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Marketing Budget Allocation: Follow the Money
› › › E-Mail Marketing Optimization

Sponsored by Lyris Technologies

BY Al DiGuido | April 6, 2006



It's time to stop the charade of how many marketing dollars are focused on e-mail and the Internet channel. For too long, this burgeoning channel has been accorded small piece of the marketing-budget pie. Why is it so problematic for some people to read the research reports that continue to document the massive shift from traditional media to interactive? This paradigm shift is happening and will continue to gain momentum with each passing year as the dinosaurs of the pre-Internet era become a smaller part of the consumer marketplace.

Each year in early January, we collectively gasp as e-commerce's continuing rise is reported. Each year, e-commerce seems to multiply two or three times over the previous year. The message to marketers is pretty simple: follow the money.

As more consumers utilize e-mail, marketers must budget more for this medium to establish a beachhead on one of the most important consumer channels. Instead, they continue to pump significant dollars into traditional media in the misguided belief these channels will return to the glory days of direct mail, TV, and radio as the broadcast channels of choice, an indelible entry in every "successful" media plan.

I began my media sales career selling billboard advertising. Today, that industry's media proposition seems very old school. I can't tell you the last time I took a commercial action based on what I saw on Interstate 95. There's merit (as well as political correctness) in saying the past isn't going away. Neither are vintage Mustangs, Beatles records, or comic books. However, it's time we stop waxing nostalgic about the past and realistically plan for the future by allocating dollars appropriately.

Based on every metric I've seen, e-mail continues to generate some of the most impressive and trackable ROI (define). Yet advertising and marketing teams are pressured to make e-mail communications a budget whipping boy. I can't tell you how many times I've heard "our budget for e-mail is limited" or "I need to reduce costs around e-mail." Is pressure on e-mail pricing and budgets based on misinformation relative to e-mail's overall performance? Or is it an attempt to rationalize a misappropriated media allocation and budget?

It's counterintuitive that a medium that continues to demonstrate an incredible knack for outperforming other media instruments in its ability to grow sales from your best customers cost-efficiently and -effectively (when applied properly) is treated as second -class citizen when it comes to budget allocations. The potential ROI for e-mail campaigns are impressive, to say the least. I've never experienced anything close to this rate of return on any traditional medium. Is it possible the specialists managing companies' e-mail marketing campaigns aren't getting the word out? Are they fighting the battle with the traditionalists and legacy players who adopt the "this is the way we've always done media; why change it" crowd? Or are folks trying to prove their worth by earning a negotiating merit badge that demonstrates to the corporate powers that they can buy e-mail, one of the most powerful media in the industry, at the lowest cost?

I continue to see media dollars pumped into traditional media at the expense of credible investments in e-mail. A cover story in a recent magazine displaying the smiling captains of Google raises the question, "Are these guys making too much money?" Indeed. It may be sacrilegious to question allocating dollars to search, but, though I understand the utility of the channel, I'm sad about what search engines and search engine marketers admit they spend. To think the marketing industry embraced a channel that posts "billboards" on the side of consumer inquiry sessions in the hope they'll catch the consumer's eye as she races through potentially 5 billion search results is something of a return to previous years and tactics.

I'm not saying search isn't a valid investment. It must be a part of your marketing mix. But not at the expense of leveraging customer data and building deep, relevant retention-based e-mail dialogues with your customers. Not a chance.

The possible profits generated by allocating a commensurate budget percentage to e-mail pales in comparison to any income earned by an e-mail service provider company (mine included). As the shift in consumer purchasing and informational patterns continues to move toward more relevant, meaningful Internet dialogues, the choice is yours and the budget makers in your company. Either put the emphasis and resources required to build a dominant, meaningful commitment to e-mail communications strategies, technology, and deployment to work for your company, or be left behind in the next couple years.

Those of us who have worked in and around media for the last decade or so know the truth about this medium's power. It's time we gather the courage to fight for our fair share of the marketing budget and end misguided, misinformed efforts to relegate e-mail communications to second-class status. Do you have chutzpah to make the move to change your media plan?

Until next time,

Al D.

Al DiGuido is President & CEO of Epsilon Interactive. Previously, he served as CEO of Bigfoot Interactive, CEO of Expression Engines, EVP at Ziff-Davis, and publisher of Computer Shopper, where he launched ComputerShopper.com, a groundbreaking direct-to-consumer e-commerce engine. Prior to Ziff-Davis, he was vice president/advertising director for Sports Inc. DiGuido also serves on the Direct Marketing Association's Ethics Policy Committee.

Al DiGuido http://www.clickz.com/experts/contact_author/index.php/19543

Epsilon Interactive http://www.epsiloninteractive.com/

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The Three CORE Ways Web Site Content Gets Traffic!
Three Core Reasons Why Adding Web site Content Increases Your Traffic.
It is now a well established fact that people primarily use the Internet to search for information on specific topics to solve specific problems.. Now (of course) there are other ways the Internet is used too.

However (primarily) the Internet is an information delivery medium. It is NOT a "sell" medium (even though that happens) . It's simply a matter of identifying the mediums marketing "logic" to work out how best to use it to sell on it .

In essence people on the Internet are looking for content that is relevant to their purpose, need or problem.. They typically are not looking for marketing ploys.

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Now, there are a number of ways to increase this content, Including having a search engine optimization company provide you with keyword rich articles. There are three primary reasons why more web site content increases your web site traffic.

The first reason more web site content increases traffic to your web site is that content articles tend to be focused on a specific topic.. This focus will naturally lead to the repeated use of a specific keyword or phrase. The natural and repeated use of this phrased leads to higher search engine rankings, naturally.

Search engine rankings are the way findings/ results come back to an Internet user when they search for a 'solution to their problem' via a search engine.

If someone searches for the term dogs they will get many millions of pages of results. The order in which these results are displayed on the screen depends on a number of factors including how frequently the term is mentioned on the site and where it is mentioned on the site, and the exact phrase the user typed into the search field on their favorite Search Engine.

In other words, if you get the SEARCH key phrases right, and you continue to create content focused on that topic, you will ALWAYS be on the top of the search engines for that particular phrase. The Internet is a content driven medium, thus the web site with the most (focused) content within a specific theme will always win. It's as simple and as complicated as that. Of course there are other offsite factors such as back linking and RSS etc, but this is not the focus of this article.

Research continually shows that people tend only to click on the first ten results a search engine offers them. Increasing your web site content will help you become one of these first ten web sites (within specific key phrases). This means more people than you ever thought possible will be clicking on your site in no time simply because of your top ten ranking for a specific keyword or key phrase.

Not only will you be closer to the top of the search engine rankings with more content, you will also be indexed by more search engines. This could mean that something like ninety percent of all Internet users seeing your web site in any one given Internet session for a specific key phrase.

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The second reason more web site content increases traffic is more complicated. If you have strong, well written content on your site, you increase your credibility with customers.

Suddenly you are no longer a company selling homemade dog food. You are somebody who can offer knowledgeable advice about anything a responsible dog owner needs to know including house training, leash laws, and sleeping problems.

This increase in credibility not only makes people believe what you have posted to your site, it also makes them want to stay at your site LONGER to read the rest of your content articles on a topic about which they are PASSIONATE and ACTIVELY searching for on the Internet.

The more keyword focused content articles you have on your site the easier they will find you and longer they will stay there.

Keeping people on your site as long as possible is the key to selling your product to them.

You simply have more time in which to pitch them your product or service (in multiple ways) and thus close more sales. Not only will they stay at your site longer when your site has more focused content they are far more likely to return to your site the next time they search the Internet for information that's within your topic.

