Trends: tracking, predicting and capitalizing

Editor's note: This is the fifth column in a six-column series giving advice to beginning entrepreneurs. For more information about Weisburd, the co-founder of Indy Tickets Express LLC and the vice president of the Young Entrepreneurs Association, visit www.DavidWeisburd.com.\nPeople come up to me all the time and say something like, "I want to start my own business, but everything has already been created." Though I understand where they are coming from, this comes off as a ridiculous statement. The day this statement becomes true will be a great day for society. Why? Because, the day that there are no new businesses to create will be the day when people stop caring about how they look, how they entertain themselves, and how many gadgets they can control with a click of their fingertips. Now that I think of it, I don't think a society like this would be too much fun.\nPeople are always looking for the next great trend to stay with the "in crowd" in terms of fashion and gadgets. Both of these product trends can be monitored in the way they spread across the country -- usually demographically in waves of age and region largely correlated with socio-economic levels.\nIn "The Tipping Point" by Malcolm Gladwell, Gladwell argues that trends spread virally with the help of connectors -- people who spot the ideas early on and communicate them to friends and family. If you're able to spot trends at their earliest phase of development you'll be able to ride the trends' wave of success.\nAge trends are sometimes tricky to spot if you are not in the particular age group. However, if you only focus on your own age group you will be able to find plenty of trends. It's as simple as looking around campus to see what's becoming popular. \nFor example, one trend becoming popular for the teen to tween age group is making everything smaller. Apple recently came out with the new iPod Nano despite already having iPod minis on the market. Even though the market was saturated with the minis, the Nano is selling quite well. Cell phones have also gradually become smaller and companies are in the developing stages of shrinking laptops. I've noticed the new Dell 12-inch laptops becoming more popular on campus. Don't be surprised if in three years all laptops are half the size they are today.\nAnother recent trend is the "cute-ifying" of simple products. The female teen to tween group has found it necessary to make the simplest electronic gadgets cute. No longer is it enough for iPods to be cute because of their small size. They have to be colored pink and green.\nAnother way to spot trends is by regions. Look for one that's already successful in another region of the country. After cultural and demographic statistics are neutralized, there's no reason why something that works in another region will not work locally. Many IU students are from other states. People with diverse backgrounds have trend-spotting advantages. Californians have a distinct advantage because most new entrepreneurial trends come from California and the Southwest. However, do not underestimate the power of Northeastern trends. Aren't they the ones that made large ugly sunglasses sell for hundreds of dollars in the Midwest?\nAnother trend to tackle is satisfying the changing needs of the baby boomers. They have the most dispensable income of any other population segment. Can you think of a way to entertain a 55-year-old? If so, you could capitalize in a big way. My company, Indy Tickets Express LLC, takes advantages of the blockbuster tours appealing to Baby Boomers. It's no coincidence that Paul McCartney and The Rolling Stones command top dollar nationwide while popular rap groups such as 50 Cent and Snoop Dogg have trouble selling out.\nThe U.S. entrepreneurial community has been buzzing with health care opportunities that will arise out of baby boomer retirement, such as nursing homes and pharmaceutical companies. The demand for these will grow steadily over the next 20 years as baby boomers age.\nTrends are easier to spot than you might imagine. A great source for new trends is publications that deal with innovative ideas such as Entrepreneur magazine. \nIt's important to act on trends quickly because they are simply that: trends. Some stay for months, some for years and others can even stay for decades, but you never know in advance how long each trend will stay popular. \nTo spot trends, you must open your mind to new ideas. The next time you find yourself thinking about a possible new trend, write it down. Make it a habit to write down your ideas. If you simply ignore your ideas they'll never develop. Remember, everything begins with an idea. Savor your ideas and you'll soon capitalize on your own creative genius.\nComing next week: Shift reality and chase your dream.