Numbers may spell success in 2011
A NEW report has identified five industries as offering the best prospect of start-up success next year.
Accountancy, house construction, landscaping, plumbing and take-away food retailing were IBISWorld's top-five start-up opportunities for 2011.
The leading industry-based research provider said while the news was all positive for those with a trade or in professional services, it was a bleaker situation for service-oriented businesses “tackling the rapid pace of technological advancement”.
IBISWorld said although accounting services had suffered three consecutive years of declining revenue in a tough economic climate, it was still performing reasonably well.
In 2011-12, revenue in the sector is forecast to grow almost 6%, with more than 300 new accounting enterprises tipped to start up.
Increased regulation stemming from the global financial crisis would lead to more demand for accounting services to ensure compliance with new reporting rules.
Housing construction conditions are projected to strengthen considerably over the next few years as the housing investment cycle enters its next growth phase.
While interest rates are expected to rise, IBISWorld does not believe it will significantly dampen the recovery in housing commencements.
“Existing operators will have the advantage of access to a pool of skilled subcontractors, ongoing arrangements with material suppliers and ongoing arrangements with financial institutions and property developers,” IBISWorld general manager (Australia) Robert Bryant said.
The landscaping industry, the report said, was continuing to benefit from Australia's obsession with lifestyle television programs and appreciation of specialist landscaping techniques.
Plumbing services made the list because the sector is intrinsically linked to housing construction, while an expected rise in employment and subsequent improved consumer confidence is tipped to result in more “time-poor Australians seeking convenience food”.
“Over the next five years, the industry is forecast to grow by 13.3% to be worth $18.71billion,” Mr Bryant said.
IBISWorld's top-five start-ups to avoid are automotive fuel retailing, computer maintenance services, household equipment repair services, image processing and printing services, and plant nurseries.