For example, if you are selling refilled printer ink cartridges, and you have content on your site which relates to all things printers you have a far better chance that someone might stay to look at a few of your other articles on your web site.

However, the next time they need digital photo printing tips, chances are good that they will remember what great content you offered them during their last Internet session, and they will return directly to your site just to read more of your topic focused content..

This means you have their complete, undivided attention for an even longer period of time this time. Moreover, if they are returning to your site on a regular basis, chances are good that they will recommend the site to other users like their friends and relatives which will mean even more traffic to your site.

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The final way more web site content increases your web traffic is that it increases the probability that advertisers and reciprocal link exchangers will be attracted to your site. Reciprocal links are exchanged by web sites that have similar interests. The more relevant topics you are able to list, the more chances you have of someone with similar interests attempting to link to your site.

This could greatly increase your web site traffic because not only will people be able to find your site through search engines, they may also be able to find your site through other sites.

And... advertisers are looking for sites that encourage customers they want to do business with. More keywords will mean more customers for you, which can mean more advertisers for you, which can mean more profits and visibility for you.

No matter which reason you choose to add more content to your site it will always increase your web site traffic. This can only mean good things.  Continually adding keyword focused content to your web site is one of the best ways to grow your web business. You can have these keyword rich content articles written for you, or you can write them yourself.

Whichever way you choose to go here be sure that your articles are well-written. Badly written articles will do little to increase your web site traffic, and most likely will affect your credibility.

Live Well. Expect Success!

Kenneth Doyle - e*Analyst
Copyright (c) 2006

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"If you haven't worked this out, you soon will.  There's a lot of NONsense zapping around in cyber-space about Internet marketing.
Find out what works, what doesn't... and what's worth your money."
Subscribe To The e*Analyst Qzine!

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Email Marketing


Is Email Marketing DEAD?... If (as a publisher of an ezine) you haven't been watching your 'bounce rate' you've been asleep at the wheel.


At least HALF of all broadcasts I do to my list DON'T get through to my (opt-in only) list of subscribers. Every emailing results in bounces, and spam complaints... and I DO NOT spam.

I've even had "Thank you" pages (used on the backend of a download) taken out by the ISP spam filters.

A colleague of mine in the UK can email me on only one of my four email addresses, yet I still receive 60 - 100 unsolicited email a day AFTER my ISP has run its spam filters ??!!

FACE IT! Emailing Marketing is in dire trouble... or, it's got a terminal disease... or it's on its last legs?

Whatever! The spammers have won and legitimate hard-working publishers have lost the battle to publish their ezines freely.


Legislation is NOT going to change this situation. The spammers will still hide in their bunkers in foreign countries, and the thought police will continue to harass legitimate publishers. It's time for a BIG change if you want to survive online. Embrace a new way of marketing!

Technology (as always) has come to the rescue! PUSH technology is dead and PULL technology is in. Email marketing is dead.


Get Smart. Get Out Of Emailing Marketing!
WELCOME to the complete solution to the disaster that email marketing has become for the increasingly harassed (and legitimate) publisher, and the ever patient, spammed-into-oblivion subscriber.

My prediction is that (within 12 months) to market successfully online you will no longer use email marketing techniques. You'll be using channel publishing systems like Quikonnex, or you won't be publishing an ezine.


And... if you're searching for valuable information on any topic you'll begin moving towards ezines published on channels because you're SICK TO DEATH OF BEING SPAMMED!

In fact, I'm so impressed with this technology that I'm moving my entire list for The e*Analyst Ezine over to this NEXT evolution in online marketing ASAP, and moving away from email marketing as quickly as possible.


Multimedia, Interactive Publishing!
AND... this new technology handles multimedia, it's interactive... and it does NOT use email. The subscriber is always in complete control of their own subscriptions, so when a publisher does not perform by offering quality content, they're gone.

Does this then mean that I won't be using email at all?

No, it doesn't. I'll still use it for limited tasks like autoresponder systems, exchanging information with colleagues... and sending email to my Mum.

However, I won't be using it to publish my ezine, and increasingly I'll seek quality information that's being offered by other channel publishers at Quikonnex.

Kenneth Doyle - e*Analyst

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SEO Tools and Resources

Search Engine Optimization, Internet Marketing, or any sort of practical, web-related knowledge has four pillars:
 

• Passive learning – through books and courses (such as this newsletter).
   
• Experience – by practicing what you have learnt.
   
• Active Learning – interaction with other people in your field of interest, sharing knowledge and gaining from their experience.
   
• Industry Support – tools that can help you do your work better.
  
  A course like the one you are reading right now usually covers a mixture of all four: I talk to you about different strategies, show you how to use tools to build links or optimize your web pages, I aim to focus this course by writing about what you want discussed, and I occasionally tell you about new tools that you can use to speed up the optimization process.
  
  Today I'll tell you about two dedicated methods of learning website promotion and optimization: SEO forums and SEO tools. Not only are these resources completely free, they are (and should be) an essential part of any webmaster looking to build a serious online business.
  
  
   

  SEO Forums

   
  
  There are several high quality forums to get you right in the middle of webmasters and online business owners (just like you) trying to increase their web site traffic, conversion rates and sales. If you are looking for discussions on cutting-edge information regarding search engines, these forums are the place to go.
  
  More often than not, forum members tend to help out newcomers, so don't be afraid to participate in forum conversations and threads – just remember to keep your posts relevant.
  
  All the forums listed here have free registration, but some forums have separate members' only sections as well.
  
  
  SEO Chat
  
  SEO Chat is part of the Developer Shed network, one of the most popular destinations for webmasters on the Internet. The real strength of SEO Chat is the large collection of informative articles on search engine optimization, but because of the site's popularity, the SEO Chat forums have become increasingly important for discussions on both the articles on the website as well as everyday SEO issues.
  
  Visit the SEO Chat Forums and tell others about this course. ( http://www.seoelite.com/7DaysToMassiveWebsiteTraffic.htm ) The ultimate goal here is to spread the knowledge to everyone, so tell all your friends.  SEO Elite is a great piece of linking software and the course is one of the best I have ever been involved in.
  
  
  SearchEngineWatch
  
  Created by Danny Sullivan, SearchEngineWatch has quickly evolved into an industry leader in terms of search engine news. If you are interested in receiving daily updates on what is happening in the search engine world, consider signing up for their SearchDay newsletter. I read it religiously every day, and almost always find some new resource or information that can help me improve my business.
  
  The SearchEngineWatch Forums are the highest rated within the SEO community, for the simple reason that so many big name search optimization experts frequent these forums. While it can be a bit intimidating to jump headfirst into the unknown, nothing can replace the value of learning first-hand from webmasters who are facing the same issues as you.
  
  Visit the SearchEngineWatch Forums.
  
  
  WebmasterWorld
  
  WebmasterWorld was created by Brett Tabke several years ago, and proudly holds the highest Alexa ranking for an SEO / webmaster forum. The sheer volume of members makes the first experience overwhelming, but if you focus on the issues that you want to discuss, learn or ask questions about, you'll find that you can get answers within minutes of your first post.
  
  WebmasterWorld also has a paid-membership section, which is less “crowded” and more frequented by the “pros”. The investment pales in comparison to the value of advice you will get from the people in this forum. And of course, with gems like “26 ways to 15K visitors a day”, WebmasterWorld is unarguably the sort of forum that should be on your “daily list”.
  
  Visit the WebmasterWorld Forums.
  
