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Best Small Business Ideas in Australia for 2022

Written by, Alex Bosnjak

Updated May, 25, 2022

Australia is founded on a market system that gives the country a place among highly developed nations. It had the world’s 25th largest goods export market and 20th-largest import market in 2021. That makes it the 18th-largest based on GDP  (Gross Domestic Product) adjusted for purchasing power parity (PPP) and the 13th-largest national economy based on nominal GDP. 

Read on to find out the best small business ideas in Australia and what steps you’ll need to take to start a business.

Let’s start.

Overview

Before establishing a growing business, ensure you have everything in order. Also, be aware that things will probably not go as planned. This article is for first-time business starters interested in understanding the fundamental procedures of launching a company. 

I’ll also uncover some business ideas that have potential in the Australian market. Considering that almost every beginner has similar questions in mind, I’ll answer some of the most googled questions, so make sure you read till the end.

Best Small Business Ideas in Australia?

Business opportunities in Australia are unlimited. Having one is a liberating experience, particularly for those looking for a way out of the 9-to-5 rat race. Since starting a business has never been more accessible, wasting more time doesn’t make sense. 

So, the first step you need to make when launching a company is to decide what kind of products or services you’ll provide and to whom you’ll market them. 

If you already have a particular market or area in mind, bravo! And if that’s not the case, don’t worry. I’ve done the legwork for you. Below, you’ll find ideas for the most profitable business to start in Australia.

Personal Services

The personal services industry could maintain its expansion in the Australian market due to improved labour market conditions and the tax relief implementation on personal income from the middle of 2018. 

The market for personal services is ever-growing. The increased consumer confidence and rising household consumption made all this possible. It’s could be the best business to start in Australia, whether babysitting, laundry, dry cleaning, or hairstyling.

Personal Services — Capital Required*$2,000–$3,000
Estimated Profit$400
Required SkillsService Skills

Catering

There are around 40,000 restaurants, cafés, and caterers in Australia.

Restaurant & Catering Australia is the only peak organization in the country that represents the interests of its members. The sector generates around $15 billion in revenue each year and anticipates a rise in employment of more than 12% in 2022

Caterers can cook some excellent food that brings them delicious income. It’s all thanks to the large variety of social and commercial events occurring in Australia almost every month.

Catering — Capital Required*$10,000–$50,000
Estimated Profit10%–12%

Required Skills
– Responsible Service of Alcohol (RSA) Certificate,
– Supervisory Skills,
– Knowledge of Dietary Restrictions

Affiliate Marketing

According to a PayScale estimate, the average passive revenue generated by affiliate marketing per year in Australia is $51,217

It’s a style of advertising in which a corporation pays a commission to third-party publishers to drive traffic to its website or generate leads for its various goods and services. 

Anyone with an online presence and a business model can run an affiliate marketing program, from sole proprietors and small businesses to large corporations in the Fortune 500. So, what’s stopping you?

Affiliate Marketing – Capital Required*$500
Estimated Profit5%–30% (Commission)

Required Skills
– Website Designing,
– Content Writing,
– Search Engine Optimization (SEO),
– Marketing and Advertising Skills

Want to learn about affiliate marketing? Here’s a detailed guide to help you get informed about what you’ll need.

Food Delivery Service

If you’re someone looking for the easiest business to start in Australia, this is it. 

Food delivery service is and always will be an excellent business venture. As of 2022, this market has an estimated $847.9 million in revenue. The expansion of this ever-growing sector has outpaced that of the Australian economy in general. 

Now, you might want to know how this works. The restaurants listed on the app pay the delivery company a commission fee for each order placed via the app. This commission is how the business earns a profit. 

Food Delivery Services – Capital Required*$3,000–$25,000
Estimated Profit13%–35% (Commission)
Required SkillsService Skills

Selling at Online Marketplaces

The revenue in the Australian eCommerce market is projected to reach $45.54 billion in 2022. 

It’s impossible to emphasize how much of an influence the COVID pandemic has had on the current condition of eCommerce in the country. According to SalesForce, between the second and third quarters of 2020, the growth rate of eCommerce in Australia was the greatest in the world. I hope these numbers are enough to prove that now is the right time to get your feet wet in this sphere.

You can start with Amazon, eBay, and Etsy. The options for small business ideas in Australia are unlimited.

Want to make money by launching your eCommerce store? Here’s a guide to help you get started.

