the wall.

“We’ve actually found that January has seen a revival in business, but that’s partly because the previous month was so quiet – in December people are treating themselves and not worrying about healthy eating in the run-up to Christmas. In general, though, we’ve found the weather plays a huge part in demand. We saw a huge spike when we launched in April, because the weather was so hot, and business fell around five-fold between summer and winter.

“To offset demand, we’re promoting high-end coffee and healthy snacks, fitting in with the brand image of frozen yoghurt as a fat-free ice cream and giving us an alternative revenue stream. And, because we’re self-service, we can go down to a single member of staff at quiet periods, reducing costs.

“Business is going really well. We’re currently outperforming our revenue forecasts by around 20%, and it seems that a few companies are trying to imitate us, which is some compliment!”

Published Jan 2012

Why is it so promising?

We may be in the middle of a recession, with rising unemployment and widespread anxiety, but thankfully a fast, fun and addictive Latin American craze is getting the world back on its feet.

Zumba, the dance workout which originated in Colombia, now boasts more than 7.5 million devotees around the world, thanks largely to its light-hearted, laid-back approach to dancing and getting fit. Google’s Zeitgeist feature, which lists the year’s most popular search terms, named Zumba among the hottest trends of 2011, and there’s no sign of it reaching saturation point just yet.

However, when it comes to setting up a dance business, Zumba is far from the only game in town. The enduring popularity of Strictly Come Dancing – which typically drew 12 million viewers during its last series – has led to a revival in ballroom dancing. Meanwhile street dancing has exploded among younger age groups, with more than 50,000 children taking part in classes across London last year.

Pole dancing is also going from strength to strength, as more and more women discover that learning these skills in a relaxed, female-only environment is a fantastic (and fun) way to stay in shape. According to one recent estimate, there are currently more than 30,000 pole dancing enthusiasts in the UK.

What are the specific opportunities?

New trends are emerging all the time – most recent Batuka, a Brazilian holistic workout akin to a hybrid of Zumba and yoga. So, if you want to create a thriving dance business, it’s wise to master as many different disciplines as possible, so you won’t be left behind when a new craze explodes.

If you’re a skilled dancer, and have a place to teach your chosen routines, the entry costs for this type of business are relatively low; you’ll need to get insurance, and rent premises, but there are few other overheads, unless you are doing something like pole dancing, which obviously requires its own specific equipment.

The one exception to this general rule is Zumba. If you want to become an instructor under the auspices of the Zumba brand, you’ll need to attend a basic training course, which can cost anything from £200, and then sit (or rather dance) a variety of additional courses created by the Zumba Academy. There’s no getting around this – Zumba is a company, not a generic fitness activity, so you’ll be in breach of copyright if you try and use the name without their prior approval.

Who’s doing it?

Sarah Johnson, Dance Fit Studio

“We’re based in Leicester, and we provide burlesque, Zumba, ballet fitness, street dance, belly dancing, and some tap. Basically we do anything that adds fitness for our members.

“I’ve danced in the past, albeit not professionally, and the idea to start my own business came three years ago. I’d had kids, contracted diabetes, and put on weight, up to a size 20. I saw Zumba on the shopping channel in 2009, realised I had to do it, and started going to classes in Burton-on-Trent – that was a 60-mile round trip, but it was the nearest place that did it!

“I got my Zumba qualification quite quickly, back in 2009, and I also trained in burlesque and Bokwa, a new dance routine which utilises hand signals and sign language. With all the licences I had to get – public liability, PPL, PPS, music licences – and the cost of the music equipment, it probably cost me around £1,000 to set up my business. Not that much compared to other start-ups, but then that doesn’t include advertising.

“We launched Dance Fit Studio in May last year, and I now employ five or six instructors in addition to myself. It’s hard work; I teach 18 classes a week, and on top of that I have to manage things like advertising and choreography. People might come to your class and think it’s the best job in the world, but there’s a lot of hard work that goes on behind the scenes.

“Zumba has been key to our business from day one, but it’s like when step and aerobics were big, you need to diversify – you can’t put all your eggs in one basket. That’s why I’ve got all the other offerings. With Bokwa, I think I could be a year ahead of the competition.”

Published Jan 2012

Why is it so promising?

With more and more people being made redundant during the economic downturn, job searches are at an all-time high. According to research published late last year, online demand for jobs in the UK rose by more than 8% in 2011, and further growth is likely in the coming months.

In addition to creating a recruitment agency or job search site, you could set up a CV writing business, or an interview coaching service. There are plenty of opportunities to explore.

What are the specific opportunities?

If you’re thinking of setting up your own recruitment business or job board, the market is extremely congested. The recruitment sector is dominated by nationwide firms such as Adecco and Kelly Services, while the lion’s share of the online job market is split between a handful of huge sites. For example, the Monster job site, which was originally founded in America, garnered more than 150 million CVs in 2009, while Fish4Jobs receives more than 1.3 million job postings a month.

If you want to penetrate this bulging market, it’s best to focus on a particular industry. 2011 saw particularly high levels of demand in the hospitality, catering, accountancy and engineering sectors, so a company which specialises in placing staff in these industries may have success.