  
  HighRankings
  
  Jill Whalen's HighRankings forum is highly focused on strategies designed to achieve the highest possible rankings for your website. While it is less formal than the previously mentioned forums, HighRankings gives you street-wise advice on attaining top rankings, and includes several useful resources (including a comprehensive guide on linking strategies).
  
  Visit the HighRankings Forums .
  
  Just four out of thousands of forums might not seem like a big sample, but these are the best of the best internet marketing and SEO forums on the Internet today.
  
  But learning from forums is just one part of the equation. You also need to know which SEO tools to use in order to get that edge over your competition.
  
   

  SEO Tools

   
  
  When you think of SEO tools, the first thing that comes to mind is paid-for, powerful programs like SEO Elite. The fact is, there are many no-cost, small-scale and highly useful SEO tools available on the Internet. Looking for keywords? Got it. Looking to check your website's rankings for particular keywords? Got it. Link popularity? Got it. Keyword density? Got that as well.
  
  Free Link Popularity Check
  
  The folks at Axandra have a useful tool that you can use to check the link popularity of any number of websites across several search engines. A must-have tool to keep a regular check on your websites.
  
  Find out more about Free Link Popularity Check.
  
  NicheBot
  
  If you are looking to do keyword research, WordTracker is the tool of choice for building huge keyword lists. But the service comes with a price, and if you are looking for a free alternative that still packs a decent punch, NicheBot is the tool you should be using. It uses both WordTracker (the trial version) and Overture to generate keyword lists, and pulls data from Google to give you basic competitor information and search results' numbers.
  
  NicheBot also allows you to save and export your selected keywords, making it the ideal choice for new webmasters who don't want to invest in a professional keyword research service like WordTracker.
  
  Visit NicheBot.
  
  
  Digital Point
  
  With an Alexa rank of 525 (as of June 2005), DP is second only to WebmasterWorld in this article in terms of popularity. Digital Point boasts a vast array of webmaster and SEO tools, including keyword research tools, back links tools and keyword position tools. Registration, although free, is required to use many of these tools. Definitely an excellent choice for business owners who prefer a hands-on approach to their search engine marketing campaigns.
  
  Digital Point also has a vibrant forum community, which has sprung up around the popularity of the various tools and services that DP provides.
  
  Visit Digital Point Tools and Digital Point Forums.
  
  
  
  SEO Chat
  
  SEO Chat is not only about quality, insightful arguments and a vibrant forum community. They also have an amazing list of practical webmaster tools that focus on every small aspect of your SEO needs. Need to check the PageRank of every search term on Google? Or need an easy way to generate Meta Tags? One of their best tools is the Keyword Density tool that analyses a given web page and returns the keyword density values for all one, two and three word phrases.
  
  SEO Chat Tools also includes nifty keyword tools not usually found elsewhere, such as a tool for generating spelling mistakes (a significant number of searches on search engines contain spelling errors) and a tool for ordering and sorting your keywords list.
  
  Visit SEO Chat Tools.
  
  
  SEO Tools
  
  When you have a whole web site dedicated to providing quality SEO tools for free, you know that you are getting a great deal. SEO Tools betters many of the ‘regular' SEO tools by mixing up the staple tools such as keyword density and backlink analysis with search engine spider simulations and similar page comparisons, as well as that almost forgotten tool for checking your website in different resolutions (you still do that, don't you?).
  
  Visit SEO Tools.
  
  There are many other excellent SEO tools available for free on the Internet:
  
   

• Good Keywords – A resource for analyzing your competition for your primary keywords so you know what they are doing, and what you need to do on your own web site to beat them.
   
• Keyword Tumbler – An unusual resource that gives you all possible combinations for each key phrase in your keyword list. Good for a PPC campaign.
   
• Webmaster Toolkit – Another collection of SEO tools targeted towards the practical and not-so-professional SEO webmaster.
  As you can see, there are many, many quality SEO resources, forums and tools available on the Internet for free.
  
  The question is, what are you going to do about it?
  
  If you don't participate in forums, pick one of the 4 (5 if you include Digital Point) from the list above and browse around. Find a topic you want to participate in. Have a problem you want a peer's opinion on? Register and make your first post. Just a simple step towards interacting with the webmaster community will take you a long way towards helping you build your business.
  
  Anything in the SEO tools list that you think you can use? If you are limited to Overture searches for your keywords, try using NicheBot, and then take your results to Keyword Tumbler. How do you manage your website's progress through the search engines? Take Digital Point or the SEO Chat tools for a spin.
  
  Whatever you do, take something away from both of these lists, and I can guarantee that you will improve your search engine rankings in a significant way.
  
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Fever pitch: pull out your thermometers, 'cause things are heating up! Here's our annual roundup of the newest trends, hottest markets and business ideas that promised to sizzle in 2005

Karen Axelton

Every year, Entrepreneur eagerly anticipates our "Hot" meeting-a daylong discussion of the trends, markets and ideas we think will be hot for the coming year. Besides hashing out what's hot, we also assess ways entrepreneurs can parlay these trends into new business ideas. This year, we noticed four strategies smart entrepreneurs are using:

1. Tap the countertrend. For every trend, there's a potentially lucrative countertrend waiting to be noticed. Consider C&C California, the Los Angeles T-shirt company whose "classic" T-shirts have struck a chord with women sick of skimpy, midriff-baring tops. While the niches you'll target when catering to a countertrend are generally small, they often have passionately loyal followers. And if the countertrend becomes as big as the original trend, won't you be glad you got in on the ground floor?

2. Eat off the big guys' plate. Trend agency Trendwatching.com coined the term "feeder business" for companies that feed off giants like Amazon or eBay. Instead of trying to compete with Match.corn (so the feeder mind-set goes), why not start a business to help Match.com's clients write better online ads, take "glamour photos," or make sure that potential Mr. Right really is who he says he is? Other thriving feeder industries include eBay drop-off stores and eBay software. Chew on this: How could you feed off Google? Starbucks? Wal-Mart?

3. Switch the niche. Take a tried-and-true product or service meant for one market, tailor it to a different market, and marvel at why you didn't think of it before. When John and Cynthia Ham couldn't find wallpaper borders to reflect their African-American heritage, they didn't get frustrated--they got inspired to create Cultural Hangups Inc., a Huntersville, North Carolina, company that sells ethnic-themed wallpaper borders, home decor and bedding. Translating products and services from people to pets (kosher dog food), from adults to kids (yoga and cooking classes), from women to men (skin-care products), or from the masses to a minority group (wedding planning for gay couples) are just a few ways to make this one work.

4. Borrow a business model. Charging members a set monthly fee to borrow an unlimited number of DVDs by mail worked for Netflix. No wonder smart entrepreneurs have since "borrowed" Netflix's business model to use in other industries. Los Angeles-based GameFly rents video games by mail; Booksfree.com in Vienna, Virginia, lends paperbacks by mail; and in perhaps the most creative twist we've come across, Bag Borrow or Steal, in Sunny Isles, Florida, lets its fashion-mad members borrow designer purses by mail Is there a smart concept you could borrow?

As you read, keep these approaches in mind. Throw in a little of your own inspiration, and you'll be on your way to turning today's hottest trends into profitable business ideas of your own.--Karen Axelton

eBAY DROP-OFF STORES

One business realm continues to flourish despite Americans' concerns over the sluggish economy--the seemingly indomitable kingdom of eBay. The auction marketplace juggernaut has more than 95 million registered users worldwide who traded nearly $24 billion worth of goods in 2003. Whether you pride yourself on being a Titanium Power-Seller or have never even thought about selling on eBay, there's serious money to be made, and a crop of eBay drop-off businesses are popping up to help with the process.

