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If you thought going green was a fad, think again. Environmental consulting is a robust and growing industry, valued at $17.8 billion, according to IBISWorld. Growth of 9 percent a year over the next five years is expected. This industry is well suited to independent contractors with the skills to install environmental gear such as wind turbines, solar panels, and green roofs. Every sector, from government to the individual household level, is expected to thrive. Looking to specialize? Expertise will be in demand in the fields of air-, soil-, and water-quality management, as well as sustainability studies as they pertain to development projects. Talk is cheap, but solid communications are priceless in this global economy. The U.S. military and businesses expanding overseas are two of the translation and interpretation industry’s best customers. Overall, the market grew some 18 percent last year. According to AnythingResearch.com, the translation and interpretation services industry is a $2.7 billion market that has grown an average of 22 percent a year since 2004. The health care industry is another area in need of language, partly because of the growing U.S. immigrant population. Many opportunities exist in the business-to-business space as well; that space includes website translation and the creation of multilanguage marketing materials. There are also related tech opportunities in the burgeoning market for mobile on-demand translation via SMS. Despite this year’s legislation, health care costs – particularly at hospitals and primary care providers – are soaring. As the elderly population also grows and demands less expensive, out-of-hospital care, the industry is expected to expand an average of 4.9 percent through 2014, according to IBISWorld. This industry, which was also on Inc.’s 2009 list, has been strong for years yet retains a low barrier to entry. Subsectors of the field include physical therapy and ambulatory delivery of new technologies. Nonmedical home care hiring is expected to grow more than 50 percent before 2018. Sure, iPhones have been around for a while. But with the advent of the iPad, explosive sales of Android phones, and an ever-expanding market for mobile apps that work on any Web-enabled phone, there is plenty of fresh territory for programmers, developers, and designers. One tip: Keep location in mind. Venture capitalists and industry experts alike expect the location-aware economy to grow at the rate social media, such as Facebook and Twitter, have over recent years. In the past three years, companies that make location-based apps alone have received $656 million in 67 deals, according to Dow Jones VentureSource. As highways in and around urban centers become more congested, the old-fashioned ferryboat is making a comeback. Privately run ferry services, as well as tourist excursions, are thriving along the Pacific Northwest coast and on the Great Lakes. Given that significant spending for building ferryboats and terminals is part of the 2009 economic recovery act, opportunities are expanding. According to the Bureau of Labor Statistics, job growth in the water transportation industry is expected to grow 15 percent through 2018. The industry grew 17 percent last year, according to AnythingResearch.com. Barriers to entry, though, are steep. A new Coast Guard–certified ferryboat that carries 150 passengers costs about $6 million. The top four teamakers control 88 percent of industry revenue, according to IBISWorld. But the remaining 12 percent represents a $264 million market for small, independent manufacturers. Tea, the sixth most popular beverage in the U.S. after carbonated soft drinks, bottled water, beer, milk, and coffee, is growing because of increasing consumer health consciousness, particularly among the boomer population. The industry averaged annual growth of about 5 percent over the past five years. Other healthy beverages with promising growth prospects include antioxidant-rich juices and vitamin-enhanced waters. It’s not just guitar hero: it’s real guitars, bongos, and violas. Past growth in hobby, toy, and game stores has been tied to general consumer spending, but these days stores that sell crafts, hobby goods, and musical instruments have been performing better than the retail industry as a whole. AnythingResearch.com found a growth rate of 9 percent, which also took into account toy and game retailers. This might be a result of people cutting back on larger entertainment expenses and choosing instead to spend more on pastimes and skill cultivation. Parents always want their kids to do better on tests. A large number of adults returning to school are also looking for an edge. Given the low barrier to entry, this field is competitive. But if you carve out the right niche, it could be lucrative. The industry, which includes tutoring in such fields such as special education, language, and music, grew about 7 percent last year, according to AnythingResearch.com. Little treats have a sugar-glazed forecast. Bakeries, pastry shops, and bagel sellers are growing at a rate of 5 percent, according to AnythingResearch.com. Research suggests small indulgences