Interested in starting or buying a small business? Regardless of which path you take, it is always a good idea to key an eye out or great business ideas.
This list is not in any specific order but they are a compilation of good ideas that will do well in the current business environment and are en trend based on current and future consumer demand. As always, seek professional advice prior to buying a business!
Read: Our complete guide to starting a business
1. Child care
The child care industry is booming at the moment. According to IBIS, the annual growth between 2014-19 was 6.6%. This is a good industry to get into as family home behaviours have been changing and more families are sending children 0-12 to formal childcare than years past. 17.4% of families sent their kids to child care in 2017 compared to 13.6% in 2011.
2020 is a great time to get into this industry, where it be to start a child care service, provide a child care operator recruitment, education, training, or systems.
2. Aged care
The aged care industry is growing due to Australia’s population growth. There will be a need for more aged care workers, supporting facilities and services as Australia’s baby boomers go into retirement and beyond. It has been growing 5.5% annually on average for the past few years and is set to continue growing.
There are plenty of businesses that cater to this market including personal carers, respite, aged care, medical, the list goes on. If you can find a business that is geared towards this market, it will naturally grow over the next few decades
3. Courier
As more consumers buy online, there is an inherent need for more couriers. Contractors for large courier companies can earn upwards of $100,000 per year. This figure ranges heavily depending on the company but there is definitely good money in this industry.
Online sales currently only account for 5% of all Australian sales, which is set to grow. For perspective, that figure is more than double in the USA. Having a transport business that you can scale by adding more drivers is a way to take advantage of this trend.
4. Financial services
Due to the Royal Commission on Banking and Finance that concluded in 2019, they will be shuffling going around within the various industries affected by the changes and recommendations. This has meant that many experienced operators have left the industry due to compliance issues. This means that there is an opportunity available for those interested in this field, however, it is best to have experience in the field prior to starting or buying a business as it is a professional service that requires experience.
This means that it is a good chance for people within the industry to take a chance at the start or buy a financial business given that there will be professionals retiring or closing up shop.
5. Food & drink
There has never been a better time to set up your own food business. Food trucks are in vogue and consumers are spending more of their disposable income on gourmet food than ever before. If you have a special touch when it comes to creating delicious food, 2018 is a great year to start thinking about starting or buying a food business.
Focus on a niche and do it well. Some bars and pubs do extremely well catering to vegans, whilst others focus on food trucks that serve one specific dish at special events.
6. Food manufacturing
Organic and diet specific foods are a growing trend worldwide and Australia is no exception. There are so many dietary requirements that are widely popular such as Keto, Paleo, Gluten-Free, FODMAPs, Organics, Vegan, Vegetarian, etc.
The list goes on but if you cater to a specific market you can grow as your niche market grows. For example, start with a contract food production manufacturer making meal preparation kits for people on a keto diet. Once your brand or product gains popularity, purchase a food manufacturing plant and reduce your costs.
7. Pet services
Spending on pet-related products and services is growing in Australia. Much like child care, Australians are willing to spend money on their pets for grooming, hotel-like services, and for treats, toys, and much more. Australian households are estimated to have spent more than $12.2 billion on pet products and services last year, up 42 percent since 2013.
There are many businesses that cater to this market but if you see yourself as someone who is good is minding animals, then setting up or purchasing an existing pet grooming business or hotel could be a good idea that is also lucrative.
8. Real estate
This seems very counter-intuitive due to the constant news of a downward trending real estate market. The main goodwill in real estate businesses is their rental books. The rental arm is what determines the value of a real estate business and not it’s sales arm.
During a downward trending real estate market, many real estate businesses start to struggle due to lacklustre sales. If you are already in the industry and have a healthy balance sheet, it is probably a good time to acquire and expand your rent book.
9. Beauty services
Although this industry has lots of segmentation, there is a growing trend among the younger generation to keep up with the Kardashians. People (especially young girls and women) are more willing to their hard-earned cash on beauty services such as haircuts, colouring, waxing, etc.
The best performers in this industry appear to be the ones who have spent the money on making their shop beautiful, modern and sleek as well as utilise social media. If you are already employed in this industry, then it may be a good idea to start saving to buy a beauty business that’s under-performing and add value.
10. Tuition services
More parents are sending their kids to be tutored after school. With a hyper-competitive landscape for students studying for their ATARs, parents are willing to fork out good money for good tutors.
It is incredibly easy to be a tutor but difficult to set up the systems and get clientele which is why it can make financial sense to simply buy a business/franchise set up by an incumbent education franchisor. If you are an educator or extremely academic, starting or buying a tutoring business may be one worth looking into.
Parting thoughts
Finding the right business for you and your lifestyle is important whether you intend to buy or to start your own business and take advantage of the small business opportunities available.