EBay drop-off stores bridge the gap between the online bazaar and people who want to sell their goods without the hassle. Owners serve as middlemen who handle an item's sale--from photography and description to financial transaction--netting a percentage for the service. Though eBay set up a Trading Assistant Program in 2002, which allows eBay users to help others sell their items, it has otherwise kept its distance in this arena and has welcomed enterprising individuals as intermediaries. "We're definitely seeing a trend of these retail storefronts opening up," says Hani Durzy of eBay. If you don't want to build a drop-off store from the ground up, consider one of the many franchises getting in on the auction action, like iSold It or QuikDrop.

"It was a huge opportunity with a recession-proof model in terms of coupling the consignment world with businesses, nonprofits and retail space," says John Hawk, 39, who started Bidadoo Inc. with his brother Howard; both brothers have B2B backgrounds. Bidadoo, with two store locations in Bellevue and Seattle, Washington, incorporates fund raising into the mix by allowing sellers to donate an item's proceeds to a nonprofit. Launched in January 2004, Bidadoo projects sales will top $1 million this year and expects fivefold growth by 2005.

What's really surprising is that many existing eBay sellers, even PowerSellers, use Bidadoo. "We thought they'd be our competitors, but it turns out they're some of our best customers," reveals Howard, 41.

Marsha Collier, author of eBay for Dummies, suggests first trying the Trading Assistant Program for a free taste of this business. Says Collier, "Why not get on-the-job training before you put out any money?"--April Y. Pennington

KIDS PLUS-SIZE CLOTHING

Obesity is no longer just a weighty issue for adults--children now make up an increasing percentage of the growing number of overweight Americans. According to 19992002 survey data from the National Center for Health Statistics, 16 percent of children and teens aged 6 to 19 were overweight--triple what the proportion was in 1980--with another 15 percent at risk of becoming overweight. That means there's a growing need for clothing that not only fits right, but also boasts the same style and attitude of its average-size counterpart.

Ruth "Penny" Smith knows all too well the anguish and frustration plus-size kids and parents feel when clothes shopping: Her own son often came home empty-handed and disappointed. Smith, 44, had been sewing some of his clothing and realized she could help others by designing large-size boys and girls clothing. Teaming up with her former district manager from a formalwear store, Patti Herioux, the two started Hey Mom, "It Fits!" in Bolingbrook, Illinois, and have received an enormous response worldwide from their e-tail website.

Market research firm The NPD Group reports the kids plus-size apparel industry has grown to about $3 billion a year--about 12 percent of the overall children's clothing market. Though large companies like Dickies, Old Navy and others have joined the fray, entrepreneurs who move quickly into this arena can stand out.

"Big names like J.C. Penney and Sears are going to larger sizes, but from what we've seen, their large sizes are not even close to where they need to be," observes Herioux, 24. "And that's the market we look to cover." Serving up to 44-inch waistlines since 2003, Hey Mom, "It Fits!" is expanding its line to keep up with requests for larger sizes. The company expects sales to reach $150,000 this year.

"The advantage for entrepreneurs is creating a very creative, specific brand identity," says Jeff Klinefelter, senior research analyst for investment firm Piper Jaffray & Co., based in Minneapolis. Offering hip attire like denim jackets and carpenter jeans, Hey Mom shouldn't have a hard time keeping up with trends--especially now that Smith's son Cedric, 13, has moved from being the company's clothes model to one of its designers.--A.Y.P.

SEARCH ENGINE OPTIMIZATION

Being a rock star on stage in front of thousands of screaming fans will get the hairs on your arms to stand up. Garry Grant, 46, who used to play with the likes of Bon Jovi and Bruce Springsteen, says he got that same feeling the day he learned his company was ranked No. 1 on Google. The CEO and president of Search Engine Optimization Inc., Grant says top ranking has equaled huge revenue gains: He expects company sales to reach $6 million in 2004, up from $1.9 million in 2003. Not bad for the multitalented computer science graduate, who went from being a rock star to an internet entrepreneur.

Eighty-four percent of Americans online use search engines, according to the Pew Internet & American Life Project, which researches the impact of the internet, and ComScore Net works Inc., a provider of marketing information and consulting services. That means getting a high ranking can make or break a business. "You could spend a million bucks on a website, [but] if it's not visible, it's worth nothing," says Grant. Businesses that want top rank turn to search engine optimizers, which provide the "technology, methodology and science of increasing your website's visibility," according to Grant.

Larry Chase, publisher of Web Digest for Marketers and SearchEngineForMarketers.com, says search engine optimization (SEO) isn't for the faint of heart. "This is a very fast-changing marketplace," says Chase. "It's not the kind of field where you learn it once and forget about it." Chase recommends constant reading of industry news to keep up; Grant goes a step further and checks for patents filed by search engine companies to stay ahead of the competition.

Good niche areas for entrepreneurs include pay per click, copywriting and local searches, says Chase, who forecasts personalized searching will be the next big search innovation. For example, tech geeks searching the word Apple will get results for Apple Computer, not the kind of apple you sink your teeth into. In this niche, opportunities exist for entrepreneurs in developing the technology that acquires such user preferences or profiles, as well as in optimizing websites for personalized searches.

Of course, we can't talk about SEO without mentioning the elephant in the room: Google. Chase and Grant agree that Google gets the most SEO attention. However, Chase adds, "You can't please all of the search engines all of the time--you have to figure out that middle ground." Like Grant, if you figure that out, you, too, can be a headlining act.--Steve Cooper

PERFORMANCE APPAREL

Today's clothing needs to offer more than just a fashion statement--it needs to offer value and practicality. That's the thinking behind the growing industry of performance apparel.

Performance apparel is clothing with a purpose, like shirts that offer UV protection or sunglasses with an embedded MP3 player for active people who love the outdoors. You may have been donning performance threads for a couple of years without even realizing it--think wrinkle-free pants and stain-resistant shirts. Apparel that's really pushing the envelope includes clothes that clean themselves; suits that monitor the body and deliver drugs like insulin when necessary; raincoats that receive real-time weather forecasts, notifying the wearer of the outdoor conditions; pants that repel insects; washable suits; and anti-microbial underwear.

Bill McNally, co-founder of Noble Fiber Technologies in Clarks Summit, Pennsylvania, has created X-Static, a silver-woven textile fiber that's easily incorporated into any textile material and enables the material to kill odor and bacteria while enhancing existing sweat-wicking systems. McNally, who has a biomedical background, recognized the benefits of X-Static for the medical community and also saw applications for use in the military and consumer markets.

"To maximize the performance of a given product, you need to be able to deliver multiple benefits--and that's what we do," says McNally, 43, whose company has seen exponential growth each year since it was founded in 1996.

David Schmida, executive director of the International Association of Clothing Designers & Executives, predicts that by 2010, some 40 percent of all garments sold will have some performance apparel element to them. "Where I see the entrepreneur coming in is in nontraditional uses of fabrics or technologies in apparel," says Schmida. For example, Schmida says entrepreneurs might develop a new fabric for the military but find a use for it in golfwear. Schmida adds that fitness and leisure-time clothing are the hottest segment of the performance apparel market today.

McNally can attest to that: His product was used by 61 countries during the Athens Olympics; Johnson & Johnson and NASA are also on his client roster. One success secret is pretty simple, he says: "Value is a recession-proof asset."--S.C.