are picking up, but big purchases such as vacations are not – although blogger and baked goods expert Nichelle Stephens, co-editor of the prominent sweets blog Cupcakes Take The Cake, says the movement is expanding into high-end-foodie territory. “It’s focused on small batches, local suppliers, seasonal ingredients, and lots of creativity when it comes to flavors and combinations,” she says. After a period of slowed growth during the U.S. housing crisis, self-storage has bounced back – largely because it was already better insulated against economic forces than the housing market. The subprime mortgage crisis caused a wave of foreclosures, meaning families needed places in which to store their possessions. The $22 billion industry has a remarkably low barrier to entry, with 90 percent of self-storage companies owned by small-business entrepreneurs. According to the Self Storage Association, there are 2.2 billion square feet of self-storage in this country. That means there are more than 7 square feet of storage per U.S. resident. Forget Main Street: This industry is composed of retailers with no physical retail presence. Instead, they sell solely online – and are especially thriving in the areas of quality handmade jewelry and vintage clothing. After Web retail saw revenue fall as the recession decimated 2009 sales, expectations are high this year. The industry has a remarkably low barrier to entry: Have something to sell? Get a PayPal account and you are set. Online sales of independent merchants – mostly via sites such as Etsy, eBay, RubyLane, and Supermarket – grew an annual 6.6. percent over the past five years, according to IBISWorld. Given that the sale of marijuana for medicinal use is legal in nearly one out of three U.S. states, and California is considering total legalization, pot’s cultural tide is rising. So is its business side. California’s biggest dispensaries are starting franchise operations and establishing branding. There’s an emerging industry trade show and a lobbying, marketing, and consulting firm strictly for cannabis in Oakland, California. Harvard economist Jeffrey Miron, in a February 2010 paper, estimated the market to be $14 billion. Others have pegged the medicinal retail market at $10 billion to $40 billion, based on usage, demand, and pricing data. Though the price tags of blockbuster video game titles have been steadily rising, the barriers to entry for small game developers have never been lower. Self-publishing through Apples iTunes App Store as well as through Microsofts Xbox Live allows entrepreneurs and code geeks with a solid idea to elbow their way into this highly competitive field. “This is the best time to be a small garage shop or a mom-and-pop shop of just a few developers,” says David Riley, who specializes in video games and entertainment at the market research firm NPD Group. “They dont need to sit down in front of a venture capitalist and sweat blood” anymore. The $44 billion market has also been thriving because of the influx of nontraditional gamers such as baby boomers, women, and young children. As technological advances allow a broader palette of life-saving surgeries, the organ and blood reserves that make these operations possible will continue to be in demand. Blood and organ banks make up 55 percent of the $23.8 billion ambulatory health services industry, and the financial barriers to entering this field are relatively low, despite some regulatory hurdles. Perhaps a more surprising growth category in this industry is the increased demand for sperm donation. This is largely because a number of European countries have passed legislation that prevents sperm donors from remaining anonymous or receiving compensation. This leads to a severe drop in supply, and now “you have all of those infertile people buying sperm from U.S. cryobanks,” says Corey Whelan, the program director for the American Fertility Association. Clean and consistent water supply is an essential service of modern living, so the industry remains untouched by economic fluctuations. According to IBISWorld, the industry should see steady 3.5 percent revenue growth per year until 2015. Though traditionally the industry has been dominated by municipally owned operations, there may be increasing opportunities for independent companies to enter the market as it trends toward privatization. Why? Challenges in adhering to stricter water-quality standards could drive cities to look elsewhere for solutions. They will also probably face hardships in keeping up with technological developments. Tech and consulting are two hot areas for breaking in. Companies that help manufacturers perform safety and quality testing on consumer products and materials, a.k.a. “laboratory testing services,” constitute a $15 billion industry, according to data from IBISWorld. Over the next five years, the industry is expected to grow 5 percent each year, as fueled by increased government regulation of consumer and food products. Growing consumer concerns over the safety of products – especially childrens products – will also add to the demand for testing laboratories. Additionally, the industry will be driven by the amount of money that companies put into research and development, which appears to be increasing. IBISWorld predicts that in the coming years, companies will invest even more in new products and technologies, therefore giving R&D a healthy boost. – By Christine Lagorio, Tamara Schweitzer, and Josh Spiro Retail – Health care – Business – Pacific Northwest – Bottled water

