Sole traders and micro businesses operating in Australia’s tried and tested’ trades-based industries are enjoying the most growth and the greatest financial returns, according to data released by fintech startup Invoice2go.
The Most Lucrative Industries for Australia’s Small Businesses list was compiled by aggregating annual invoicing activity of more than 23,000 Invoice2go mobile app users. The ranking was determined by the average dollar amount invoiced per month by the local businesses in each industry from January to December 2017.
‘Auto repair’ was the highest growth industry in 2017, with mechanics and automobile service providers billing customers $129,175 on average, up 78% from 2016. This was followed by ‘building and construction’, where billing amounts increased by 59% to 139,275. Meanwhile, small businesses operating in the ‘landscaping’ industry saw billing growth of 58%, with the average invoice volume increasing to $65,313. The other key growth industries were ‘food’ where the average invoice volume was $95,193 (53%), ‘glass and glazing’ where the average invoice volume was $162,107 (52%), and ‘fitness’ where billing amounts increased 49%.
“We often see rankings of the fastest-growing tech companies in emerging industries, but we don’t often measure the industries that have been, and always will be, critical to our economy and society,” said Invoice2go CEO Greg Waldorf. “Aspiring small business owners shouldn’t discount the tried and tested industries that are seeing rapid and continual growth.”
The data has also identified Australia’s top five highest achieving SMB industries, based on the average invoice volume per annum per Invoice2go user. ‘Glass and glazing’ ($162,107) topped the list, followed by ‘pool and spa’ ($156,210), ‘building and construction’ ($139,275), ‘plumbing & HVAC’ ($138,786) and ‘security solutions and locksmiths’ ($131,271).
Waldorf said the list suggests blue-collar industries are ‘here to stay’ and are providing a booming opportunity for small business operators. He added, “Small businesses are key to the prosperity of Australia’s business landscape, and this extends globally. It’s great to see our customers thriving on increased earning potential, and making their mark on the Australian economy, which continues to grow steadily.”