What is the most profitable business to start in Australia?
by Emily Gorsky
Posted: February 23, 2020
If you’ve ever considered starting your own business, you may have wondered where best to invest your time and resources. After all, timing is an essential factor in the commercial success of a business.
The following five industry sectors are paving the way for Australia’s future. Businesses in these areas can expect to see some of the most significant growth over the coming years and provide substantial opportunities for ambitious entrepreneurs:
1. Building and construction
According to the Australian Industry and Skills Committee, the construction industry generates over $360 billion in revenue and is projected to grow annually by 2.4% over the next five years. This is excellent news if you’re interested in starting a new business in the building and construction sector.
Business opportunities exist in various areas, but especially for innovators who can solve some of the industry’s most significant pain points. For instance, the building and construction industry is slow to innovate and embrace new technologies. Construction also suffers from issues relating to productivity and budget, with builders often going over budget or taking longer than scheduled to complete larger projects.
To learn more about this industry, before starting your business, view our selection of building and construction courses.
2. Advanced manufacturing
In Australia, manufacturing businesses are a critical part of the economy. According to Australia’s Department of Industry, manufacturing businesses employ around 900,000 Australians and contribute $100 billion to the economy.
Advanced manufacturing is “a broad set of enabling technologies, processes and practices that industry sectors can use to improve their productivity and competitiveness.” Some newer technologies such as 3D printing, artificial intelligence, robotics and nanotechnologies are all examples of advanced manufacturing and creating a business in these areas could become extremely lucrative.
Cybercrime currently costs Australia billions of dollars each year. With a high number of Australians accessing the Internet every day, and this level only rising, there is an increased need for effective cybersecurity products and services.
The Australian Government reports that spending on cybersecurity is expected to increase from around US$126 billion in 2016 to US$251 billion by 2026. This will not only help to reduce cyber threats, but it also provides ample opportunities for new businesses to flourish in the cybersecurity space.
4. Food and agribusiness
A recent analysis by Australia’s National Science Agency, CSIRO, predicts that opportunities in the food and agribusiness sector could be worth a whopping $25 billion by 2030. Consumer preferences for more sustainable and natural foods are driving most of these opportunities, particularly in the area of fortified and functional foods. This refers to foods and beverages that contain added health ingredients and nutrients, providing improved nutritional benefits such as probiotics and omega-3 oils.
This growth will require investment in science and technology to create the next wave of products and services that help to meet the changing needs of future consumers. This provides some exciting opportunities for businesses looking to get involved in this evolving sector.
5. Medical technologies and pharmaceuticals
Medicine is an area that has always benefited from the latest innovations, and this is certainly not changing as we enter a new decade.
Australia has growth opportunities in areas such as smart devices, bionic implants, regenerative medicine and diagnostic products and services. The great news is that with more businesses focusing on these areas, Australia could become a key player in the global medical technologies and pharmaceutical industry.
Choosing a profitable business idea isn’t easy, but doing your research into the market, assessing future trends and developing your skills in your chosen area, can make a huge difference and help you make the right decision.