If you thought going green was a fad, think again. Environmental consulting is a robust and growing industry, valued at $17.8 billion, according to IBISWorld. Growth of 9 percent a year over the next five years is expected. This industry is well suited to independent contractors with the skills to install environmental gear such as wind turbines, solar panels, and green roofs. Every sector, from government to the individual household level, is expected to thrive. Looking to specialize? Expertise will be in demand in the fields of air-, soil-, and water-quality management, as well as sustainability studies as they pertain to development projects. Talk is cheap, but solid communications are priceless in this global economy. The U.S. military and businesses expanding overseas are two of the translation and interpretation industry’s best customers. Overall, the market grew some 18 percent last year. According to AnythingResearch.com, the translation and interpretation services industry is a $2.7 billion market that has grown an average of 22 percent a year since 2004. The health care industry is another area in need of language, partly because of the growing U.S. immigrant population. Many opportunities exist in the business-to-business space as well; that space includes website translation and the creation of multilanguage marketing materials. There are also related tech opportunities in the burgeoning market for mobile on-demand translation via SMS. Despite this year’s legislation, health care costs – particularly at hospitals and primary care providers – are soaring. As the elderly population also grows and demands less expensive, out-of-hospital care, the industry is expected to expand an average of 4.9 percent through 2014, according to IBISWorld. This industry, which was also on Inc.’s 2009 list, has been strong for years yet retains a low barrier to entry. Subsectors of the field include physical therapy and ambulatory delivery of new technologies. Nonmedical home care hiring is expected to grow more than 50 percent before 2018. Sure, iPhones have been around for a while. But with the advent of the iPad, explosive sales of Android phones, and an ever-expanding market for mobile apps that work on any Web-enabled phone, there is plenty of fresh territory for programmers, developers, and designers. One tip: Keep location in mind. Venture capitalists and industry experts alike expect the location-aware economy to grow at the rate social media, such as Facebook and Twitter, have over recent years. In the past three years, companies that make location-based apps alone have received $656 million in 67 deals, according to Dow Jones VentureSource. As highways in and around urban centers become more congested, the old-fashioned ferryboat is making a comeback. Privately run ferry services, as well as tourist excursions, are thriving along the Pacific Northwest coast and on the Great Lakes. Given that significant spending for building ferryboats and terminals is part of the 2009 economic recovery act, opportunities are expanding. According to the Bureau of Labor Statistics, job growth in the water transportation industry is expected to grow 15 percent through 2018. The industry grew 17 percent last year, according to AnythingResearch.com. Barriers to entry, though, are steep. A new Coast Guard–certified ferryboat that carries 150 passengers costs about $6 million. The top four teamakers control 88 percent of industry revenue, according to IBISWorld. But the remaining 12 percent represents a $264 million market for small, independent manufacturers. Tea, the sixth most popular beverage in the U.S. after carbonated soft drinks, bottled water, beer, milk, and coffee, is growing because of increasing consumer health consciousness, particularly among the boomer population. The industry averaged annual growth of about 5 percent over the past five years. Other healthy beverages with promising growth prospects include antioxidant-rich juices and vitamin-enhanced waters. It’s not just guitar hero: it’s real guitars, bongos, and violas. Past growth in hobby, toy, and game stores has been tied to general consumer spending, but these days stores that sell crafts, hobby goods, and musical instruments have been performing better than the retail industry as a whole. AnythingResearch.com found a growth rate of 9 percent, which also took into account toy and game retailers. This might be a result of people cutting back on larger entertainment expenses and choosing instead to spend more on pastimes and skill cultivation. Parents always want their kids to do better on tests. A large number of adults returning to school are also looking for an edge. Given the low barrier to entry, this field is competitive. But if you carve out the right niche, it could be lucrative. The industry, which includes tutoring in such fields such as special