Small Business Opportunity: Garage Organizer Services the Last Frontier
Throughout homes in North America, the impact of the home improvement boom has covered every square foot of the house except the most neglected and cluttered space, the garage. While large companies like Whirlpool Corporation have entered the high-end do-it-yourself garage organization market with its Gladiator™ GarageWorks line, the market is open for companies providing complete service including installation.
GarageTek is the industry pioneer with over 67 franchises in the business since 2000. GarageTek uses patented PVC wall panels providing durability and flexibility in design. With garage organizer installations costing from $1000 to $10,000, the primary market is upscale. Targeting the garage organization market means catering to the affluent male market.
Driving Force: According to Harvard Joint Center for Housing Studies, the Remodeling Activity Indicator (RAI) saw homeowner improvement expenditures increasing again to an estimated $129.3 billion dollars on home improvements and repairs. Driven by low interest rates and a solid housing market, home improvements continue to grow, making the new home improvement category of garage organization poised for more growth.
Risks: This business opportunity is driven by the booming real estate market and the low-interest rate environment. Can this housing boom continue? "Increasingly Americans view houses not primarily as places to live but as foolproof, can't-lose investments. The passionate faith that money poured into real estate will magically multiply is creating a self-fulfilling speculative frenzy that's bound to end badly," says Shawn Tully in Fortune magazine's feature "Is the Housing Boom Over?" Whether or not the boom is a bust, any smart business owner will run some worst-case scenarios to have a contingency plan in place.
Resources:
Consumers' Spending Spree on the Home Continues
Fortune Magazine: Is the Housing Boom Over?
Small Business Opportunity: Smart Clothes
Smart clothing conjures up images of space-age Jetson style apparel. However, smart clothing is more about functionality than far-out space suits. Smarter apparel encompasses the customization of clothing to special markets ranging from performance apparel, sun protection, and aging-friendly clothing.
Ernst & Young Entrepreneur of the Year Award winner, Kevin Plank, knows performance apparel is the best ticket. Plank has grown his company, Under Armour into a $100 million business. Under Armour is the originator of performance apparel with a line of microfiber clothing that pulls perspiration away from the skin to keep athletes cool and dry during physical activity.
John Barrow found business success in sun protection. Started in 2001, Coolibar offers a unique range of sun protective clothing, sun hats, and sun protective swimwear. The company website explains the benefits of this unique line of smart clothing, "Sun protective clothing is an excellent sun protection tool as it provides a physical block that doesn’t wash or wear off and can shade the skin from both UVA and UVB rays. Coolibar’s clothing differs from standard attire by blocking 97% or more of UV rays and providing an ultraviolet protection factor (UPF) of 30 or greater." The company has even received The Skin Cancer Foundation’s Seal of Recommendation.
Driving Force: A mature industry with most manufacturing moved overseas has left the apparel business in need of creativity and innovation. Consumers are open to ideas that meet their specialized needs.
Risks: The challenge of entering the smart clothing market is selecting a niche that's not too mainstream allowing bigger competitors to swallow market share before you get established. Conversely, a market too narrow can present problems with attaining break-even points and profitability. Success in the smart clothing industry will require the ability to outmaneuver large retailers who influence the apparel business. Selling to select markets (i.e. skateboard shops) and outsourcing the manufacturing process overseas can help to maintain profit margins.
Resources:
Continue to page 3:
