5 industry sectors ready for new businesses
Growth is not always a reliable indication of industry health in Australia, but evidence suggests now is the time to invest in one of these five up-and-comers, writes Patrick O’Loughlin.
Successful business owners have an aptitude for consistently making clever strategic decisions at the right time. Many of them scoff at the prospect of luck – rather, their business achievements lie in careful market surveying and embracing key opportunities before anyone else.
Becoming successful is all about investing in the right place at the right time – and sometimes that may mean moving into an area of business or industry sector you’ve never worked in before.
Why now is a good time to diversify
SME business confidence developed by strong growth in the job market in 2017 has been dashed with NAB’s 2019 Q2 Quarterly SME Survey. The Q2 survey reinforced negative Q1 results, with small and medium businesses experiencing the weakest ongoing conditions overall.
You yourself may have experienced a downturn in profitability as a result of the slowing Australian economy, especially if your business is related to slowing industries like construction or real estate.
Rather than abandoning your business or slogging it out, the solution may instead lie in looking elsewhere to recoup your money. Specifically, one of the select few industries where growth is still occurring.
The industries experiencing growth
According to employment marketplace Seek’s 2019 Australian Job Market review, there are five key industries that make up more than 48 percent of recent yearly job ad growth.
In order of total job ads, these industries are:
- Trades and services
- Information and Communication Technology
- Healthcare and Medical
- Mining, Resources and Energy
- Hospitality and Tourism
Considering current uncertainty in our economy, and NAB’s report suggesting that a turnaround in conditions isn’t imminent, these are the industries that represent the most viable avenues for new small businesses in the long-term.
To give you a head start on how to approach new opportunities and improve a potentially struggling bottom line if you already operate a business, we’ve provided some thought starters below.
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Keep in mind that this is by no means a complete list – make sure to do your own research and find a niche that complements your own interests and business goals.
Trades and services
The trades and services sector represents huge potential for a new business.
Small businesses looking to expand into the trades and services industry should first look to the in-demand automotive and electrical trades, according to Seek’s employment report.
With trades in permanent demand, regardless of the economy, small businesses can also look to supplying these industries as specialist retailers.
Information and Communication Technology
Rapid advancements in technology make the information and communication technology sector particularly valuable for savvy business owners.
Ample opportunity currently exists in software engineering, security engineering, and business and systems analysis, but the nature of this type of work means there’s also plenty of demand for supporting roles in specialist marketing and communications.
The best bit? ICT jobs can mostly be performed remotely, which means this is an area ripe for those seeking to become ‘digital nomads’.
Healthcare and medical
Not only does working in the healthcare industry give you the opportunity to improve lives, but an estimated 16.1 percent growth between 2018 and 2022 means demand is set to steadily rise.
There’s (luckily) no need to go to medical school to start your own small business in the healthcare and medical industry. Instead, with training you can start a small business or expand upon a business you already own by offering services like massage therapy or acupuncture.
These services can also be incorporated into an existing spa or clinic business, or you can travel with them if you’re looking for more flexible options.
Mining, resources and energy
An industry like mining may seem bereft of opportunity for small businesses, but there are many areas in this sector that savvy business owners can take advantage of.
Much of the opportunity that exists in the mining, resources and energy sector for small and medium business involves mining equipment.
Leasing or selling items like power supplies, such as generators, and safety equipment to the mining industry will be in demand in places like Queensland and Western Australia.
Hospitality and Tourism
The slowing Australian economy represents ample opportunity for the hospitality and tourism industry. This is particularly true of the tourism industry, which is forecasted to steadily grow over the next two decades.
Opportunities for SMEs in these industries lie in travel agencies, tour guiding, and opening venues in key tourist hotspots.
It’s helpful to pay attention to tourism-related trends – knowing when and where tourists are visiting Australia can help you sell certain products at opportune times.
If you’re wanting to expand your business into one of these industries, now is a great time to do it.
You can easily fill in any skill gaps with training or study and exploring a growing industry can be rewarding in itself. So – what’s holding you back?