FUNCTIONAL FOOD

Water isn't just water anymore--it can now be fortified with vitamins and minerals to enhance your health. And the same goes for nutrition bars, shakes, snacks, cookies--you name it, and companies are adding nutrients like calcium and soy protein to enhance it. Such "functional foods" experienced an average of 9 percent growth year-over-year, accounting for $22.8 billion in U.S. sales in 2003, growing from $13.7 billion in 1997, according to the Nutrition Business Journal.

Promising benefits that range from defeating dehydration to alleviating joint pain, functional foods are marketed to play up their health and wellness benefits. It was, in fact, a search for something to relieve his mother's menopause discomfort that led Dr. Aaron Tabor to create his company, Revival Soy. Founding the company in 1998 while he was in medical school, Tabor wanted to create a line of shakes, bars, snacks and such that would harness the positive health effects of soy but taste good, too. Tabor patented the process he'd found for isolating the most beneficial elements of soy and, adding them to his products, began putting the Revival Soy products through clinical trials. To date, the company has 20 such trials completed or underway, offering evidence of the products' health benefits. "I've been able to touch hundreds of thousands of people now, [compared to] if I'd just gone into clinical practice," says Tabor, 34. Selling direct to consumers via a toll-free number and the internet, Kernersville, North Carolina-based Revival Soy has annual sales of more than $20 million.

Patrick Rea, research director with Nutrition Business Journal, notes that nutrition bars remain one of the most popular functional food items, while drinks and snack foods also show a strong market presence. Still, he notes that it's a challenge to get noticed among all the competition--especially because you'll want to get your product on the shelf beside those from huge companies. To get started, check out Functional Foods 8: Nutraceuticals magazine (www.ffnmag. com), not only to find out what's going on in the market, but also to see the listing of functional food technologies and innovations to possibly license and put into food products.--Nichole L. Torres

FINANCIAL PLANNING

Now entering their retirement years, 77 million baby boomers are finding themselves forced to deal with financial planning and asset management if they want to live comfortably well into retirement. From the wealth boomers are expected to inherit in the next few years to management of the money they've earned in long careers, there's a need for good financial planning. Still, according to a 2003 survey by financial services company ING, 62 percent of baby boomers spend one hour or less on retirement planning activities per month, while 32 percent say they don't spend any time on it at all.

And therein lies a huge market--or plethora of markets. "Even within the baby boomer demographic, find a niche--a target group," advises Michael Kitces, director of financial planning for Pinnacle Advisory Group Inc., a wealth management company based in Columbia, Maryland. There's opportunity, he notes, for financial planners to target boomers within a specific asset level, for example, or even boomers getting ready to retire from a specific profession or industry.

Bruce Fenton started wealth managment and private banking firm Atlantic Financial Inc., now based in Boston, in 1994. He targets boomers as his main clients and warns that they are a particularly demanding group. "Boomers tend to be savvy consumers," says Fenton, 32. He has built his business to more than $1 million in annual sales by meeting those demands as well as being highly communicative with his clientele.

While the boomer market is highly competitive, forward-thinking entrepreneurs can also target Gen X and Gen Y consumers. Jonathan Guyton, principal with Cornerstone Wealth Advisors Inc. in Minneapolis, notes that financial planners can get into the business today by managing the assets of slightly younger consumers--who often don't have the same large net worth as boomers--and build a long-term trust with those clients over the years. But whatever niche you ultimately choose, Guyton sees a trend of more service-oriented vs. product-oriented financial planners--those who are paid a fee to provide ongoing advice on all relevant financial matters.--N.L.T.

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CONCIERGE PHYSICIAN SERVICES

As doctors become frustrated with paperwork, red tape and stifling patient loads, some are taking matters into their own hands and starting a new kind of doctor's office, often with the help of a dedicated businessperson. "Concierge physician services" is a term that covers patient-financed health care. This has many variations, but most often, the patient pays a yearly or monthly fee for services like premium access, more personalized visits, even house calls.

Dr. John Blanchard, 34, is a founder and managing partner of Premier Private Physicians in Clarkston, Michigan, as well as president of the American Society of Concierge Physicians. "We were unhappy with the service we were able to provide and the quality of health care we were able to deliver to patients in the traditional health-care setting," he says. In a regular practice situation, doctors have 3,000 to 4,000 patients; with his 3-year-old business, each has about 600. "It restores the integrity of the physician-patient relationship," says Blanchard.

Because these companies don't bill insurance, they can have a smaller ancillary staff and lower overheard costs. Experts say family practice and internal medicine physicians are typically the ones who shift to a concierge model.

Katherine Harmer, 33, is founder and president of Higher Care in Denver. She came from a technology industry background and was propelled into starting a concierge physicians business due to the loss of her father and a desire to do something that really mattered. "You really have to do your research, and you have to have good attorneys," she says of starting this business. She handles all the year-old practice's business matters, while physician James Benoist handles the patients. Higher Care is about to earn a profit, and Harmer expects they will have a full patient load by the end of their second year.--Amanda C. Kooser

HISPANIC MARKETING

The Hispanic market is sizzling--Hispanic purchasing power is expected to hit $a.2 trillion in 2010. "This has become a highly desirable market for mainstream Americans," says Elena del Valle, president of the Hispanic Marketing & Communication Association.

But over the past three years, leading U.S. advertisers budgeted an average of just 2.4 percent of their resources to target Hispanic consumers, according to the Association of Hispanic Advertising Agencies. The time is ripe to help these companies decipher the vast Hispanic market and target their marketing dollars to reach this prized demographic.

One possible niche is teaching companies how to communicate in Hispanic-oriented media and how to be sensitive to this market when mass marketing. Advertisers are seeking specific, up-to-date information on the Hispanic market--even down to the size and purchasing habits of Hispanics in a certain ZIP code. Becoming an expert on the types of segmentation is key--for example, you must know how the Los Angeles Hispanic population differs from that of Miami or New York City.

Tony Moreno founded Huellas.com, a provider of multimedia and marketing services for the Hispanic market, in Pembroke Pines, Florida, in 1998. "Hispanics are very proud of their culture and generally like to be catered to in their own language and according to their cultural heritage," says Moreno, 38. He's built his international company into a six-figure business by coordinating and producing events such as a pageant and fashion show in Florida aimed at the Hispanic market.

"It's hard to find an industry today that shouldn't have a Hispanic marketing strategy," says Luis Garcia, president and founder of Garcia 360 [degrees], a Hispanic advertising farm in San Antonio, Texas. Use that to your advantage when marketing your services: Show companies examples of other businesses whose sales have grown after targeting the Hispanic market. Just about any industry is worth a look--food retailing, clothing, financial services, travel, manufacturing. Simply determine which industries and companies are a good match for your skills.--N.L.T.

TECHNOLOGY SECURITY CONSULTING

Raise your hand if you have security concerns when it comes to your hardware, software and network. With spare, spim, security breaches, software patches, viruses, worms and hackers to worry about, many businesses are turning to technology security consultants for help. Willie some will use their regular IT vendors, there's an increasing demand for specialized consultants who are up-to-date and knowledgeable about all aspects of technology security. Mike Ryder, founder and president of Franklin, New Jersey-based Safelink Networks LLC, found his focus in IT consulting. Ryder, 33, serves the needs of small businesses and schools, with the main task of securing their networks and internet connections. Self-funded Safelink isn't yet a year old, but Ryder has built a comfortable client base, and his sales have been doubling every month. He attributes some of his success to his ability to explain technical issues in a nontechnical way. "My background wasn't technical. I'm more like a regular person than a tech geek," says Ryder, whose history degree went on the shelf in 1993 when he joined the data communication equipment business where his brother worked. Ryder has also found a smart way to keep his costs down. Rather than stocking up on employees, he uses a loose federation of trusted independent contractors to fill out his service offerings.