Otherwise, a CV coaching business could be well worth looking into. People often find it hard to promote themselves in print, and many would rather pass the task of writing a long and time-consuming resumé on to a specialist.

Robin Webb, who set up his own CV writing business, CV Master Careers, in 2004, says: “We are seeing a steady upturn in demand for CV coaching – a lot of people are out of work and many more are fearing it will happen to them. People are being forced to make career changes and many are worried about it, so there is a big market out there. But you have to be flexible, and be prepared to work very hard.”

Alternatively, you may want to think about setting up a pitch or presentation coaching firm. In the wake of Dragons’ Den, thousands of people are trying to start their own businesses, and secure funding or contracts from established players. This is very much an emerging specialism, and you could grab a huge slice of the action by getting in there early. However, to be successful you will need top-notch communication skills, both written and verbal.

Who’s doing it?

Mai Davies, www.maidavies.co.uk

“My new pitch-coaching business is based on my experience as a national broadcaster and journalist. I’ve been an anchor for Sky News, I’ve presented for ITV Politics, and I still work for the BBC.

“My consultancy service has developed gradually, around my broadcast work. As a journalist I often get asked to run media training courses for multi-nationals and NGOs, and it’s just snowballed. Several PR companies have also approached me with celebrities needing media training for charity campaigns, and I train other presenters in the art of presenting talk shows.

“I’m in the process of formalising my pitch business right now, but I’m already seeing loads of demand. I was invited to provide specialist pitching advice at Tech Entrepreneurs Week in December, and my client base includes both businesses and individuals. It’s a real growth area, partly because people are finding it so hard to get funding. The banks are proving difficult, and competition is fierce.

“My clients are based all over the UK and abroad, so much of the pitch training is done online. Small companies realise that it’s no good spending time and money on your business and then delivering a substandard pitch. If you’re asking for thousands, it’s wise to get your pitch perfect.

“As a coach, a lot of what I do is about timing. When you’re pitching, you can’t cover someone in a blizzard of information, you have to stage it so it’s heard in the right way. If you get it right, you’ll have them in the palm of your hand; if you get it wrong, you’ve lost them almost straightaway. As broadcasters, we get 10 seconds before someone picks up the remote control, so I’m well-versed in this challenge!”

Published Jan 2012

Why is it so promising?

The recent coronation of Mark Cavendish as BBC Sports Personality of the Year reflects Britain’s growing infatuation with cycling, sparked by increased fears surrounding the environment and obesity levels, congestion on the roads and public transport, and the government’s attempts to get more people pedalling through tax breaks such as the Cycle to Work scheme.

Despite the recession, sales in the cycling sector are set to rise from £2.1bn in 2010 to £3bn in 2015, and the cult following enjoyed by Brompton’s collapsible bike demonstrates that all manner of models and technologies will benefit from the boom.

What are the specific opportunities?

With more and more companies sponsoring cycle-to-work schemes for their employees, you might think about selling bikes, or setting up your own scheme management service. One company which has already done this is Please Cycle, which provides bespoke, employer-branded cycle schemes enabling staff to plan journeys, log their daily mileage and pick up air miles-style rewards.

However, you’ll have to compete with a swarm of established companies if you wish to succeed in this area. According to Ry Morgan, founder of Please Cycle: “There were 3.7 million bikes sold in 2010, and there’ll have been an increase in 2011. However the retail sales side is still dominated by the big players such as Evans and Halford, and the cycle-to-work space is also dominated by four or five market leaders.”

You might have more joy with a business offering cycle repairs, or one which caters for the public’s increasing desire for fashionable cycling apparel. With more and more people cycling to work, there is a growing demand for key accessories, such as jackets and bags, which can be worn both on the bike and in the office, and are both fashionable and practical. Wiggle.com is one brand that has emerged in recent years to sew up a fair chunk of online retail activity in this area.

Brompton’s Oratory jacket, launched in September last year, has registered only modest sales thus far, but this may be to do with the fact that the garment is reasonably expensive (around £250). If you decide to start a business selling fashionable cycling apparel, you’ll have to keep your operating costs low and your prices realistic. It won’t be easy, but you could capture a huge slice of the market by moving now.

Who’s doing it?

Rachel Bonny, The Michaux Club

“Through our new website, we sell fashionable cycle bags. Originally they were designed for female cyclists, but it’s evolved into a unisex business now.

“I had the idea while I was working as a womenswear designer for high street brands such as Top Shop and Whistles, and struggling to find a bag I could take on my bike and wear to work. About two years ago I had the idea of creating my own bags, and began to sketch out my own design using leather and waterproof canvas.

“I sold my first batch in December, and got an article in The Guardian’s ‘What to buy for Christmas’ list, which brought dozens of email enquiries. We are currently selling on a made-to-order basis while our manufacturing centre is being set up. I’m also currently taking a course in bag-making to improve my skills.

“The key demographic for us is mid to late-thirties, middle to upper-income city workers – people who have a demanding job but are also eco and fashion-conscious. As cycling is integrating more into the daily life routine, it’s less about having two outfits to wear, and now it’s about integrating the two.”

Published Jan 2012