Ambitious entrepreneurs have a plethora of new sector opportunities to consider, particularly in growth industries—parts of the global economy that experience a higher-than-average growth rate. These sectors often feature innovative products and services that captivate consumer interest and are often pioneering fields that were not present in past decades.

From products and services enhanced by generative AI to promising growth forecasts in sectors like the Internet of Things, cybersecurity, robotics, and even space technologies, growth industries hold the potential to shape our future. A report from McKinsey noted that about 18 sectors are considered transformative, with the capability to redefine the global economy, generating revenues between $29 trillion and $48 trillion by 2040.

Consider the longevity industry, for example, in which I participate through Seveno Capital. This sector aims to significantly extend the human health span through holistic and scientific methods. Projected to be worth trillions by 2030, this emerging industry has been making waves. Its impressive growth is fueled by the recognition that many in the current aging population aspire to live longer, fuller, and healthier lives.

Visionary entrepreneurs are often eager to be early movers in these fields—a strategic position that could lead to capturing substantial market share and generating considerable revenue in the coming years. As an entrepreneur and investor who recently ventured into a high-growth industry, I’d like to share five key tips that entrepreneurs should consider before taking this bold leap.

1. Know your industry

Entrepreneurs entering a growth industry need to understand the sector and target regions thoroughly, including regulatory developments, trends, and discussions on ethics and social implications, particularly when new technologies are involved.

Staying informed with reports on growth industry challenges and opportunities, like those from BCG and McKinsey, should be a top priority on an entrepreneur’s daily agenda.

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.

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.

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.