Start-up costs for online retailing can be relatively low, as new entrants require a functional website, domain and business name, wholesale distribution points, some marketing spend and of course the (extremely variable) cost to acquire supply and purchase stock.
Revenue forecast: 4.3% pa to 2014
Start-up costs: $7,500 – $260,000 (Note: Start up costs can vary greatly for online retailing with website, marketing, and initial stock purchases being dependant on product type. Selling high end products or complex technology may require significant outlay while for discounted every day products this outlay is much lower.)
Australians love their cars, and our largely suburban lifestyles are extremely car-dependent, which means that despite the fact public transport use is increasing and the economy is slowing, demand for parking continues to grow.
Over the next few years, local councils are expected to come under mounting pressure to either reduce costs or raise more revenue, meaning many non-essential services – including car park operations – will be outsourced, presenting an opportunity for small operators to enter the industry.
The most significant opportunities for new players will be in smaller car parks in suburban areas, since 60% of Australian car parks are small owner-operated businesses, and the start-up costs of suburban car parks are relatively low since the lease contract and automated pay stations are the most significant expenses.
Competition in the industry is also low, although some operators are offering value-added extras such as improved safety and lighting to attract patrons during off-peak periods, but location and proximity to well-frequented facilities such as shops, cinemas, leisure grounds and train stations are vital to succeed.
Revenue forecast: 2.8% pa to 2014
Start-up costs: $20,000 – $100,000+ (Note: The start up cost given relates to establishing a business through leasing an existing car park. If an operator wished to purchase land the start up cost would dramatically increase.)
As the Australian economy continues to slow, many people will delay upgrading their existing vehicles, and will put off repairs, maintenance and servicing – leading to an increase in the number of breakdowns and the volume of motorists needing emergency roadside assistance.
Over the longer term, ageing fleets and higher traffic volumes will also support growth for the towing services industry as commuters who opted to use public transport during tough economic times move back behind the wheel once the economic climate improves.
The gradual emergence of an increasing number of electric cars on Australian roads will also benefit the industry since the technology is new (leading to teething problems) and battery life is limited, which means motorists may be caught unawares.
New entrants into the industry must become accredited by the state roads or transport authority and pay regular license fees (combined cost of around $3000), as well as complying with regulations including driver log books and environmental stipulations.
The cost of a tow truck ranges from as low as $20,000 for a used vehicle, to around $60,000, and operators also need to invest in tracking and communications systems. To succeed, it will be important to have an existing strong network of contacts with insurance companies, mechanics and panel beaters – or to quickly establish a rapport.
Revenue forecast: 3.8% pa to 2014
Start-up costs: $30,000 – $70,000+
Despite the deteriorating economic climate and waning disposable incomes, bicycle retailers are expected to comfortably ride out the storm as consumers switch to bike riding as an inexpensive form of exercise compared to costly gym memberships, personal trainers and pricier recreational activities such as golf or skiing.
Last year total bike sales, in terms of purchase, grew by 38% from 2007 to 1,401,675 and while total sales for sports and camping equipment retailers are estimated to rise by 1.5% this financial year, bicycle retailers can look forward to growth exceeding 2% over the same period, with even better returns projected for 2010.
Government support for healthier lifestyles, and initiatives such as the Victorian and New South Wales Governments’ initiatives to extend and build new bike lanes around city CBD areas are another indication the time is right to enter the industry.
