Thinking of buying a business? Or maybe starting one from scratch? Either way, understanding the industry is key to growth, profitability and success. So we sat down and dived into the latest IBIS World report on industry growth in 2019 and 2020. The results? Very interesting.
When it comes to business sectors, there’s a definite trend in which ones are growing in 2020. There is no hiding the fact that Australians are leaning toward a more sustainable way of living. Younger generations are caring more about our planet than the baby boomers, and business is not exempt from their standards for a sustainable future.
According to the IBIS World ‘Fastest Growing Industries in Australia by Revenue Growth (%) in2020‘, the top growing business sectors are those that aligned with these sustainable living practices. However, not all sectors were following this trend. Other clear factors were convenience, such as rideshares and online food ordering. Sitting at the top were sectors such as:
- Cryptocurrency Exchanges in Australia
- Litigation Funding in Australia
- Online Food Ordering and Delivery Platforms in Australia
- Car Sharing Providers in Australia
- Ridesharing Services in Australia
- Organic Crop Farming in Australia
- Solar Electricity Generation in Australia
- IT Security Consulting in Australia
- Digital Advertising Agencies in Australia
- Petroleum Exploration in Australia
Out of the above list, at least three of these sectors are sustainable trends, while another three prove convenient for the consumer. It makes you think, as a potential business buyer or a current business owner… How will my business appeal to the current market? Do they need me? Do they want me? If so, for how long?
It is important to note that trends in sector growth and profitability are variable, so this list – although current at present, will change in the future. The vital takeaway is to do your research. Understand what consumers in your industry are expecting and what they are yearning for. Can your business deliver this? If you can service a growing market, there is no limit to your business growth.
At Core Business Brokers, we are more than happy to discuss industry trends and past sales data that we have experienced firsthand. Contact Core Business Brokers today, on (02) 9413 2977, or email Roy on [email protected]. We’re always to schedule an appointment and to chat through your options.