Most Profitable Small Business in Australia
Are you scouting for the most profitable small business to start in Australia? Maybe you are a migrant who cannot find meaningful work and wants to start something new? Or you want to prepare for retirement by starting a business in your old age? Then look no further. Located in the Asia-Pacific region with a population of approximately 27 million, Australia is the right place to set up a business, and you won’t be alone. According to the Australia Bureau of Statistics, there were up to 2.5m businesses as of June 2024, the majority of which (over 97 per cent) were small businesses (categorised as those with less than 20 employees).
| Number of employees | Number of businesses | % of total businesses |
|---|---|---|
| Small business (0-19 employees) | 2,589,595 | 97.2% |
| Medium business (20-199 employees) | 68,214 | 2.6% |
| Large business (200+ employees) | 5,189 | 0.2% |
| Total | 2,662,998 | 100.0% |
Such businesses do not require much capital to start and can provide an income stream for you and your family.
Structure of the Australian economy
The Australian economy is structured differently though, and this is something you need to know before you start a business. The economy is mainly dominated by the services industry with limited manufacturing.
As of November 2024, the Reserve Bank of Australia estimated key sectors to be as illustrated in the diagram below.
We can see that the health and education sectors, for example, are bigger than than the manufacturing sector. That means we buy things we use from overseas – mainly China, and export services, such as education.
A few years ago the education sector was the second biggest forex earner for Australia, sold mainly to Asian students (mainly Chinese and Indian students).
I therefore postulate that the majority of the 2.5 million small businesses fall within the services sector – education, health, finance and community etc.
It is important to note that many small businesses that provide welfare services to Australians and recent migrants / refugees receive funding from the government.
Below I discuss the top 5 most profitable small businesses you can establish in Australia.
1. NDIS business
The sheer scale of the NDIS business is insane. And those who jumped in the bandwagon soon after the NDIS was started have reaped immense benefits.
The States and Commonwealth governments annually inject approximately A$40B in the National Disability Insurance Scheme (NDIS). I have talked about NDIS in another post – check it out.
Part of that money goes towards beneficiaries (disabled clients), part towards companies and organisations that directly provide NDIS services, and the rest towards other service providers such as accommodation, shopping and recreational businesses.
NDIS, in my view, is the top most small business you can establish in Australia currently and succeed instantly.
2. Massage business
Massage business is lucrative, if you know your job and can get repeat customers. An hour long massage can cost up to $150, or more. Repeat customers will attend a specific massage parlour at least twice a month.
Massage businesses in Australia are mainly run by Asian migrants, especially Thais and Indonesians, much of the services paid for in cash, and not taxed.
3. Food business
Whether we like it or not, we must eat. Nowander the demand for chefs and hospitality workers in Australia is very high.
Food businesses are lucrative, but also have a high attrition rate due to high workload (and poor pay), rental and labour costs, and fluctuating seasons.
At the height of Afrofeast, we could make up to $30,000 during a weekend festival.
Most migrants with limited English language skills start food businesses, and are doing well.
An example is the Asian Noodle House in Alice Springs which is always busy. My work colleagues and I eat in that restaurant regularly. On average, I spend $20 per visit.
The demand for ethnic food has enriched the Australian culinary scene. Food from countries like China, Thailand, Vietnam, Nigeria, Ghana and Ethiopia are very popular in Australia.
So don’t wait, If you need to start a small food business, get on it and JUST DO IT. With hard work and resilience, success is waiting for you.
4. Barber business
This is another low-cost, lucrative business you can establish in Australia with low capital. It is particularly popular with Middle Eastern and African migrants.
I remember I used to visit Coburg / Sydney Road in Melbourne to cut my hair, and most barbers were of Iraqi, Iranian, Lebanese and African descent.
Africans are natural hair braiders and groomers. Their hair braiding and grooming skills are inculcated from a very young age.
Several African and Asian migrants have established hair businesses in towns like Blacktown and Footscray.
5. Social media influencer business
Social media is a source of income for many Australians and migrants. Tiktok and YouTube are particularly popular, so is Instagram.
Many migrants have jumped on the social media bandwagon to build personal brand and income.
They dance, act, raise awareness about racism and discrimination, tell the truth about history, sell services and products, and thousands, if not millions, follow them.
Afrobeat, is particularly popular on tiktok. Big brands are smart to know that the old strategy of advertising with big media is not effective in the current networked world.
Instead, they reach out to small social media brands with high followers and engagement rate to advertise and promote their businesses.
However, to succeed as a social media influencer, you must be creative, bold and consistent.
Conclusion
The above, in my opinion, are the most profitable small businesses in Australia. Is there something I have left out? Let me know.
Now, get out there and DO IT. Why not?