According to IT and telecom research firm IDC, Ryder is working in a strong area. Small and midsize businesses are a fast-growing market for IT services, especially in the areas of network and security consulting. "During the next five years, the share of services spending by small and midsize companies will grow from 22 percent to 28 percent of the market in the U.S.," says Rebecca Segal, vice president of Worldwide Services at IDC, based in Framingham, Massachusetts.

Ryder's advice for prospective tech security entrepreneurs: Invest some time in human networking, and build solid relationships with customers and colleagues. "What's important for me is for this company to focus on taking care of a core group of customers," he says. Entrepreneurs with the technical know-how and desire to keep up on the latest in security can do well serving this market.--A.C.K.

ONLINE EXCLUSIVE

For experts' predictions on 2005's hottest bends in money, marketing, management, technology and more, go to www.entrepreneur. com/startups/whatshot.

PEER SUPPORT GROUPS

The lyric goes "Everybody needs somebody sometime"--and it couldn't be truer if you consider the proliferation of peer-to-peer business support groups. Popping up all around the country, these groups bring together like-minded individuals to discuss current business challenges or help take businesses or careers to the next level. Groups exist for business owners, female executives, young businesspeople and people in specific business areas, such as marketing. They can be for-profit or nonprofit endeavors, independently run or a franchise. But one thing's certain: You'll need a clear vision to create a successful peer-to-peer support group.

Find your niche, and provide valuable services and guidance for that group. Ted Sun, an executive coach and organizational designer with Columbus, Ohio, business coaching firm Executive Balance, has facilitated and advised such peer support groups. He recommends that entrepreneurs hoping to start a for-profit group come in with a ton of research, expert speakers, hot topics, great facilitators and members-only benefits. "You can charge a bit more for that," he says. Membership can range from a few hundred dollars to a few thousand dollars, usually paid annually or quarterly.

Key to the success of peer support groups is a hands-on approach--groups need a strong facilitator who is knowledgeable about group dynamics and a limited number of members so everyone gets the attention they need. Ray Silverstein, founder of the President's Resource Organization (PRO), a peer advisory board franchisor, caps group memberships at about 13 and assigns people to groups based on their companies' number of employees.

Author and marketing consultant Marcia Yudkin, 49, focuses on providing value to members with her online mentoring and support group, Marketing for More. Yudkin provides members-only weekly articles, a monthly teleclass with an expert guest, an online forum for questions and discussion, and even a conference call each week to discuss in real time each entrepreneur's marketing needs. "People have been very excited about the opportunity to get feedback when they need it," says Yudkin, who started the Goshen, Massachusetts-based company in September 2003. Through monthly membership fees, Yudkin has built her sales comfortably into the six figures. --N.L.T.

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WINE BUSINESSES

It's the nectar of the gods--and the nectar of Americans, too, apparently. The number of Americans who drank wine at least once a week increased from 19.2 million in 2000 to 25.4 million in 2003, according to the Wine Market Council. And it seems that American consumers have also developed a serious affection for all things wine-related.

While starting a winery is one way to get into the wine business, you'll wait at least seven years before producing your first bottle. Creating a business peripheral to wineries could provide a quicker path to success. From wine educators and wine game inventors to wine accessory manufacturers and builders who design wine cellars, entrepreneurs are entering this market from all sides.

With a background in the restaurant industry, focusing on wine, Kyl Cabbage got into the peripheral side of the wine business by opening The Wine Experience in Des Moines, Iowa, in 1995. Cabbage wanted to create an environment that would draw everyone from knowledgeable wine enthusiasts to newbies. "We had to dispel the thought that wine is only for the rich," says Cabbage, 44. The Wine Experience provides a forum for wine tasting and wine education, while offering a selection of over 2,800 labels for sale--the company even coordinates wine-tasting trips to Napa Valley. With two locations in the Des Moines area, The Wine Experience is slated to gross $3 million this year.

Targeting baby boomers is a no-brainer in this industry, but wine consumption is also growing steadily among Millennials in their early 20s, says Vic Motto, chairman and CEO of Global Wine Partners, a global wine investment bank in St. Helena, California. He also notes that the market is starting to shift: An overabundance of grapes in the past few years had lowered the price of wine, but a smaller harvest in coming years will raise wine prices a bit in this cyclical industry. "It's a highly competitive industry," says Motto, but he notes there is still room for people to carve out a market niche.--N.L.T.

STAFFING SERVICES

While the economy continues on its twisting path, one business is booming. Demand for temporary and permanent staffing services has risen as we continue to head out of the post-dotcom-boom recession. Barry Cohen, co-founder and chief planning and development officer of The Response Companies, a staffing business, has seen the tide shift over the 15 years he's been in business. "Our hottest areas right now are our temp staffing business, our financial services group, our marketing group--and our newest startup area is legal," he says of the New York City-based business with $45 million in estimated sales for 2004.

The Sarbanes-Oxley Act--which forces companies to comply with strict accounting procedures--has been a major contributor to this industry's growth. Companies, particularly in financial and health-care fields, are turning to businesses like Cohen's to provide the personnel to help them comply. "There's a real increase in the need for qualified senior accounting and auditing professionals," says Glenn Walsh, vice president of interim staffing with The Response Companies. That demand is starting to cross into all business fields as the effects of Sarbanes-Oxley spread out.

Richard Wahlquist, president and CEO of the American Staffing Association, says the Bureau of Labor Statistics predicts a 54 percent increase in the employment services industry over the next to years. That includes almost all areas of staffing. "You could almost close your eyes and throw a dart at the wall, and you'd be hard-pressed to miss out," he says.

Even so, getting your business off the ground won't be cheap. "The startup costs are higher than they've ever been because of the insurance costs," says Cohen, 48.

Wahlquist suggests getting a solid grounding in employment and labor law before entering the field. It's also important to invest upfront in quality hardware and software. Staffing is a competitive market where new entrepreneurs are well-advised to find a specialty to focus on. "If they're looking to go into this business, they should go into it on the permanent side and pick a niche that is hot in their specific geographic area," says Cohen. Maintaining a temp service may be more difficult than a permanent one where you just place someone once. Plan well, and you can take advantage of one of the fastest-growing industries in the country.--A.C.K.

NICHE HEALTH AND FITNESS

Where do you go when your dog is stressed out? Or your whole family needs some exercise? Or you're looking for a gym that isn't a meat market? If you can answer any of these questions, you've already had a glimpse into the world of niche health and fitness businesses. This is a hot niche in a country full of people increasingly looking to alternative medicine. A report by research firm Mintel International Group Ltd. says, "The U.S. health and fitness club industry is on a revival trend, with new club brands, club openings and new memberships increasing--similar to the mid-1980s--after a decade of flat growth."

In this business, the more specific you can be, the better. Just look at Curves, the fitness franchise catering to women with 30-minute workouts. It's exploded to more than 8,000 locations worldwide. Clubs aimed at kids and families are also showing up. A recent report from market research company American Sports Data Inc. says that more than 39 million Americans belong to health clubs and that Pilates, yoga and tai chi are all growing areas. Simplifying workouts and providing comfortable surroundings are big trends in the fitness industry.

Fitness is just one part of a growing overall health industry. Besides yoga, health practices like acupuncture and massage are going mainstream. In this area, you can't get more niche than Kathleen Prasad Founder of the Animal Reiki Source in San Rafael, California, Prasad, 35, applies the techniques of the Japanese energy-healing art to animals. "It's just on the cusp of being understood and accepted," says Prasad. "I'm a pioneer in a new field, so I can really do anything I want to do with it." So far, Prasad has worked with everything from elephants to horses and expects a 20o percent increase in business in 2005.--A.C.K.

HOT TRENDS

Trend reports can often seem a world away from the everyday realities of your business. But when a trend passes from fad to major consumer movement, you don't want to be out of the loop. So when we researched this year's hot trends, we hunted for those that can affect your business now. No waiting to see if the early adopters get bored. No guessing whether you'll alienate current customers with a weird fact. These are the things your customers will want tomorrow, whether they know it today or not.

AUTHENTICITY

Who wants to serve Velveeta to guests when you can offer handcrafted cheese made from local, organic dairy milk? Why wear clothes from the mall when you can purchase the handiwork of a local designer--U.S.-made and sweatshop-free? Buying products with an aura of authenticity allows people to take control of their purchases so they truly know what they're getting. They can be unique and shop at businesses they feel akin to politically, ethically and aesthetically.

Food lovers have long embraced authentic products-microbrews, homemade salsas and fiery hot sauces, aged olive oil, and sea and kosher salts. Heck, even men's lifestyle magazine Details recently recognized the gourmet possibilities of the humble olive. "Microcheeseries" like Beecher's Handmade Cheese in Seattle's Pike Place Market; Bingham Hill Cheese Co. in Fort Collins, Colorado; and Cowgirl Creamery in Point Reyes, California, are riding this niche by creating fresh cheeses for choosy customers.

How can a company tout its authenticity? You can make like Apple Computer, Levi Strauss & Co. and Mercedes-Benz and use real customers in your ads. Brag about your use of local ingredients and materials, traditional and artisanal methods, or environmentally and socially responsible practices. If you do it right, your customers will then preen to friends about how authentic they are for patronizing your authentic business.

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AGE 35

How can you reach a 19-year-old undergrad, a 31-year-old on the career path, and a 47-year-old who's raising a toddler--with just one message? Market to all of them as if they're 35. From using Botox to erase any physical signs of aging to shopping at the same stores as their kids to postponing their retirements, boomers refuse to grow older. If you targeted them at their true ages, they'd balk.

But surprisingly, younger people are also generation hopping. They're rejecting the belly- and booty-baring fashions of late and--gasp!--embracing sensible, preppy outfits. It's a backlash that may reflect the current conservative climate (thanks a lot, Janet and Justin) or that the latest generation has grown up with different aspirations. Kids now save for iPods and video games. Your teenage niece can code a website better than you. Dreams of becoming an actress or a rock star have turned into dreams of becoming young tech moguls, millionaire sports stars or multihyphenate entertainers like singer-actress-spokesperson Beyonce, who recently signed a five-year, $4.7 million contract with L'Oreal. Reaching such heights, teens know, takes serious work.

So with the more mature seeking a return to their youthful selves, and young people looking to the future, age 35 has become a golden median, as a recent Los Angeles Times article explored. Target this age group, and you may end up hooking more customers than you ever anticipated.

MULTITASKING AND MEMORY LOSS

In our jam-packed society, it seems the only thing there's a lack of is time. Whether this overextension of our lives is self-inflicted is an argument for another article, but multitasking seems here to stay. People are watching TV while surfing the net, driving while chatting on their cells, and checking their e-mail on PDAs during meetings. TV series are having shorter seasons, and popular magazines like Maxim and Star pack plenty of blurbs, lists and photos for quick digestion.

But as a result of our inability to focus on anything for longer than a millisecond, our memories may be shorting out. Studies show that what's often assumed to be age-related memory loss may actually be due to multitasking, depression and stress.

While an obvious opportunity for aging boomers and rampant multitaskers will be memory aids (both pharmaceutical and herbal), courses and guides, we wouldn't be surprised if consulting firms dealing with the negative effects of multitasking skyrocket in the near future.

OBESITY

The widening of Americans isn't news anymore, but this is an incredibly vast market still worthy of entrepreneurial exploration. Health care, food service, apparel manufacturing and retailing, medical device manufacturing and retailing--all these industries are touched by what many consider a national health crisis.

There seem to be two sides to this trend: Helping people lose weight and helping heavier people live more comfortably. For the former, fast-food chains are lightening their menus, while more and more school districts are removing junk food from campuses and replacing it with healthier options. Health club membership rose by 8.5 percent between 2002 and 2003, according to market research firm American Sports Data Inc. and the International Health, Racquet & Sportsclub Association. And Medicare recently began covering gastric bypass surgery.

On the flip side, more than 60 percent of women and teens wear plus-size clothing, and the kids plus-size apparel market is growing. (See "Kids Plus-Size Clothing" on page 78.) A burgeoning industry is the manufacture and sale of larger everyday products--fanny packs, airline seat belt extenders, bath towels, tape measures, socks, desk chairs, even caskets--for obese customers. William J. Fabrey and Nancy Summer of Amplestuff in Bearsville, New York, have been catering to this market since 1988; while Tim Barry, owner of Scale-IT.com in Vancouver, Washington, has created a booming business selling higher-capacity scales. Products like these are the very definition of a niche, and with that kind of focus, new players will find there's still room in this market for growth.

THE THIRD PLACE

While it's a no-brainer that teens ditch their parents as often as possible, many young adults are also in the same boat. With 56 percent of men and 43 percent of women aged 18 to 24 still living at home, according to the 2000 Census, an escape from the house is more a necessity than a luxury. Businesses that position themselves as what Starbucks' Howard Schultz calls "third places" (home and work are the first two places) may become popular destinations.

Starbucks and Barnes & Noble have built their businesses around providing customers a comfortable environment to wile away the hours. Wi-Fi has been a huge advantage in drawing in students, businesspeople and home-office dwellers; and smart businesses like Panera Bread tout this by including it in their location search on their websites (as does Starbucks) and by offering information in their stores.

Other big businesses are trying to get in on this act, too. McDonald's is building a flagship restaurant in Chicago, slated to open in 2005, that will feature wireless access and will encourage customers to hang around in a relaxed atmosphere. Coca-Cola is targeting teens with its new Red Lounges--mall-based stores designed to let teens learn about new music, games and movies ... while they drink lots of Coke.

It's no longer wise to get people in and out of your business as quickly as possible. Give them a reason to stay, and you'll also give them a reason to come back.

SNOBIZATION

Middle-class Americans are turning into a bunch of snobs. Premium jeans labels like Diesel and Miss Sixty are showing up on small-town derrieres. Day spas, once considered a luxury, are popping up all over the place. And don't get us started again about food connoisseurs.

Starbucks is often cited as the originator of what Reinier Evers, founder of trend agency Trendwatching.com, calls "snob-moddities": everyday items that have been turned into chic, luxury must-haves. These items aren't always expensive. Instead, says Evers, they're small indulgences. "[These purchases] are only mind-blowing compared to some of the prices we're still used to from back in the day."

You can see accessible luxuries at Target with Todd Oldham dorm decor and Michael Graves sleek kitchenware. And often, people wear a $15 shirt so they can afford a pair of $100 jeans.

"We live in a consumption society and a meritocracy," says Evers. "Thus our identity is shaped by the things we consume. So the more luxury items we can purchase and show the rest of the world, the higher we rank in society."

