Succeeding in business in 2014 will take more than a lucky strike. As it does in any year, many factors come into play in the entrepreneur’s quest for prosperity, from consumer and market forces, audience targeting to levels of demand.
Unfortunately, there is no ‘one-size-fits-all’ approach to business success but economists and trend watchers agree that some sectors have greater potential for prosperity in 2014 than others.
Start-ups that position themselves in the following industries could hit a home run in 2014.
1. Business, professional and property services
The latest MYOB Business Monitor revealed that entrepreneurs in this sector were the most confident about the economy. This clearly says a lot about the potential of this sector.
30 per cent expected the economy to improve within 12 months but more importantly, 29 per cent anticipated their annual revenue to rise in the 12 months to August 2014.
The property market in particular is looking hot, with the number of housing finance commitments up for nine consecutive months to October 2013, according to estimates by the Australian Bureau (ABS).
2. IT & Telecommunications
We are using mobile devices more, and that is definitely good news for this sector.
The ACMA indicates that Australian smartphone ownership increased by 29 per cent to 11.2 million during 2012-13 and we have all seen how fast apps built specifically for these smartphones have been churned out. Practically dozens are released every week!
Businesses that cater to the smartphone-savvy consumers who use their phones for myriad purposes – to shop online, access and download documents on the go, navigate and organise their day – could very easily make a killing this year.
And with more than two million active SMEs in this country, there is an opportunity for accounting software app developers to make business life even easier for entrepreneurs that manage (or want to manage) their finances on the move via tablets and smartphones.
3. Cloud ‘enablers’
More broadly, with the uptake of cloud computing growing very rapidly, most savvy technology businesses that are cloud ‘enablers’ (companies that deliver key components or connections for the cloud)are well positioned for success this year.
And, with business operators who utilise online technologies being more likely to see annual revenue rises (again, according to the MYOB Business Monitor), demand could rise further.
Our local health and medical industry has grown rapidly thanks to world-leading innovation and R&D as well as the increasing demand due to our ageing population.
According to the ABS, in the five years to September 2013, over 275,000 of the one million new jobs created were in the health sector. The same research also suggests that health care and social assistance businesses are the most likely to survive and thrive.
It is also worth noting that Austrade figures indicate that nearly 80 per cent of businesses in the medical technology field are SMEs and the balance is made up by global multinationals.
Clearly, the health industry is healthy for start-ups!
5. Hospitality and tourism
With the dollar dropping in value, Australia is increasingly becoming an attractive market for online purchases from overseas and an appealing travel destination for tourists.
In fact, according to Tourism Australia, a record number of Asian tourists visited last year and Chinese visitors spent more on tourism here than any other country ($4.5 billion).
There you have it, now you know where best to aim if you intend to shoot…
Tim Reed is the CEO of Australia’s largest business management solutions provider, MYOB . He oversees the business’s growth and its expansion into online services, a journey that continues today. Tim’s strengths centre on his ability to develop and drive strategy, particularly when marrying technology and business.