education, language, and music, grew about 7 percent last year, according to AnythingResearch.com. Little treats have a sugar-glazed forecast. Bakeries, pastry shops, and bagel sellers are growing at a rate of 5 percent, according to AnythingResearch.com. Research suggests small indulgences are picking up, but big purchases such as vacations are not – although blogger and baked goods expert Nichelle Stephens, co-editor of the prominent sweets blog Cupcakes Take The Cake, says the movement is expanding into high-end-foodie territory. “It’s focused on small batches, local suppliers, seasonal ingredients, and lots of creativity when it comes to flavors and combinations,” she says. After a period of slowed growth during the U.S. housing crisis, self-storage has bounced back – largely because it was already better insulated against economic forces than the housing market. The subprime mortgage crisis caused a wave of foreclosures, meaning families needed places in which to store their possessions. The $22 billion industry has a remarkably low barrier to entry, with 90 percent of self-storage companies owned by small-business entrepreneurs. According to the Self Storage Association, there are 2.2 billion square feet of self-storage in this country. That means there are more than 7 square feet of storage per U.S. resident. Forget Main Street: This industry is composed of retailers with no physical retail presence. Instead, they sell solely online – and are especially thriving in the areas of quality handmade jewelry and vintage clothing. After Web retail saw revenue fall as the recession decimated 2009 sales, expectations are high this year. The industry has a remarkably low barrier to entry: Have something to sell? Get a PayPal account and you are set. Online sales of independent merchants – mostly via sites such as Etsy, eBay, RubyLane, and Supermarket – grew an annual 6.6. percent over the past five years, according to IBISWorld. Given that the sale of marijuana for medicinal use is legal in nearly one out of three U.S. states, and California is considering total legalization, pot’s cultural tide is rising. So is its business side. California’s biggest dispensaries are starting franchise operations and establishing branding. There’s an emerging industry trade show and a lobbying, marketing, and consulting firm strictly for cannabis in Oakland, California. Harvard economist Jeffrey Miron, in a February 2010 paper, estimated the market to be $14 billion. Others have pegged the medicinal retail market at $10 billion to $40 billion, based on usage, demand, and pricing data. Though the price tags of blockbuster video game titles have been steadily rising, the barriers to entry for small game developers have never been lower. Self-publishing through Apples iTunes App Store as well as through Microsofts Xbox Live allows entrepreneurs and code geeks with a solid idea to elbow their way into this highly competitive field. “This is the best time to be a small garage shop or a mom-and-pop shop of just a few developers,” says David Riley, who specializes in video games and entertainment at the market research firm NPD Group. “They dont need to sit down in front of a venture capitalist and sweat blood” anymore. The $44 billion market has also been thriving because of the influx of nontraditional gamers such as baby boomers, women, and young children. As technological advances allow a broader palette of life-saving surgeries, the organ and blood reserves that make these operations possible will continue to be in demand. Blood and organ banks make up 55 percent of the $23.8 billion ambulatory health services industry, and the financial barriers to entering this field are relatively low, despite some regulatory hurdles. Perhaps a more surprising growth category in this industry is the increased demand for sperm donation. This is largely because a number of European countries have passed legislation that prevents sperm donors from remaining anonymous or receiving compensation. This leads to a severe drop in supply, and now “you have all of those infertile people buying sperm from U.S. cryobanks,” says Corey Whelan, the program director for the American Fertility Association. Clean and consistent water supply is an essential service of modern living, so the industry remains untouched by economic fluctuations. According to IBISWorld, the industry should see steady 3.5 percent revenue growth per year until 2015. Though traditionally the industry has been dominated by municipally owned operations, there may be increasing opportunities for independent companies to enter the market as it trends toward privatization. Why? Challenges in adhering to stricter water-quality standards could drive cities to look elsewhere for solutions. They will also probably face hardships in keeping up with technological developments. Tech and consulting are two hot areas for breaking in. Companies that help manufacturers perform safety and quality testing on consumer products and materials, a.k.a. “laboratory testing services,” constitute a $15 billion industry, according to data from IBISWorld. Over the next five years, the industry is expected to grow 5 percent each year, as fueled by increased government regulation of consumer and food products. Growing consumer concerns over the safety of products – especially childrens products – will also add to the demand for testing laboratories. Additionally, the industry will be driven by the amount of money that companies put into research and development, which appears to be increasing. IBISWorld predicts that in the coming years, companies will invest even more in new products and technologies, therefore giving R&D a healthy boost. – By Christine Lagorio, Tamara Schweitzer, and Josh Spiro Retail – Health care – Business – Pacific Northwest – Bottled water