Personal Services Capital Required*$100
Estimated ProfitUnlimited
Required SkillsSEO, Marketing, E-Commerce

Graphic Design (Selling T-Shirts With Prints)

According to LinkedIn, it’s a good time to be a graphic design graduate in Australia since the field had the fastest-growing number of entry-level job postings throughout 2021. More jobs mean more demand for business. 

Starting a graphic design business is the way to move forward and make more money than a 9–5 job. But it’s essential to keep in mind that this industry has intense competition, and you must have a solid grasp to succeed.

Graphic Design – Capital Required*$2,000–$10,000
Estimated ProfitUnlimited
Required SkillsGraphic Designing

Tutoring

If you’re looking for a cheap business to start in Australia that requires almost zero investment, this is it. 

Providing tutoring services might start as a successful side hustle that can eventually become your primary source of revenue. According to the data supplied by Mohan Dhall, the CEO of the Australian Tutoring Association, the market for private tutoring in Australia is now valued at an estimated $1.25 billion, expanding at a rate of 4.1% per year

What are you waiting for? If you think you have what it takes to be a tutor, get in line.

Tutoring – Capital Required*0–$100
Estimated ProfitUnlimited
Required SkillsAcademic Skills

Consulting Services

The average salary of a consultant in Australia is $90,587 per year or $46.45 per hour. 

According to a Source Global Research study on global market trends in the industry, the current number of Australian consultants will need to increase from approximately 15,500 in 2021 to 20,000 by 2022. So, if you want to know which business is the best in Australia, look no further than consulting services.

Consulting Services – Capital Required*$10,000–$50,000
Estimated Profit$90,587
Required SkillsService Skills

Elderly Care 

A recent analysis by the Productivity Commission entitled Caring for Older Australians estimated that by 2050, over 3.5 million people in Australia would be using the services of an elderly care facility. 

Get in touch with the department of health services to get information on the laws and regulations that govern your business model and the need for insurance.

Elderly Care – Capital Required*$0–$50
Estimated Profit$2,500–$3,500
Required SkillsHealthcare

Selling Homemade Products

Handmade goods could be the best business to start in Australia in 2022, and Etsy is the only platform designed specifically to target the audience looking for homemade products. 

This category provides you with many opportunities to carve out a specific place in the market for your wares. Visual art, objects for decorating the house, scented candles, and nearly anything else a creative person may make are examples of homemade stuff.

Selling Homemade Products — Capital Required*$2,000–$5,000
Estimated ProfitUnlimited ( – Etsy’s Commission)
Required SkillsCrafting Skills

Pet Services

Pet food production in Australia is estimated to be worth $2.8 billion by 2026, according to industry experts IBISWorld. This growth is anticipated because pet owners are increasingly interested in providing their animals with gourmet food alternatives. 

Besides the pet food industry, grooming, training, walking, and veterinary care aren’t far behind, so if you’re not interested in providing such services, they can be quite lucrative for you.

Pet Services – Capital Required*$2,000–$5,000
Estimated Profit(Profit – Marketplace Commission)
Required SkillsSEO, Marketing, E-Commerce

Handyman (House Repairs)

Although there’s a degree of independence involved, being a handyman doesn’t pay as much as other business ideas on this list. According to the Bureau of Labor Statistics, the annual salary of a handyman is often just about $36,000. But unlike in other countries, you don’t need a formal license or qualification to carry out a basic handyman’s duties in Australia. 

You must obtain an ABN, register as a company with the appropriate business structure, and have insurance coverage everywhere you go in Australia. But it’s not all doom and gloom. If you get a few other employees on board, you can charge hefty amounts for your services and expertise.

Handyman – Capital Required*One-Time Equipment Cost ($2,000–$5,000)
Estimated ProfitUnlimited
Required SkillsService Skills

Online Photo Selling

The Job Outlook Portal of the Australian Government states that photography as a profession has a significant potential for future development, having had a tremendous increase from 12,000 in 2017 to 17,100 in 2021

Don’t expect to make much money by selling photos online, but it’s a fantastic place to get your feet wet. Note that your overall earnings will determine the payout percentage you get, which may be anywhere from 20% to 30%.

