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Hot. Sizzling. Scorching. On fire. Just what is this ineffable quality, hotness? We at Entrepreneur don't quite know how to describe it. Suffice it to say, we know it when we see it. And, on the following pages, we present the best we've seen this year: Entrepreneur's 15 hottest business ideas for 1996.

Some of these concepts-family entertainment centers and pretzels, for example-have already been around for a year or so and are still going strong. Others, such as Internet consulting services, are fairly new kids on the block. Which of these businesses have staying power, and which will be hot today, gone tomorrow? Only time will tell. And which one is right for you? Only you can tell . . . but our research gives you a head start.

Forward-thinking companies of today see the Internet as the medium of tomorrow. The Internet surfer is a new breed of consumer-one who's as interested in doing business online as checking the day's horoscope. Add the fact that millions of users are pouring in from commercial online services such as America Online and CompuServe and that, according to one report, the number of Internet users is increasing by 10 percent each month, and you've got plenty of reasons for a business to merge onto the information superhighway.

As yet, however, few companies possess the skills to create interactive sites on the World Wide Web (WWW), an area that displays text, pictures, and sound and video clips. Some Web sites allow browsers to order products, play games, enter contests and more. And Internet consultants who help businesses set up interactive advertisements or storefronts on the WWW are in high demand.

Sure, it takes an investment in computer equipment as well as programming, graphic design and marketing knowledge. What it doesn't take is hefty amounts of start-up capital or a large facility. Even better, if you can find a local service provider to let you post a "home page" on their server, you won't need your own direct Internet connection.

Those looking to get in on the Internet craze should act quickly, advises Resnick, because "the industry is at such an early stage that now is the time to be in the business."

With the smell of baking bread and the sight of scrumptious pastries, bakery-cafe owners are luring customers into their stores-and profits into their pockets. Boasting huge ovens that bake up specialty breads and sweets, bakery-restaurants are on the rise.

Bakery Production and Marketing magazine estimates that variety and specialty bread sales will increase by as much as $432 million this year. With everything from fresh bread and baked goods to salads and sandwiches, quaint eateries are drawing in customers for breakfast and lunch-even brunch. Clever cafe owners are also offering full delicatessens for dinner crowds and supplying bread to local restaurants.

Entrepreneurs looking to get a slice of the action should be warned: There's a hefty initial equipment investment. In addition, Jeff Prince of the National Restaurant Association strongly recommends locating in high-traffic areas, yet cautions against setting up in malls with high rent.

In an era of skyrocketing hospital costs, a trend toward discharging patients to less expensive and more comfortable surroundings-their homes-has made home health care the fastest-growing segment of the health services industry. In fact, according to the National Association for Home Care (NAHC), more than 17,000 providers deliver home-care services to some 7 million individuals, and annual expenditures for home care are expected to exceed $27 billion this year.

While undoubtedly a cost savings for individuals recuperating from hospital stays, home health-care agencies also provide services to people with disabilities and illnesses as a means of supplementing care provided by family members. In addition, with insurance companies cutting back on the time new mothers and their infants can receive hospital care after delivery-creating an atmosphere of "drive-thru deliveries," in which most mothers return home just 24 to 48 hours after giving birth, according to the NAHC-home postpartum care is among the hottest opportunities in home health care today.

"It's a segment in home health care that is growing quite significantly," says Mary St. Pierre of the NAHC. This segment is getting a boost from current legislation as well: New Jersey and Maryland recently passed laws requiring insurance companies to either provide minimum stays for mothers and infants or offer visits by a home-care nurse. Several other states are considering similar legislation, and on a national scale, the Newborns' and Mothers' Health Protection Act-which would require follow-up home care for hospital stays of less than 48 hours-is on the Senate's agenda.

For those looking to take advantage of the newborn niche, it's crucial to be prepared, says St. Pierre. Not every nurse has the necessary skills, so home health-care agencies must be sure to provide qualified staff. Systems should also be in place to allow the agency to respond quickly to mothers and infants, who usually require care one to two days following hospital discharge.

There's a new twist (or two) in soft pretzels: These low-fat wonders are being fashioned into all sorts of wacky, never-before-seen shapes.

A new way to take a bite out of the growing soft pretzel market is to shape the snacks into company logos, letters, animals and more. Soft pretzels are being sold as specialty gift items or used as marketing gimmicks for businesses. The trend toward flavored pretzels, including mouthwatering varieties such as blueberry, cinnamon-raisin and honey mustard, is also expected to continue to flourish.

