Sustainable Business Ideas

Some business ideas have a high chance of success, but many don't.

Statistics vary, but around 15 to 20% of workers in Australia and the UK are self-employed. Australia alone has over 2.7 million registered businesses.

Research suggests that up to 20% of new businesses fail in their first year and over 60% will not survive beyond three to six years.

With numbers like these, choosing the right business idea is more important than ever.

One of the best pieces of advice comes from John Mason, a business owner for 47 years: “Do something that is different to what everyone else is doing.” Standing out in a crowded market is often key to long-term success.

Also, choose something you have a passion for. Some businesses can succeed in the short term, but eventually fail unless the owner has a passion for what they are doing. If you love the work, and are driven by what you are doing, the likelihood of success being sustained into the long term will increase. Also passion is infectious. A passionate boss inspires staff to be more invested and productive as the business grows and the years pass.

YOUR FIRST CHOICE - WHAT ARE YOU SELLING?

Consider your passions
Start by thinking about what excites you. Your hobbies, interests and experiences can provide the foundation for a business. Doing something you genuinely enjoy not only keeps you motivated, but it can also make learning and growing your business feel more natural and rewarding.

Explore industries that interest you
Look at a variety of sectors and consider the ones which capture your attention. For example - construction, health, education, technology, retail, travel, hospitality, manufacturing, sports, media, agriculture or environmental services. It is equally important to recognise the industries you have little or no interest in, so you can rule them out early.

Assess your skills and experience
What are you already good at? What knowledge or skills do you bring to the table? Understanding your strengths can help you identify opportunities where you can value-add to gain a competitive advantage.

Combine passion, interest and skill
Bring together your passions, industry interests, and skills to home in on potential business ideas. Ask yourself:

Is this idea relevant to an industry I care about?

Am I passionate about the products or services I would offer?

Can I use my existing skills and experiences to make this business work? If you can exploit a skill you already have, do so. If you need a skill you don't have, learn it.

Once you have narrowed the possibilities down, you can start exploring specific business opportunities that meet these criteria.

GOODS  vs. SERVICES

All businesses provide either goods or services in exchange for payment. In developed countries, service-based businesses dominate the market, with over 80% of workers employed in service industries. Offering a service that is in demand can be a smart starting point, particularly if there is a shortage in your chosen market.

Alternatively, businesses that supply goods might be more suitable depending on your interests, skills, and location. Goods can be produced as raw materials, like mining or farming; or they can be manufactured. Producers often sell in bulk to retailers, who then sell smaller quantities on at a higher price. Some small businesses combine both production and retailing. Understanding the dynamics of goods and services can help you plan your business model more effectively.

PLAY THE ODDS

Persistence is the other factor to always consider.  If one business idea isn't working, know when to quit and try another. Think about it. If only 40% of businesses are sustainable for over 5 or 6 years; odds are if you try three good ideas that you are passionate about, one is going to be successful. Of course it can also depend on who you are and a little lick thrown in, but persistence will usually result in eventual success for most people, but not for most ideas.

Learning More About Business

If you are considering starting your own business, studying business fundamentals can help you gain the knowledge and confidence to succeed. ACS offers flexible online courses that cover business planning, entrepreneurship and management. These pathways can help you explore business ideas, refine your skills and build practical experience - all from the comfort of your own home.

For more information on ACS study options, visit our courses page or contact us at admin@acs.edu.au.