Scammers and the SBA. Surinder Multani shepherded businesses like gas stations and convenience stores through the SBA loan process by putting together loan applications for lenders to approve through his loan-brokerage firm Abacus Finance. But while Multani collected more than $500,000 in commissions, his clients defaulted or liquidated on about half the loans–the result of his fraudulent and inflated claims of their net worth and capabilities. Multani brokered almost 50 loans worth $44.3 million and was sentenced to 11 years in prison. But he’s not alone. Scam artists have always plagued the SBA, but as sources of capital have constricted, the Wall Street Journal reports that a new crop of con artists have come to light. In some cases they demand exorbitant fees by claiming they can guarantee loan approval. They also solicit loans bigger than the business owner can repay, leaving borrowers tangled up in fraud allegations (whether or not it was intentional) and financial trouble. The SBA says its SBA Express Loans are a big target for loan-agent fraud. An App Store for Your Browser. The biggest news to come out of Google’s I/O conference yesterday was the announcement of the Chrome Web Store, reports TechCrunch . It’s just like the iPhone or Android app store, but for your Google Browser. The store will highlight web apps and offer developers a way to monetize them (if they choose to charge). For now, it’s Chrome only, but the apps are written for the web, so TechCrunch says they should work on any browser. In terms of revenue sharing, developers can expect the standard 70/30 split (developer/Google). Nothing to fear but fear itself. At yesterday’s Google I/O conference , a panel of VC’s was asked, “What are the biggest no-no’s in a start-up?” Tech VC Brad Feld replied that ” fear is the biggest no-no ” That answer struck a chord with Fred Wilson, who recalled that, “If I look back over 20+ years of entrepreneurs I’ve backed, the ones who were anxious and afraid of failure most certainly had worse outcomes than the ones who were agressive and confident. You simply can’t be tentative in a start-up. You have to go for it at every chance you get.” Wilson explains that fear has a way of trickling down in an organization, so an anxious leader will result in an anxious company. Therefore, “A person who is quietly confident makes the best leader. So if you are starting a company or building one, face your fears and move past them. It’s critically important to your company.” Can Groupon survive all the copycats? Slate’s The Big Money says “Yes,” noting that the business is profitable, easily scalable, and that “deals from similar social-coupon sites rarely compete with one another on a daily basis.” But as we explained in our piece on the pros and cons of partnering with Groupon , the Chicago-based company usually takes about 50 percent of the revenue from the coupon sales. Surely, some of its competitors take less than that to acquire a competitive advantage. And if that trend continues, what’s to say there won’t be a race to the bottom? Helping gay entrepreneurs succeed . StartOut , a new network for LGBT entrepreneurs, helps tackle the challenges of being openly gay in the working world. Founder Darren Spedale tells The New York Times the idea behind StartOut was “a no-brainer” because there were already a number of networks like Astia or TiE that catered to specific demographics of entrepreneurs. So far, the year-old company has attracted 1,000 participants to its events in New York, San Francisco, and Los Angeles. StartOut hopes to educate gay teens about opportunities in entrepreneurship and help the men and women within StartOut to find contacts and funding. Though it has no official membership, aside from Facebook fans, StartOut has plenty of room for growth. As the article reports there are 1.2 million gay-owned businesses in the United States alone. Could your pants soon power up your iPod? Researchers at UC Berkeley on working on microscopic fibers that can produce electricity from simple body movements like bending and stretching, the LA Times reports. The researchers say that the fibers (which look like tiny fishing lines) could be woven into clothing and plugged in to charge electronic devices. The technology is still a few years away from the market, but the potential is there for these portable generators to be a breakthrough technology, the Times says. More from Inc. Magazine: Get this delivered to your inbox. Or get it on the Kindle Follow us on Twitter or Tumblr . Friend us on Facebook. Apply now for the 2010 Inc. 500|5000 .

