On a global level, Australia was ranked 14th in the world for conducting business with ease in 2020, as per the data observed by the World Bank. Being the 6th largest country and having the 13th largest economy, Australia is known for maintaining an excellent economic landscape marked by well-regulated financial and corporate sectors. Most budding entrepreneurs are inspired to execute their own niche and leave a mark in the corporate world. In the ever-evolving technological world, many entrepreneurs have surged to unprecedented heights, building profitable businesses in Australia.
As an Australian, if you are also seeking smart and small business ideas to put into action, then you have come to the perfect spot. Roughly 99% of all firms in Australia fall under the small and medium-sized category, and these businesses are accelerating the Australian economy. As owners of small businesses, you’re actually a part of Australia’s thriving sector. Australia’s economy is booming, mostly due to the contributions of small and medium-sized firms.
Here are some important insights:
As per an analysis done by NAB (National Australia Bank), small and medium-sized businesses constitute the backbone of the Australian economy, where they create 7 million jobs and make a substantial contribution to 57% of Australia’s GDP, giving space to creative entrepreneurship. The total GDP, according to World Bank data for 2021, is 1552.67 billion US dollars. These figures explain that Small businesses in Australia are playing an improving role in improving the economic expansion and prosperity of the country
The primary sources of revenue in Australia are driven by exports in the mining sector, banking, manufacturing, and telecommunications. The service sector contributes to 70% of GDP in the country, and this includes industries like education, tourism, and financial services. The population of Australia is around 26 million, and per capita income is $66,408, which creates a perfect atmosphere for Australian small businesses to flourish. As reported by Biztraction, the industrial sector contributes to 25.3% of GDP, and agriculture comprises 3.6% of GDP in the country.
The Australian economy is well managed, and it has a strong population. According to NAB, the bedrock of small and medium-sized businesses in the Australian economy is formed by small and medium-sized businesses. Australia has a skilled workforce and a supportive government that has come up with policies that help the citizens execute business freely. Investors are also benefiting here to expand business ventures, and hence it is always a win-win situation for investors and small businesses simultaneously.
Now, let’s look at the top 10 profitable businesses in Australia that are tailored for the market, and if you are planning to start your own small business, then this guide will help you do so.
Top 10 small business Ideas
1. Laundromats
The Laundromat business idea may sound a little distinct, but it is one of the most profitable business ideas in Australia. This business is about dry cleaning and laundry, which offers great returns. Annually, the laundromat business contributes $2 billion to the Australian economy, and an average Australian laundromat generates a return of approximately 25% of the initial investment every year, where the earnings range from $300 to $1300 per day.
As an individual, if you are planning to make your mark in this evergreen business, then it will definitely give you profit, and you can expect your income to rise in the coming future. The laundry business is growing in Australia, and many Aussies have started small in the cleaning business. As per a recent report, the predictable growth rate of the laundry services industry is 5%, which will reach $127 billion by 2025. The laundromat industry has a success rate of 95%.
Starting from scratch, a laundromat business will need an initial investment between $100,000 and $400,000 but yes, the cost will also depend upon the size, rent, number of machines being used, equipment cost, etc.
2. Cleaning Business
Those looking for small profitable business ideas will find that a cleaning business in Australia makes a lot of sense. This business has become more lucrative during the COVID-19 scenario because companies call the employees back to the office and it has become a top priority for organizations to maintain cleanliness.
With heightened awareness of the significance of workplace hygiene, businesses are going the extra mile to meet cleaning needs, and every organization is strict about the COVID parameters. To curb the spread of COVID-19 cleaning services are in demand.
Cleaning services are not just limited to commercial settings in Australia; they encompass residential and industrial levels as well. Cleaning services include the cleaning of desks, upholstery, furniture, floors, sandblasting building exteriors, carpets, windows, steam cleaning, and much more. Small businesses often face unique challenges, but if you decide to start your own cleaning firm, there will be fewer challenges and more income. You will grow soon.