And here's something else to munch on: Lancaster, Pennsylvania-based soft pretzel franchisor Auntie Anne's projects a 40 percent increase in systemwide sales in 1995, to more than $81 million-up from $57 million in 1994. It seems a wider range of consumers are sinking their teeth into the company's multiflavored offerings, but the market is far from saturated.

In a climate of corporate downsizing that sometimes leaves businesses too leanly staffed and increased governmental regulation that makes hiring and firing employees more complicated than ever, more employers are calling in specialized staffing services to get the job done. Need proof? According to the National Association of Temporary and Staffing Services (NATSS), revenues in the temporary help staffing services industry rose more than 22 percent to 34.7 billion in 1994, and average daily employment increased 20.7 percent, reaching nearly 2 million temporary workers.

While the need for office and clerical workers continues to dominate the industry, businesses are increasingly looking for temps with specialized abilities. "Businesses are looking to temporary and staffing services for a greater variety of skills, as well as an assortment of working arrangements," says Bruce Steinberg of NATSS.

The industry segment that provides companies with workers from professional fields, including people with accounting, legal and management backgrounds, doubled from 2.4 percent in 1991 to 4.8 percent in 1994. In addition, the blue-collar sector, which includes manufacturing personnel and factory workers, is up more than 6 percent from 1991, accounting for 34.1 percent of the temporary services industry payroll in 1994.

Managed services, temporary-to-permanent and long-term employment are relatively new areas of staffing services that are adding to the boom, says Steinberg. As long as employers remain challenged to locate workers, specialized staffing services should continue to thrive.

No matter how old we get, there's a kid in all of us-and today's family entertainment centers are cashing in on the youthful whims of adults and youngsters alike. In what is now the fastest-growing segment of the amusement industry, these action-packed playgrounds for kids of all ages are growing swiftly in popularity and getting more sophisticated by the day.

Laser tag, virtual reality games and motion simulators are some of the latest fun-filled activities to have found their way into family entertainment centers. And in today's fast-paced society, party services for busy parents are also the rage: More than 65 percent of family entertainment centers have distinct party facilities, and 15 percent plan to add or expand their party facilities in 1996, according to the International Family Entertainment Center Association (IFECA). "For double-income parents or single parents, party centers are very, very big," says Carole Sjolander of the IFECA.

While family entertainment centers certainly aren't new-there are already 4,500 of them in the United States-there's still plenty of opportunity for businesses that help people escape their pressures and spend some quality time with their children.

Increasingly, family entertainment centers aren't located just in tourist areas or warm climates. Some 86 percent of family centers are planning to operate year-round facilities, generating a significant percentage of their revenues from indoor facilities during the cold winter months. "We created a completely indoor, 365-days-a-year facility so people don't have to worry about bad weather," says Steve Guinn, co-owner of two X-Site family entertainment centers in Little Rock, Arkansas, and Memphis, Tennessee. "It's a safe environment where parents can feel good about bringing their children."

The release of several new operating systems and the growing acceptance of groupware products are creating jam-packed classes at the many computer training centers across the country.

Despite the climbing capital investment, independent businesses as well as franchise operations are still thriving in the marketplace. With new software programs emerging almost daily, employers are sending their employees to computer training centers for retraining. Plus, with the flood of consumers buying computers for their home offices, adults-and children, too-are signing up for classes at computer training centers.

And the market seems poised for growth. According to Framingham, Massachusetts-based International Data Corp., revenues in the worldwide information technology training and education market will increase from $12.8 billion in 1994 to $21.6 billion in 1999. Recent technology will have a powerful impact on this growth: Computer-based training, satellite-distributed training events, CD-ROM training products, and video training products and services like the Microsoft Online Learning Institute on The Microsoft Network are emerging opportunities within the computer training industry.

Professional employer organizations (PEOs) are giving American businesses a new lease on life. Formerly called employee leasing companies, PEOs save clients time and money on personnel functions, making them extremely popular with start-up and small businesses.

Different from staffing services, PEOs "hire" a company's entire work force, then "lease" the employees back to the company. PEOs handle all personnel functions, such as tax withholdings, payroll, hiring and salary reviews. And because PEOs pool the employees of several companies, they can offer business owners lower rates on employee benefits such as health insurance, workers' compensation insurance, pension plans, tuition reimbursement and more.

Given the advantages, businesses are scrambling to sign up with PEOs so they can avoid the hassles of running a personnel department. "The service fills a need for a lot of small-business people who [don't want to deal with] the headaches from employment issues that arise in the workplace," explains Bob Hunter of the National Association of Professional Employer Organizations.

