5 Tips You Need to Know Before Entering a Growth Industry
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For the ambitious entrepreneur, there is an ever-growing list of exciting new sector opportunities to explore. Many of these, especially those with billion to trillion-dollar valuations, belong to growth industries, which are defined as sectors of the global economy that experience higher-than-average growth rate. These sectors host a high volume of new products and services that entice consumer demand, and many of them are often new or pioneer industries that were non-existent in the past decades.
From the rise of services and products enhanced by generative AI technologies to the attractive growth projections reported in sectors such as the Internet of Things, cybersecurity, robotics and even space technologies, growth industries have the potential to shape the future we will live in. A McKinsey report on future growth industries said that around 18 sectors are deemed to be transformative, with the potential to reshape the global economy, making revenues worth between $29 trillion and $48 trillion by 2040.
Take the longevity industry, which I operate in through Seveno Capital, for instance, which has taken a bold stance to meaningfully extend the human health span through holistic and scientific measures. This emerging sector, which has been projected to be worth trillions by 2030, has been grabbing headlines in 2025. This growth industry's impressive projections is thanks to a realisation that a significant proportion of the current ageing population has a strong desire to live longer, fuller and healthier lives.
Visionary entrepreneurs are often keen to be early starters in these arenas, a strategic position which could result in significant market share capture and resulting revenue in the coming years. As an entrepreneur and investor who recently entered a high-growth industry myself, I would like to share five useful tips that entrepreneurs need to know about before they make the bold step forward.
Related: 5 Ways to Spot Trends Before They Explode — and Turn Them Into Growth
1. Know your industry
Entrepreneurs entering a growth industry should know the ins and outs of the sector and target regions, from the movement of the regulatory landscape to trends to discussions around ethics and social effects, especially where new technologies are involved.
Keeping up to date with reports on growth industry challenges and opportunities, such as ones produced by the likes of BCG and McKinsey, should be a high-priority item on the entrepreneur's list of daily tasks.
More importantly, networking with other players within the industry through online forums, conferences and roundtable meetings is key to getting to know your sector.
To help you better understand the prospect of a growth industry, analyze past and present trends across multiple timeframes. See the big picture. Make sure that the highly valued stocks and sky-high valuations are part of a wider trajectory rather than being results of a short-term microtrend.
2. Future-proof your company
There is always risk involved when entrepreneurs enter a growth industry for the first time, so to prepare for this, you need to build a resilient ship that can withstand any storms in the form of market fluctuations and black swan events.
A few factors are important to do this. You have to create flexible business operations that could adapt and change to changes in the wider landscape, for example, if you were previously set only on working in an office, think again and prepare for a digital interface that could run all operations and keep your team collaborating smoothly.
Entering a growth industry usually requires entrepreneurs to be familiar with new technologies. Invest in continuous learning and upskilling across the board so you can be in a good position to stand out among competitors and continue innovating when trends change in the future.
Related: 7 Tips to Enter a New Market and Experience Rapid Growth
3. Build the A-team
The key to success in a highly competitive sector, especially one that is emerging, is finding the right talent for the job. This requires thorough research and analysis, including identifying the type of skillset future competitors within the industry are prioritizing.
This can definitely be a daunting task, as brand presence is required to attract top talent in the first place. This is where it is important for the business to promote its unique business culture on innovative platforms, especially those utilised by younger generations, which require little to no marketing budget.
Since newer industries can be more challenging to hire for, focus on both the relevant skills the business needs and any transferable skills from previous experience that could prove to be valuable in a new growth market.
Once you attract the right talent, foster a progressive business culture and offer attractive perks and flexibility where possible, to encourage them to trust your company and stay. A collaborative approach used to communicate between management and employees will also increase feelings of loyalty to the company and the brand, keeping turnover low to zero.
4. Focus on personalized services
Growth industries are so tech-focused that sometimes, companies can seem impersonal to their customers. Do not make this mistake. In a world where automation is removing even customer service helplines, building a service-oriented company would help your business stand out from the crowd.
Utilize the power of AI technologies to support your business in a way that enables it to then focus on creating more personalized customer interactions and services. Finding the right balance between technology and the human touch will be crucial in attracting your customer base and building brand loyalty.
Related: 5 Innovative Ways to Give Your Customers the Personalized Experiences They Want
5. It's a race — keep up with the speed
One thing you cannot afford to do when entering a growth industry is to rest on your laurels. The speed of innovation in industries like these can be overwhelming, so entrepreneurs need to be prepared to do their homework and keep up to speed with changes, which can sometimes occur daily, in a sector like the video game industry, for example. "It would be like if Martin Scorsese had to relearn how to use a camera every time he went to make a new movie," Electronic Arts Chief Strategy Officer Mihir Vaidya has described the rate of change technologies undergo within a growth industry.
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