In 2020, the global cleaning service market size stood at $55,715.0 million, and in Australia, the cleaning industry boasts a market size of $12 billion, featuring 35,248 registered cleaning businesses. The sector boasts a profit of typically 10% to 28%, and the range is amazing for any small business owner. In 2022, the cleaning business market size will have increased to $9.9 billion, and the commercial cleaning services market will have increased by 19.3% in Australia. Every year, an average commercial cleaning business makes $70,000 to $100,000. The most profitable cleaning services are pressure washing, chimney cleaning, gutter cleaning, poor cleaning, etc.
Most Australian franchises for cleaning businesses are available between $5000 and $50,000. Moreover, you need no formal education to start this business, and it is profitable in the long run.
3. Freelancing
For small businesses, freelancing has its own unique place because it is an independent way to work. Freelancers can choose the projects and work remotely. They have the freedom to choose their schedules and statistics show that freelance workers are more productive and happier. They earn more than traditional employees. The COVID-19 pandemic underscored the value of freelancing as many professionals lost their jobs and turned to freelancing and the demand for freelancers rose like anything during the pandemic.
In the tech sector, the need for freelancers is rising and Australia alone will need at least 200,000 experts in tech by 2030. There are many freelancing opportunities on PeoplePerHour, Upwork, Fiverr, Airtasker, 99Designs, etc. These are the best places for small businesses, like freelancers, to build their unique identity and get work.
Freelancing in Australia is nothing new but now the requirement for freelance work has increased in the country. Freelancers can be hired on the spot, and it gives Australian small businesses the liberty to hire them only when the work is required so they do not have to hire full-time employees and save money in case there is no work at times. Freelancers are only paid when there is work and they need to offer proper work to the employer.
A growing number of Australians are working in the gig economy and in 2019 alone, it grew by 33 percent and was valued at $6.3 billion. Gig workers will make up 40% of the global workforce by 2025.
4. Restaurant and Food Takeaway
The restaurant and food takeaway business in Australia is the most profitable sector. Many small businesses that entered the food and restaurant industries became big in no time. Some food chains started so small, and today they have a big name in the market, like Black Star Pastry, T2 Tea, Zumbo Patisserie,Gelato Messina, and much more. Through innovation, quality, and dedication, many Australian small businesses have gained prominence.
The food industry in Australia is very profitable and contributes to the country’s economy, with restaurants, cafes, and takeaways generating a turnover of AUD$39.75 billion. The industry employs 817,500 individuals, which constitutes 6.2% of the total workforce. You must ensure compliance with health and safety regulations and meet your goods and services tax obligations to execute the food and restaurant business smoothly in Australia.
Consider food franchise opportunities and list your business on a Google local listing. Also explore food delivery apps like MenuLog,DoorDash, etc. In 2022, the annual revenue of Australian food businesses like cafes, restaurants, and food takeaway businesses amounted to over 58 billion dollars. From 2022 to 2023, the business recorded revenue of over $23 billion, an increase of $2.4 billion.
5. Art Entertainment and Recreation
The art and recreation services industry includes a wide range of activities, from exhibits and live performances to sports and recreational activities. The sector has gone through steady growth and it has contributed immensely to the Australian economy. From 2015 to 2020, the revenue of the industry has increased by an average of 0.5% annually.
According to IBIS World, in 2020, the art and recreation service industry generated $7.8 billion and it ranked 11th among sectors with the highest wage in Australia. Though this sector is vast, on specific websites, one can find work and help register their events. Some prominent places to get work are Upfront Events, ArtsCentre, etc., and you can also take advantage of Google Events, which is very reliable for listing your business and events. Update the Google listings from time to time to get satisfactory results.
6. Online teaching classes
The online teaching business has been booming during the pandemic and if you are planning to start this, then do not hesitate. It is the best time to begin this business and the online learner base is growing exponentially so pick up an interesting topic like taxation, accounting, etc. on which you have a good command.
As per your knowledge and expertise, you can choose the subjects you want to teach and create powerful, engaging course content. Learn the technicalities of running an educational website. Choose the price of a particular course and plan the schedule to begin with. Use promotional and marketing strategies for the online academy and spend on webcam, video camera, lighting, classroom backgrounds, editing software, etc.
