Achieving business success, in my case, can be attributed to the following factors: 10% talent, 40% luck, and 50% industry trends. Choosing a fast growing industry, and playing in the blue-ocean areas of it, can have much more impact than your technological capabilities, financial backing or personal talent. Even if you’re looking to viciously compete in red oceans, choosing the right business in the right industry is extremely important. You may go and compete with Coca Cola or P&G, and I wish you all the best, but by the time you will get your first lame investment, I will already be investigated by the SEC for trading inside information of my public NYSE listed company. If you want to see the walls of the SEC investigation rooms like I do, you need to be ahead of the curve, and look for the hottest business trends out there. Here are 5 trends That will shape the business market in 2020:
This over hyped term is all around us. Sounds like an extremely complicated area that is kept for the top 1% elite engineers. The truth is, that AI is complicated, but there are many engineers out there that can implement those models into specific sub industries. Those models, in general, can learn on their own, and “see” things that the developer may not see. Let’s assume that you’re in charge of the financials of a company, and you feel that a specific task you’re doing on your daily reports is inefficient and can be automated. Up until a few years ago, you would be developing a rule based model which imitates the exact steps you’re doing on an excel sheet or your accounting software. Nowadays, with AI, we can create a model that “learn” on it’s own by imitating human thinking and deducting. You may look at AI, as everything a human can do, but we still don’t know how to program it. If you have a great idea for a digital business, consider hiring an AI engineer that can help you get your tech to the next level. I’ve done it with our CTO, who’s a lone engineer in a room full of business operations and sales people. We’re now using AI in our business and it actually delivers.
2. Social media is changing
If you’re a millennial, then you are probably using Facebook, Twitter and LinkedIn. If you want to market on these channels and to drive organic or paid traffic, you must compete hard. for unique opportunities in social media, look for the hottest trends, that mainly arise from generation Z. Ephemeral content is now the biggest thing out there. If you’re not familiar with that, it is just a complicated name for content that is available for a short time and then disappears. The most obvious example is an Instagram Story.
Another opportunity is with TikTok. This app already has 500M active users and it is crushing it. People are spending hours a day watching videos on TikTok and the opportunities to reach engaged eyeballs are huge. It is still not as scientific as Facebook, so organic reach is still possible. Another amazing platform is Reddit, and I recommend learning and utilize it for your business social media marketing.
3. Social commerce
Social commerce is the selling of products directly through social media platforms. The social platforms giants are now looking to take a chunk of the massive E-commerce market. With twitter investing in the field, TikTok allowing E-commerce links and Instagram already releases new social commerce features such as e-commerce checkout, you can expect this vertical to keep growing in 2020. If you’re selling consumer goods, or wants to enter this industry, don’t forget to add social commerce to your online presence. This trend can help you leverage the more traditional Amazon/Shopify channels, or even replace them completely, so make sure you’re experimenting and utilizing this opportunity. When the giants are competing, the benefit is all ours.
4. Health, green and moral in F&B
This has been going for years now and it is just getting stronger. It is true that companies like Beyond Meat are being criticized by capital market analysts for inflated share prices, but that’s more of a tech bubble issue, and not a vegan bubble issue. If you’re in the F&B industry, look for opportunities in the Veganism, gluten free or sugar-free space. Look for Spirulina, not Burgers. I would also look into niche specific technological opportunities – think of Gluten detectors, health-food delivery services, or online health and vegan educational resources.
You may think that there aren’t many business opportunities in sports as it’s not the most innovative industry. But that’s just wrong as we’re talking about one of the most exciting and profitable industries out there. Trends such as fan engagement, E-sports, Data collection and analysis, AR&VR, Gambling and content distribution are all revolutionizing this industry and taking it by storm. If you’re passionate about sports, and you have some technological orientation, the opportunities are massive.
Those were 5 trends that will shape the business market in 2020. There are many more opportunities to look for and I will discuss them in future posts. For now, focus on increasing your success chances and reducing your risks. This can be done by choosing the right market and the right time.