Smart Company spoke to Brad Callaughan of business advisors Callaughan Partners, and identified the top five sectors to start a business:
IT and Technology
The latest figures from the Australian Bureau of Statistics showed that broadband and mobile handset downloads surged. Businesses are also increasingly taking up technology. In the Sensis e-Business Report for 2013, 98 per cent of small to medium enterprises (SMEs) have a computer. Sixty per cent are using a website to promote their business.
The increase in internet use will create business opportunities in website and application development, as well as IT support.
Baby Boomers
Australia has an ageing population. According to a recent Productivity Commission report, the number of people aged 75 years and more is expected to increase by four million from 2012 to 2060.
While the ageing population has always provided plenty of business opportunities, Callaughan advised business to address other needs besides aged care housing. Travel is a potential area for growth as baby boomers move into retirement.
“There will be more opportunity for services like tours and travel agents that cater to travel for retirees,” he said.
Fitness, Health, and Beauty
Australia is ranked as one of the fattest countries in the world. While fitness and beauty services are already known to rack up billions in annual revenues, Callaughan said, “there is still a lack of knowledge surrounding clean living”.
Health education and living services such as gyms, health food providers and consultants, and pre-packaged food are potential areas for business. This can also be tied to the ageing population. Gym equipment that caters to baby boomers can be a good idea. It provides an alternative for those over 50 who don't want to compete with younger gym goers.
Freelancing
The successful listing of Australian-based website Freelancer.com has generated buzz on a new way of working. The company's shares have skyrocketed from an initial public offering of 50 cents to as high as $2.60 on the Australian Securities Exchange. It traded at $1.05 last December 12.
“I just feel that with the recent success of Freelancer there will be more businesses looking to enter this area,” Callaughan said. He predicts that freelance services will expand as more businesses include those in their offering.
E-Commerce
While online retail has recently slowed down, it’s a trend that will continue to grow. Many Australian consumers are spending billions of dollars on online purchases.
In the National Australia Bank’s Online Retail Sales Index, online sales increased by just 0.3 per cent in October. But that's also equivalent to $14.4 billion online in 12 months.
“There will be many opportunities open up in this field with even the large department stores moving to online retail,” Callaughan said.
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