Online Photo Selling – Capital Required*One-Time Equipment Cost (4,499–$6,299)
Estimated Profit20%–30% Payouts
Required SkillsProfessional Photography

Transportation Services (Import/Export)

It’s anticipated that Australia’s Transport and Logistics industry will contribute $39.91 billion to the economy in 2022–2024 due to its annual revenue of $101.51 billion in 2021

If you have a passion for this industry, growth awaits you. When launching your own transportation business, you should consider an initial investment between $6,000 and $15,000 (excluding equipment). Documentation about registration and formation, which typically ranges from $900 to $1,500, is included.

Transportation Services – Capital Required*$30,000–$45,000
Estimated Profit$15,000
Required SkillsDriving Skills
a pen on the piece of paper that has to do list written on it

Things to Know When Starting a Business in Australia

Now that you know the best businesses to start in Australia, here’s a quick rundown of what’s required to start a business from scratch.

Choose a Business Idea or Niche

Every business starts with an idea. Once you determine the reason behind your desire to launch a business in Australia, the next step is to locate and cultivate a vision for it. After going through the list of the best business to start in Australia in 2022 and your self-assessment, you probably already have something in mind.

Carefully Determine Your Business Objective

Writing down your business objectives will help you explain the overarching goals that your company has and develop a plan to achieve them. They often include a specific window of time and a method for gauging how you’re progressing toward accomplishing the set goals.

Pay Attention to Business Analysis

The analysis is essential for every business opportunity in Australia and globally since it helps potential entrepreneurs detect vulnerabilities and problems. Also, it facilitates the implementation of appropriate solutions and enables ongoing monitoring of the outcomes based on the collected data. 

You can do it yourself or hire a business analyst that costs around $41 per hour.

Register Your Business

Now that you know the answer to “What Small Business Can I Start in Australia?” it’s time to choose the proper business structure (sole trader, partnerships, trusts, and companies). 

The nature of your company should guide your choice of structure that’s optimal for meeting your objectives. Try utilizing this Australian Government Tool to make the best decision.

Apply for an Australian Business Number (ABN)

Using the Business Registration Service provided by the Australian government, you can register a business name. The Company Registration Service (BRS) consolidates several business and tax registrations into a single location, making it simpler to launch a new enterprise. Here’s a rundown of the ten steps:

  1. After successfully logging in to ASIC Connect, click on the “Licenses and Registrations” option.
  2. In the drop-down menu, choose “Business name.”
  3. Enter your Australian Business Number (ABN).
  4. Enter the suggested name of the company.
  5. Choose the time range for your registration.
  6. Enter the company owner’s data.
  7. Enter the addresses associated with the business name.
  8. Confirm that you meet the requirements to hold the company name. 
  9. Review your application.
  10. Proceed to the last step to complete the transaction by making a payment and confirming it.

Build a User-Friendly Website

After locking up an idea from the list of small businesses in Australia, is it necessary for you to have a website? The correct response is “yes.” 

There aren’t too many businesses in Australia or anywhere in the world that can make it without an online presence, leaving no choice for new business owners. 

Your company’s website has the potential to be a highly effective and incredibly cost-efficient marketing tool.

Are you looking for the top website building platforms, or do you need help registering a domain name in Australia? We have everything you need to know.

Conclusion

With technology and automation on your side and innovative methods to boost your business cropping up everywhere, there has never been a better moment to be an entrepreneur. But what’s the one item you need to get your company off the ground? 

You guessed it, a terrific concept. Now that you know the answer to “What business should I start in Australia?” choose your passion from the list above and turn your dream into reality.

Remember, the sky’s the limit!

FAQ

What is the most profitable business in Australia?

IBISWorld compiled a list of Australia’s most profitable sectors for 2022 based on the study of industry experts and a database of more than 750 Australian businesses. The following make it to the top five: Superannuation Funds ($137.7B), Iron Ore Mining ($56.1B), Finance ($45.1B), Retail Superannuation ($41.1B), and Professional Services ($22.2B)

What businesses are in demand in Australia?

According to the global bank, Australia moved to 14th place in the world in 2021 in terms of how easy it was to start a company here.

Some of the most essential and diversified ideas for new businesses in the country include affiliate marketing, consulting services, food delivery, and selling at online marketplaces. Each of these has the potential to be profitable, and you can launch it with a minor initial expenditure.

What business should I start in Australia as a beginner?

Remember that choosing a company to run is an entirely personal process. To get you started on the entrepreneur path, here are the best small business ideas in Australia I think you should consider: catering, affiliate marketing, babysitting, dry cleaning, and elderly care.