Start a Search Engine Company

Some entrepreneurs may look at an online search market dominated by Google and Yahoo and then look elsewhere on the internet for a startup idea. But other entrepreneurs see opportunity. Spock.com co-founders Jaideep Singh, 40, and Jay Bhatti, 35, are taking on search by intentionally not taking on Google. Their Redwood City, California, startup focuses solely on people search and capturing a share of what eMarketer estimates is an $11 billion market for search advertising in 2008. "The opportunity to develop a compelling experience is there if you focus on the right verticals and create a differentiated enough experience from Google," says Bhatti.

The first hurdle a search startup needs to clear is finding the right niche. The general search market may be cornered by some big players, but there's still room for innovative ideas. "We're not trying to build a fad," says Bhatti. "We're trying to build a real technology with a business model behind it. This has the potential to change the way users look for content on the web." He points to search engines Kayak.com (travel search) and TheFind.com (product search) as examples of other search businesses finding success in specific niches.