Fever pitch: pull out your thermometers, 'cause things are heating up! Here's our annual roundup of the newest trends, hottest markets and business ideas that promise to sizzle in 2005

Entrepreneur, Dec, 2004 by Karen Axelton, Steve Cooper, Amanda C. Kooser, April Y. Pennington, Karen E. Spaeder, Laura Tiffany, Nichole L. Torres, Sara Wilson, Natalia Olenicoff, Rebecca Villaneda, Jeri Yoshida

Every year, Entrepreneur eagerly anticipates our "Hot" meeting-a daylong discussion of the trends, markets and ideas we think will be hot for the coming year. Besides hashing out what's hot, we also assess ways entrepreneurs can parlay these trends into new business ideas. This year, we noticed four strategies smart entrepreneurs are using:

1. Tap the countertrend. For every trend, there's a potentially lucrative countertrend waiting to be noticed. Consider C&C California, the Los Angeles T-shirt company whose "classic" T-shirts have struck a chord with women sick of skimpy, midriff-baring tops. While the niches you'll target when catering to a countertrend are generally small, they often have passionately loyal followers. And if the countertrend becomes as big as the original trend, won't you be glad you got in on the ground floor?

2. Eat off the big guys' plate. Trend agency Trendwatching.com coined the term "feeder business" for companies that feed off giants like Amazon or eBay. Instead of trying to compete with Match.corn (so the feeder mind-set goes), why not start a business to help Match.com's clients write better online ads, take "glamour photos," or make sure that potential Mr. Right really is who he says he is? Other thriving feeder industries include eBay drop-off stores and eBay software. Chew on this: How could you feed off Google? Starbucks? Wal-Mart?

3. Switch the niche. Take a tried-and-true product or service meant for one market, tailor it to a different market, and marvel at why you didn't think of it before. When John and Cynthia Ham couldn't find wallpaper borders to reflect their African-American heritage, they didn't get frustrated--they got inspired to create Cultural Hangups Inc., a Huntersville, North Carolina, company that sells ethnic-themed wallpaper borders, home decor and bedding. Translating products and services from people to pets (kosher dog food), from adults to kids (yoga and cooking classes), from women to men (skin-care products), or from the masses to a minority group (wedding planning for gay couples) are just a few ways to make this one work.

4. Borrow a business model. Charging members a set monthly fee to borrow an unlimited number of DVDs by mail worked for Netflix. No wonder smart entrepreneurs have since "borrowed" Netflix's business model to use in other industries. Los Angeles-based GameFly rents video games by mail; Booksfree.com in Vienna, Virginia, lends paperbacks by mail; and in perhaps the most creative twist we've come across, Bag Borrow or Steal, in Sunny Isles, Florida, lets its fashion-mad members borrow designer purses by mail Is there a smart concept you could borrow?

As you read, keep these approaches in mind. Throw in a little of your own inspiration, and you'll be on your way to turning today's hottest trends into profitable business ideas of your own.--Karen Axelton

eBAY DROP-OFF STORES

One business realm continues to flourish despite Americans' concerns over the sluggish economy--the seemingly indomitable kingdom of eBay. The auction marketplace juggernaut has more than 95 million registered users worldwide who traded nearly $24 billion worth of goods in 2003. Whether you pride yourself on being a Titanium Power-Seller or have never even thought about selling on eBay, there's serious money to be made, and a crop of eBay drop-off businesses are popping up to help with the process.

EBay drop-off stores bridge the gap between the online bazaar and people who want to sell their goods without the hassle. Owners serve as middlemen who handle an item's sale--from photography and description to financial transaction--netting a percentage for the service. Though eBay set up a Trading Assistant Program in 2002, which allows eBay users to help others sell their items, it has otherwise kept its distance in this arena and has welcomed enterprising individuals as intermediaries. "We're definitely seeing a trend of these retail storefronts opening up," says Hani Durzy of eBay. If you don't want to build a drop-off store from the ground up, consider one of the many franchises getting in on the auction action, like iSold It or QuikDrop.

"It was a huge opportunity with a recession-proof model in terms of coupling the consignment world with businesses, nonprofits and retail space," says John Hawk, 39, who started Bidadoo Inc. with his brother Howard; both brothers have B2B backgrounds. Bidadoo, with two store locations in Bellevue and Seattle, Washington, incorporates fund raising into the mix by allowing sellers to donate an item's proceeds to a nonprofit. Launched in January 2004, Bidadoo projects sales will top $1 million this year and expects fivefold growth by 2005.

What's really surprising is that many existing eBay sellers, even PowerSellers, use Bidadoo. "We thought they'd be our competitors, but it turns out they're some of our best customers," reveals Howard, 41.

Marsha Collier, author of eBay for Dummies, suggests first trying the Trading Assistant Program for a free taste of this business. Says Collier, "Why not get on-the-job training before you put out any money?"--April Y. Pennington