Scammers and the SBA. Surinder Multani shepherded businesses like gas stations and convenience stores through the SBA loan process by putting together loan applications for lenders to approve through his loan-brokerage firm Abacus Finance. But while Multani collected more than $500,000 in commissions, his clients defaulted or liquidated on about half the loans–the result of his fraudulent and inflated claims of their net worth and capabilities. Multani brokered almost 50 loans worth $44.3 million and was sentenced to 11 years in prison. But he’s not alone. Scam artists have always plagued the SBA, but as sources of capital have constricted, the Wall Street Journal reports that a new crop of con artists have come to light. In some cases they demand exorbitant fees by claiming they can guarantee loan approval. They also solicit loans bigger than the business owner can repay, leaving borrowers tangled up in fraud allegations (whether or not it was intentional) and financial trouble. The SBA says its SBA Express Loans are a big target for loan-agent fraud. An App Store for Your Browser. The biggest news to come out of Google’s I/O conference yesterday was the announcement of the Chrome Web Store, reports TechCrunch . It’s just like the iPhone or Android app store, but for your Google Browser. The store will highlight web apps and offer developers a way to monetize them (if they choose to charge). For now, it’s Chrome only, but the apps are written for the web, so TechCrunch says they should work on any browser. In terms of revenue sharing, developers can expect the standard 70/30 split (developer/Google). Nothing to fear but fear itself. At yesterday’s Google I/O conference , a panel of VC’s was asked, “What are the biggest no-no’s in a start-up?” Tech VC Brad Feld replied that ” fear is the biggest no-no ” That answer struck a chord with Fred Wilson, who recalled that, “If I look back over 20+ years of entrepreneurs I’ve backed, the ones who were anxious and afraid of failure most certainly had worse outcomes than the ones who were agressive and confident. You simply can’t be tentative in a start-up. You have to go for it at every chance you get.” Wilson explains that fear has a way of trickling down in an organization, so an anxious leader will result in an anxious company. Therefore, “A person who is quietly confident makes the best leader. So if you are starting a company or building one, face your fears and move past them. It’s critically important to your company.” Can Groupon survive all the copycats? Slate’s The Big Money says “Yes,” noting that the business is profitable, easily scalable, and that “deals from similar social-coupon sites rarely compete with one another on a daily basis.” But as we explained in our piece on the pros and cons of partnering with Groupon , the Chicago-based company usually takes about 50 percent of the revenue from the coupon sales. Surely, some of its competitors take less than that to acquire a competitive advantage. And if that trend continues, what’s to say there won’t be a race to the bottom? Helping gay entrepreneurs succeed . StartOut , a new network for LGBT entrepreneurs, helps tackle the challenges of being openly gay in the working world. Founder Darren Spedale tells The New York Times the idea behind StartOut was “a no-brainer” because there were already a number of networks like Astia or TiE that catered to specific demographics of entrepreneurs. So far, the year-old company has attracted 1,000 participants to its events in New York, San Francisco, and Los Angeles. StartOut hopes to educate gay teens about opportunities in entrepreneurship and help the men and women within StartOut to find contacts and funding. Though it has no official membership, aside from Facebook fans, StartOut has plenty of room for growth. As the article reports there are 1.2 million gay-owned businesses in the United States alone. Could your pants soon power up your iPod? Researchers at UC Berkeley on working on microscopic fibers that can produce electricity from simple body movements like bending and stretching, the LA Times reports. The researchers say that the fibers (which look like tiny fishing lines) could be woven into clothing and plugged in to charge electronic devices. The technology is still a few years away from the market, but the potential is there for these portable generators to be a breakthrough technology, the Times says. More from Inc. Magazine: Get this delivered to your inbox. Or get it on the Kindle Follow us on Twitter or Tumblr . Friend us on Facebook. Apply now for the 2010 Inc. 500|5000 .