And employee leasing shows no signs of slowing. In fact, thanks to increased acceptance and use of PEOs, the $8 billion industry is growing at a whopping 30 percent annually.

A decaying school system, parents eager to give their children a head start on education, a growing number of time-crunched single parents and double-income families-add these factors up, and it's clear why children's educational toy stores are scoring high marks.

With everything from card games and cardboard puzzles to science kits fit for junior Einsteins, stores that pump up children's gray matter are attracting families in droves. According to the Toy Manufacturers of America, retail toy and game sales hit $18.7 billion in 1994-up from $13.1 billion in 1990-and the educational segment is especially hot. Based on available wholesale figures, sales of scientific toys were more than $73 million in 1994, and educational toy sales topped $30 million.

While the industry is dominated by retail giants such as Zany Brainy and Noodle Kidoodle, smaller stores are successfully competing with the big guys by playing up their stores' entertainment value and interactivity. Market-savvy entrepreneurs create stimulating stores where kids can get their hands on computers and brain-teasing toys. Friendly employees who love children and toys provide outstanding customer service, drawing families back for more.

But it's the software sections of children's educational toy stores that are drawing the biggest crowds. Fueling the market is a windfall of parents buying multimedia computers for their homes. Youngsters take home products that teach math, reading and science skills. And for young adults, geometry, chemistry and SAT programs are quite popular, as are a multitude of CD-ROM encyclopedias.

The key to getting into the market is finding a location where the chains won't go. With most children's educational toy stores located in big malls and strip centers, says Davidowitz, entrepreneurs should move into smaller markets, particularly urban locations: "If entrepreneurs can start small in a hot area, they can make it big."

The lifting of trade barriers combined with improved global communications systems is creating hefty openings for small business in today's wide world of exporting. Currently, environmental and health-care technology products are hot growth areas within the world's 10 Big Emerging Markets: Argentina, Brazil, China (including Hong Kong and Taiwan), India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. The export of U.S. services overseas is also expected to expand considerably.

Yet some of the largest openings in the market come from exporting information technology-which includes hardware and software products-to countries in Asia and the Pacific Rim. According to the U.S. Department of Commerce, between 1990 and 1994, information technology exports increased 8.7 percent annually; 94 percent of these companies employ fewer than 100 people. As businesses in these regions expand, they need the competitive edge information technology affords. Also adding to the boom are the many governments, including those of China, South Korea and Taiwan, that have established national guidelines prioritizing information technology.

To aid U.S. exporters in penetrating these markets, U.S. Information Technology Offices recently opened in Belgium, China and Japan. These centers provide standards and certification information, market research and crucial contacts in these countries.

Sure, computer consulting is nothing new-but the industry is heating up again by catering to an ever-expanding small-business market.

Today, the hot ticket is client/server consulting. Small businesses are finding they need to network their office computers to exchange information more easily. Yet it's rare to find in-house personnel with this specialized expertise. Enter computer consultants, who help these smaller companies find the right computer products and get their networks up and running. And they seem to have found a receptive market: According to the U.S. Department of Commerce, computer consulting receipts topped $5.9 billion in 1993.

Other key markets are multimedia and security consulting. "As corporations get more sophisticated, people are beginning to realize they're putting their businesses at risk by going onto the Internet," says Rauth. "The niche to help businesses protect their information is growing."

A bagel is a bagel is a bagel, right? Not so, say today's bagel shop owners, who are baking up big bucks with gourmet bagels. Indeed, the chewy breakfast delights have come a long way. The bagel is now a bestseller nationwide: According to Bakery Production and Marketing magazine, 1994 bagel shop sales reached $920 million; retail bakeries generated $170 million from bagel sales as well. These days, bagels can be made with spinach or pesto, slathered with flavored cream cheeses, or piled high with deli meats and cheeses.

As the trend toward healthful eating continues to flourish, consumers are chomping on boiled or baked bagels that are low in fat, salt and cholesterol. True, big bagel chains are entrenched in the market. But there's still a place for entrepreneurs willing to establish niche markets.

Catering only to the breakfast club limits sales, says Lehmann. But by using a creative bent to make mouthwatering bagel sandwiches and appetizers, it's possible to draw in fairly large lunch and dinner crowds. Smart entrepreneurs are also establishing themselves by supplying bagel box lunches for suburban commuters to grab on their way to work.

Expect to put in long hours initially, but if you have a high-quality product, it's possible to do well in this business, says Lehmann. "Don't mimic the big guys; just do something different and be very good at it."

While the last two decades have focused on merely controlling the pollution that businesses emit, change is in the air: Companies are now seeking new ways to prevent pollution and cut back on waste. The result? A hotbed of opportunity for entrepreneurs with environmental management expertise.

