Which Business is Most Profitable in Australia?

Find out which business is most profitable in Australia and kickstart your entrepreneurial journey in one of the world’s fastest-growing start-up sectors.

You’re done! You’re sick and tired of going through the motions of your 9-to-5 job. Now, you want to take the plunge and turn your passion into a career, and start being independent.

Even though you’re saying hello to autonomy, in the back of your mind, you understand that starting a business is no small feat—where do you even begin?

But just like the 84% of small business owners who would gladly do it all over again, you’re bringing it.

Starting a business in Australia in 2024 is hard, but if it really matters to you, you’ll beat the odds and make it happen. With that in mind, let’s explore which businesses have the highest success rate in the Down Under.

Which Type of Business Makes the Most Money?

Small businesses run the Australian economy. They account for over 97% of all the businesses in the country.

Here are the fastest-growing industries in Australia that you should consider for your startup business:

  • Finance
  • Professional Services
  • Iron Ore Mining
  • Supermarkets and Grocery Store
  • Health Services
  • Consumer Goods Retailing
  • State Government Administration
  • Technology
  • Education and Training
  • Tourism

These promising industries are set to take charge, driving growth and innovation. They can offer new opportunities for job seekers and aspiring enterpreneurs alike.

Food and Beverage

Fun fact: Food and beverage is among the most profitable industries in Australia, with a market size that could surpass $250 billion by 2030.

From cafes and fine dining restaurants to bars and pubs, various businesses within this field have the best potential for high profits.

In fact, in recent years, food trucks have become very popular because of their unique dining experience.

Compared to other countries, Australians have more cash to dispose of and have a higher potential for repeat customers. If they like your food and service, they have no qualms about recommending your food grab to others.

Just be warned; the level of competition in this industry is scary high, and you need sufficient funds to get your business off the ground. To succeed, think of sustainable competitive advantages with which you can stand out from your rivals.

E-Commerce

Let's go over the number: in 2020, the e-commerce industry in Australia generated more than $23 billion in sales. In 2022, more than 9 million households in the country made purchases online—that’s a lot considering there were only over 26 million people in the country that same year so that accounts for 34.615% of the total population.

E-commerce is not just one of the most vibrant business ventures in Australia for savvy enterpreneurs, but it is also one of the most profitable industries in the world. The market is huge—from online stores to dropshipping—and it can generate high revenues while spending little on overhead costs.

The best thing about an e-commerce business is that you get to reach a wider audience. Now more than ever, it’s easier to connect with potential customers through social media and other online marketplaces worldwide.

Though the competition is tight, you can still carve out a niche in this industry so long as you can align your ideas with the evolving preferences of your Australian patrons.

Fitness

The fitness industry in Australia is booming, with a current market value of over AUD 3 billion. Undoubtedly, it is one of the fastest-growing sectors, propelling the country’s economy.

Fitness centers are packed, and we might have to thank the Hemsworth brothers for these new very health-conscious Aussies—just kidding. In truth, Australians have become keener on investing their hard-earned money to stay fit and healthy and are always seeking new ways to improve their mind and body.

Some of the most profitable businesses within this industry include:

  • Boutique Fitness Studios offers specialized workouts in a more intimate and high-intensity setting.
  • Health Food Stores offer a more specialized selection of organic and natural products such as health supplements and functional superfoods.
  • Health clubs offer a variety of fitness services more affordably and conveniently, such as group fitness classes and spa services.
  • Personal training services are perfect for fitness enthusiasts who want to achieve a specific goal, like weight loss.

In this industry, customers are willing to splurge for high-quality experiences that promote their well-being. Though that might be the case, there will be overhead costs and other operational costs associated with this line of business, so you might want to consider that before committing.

Innovative Ventures

These are the businesses that are associated with new technologies and other advanced innovations like the internet and smart chatbots.

Starting an innovative venture is a business with a high-profit margin, so long as you have the vision and the right skills to match. Additionally, this industry requires low overhead costs, which means it’s easier to scale and be efficient in running your company.

Some of the most high-paying small businesses in this sector include:

  • Cybersecurity companies protect an organization from cyberattacks and mitigate security risks.
  • Artificial intelligence offers analytics and implements algorithms that allow its users to make better business decisions and improve overall operations.
  • SaaS companies provide cloud-based software solutions for clients. They are responsible for assisting with all aspects of the application, minus the user data.

Topics you might be interested in: Hiring a Virtual Assistant for Bookkeeping

Can Foreigners Start Business in Australia?

Yes, there are a lot of business opportunities in Australia for foreigners.

The Australian government is bent on foreigners kickstarting businesses in Australia to help boost the country’s economy. In fact, if you have a business in your home country and you wish to take it to the Land Down Under, you can.

However, as a non-citizen, you will need a specific work visa to start a business in Australia.

Business Innovation and Investment Visa

If you have business skills, you are qualified for this (provisional) visa, which has a validity of 5 years. As an entrepreneur, you’re given the freedom to operate a new or existing business in Australia.

However, before you can apply for the business innovation and investment visa, you must be nominated by the state government first, as this is a state-nominated visa.

Which Business is Profitable in Australia FAQs

Is it Smart to Start a Business in Australia?

Yes, citizen or not, Australia is an ideal place to start your own business venture. Think about it; the country has an abundance of an educated workforce, natural resources and advantageous business policies—first in having financial freedom and second in trade freedom.

Why Australia Benchmark Report also ranks Australia high in terms of business environment and efficiency, specifically in the procedures necessary to start a business.

What is the Most Profitable Business in Australia?

Among the businesses with the highest profit margin, food and beverages reign on top, with a supposed revenue by 2030 of around $250 billion.

This industry has the largest manufacturing sector in Australia, with an annual turnover of $50 billion, which is about 18% of the total manufacturing sector in the country.

What is the Booming Business in Australia?

Tourism. Australia has always been one of the most popular tourist destinations in the world. Right now, this industry is experiencing a boom and is anticipated to reach $48.8 billion by 2027 in expenditure by international visitors.

Moreover, with travel restrictions finally relaxing, the tourism surge is expected to continue in the coming years, giving business boosts to travel agencies and hotels.

Conclusion

The most profitable business in the world is one that understands the market and makes use of emerging technologies. The list of industries that we mentioned above is the easiest and most profitable business to start in Australia right now.

So, if you’re looking to expand your wings and be among the most successful entrepreneurs in Australia, these business ideas will be your best options.

PS: With the waves of issues, say the global pandemic, that struck Australia and the rest of the world, the business and economic landscape is continuously shifting at a radical speed.

That said, you must learn to adapt and think fast about sustainable solutions so you don’t get left behind. In Australia, virtual assistants are proven to be reliable partners in scaling businesses.

This remote support is a cost-effective solution that will keep you highly effective for the new normal without putting holes in your pocket. Outsourcing day-to-day repetitive tasks to a VA means that business owners in Australia will get to experience the following benefits:

  • Reduced Costs
  • Work with the Most Qualified Candidates
  • Access the Global Market
  • Flexibility
  • Better Business Productivity
  • Scalability
  • Improved Efficiency

If all these sound amazing, hire a virtual assistant and let them help your small business grow big.

Latest Articles