There’s a famous quote by Harvard Business School marketing professor Theodore Levitt that “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!” The drill is the solution to their hole problem. When explaining your business to potential investors or customers, the first barrier you’ll have to get over is the “So-What” factor. Your customer or investor often doesn’t know the problem you’re solving. Once they know that problem – their answer may be “So What? Why are people going to try something new that you’ve invented?” Author and Investor Pip Coburn * described this barrier as the “ Change Function ” where the likelihood of getting a customer to try something new can be calculated by “perceived crisis over total pain of adoption.” People like the way they’re doing something already, say, listening to music on CDs in 2001. They don’t perceive a music-listening crisis. If you offer them something that makes it easier for them to do a new action (listening to music via a small electronic device in your pocket) you have to reduce the pain of doing this new thing (knowing how to copy CDs and how to copy those files to a device.) iTunes and a device with a simple interface, the iPod, made it a lot easier to manage music on a portable device than copying files via the computer interface. Recently I have been advising a start-up who showed me a “one-sheet” that explained their business to potential investors. Most of the top of the sheet was taken up by a graphic, which showed a picture of their new product under a headline that didn’t explain the problem being solved. After discussion we moved the graphic to the bottom, and we first explain the problem. This brings the investor down the road of “oh, I see the problem, I see the market, and now I see you have a solution.” Let’s take a recent case that got a lot of publicity – Diaspora , a potential future alternative to Facebook (see Inc’s coverage of Diaspora .) The pitch from this company of 4 NYU students is a very technical idea on how they might replace the infrastructure of one of the most popular online services of all time, Facebook. Their solution includes a personal web server, peer-to-peer communications and open source software that uses GPG to securely share your information you’re your friends. At this point, I suspect most Facebook users are hearing “privacy, blah blah run my own server blah. ” However, the technical explanation has not kept over 5000 people from pledging to donate* over $170,000 to this project via Kickstarter . The original “ask” the team put forth was for $10,000 for ramen and mac and cheese money so they could code all summer. Instead, they got an angel round from the technical users who understand the tech and privacy challenges Diaspora is trying to solve, and put their money where their mouths are. Diaspora are creating a peer-to-peer social network, much like Skype is a peer-to-peer communications system. The “So-What” is “so, you can directly control how much information goes out about you if you personally control your own version of your information.” Most people didn’t know this was a problem they could even have, until the recent reporting about Facebook and Privacy . If Diaspora wants to convince more people to join their “the privacy aware, personally controlled, do-it-all distributed open source social network” they’ll have to continue to explain the “So-What” to more people in more ways. There’s going to be a pain of adopting a new network – since many, many people are used to Facebook, privacy policies or not. Now that they’ve surmounted that first “So-What”, they still have to get over the “So, now you have to run your own server for this Facebook of the future to work.” Noted tech investor Fred Wilson told me the Diaspora team won’t get their adoption in that way. “It has to be a hosted service… wordpress.com not wordpress.org .” There’s a lot more to this Diaspora story, and I’ll be watching to see how they explain themselves for examples you can use. What’s the “So-What” proposition for your business? How do you explain it to people? Let us know below. *Disclosures: In order to be up on this Diaspora project, I have donated $10 to the cause and am now on the mailing list. Also, I have served in the past as a Research Fellow for Pip Coburn’s Coburn Ventures.