Original article from the Flevy business blog can be found here: http://flevy.com/blog/the-21st-century-small-business/ Here at Forward View, we spend a lot of time asking ourselves, “What’s next?” and “How can small businesses succeed in the coming months and years?” We use these thought exercises to develop The Forward View , and these insights impact all of our consulting projects and research reports. Our efforts to peer into the crystal ball aren’t used to answer philosophical questions. Instead, our goal is to help clients prepare for the future of business by identifying opportunities to embrace and risks to avoid. Based on Forward View analyses and experiences, I’d like to share some of our key ideas and themes for 21 st century small business. Fresh Business Models Looking ahead, we believe the demand for specialized products and services will continue to grow rapidly. Why? Pick up your smartphone for a minute (we know it’s rarely out of reach) and consider all the icons on your home screen. If you’re like 90% of people I know, you have several apps on your phone and still more on a tablet or computer. [1] Almost all of these apps have one thing in common: They offer only a few features, but they perform certain tasks exceedingly well. Long gone are the days when a few programs performed most of the available functions on a device (think of the declining importance of Windows Office for consumers). Now, we download a new app for almost everything we want to do! Business is moving in the the same direction. While large corporations are increasingly splitting themselves apart (such as HP) or decentralizing their structures (see Alphabet), smaller companies will remain the nimblest. (Alphabet, by the way, is essentially Google plus a startup lab!) Local businesses can seize opportunities in geographic areas left untouched by big firms. For example, I live in a region dominated by mining. A small business catering to the unique needs of coal truck drivers could be very successful here, and the competition from large corporations would be nil. Thanks to technology, though, small businesses can tap into niche markets across the country… or the world. Let’s say that you’ve identified an unmet need for gluten-free Southern desserts. You’re a great Southern cook who understands gluten sensitivity and Celiac Disease, but your small city can’t support a gluten-free bakery. Well, instead of giving up on your idea, you start a website to sell your delicious treats nationwide. In addition, you create an app folks can buy to