Environmental management companies are drumming up big business by putting firms in touch with new products that reduce or eliminate toxic waste, redesigning manufacturing processes to diminish waste, and developing company goals that focus on environmental concerns. The benefit to clients is products and services that are not just environmentally friendly but that save them money, as well.

On the downside, Environmental Protection Agency guidelines are moving away from a dependence on regulation to achieve environmental protection, says Kevin Doyle, director of program development for the Environmental Careers Organization and co-author of the New Complete Guide to Environmental Careers (Island Press). As a result, some companies are reluctant to invest in environmental services. Plus, while environmental management saves money in the long run, creating solutions that save dollars in the short term can be difficult-and that's often what clients want.

Overall, though, the industry outlook is good, says Doyle. "People who get into environmental management in a savvy way are finding a ready audience and making really good money."

The history of the day spa dates back to the Roman empire when "Roman baths," or natural hot springs, were popular meeting places for socialization and rejuvenation. A European luxury for hundreds of years, day spas are finally finding a bubbling market here in the United States, thanks to aging baby boomers with a desire to stay young and healthy and an increased interest in alternative health practices.

From aromatherapy massages and herbal medicinal baths to facials and cosmetic makeovers, day spas provide a little bit of luxury for everyone. Yet while these beauty and self-indulging services are in high demand, the day spas of today and tomorrow take it one step further: They focus on healing the body-and the mind.

Salon and day spa owners are hiring yoga instructors and nutritionists to teach customers self-healing techniques. Meditation classes to relax the mind and diet programs to keep the body in shape are growing swiftly in popularity. In fact, these "wellness" programs, which help spa-goers relieve stress and prevent future medical problems, are where the real growth is, says Korman.

With hotlines referring consumers to dentists and late-night TV commercials pitching legal expertise, there's no doubt professionals are searching for new and innovative ways to reach customers. These days, providing top-notch service isn't enough to draw

clients. That's why doctors, lawyers, accountants, architects and other professionals are seeking marketing skills and business savvy to give their companies a competitive edge.

Where are they finding it? From professional business consultants, who boast expertise in everything from marketing and publicity to personnel evaluation and general management. Entrepreneurs who have business backgrounds and are in touch with professionals' needs will find there's big business in providing these services.

One hurdle you'll have to overcome: Unless you have highly impressive credentials, your name is already well-known in a firm or you have connections to help you gain entry, expect some difficulty earning the trust of many professionals, Maister says. If you can handle this challenge, however, you'll find hot spots also exist in supplying marketing and personnel services to professionals, as well as helping them update or install new technology.

This article is reprinted with the permission of Entrepreneur magazine. With Entrepreneur, you get expert advice and friendly assistance. Learn how to master the art of marketing, management and finance. Gain insight from fellow business owners and entrepreneurs. Save yourself valuable time, and avoid costly mistakes with proven start-up secrets and sound business strategies. For more information on subscribing to Entrepreneur, call 1-800-274-6229, Dept. 5GD84.

American Institute of Baking, 1213 Bakers Wy., Manhattan, KS 66502, (913) 537-4750;

Bakery Production and Marketing, 1550 E. Touhy Rd., Des Plaines, IL 60618, (708) 635-8800;

Environmental Careers Organization, 286 Congress St., 3rd Fl., Boston, MA 02211, (617) 426-4375;

Information Technology Training Association, 3925 W. Braker Ln., #433, Austin, TX 78759, (512) 502-9300; International Computer Consultants Association, 11131 S. Towne Square, Ste. F, St. Louis, MO 63123, (314) 892-1675; International Data Corp., 5 Speen St., Framingham, MA 01701, (508) 872-8200;

International Family Entertainment Center Association, 242 Central Ave., White Plains, NY 10606, (914) 993-9297;

National Association for Home Care, 519 C St., N.E. Stanton Park, Washington, DC 20002-5809, (202) 547-7424;

The National Association of Environmental Professionals, 5165 MacArthur Blvd. N.W., Washington, DC 20016, (202) 966-1500; National Association of Professional Employer Organizations, 1735 N. Lynn St., #950, Arlington, VA 22209, (703) 524-3636; National Association of Temporary and Staffing Services, 119 S. Asaph St., Alexandria, VA 22314, (703) 549-6287;

National Restaurant Association, 1200 17th St. N.W., Washington, DC 20036, (202) 331-5935;

Toy Manufacturers of America, 200 Fifth Ave., New York, NY 10010, (212) 675-1141;

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