While the Australian economy is generally on the rise, according to Business Insider Australia, some SMEs are struggling. The March release of the Westpac-Melbourne Institute SME index showed that the current business landscape is recovering from big changes in the mining industry. Whilst some areas are doing well, others are not, which indicates that while there are some risks in management, there are also some great business opportunities.
While the results look marginally grim, chances are that small business owners are recovering from the post-Christmas lull in consumer spending, and that this may have reduced their levels of optimism. In all, the number of businesses has increased at 1 per cent annually over the past two years according to the Australian Bureau of Statistics, showing more general signs of good health rather than the SME index, which only reports on the past three months.
Some industries are faring better than others. In particular, agriculture, hospitality and recreational services show a lot of promise. But the top performers were the professional services and health care/aged care, which are driving the most growth in terms of profit and employment.
Although almost half of small business owners reported a decline in profits, SME owners in the hospitality and recreation sector experienced a 16 per cent growth in profits and a 21.3 per cent increase in sales.
While the rest of the nation's performance isn't as convincing, New South Wales is currently strong with future prospects for the state looking even stronger. Additionally, Queensland and Western Australia are showing signs of rapid improvement.
So if you are looking to buy a business today, make sure you do some research. Forecasting for success begins with choosing the right time, right place, and the best industry to enter. A great place to start your search is by checking out the abundance of businesses and franchises for sale in your area.