The $400 billion luxury market is expected to grow 15 percent per year, according to strategy and management consulting firm The Boston Consulting Group, until it hits $1 trillion in 2010. Figure out how you can repurpose your products and services in a luxurious yet mostly affordable fashion, and you could be the next to cash in on this skyrocketing market.

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UNIQUENESS

Being unique is a tough gig these days. Mass production, large chains and the quest for convenience often dictate uniformity. But even though it takes a little more work, consumers are shopping niche stores, looking for customizable options, and wearing their interests and beliefs on their sleeves. No one industry explores this consumer quirk more than T-shirt designers. While major chains are still selling pseudo-vintage tees, people looking to "outcool" their friends are hunting for truly unique items: overtly political tees; designs from favorite bloggers from CafePress.com; remixed designer tees that are ripped up, laced up and bejeweled; religious designs, especially Judaica; and truly vintage wear from eBay. While apparel sales fell 5.1 percent last year, according to market research firm The NPD Group, T-shirt sales rose 2.2 percent, making up $17 billion in a $166 billion market.

Consumers desiring uniqueness are closely related to those seeking accessible luxury and authenticity in their wares. Part of the fun of ordering an expensive bottle of vinegar from a regional producer is knowing you'll wow your friends at your next dinner party. It's the cachet of being an early adopter, combined with the need to never be wearing the same outfit as someone else at a party. In a world of big-box retailers, it's up to the entrepreneur to fill this need.

LIFE CACHING

Today's boomers and seniors cherish the grainy super-8 films, fading Polaroids and locked diaries of their childhoods. But future generations will instead hoard memory cards full of blog entries, digital photos and the first websites they ever built. As we learn to click to save every moment of our lives, data will become the stuff that memories are made of. "Life caching will become a given," says Reinier Evers, whose company coined the term. "Consumers will come to expect [that] they can relive every experience they've ever had and have instant access to any life collection they've ever built."

Memory making has been big business for a while. Scrapbooking has been one of the hottest trends in recent years--the $2.5 billion industry doubled since 2001, according to the Hobby Industry Association, and is still growing. But businesses that can provide creative solutions to both physical and digital life caching are the ones that stand to gain from this trend. One million Memory Maker Photo Bracelets (a bracelet that wearers can insert several photos into) were sold in six months. MyPublisher.com allows users to create coffee-table books from their digital photos. Nokia's Lifeblog service lets users download and arrange their cell-phone-created content-messages, photos, videos, notes and audio clips.

"Entrepreneurs can offer this space [for life caching], taking on the gatekeeper role," explains Evers. "On a grander scale, start thinking about how you can provide consumers with the means to capture everything. This includes entrepreneurs who already offer 'experiences.' What are you doing to help [customers] capture and store these experiences?"

--Laura Tiffany

RETRO HOT

Some trends come and go ... others return for a second or third round. These retro trends offer so many opportunities that a "Warning: Contents May Be Hot" label might be in order.

COFFEEHOUSES

Since 1998, coffee sales at U.S. coffeehouses have increased 77 percent, reaching $6.9 billion in 2003. This translates into a nationwide craving for specialty coffee, and local coffeehouses can meet that need by knowing their communities, finding niches and marketing their brands. "Have a real logo, a real identity for your business. Consistently promote that identity, and you can compete with Starbucks," says David Morris, co-founder of Dillanos Coffee Roasters, a specialty roaster, wholesaler and marketing consultant, and co-author of Brewing a Creative Culture.

Espartaco Borga, one of the masterminds behind the popular Dallas-based restaurant La Duni Latin care (below), is not intimidated by the competition. He's working with partners to develop the first stand-alone La Duni Coffee Studio, a Latin coffeehouse concept, by early next year. By featuring homemade pastries, gelatos, a full bar, sandwiches, salads and typical Latin espresso-based drinks, Borga, 41, hopes to appeal to a new type of clientele he has seen emerge--one that seeks to experience new food and customs. Major expansion is expected, with plans to open 30 to 50 Coffee Studios and kiosks in the Dallas Metroplex area and other locations throughout Texas within six years. First-year kiosk sales are expected to reach about $450,000, and nearly $1 million is expected for the higher-end Coffee Studios.

Independent coffeehouses can drink up profits by responding quickly to meet consumers' needs. Morris has seen a spurt in entrepreneurs starting coffee drive-thrus, so much so that they have become the majority of his new customers. Whether people are sitting down or grabbing their java to go, the coffee industry promises profits for everyone as market research firm Mintel International Group Ltd. predicts that by 2008, total U.S. coffeehouse sales will increase 46 percent over 2003.

SPECIALTY TRAVEL

After a period of turmoil following 9/11, SARS and terrorism threats, the travel industry is finally beginning to stabilize--with some differences.

Group travel is becoming popular, grandparents are increasingly traveling with their grandchildren, and specialty travel--often involving "soft" adventure in exotic places--is now hotter than ever.

People are increasingly seeking out ways to learn about new cultures in a safe environment. "[There tends to be] a spike in escorted or packaged tours when something like 9/11 occurs," says Julio Soto, director of sales for the SignaTours product line of AAA Auto Club South. Started about 10 years ago, SignaTours features a variety of specialty travel trips, including Harley-Davidson tours.

Heather Hardwick, vice president of Menlo Consulting Group Inc., a market research firm for the travel/tourism industry, points out that people want trips that cater to their particular interests and are customized just for them.

For 13 years, Doug Lofland, 47, and Jeannie Barresi, 43, of Colorado Springs, Colorado-based Beyond Boundaries Travel have been attracting travelers by offering biking, barging and skiing tours through countries including Canada, Costa Rica, Holland and Spain. Last year, Barresi moved the concept of specialty travel up a notch by adding Santa tours to the Arctic Circle; The Da Vinci Code tour, which includes a scavenger hunt through England and France; and an interactive Harry Potter adventure where trip participants ride on the original train featured in the movies and also try their hands at archery, falconry or fencing. With projected 2004 sales of about $3 million, the partners are confident in their new line of trips.--Sara Wilson

HOT TEEN BUSINESSES

Teens and teen culture seem to be everywhere, and with the U.S. Census Bureau counting more than 32 million kids between the ages of 12 and 19 in 2000, their opinions and discretionary spending are worth your attention.

According to market research firm Teen Research Unlimited, teens spent or influenced spending to the tune of $175 billion in 2003-and not just on clothes and CDs. Edina Sultanik Silver, co-founder of New York City-based Brand Pimps and Media Whores, a youth market trend consulting firm and fashion showroom, says teens buy things they feel they're a part of. "They buy into brands they can appreciate, a value system they have in common, an authenticity." Silver points to several blockbusters among teens: "[IPods have] become a part of their world," she says. "They can share and get music; they also like the design and its ease of use." Clothing brand Diesel built a strong brand image and was one of the first retailers in the United States to offer an "experiential" store with a care, video games and books. And pointing to the proliferation of camera-phones, Silver adds, "Kids are starting to document their lives. Like with blogging, they're creative outlets for kids."

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The following hot businesses show how worthwhile catering to this market can be.

TEEN GROOMING PRODUCTS

Primping and preening are nothing new when it comes to teenage gifts, but look out--teenage boys are now in the mix like never be fore. Business intelligence and market research firm Global Information Inc. reports that with an industry already boasting $6.9 billion in annual sales, youth hair-care, cosmetics, skin-care, and ethnic health and beauty items are projected to ring up $8 billion in sales by 2008.

Smart businesses realize there's more to offer teens than just ache cream. "Kids today are much more sophisticated and have the ability to cross over into products they may not have known about in the past," says Marshal Cohen, chief analyst with market research firm The NPD Group. "Gro