Ten Hot Startup Sectors for New Business Ideas in 2012

In his inauguration speech, President Obama paid homage to entrepreneurs. The path to greatness, he rhapsodized, has been paved by "the risk-takers, the doers, the makers of things - some celebrated but more often men and women obscure in their labor, who have carried us up the long, rugged path towards prosperity and freedom. "

Almost three years later, it's clear he was spot on. Entrepreneurship has been one of the precious few bright spots in a terribly gloomy economy, and this new generation of entrepreneurs, both intentional and accidental, has taken it upon themselves to keep things chugging along. At the same time, starting a business gained serious cool cred.

Consider American Express' slick ad campaign featuring Patagonia founder Yvon Chouinard; foursquare's founders as models in glossy Gap mag ads; and the cults of celebrity surrounding "the Zuck" and the late Steve Jobs. Even A-list stars like Justin Timberlake and Lady Gaga added headlines to their clip files from startup-centric blogs like TechCrunch and Mashable.

"Entrepreneurship has become sexy in a lot of ways," says Clay Newbill, executive producer of ABC's Shark Tank, which features people pitching their dreams to a panel of deep-pocketed investors, including Mark Cuban.

Entrepreneurship has never been more practical, either. According to the Kauffman Foundation, 565,000 new businesses were created in 2010 - the most in 15 years - as many new 'treps were forced into it by the downturn. "Young people know that there's a high likelihood they'll have to make it on their own," says Thomas Knapp, associate director at the University of Southern California's Lloyd Greif Center for Entrepreneurial Studies. USC has seen a 13.2 percent year-over-year increase in students taking entrepreneurship courses at the school. 

Trend No. 1 - Decision

Discovery fuels invention (and purchases)

If the more than 27 million pieces of content shared online every day is any indication that collective knowledge is king, then it should come as no surprise that it's now a key component of modern decision making. According to a July study on the psychology of online sharing by The New York Times Customer Insight Group and Latitude Research, 85 percent of those surveyed say reading others' responses helps them understand and process information and events, and 73 percent say sharing helps them process information more deeply. Notably, 73 percent share info to connect with other people with the same interests - a big part of why discovery is an important market, and recommendation engines for everything from music to movies to food are so popular.

"People are looking for a trusted filter to surface good content, good products and good experiences," says Jonathan Hills, partner at New York City-based Bashki Generation, a digital agency specializing in content sharing. Hills notes that for some brands, every person who shares content brings an additional five new unique visitors back to a site, who on average will spend 1.3 times longer on that site, read 1.9 times more content and experience 27 percent favorability toward the brands they encounter within the shared content. 
Decision Profile: Get Out of Town With Wanderfly

A late 2010 study by Forrester Research vice president and principal analyst Sucharita Mulpuru found that 62 percent of online retail shoppers think product recommendations are useful, and 15 percent made purchases based on recommendations. "Rather than have a one-size-fits-all approach, recommendation engines let you automate and personalize the site experience for shoppers based on what you can infer about their needs, wants and shopping preferences," Mulpuru says.

Retail was just the start. Decision engines that curate a user's interests, social information and recommendations from others are cropping up more and more - and even the big players are working to keep up: In 2009, Netflix awarded a million dollars to the team that offered the best solution for improving their recommendation engine's accuracy of predictions.

"Given the profusion of content out there," Mulpuru says, "anything to help to filter what is relevant to you makes a lot of sense." - Michelle Juergen

Great Business Ideas for 2012

Think you need a long time to plan a new business idea? Not quite. As the founders of Start up Weekend can tell you, it doesn't take as long as you might think. The organization conducts 54-hour events where developers, designers, marketers and start up enthusiasts come together to share ideas, form teams, build products and create start ups.

"Filing an LL C, pitching to an investor, and creating a 20-page business plan is absolutely the wrong way to go about launching a start up," said Marc Nager, who, along with his co-founders, Clint Nelsen and Franck Nouyrigat, has written the book "Start up Weekend: How to Take a Company From Concept to Creation in 54 Hours" (Wiley, 2011).

Nager told Businesswoman that the first step toward starting a business is having an idea.

"The first steps are finding a team and validating your idea. Without these two things, you just have dreamers. The definition of a startup is entrepreneurs with an idea in search of a business model. Once you have a team and confirmation that you are solving a real problem and creating real value, then the longer road of building your business begins. The process of actually starting can happen in a matter of days. "

Here are a few great business ideas for 2012 that might get your entrepreneurial juices flowing.

Home day care

In most places, you don't need a license to run a babysitting service from home if you keep your child headcount below a certain number. With more parents needing to work, offering a home-based child care situation can be a great way to start a business and stay home with your own kids, too.

Got rake, will travel? Most landscapers will cut grass, but they don't necessarily do the stuff that most homeowners don't have time to do themselves, such as weeding, planting, leaf raking, snow shoveling, hanging or removing holiday decorations. With little more than some work gloves and a ladder, you could be in business in no time.

Errand service

In some ways, the recession has made people busier than ever. Between working long hours, cooking more at home and juggling responsibilities, there's a lot that gets left undone. A service that runs errands (including dropping off dry cleaning, paying bills, etc.) Requires just a car and cell phone. Start small, do a good job and word of mouth will spread quickly.

Computer maintenance

Got a tech background? With the proliferation of tablets, smartphones and laptops for every member of the family, there are lots of opportunities to provide private computer services such as anti-virus software installation, desktop cleanups, software downloads and printer hookups.

Cleaning service

Are you one of those people that love to clean? If so, you may be sitting on a gold mine. Cleaning people who work for themselves can make $ 30 to $ 40 per hour. Recession or not, there are plenty of people still looking for a little domestic assistance.