7. Online fitness training
Another lucrative venture that can be started as a small business in Australia is personal fitness training. This venture offers you the flexibility to choose your schedule and train. You can work independently or join fitness studios, gyms, etc. You can join a hospital too.
Today, health and fitness are given a lot of importance so personal training is lucrative to pursue. At present, two-thirds of Australians engage in exercise for at least 100 minutes every two weeks. The market size for personal trainers in Australia is $435 million and it features 8012 industry professionals in the business. The personal trainer industry market size in Australia will reach $491.7 million in 2023. The market size of the gyms and fitness centers industry in 2022 is 1.9 billion.
According to PayScale, personal trainers earn up to $66 per hour and trainers can always enhance their skills and earn more. Being a personal trainer means you must increase your knowledge in health and nutrition, strength and conditioning, weight loss, weight gain, rehabilitation, etc. In Australia, you need a Certificate III or IV to begin. You can look for opportunities on Air Tasker and Bark.com, and you can also list your business on Google.
8. Online retailing/e-commerce
Online retailing or e-commerce, is a small business concept that is in constant demand. Many companies started small but became big giants. Online shopping has changed things so it is the new norm and shoppers are interested in buying products online and making online payments securely. They like the purchases to be delivered at their doorstep conveniently. In 2020, when the pandemic struck, online retail sales went up and there was remarkable growth experienced in Australia. Online sales accounted for over 15% of the retail market in the first quarter of 2021.
The purchase of domestic products in Australia reached 51.1% online. Over 5 million households in Australia engage in online shopping. The most sought-after category for online purchases in 2021 was homewares and appliances. As per IBIA World, the online retailing market in Australia stands at $44 billion, which includes 76,324 businesses and 80,035 employees. Combining physical and online stores, retailers enjoyed significant growth in June 2021 because of lockdowns in many regions of Australia.
The online shopping sector is predicted to grow by 35.3% and this is an opportune time for those who are seeking ideas for small businesses and want to start earning. You can sell anything online like jewelry, clothes, makeup items, art, etc. A vast expanse of the internet is there to help you and you can also use established platforms like Amzon and eBay to promote your business.
9. Website development
If you are looking for the best small profitable business ideas that are interesting, entertaining, and lucrative, then website development will be liked by you. The video game industry is thriving and there are opportunities for entrepreneurs to capitalize on the growing demand for website building.
As per the Global Auralia Report, the video game industry is going through remarkable growth, with more than 2000 software developers employed. Analysts estimate the value of this sector to be $2.96 billion annually in Australia, as per Biztraction. In 2021, the sector experienced 22% growth from the previous year and was valued at $226.5 million in revenue. The numbers will boom further.
Web development empowers businesses to establish an online presence, enhancing accessibility, visibility, and customer engagement. With professional services like WebCreationAU reviewed by Adam, businesses can leverage tailored solutions for effective digital representation, driving growth and success in the competitive online landscape.
If you have any coding skills or are eager to learn them, then this can be your start. Create interactive and entertaining games for educational purposes. Start your own game development agency, too, with no capital from home.
10. Babysitting
If you still feel you do not have any skills and little or no capital to invest and think that these top 10 profitable businesses in Australia are not your cup of tea, then babysitting can be an ideal profession for you. You need a few skills, like patience and the ability to care for infants and children. Just enjoy spending some time with them and this career can be extremely rewarding.
As there is a rise in working parents, there is an increasing need for reliable and experienced babysitters. Your service can be invaluable to busy parents and all you need is the affinity to work with their children. You have to change the diapers of the baby, give them nutritious meals, play with them, and keep them happy and engaged. Also, you need to ensure a safe and nourishing atmosphere for them. On average, a babysitter in Australia charges between $20 and $30 per hour and in major cities, the rates can be higher. Rates can always be negotiated and they are different for daytime and evening.
Final Thoughts:
Consider these small profitable business ideas to embark on your entrepreneurial journey and contribute to the thriving small business community that drives the nation’s economy. The idea doesn’t have to be unique all the time, but it must have the potential to capture a market that can give you good returns. So, think well, plan out what all you can do and then decide which business is best suited for you in Australia. So, Aussies, follow your passion but make sure it gives you profit so you keep going and growing in your career.