There are many factors that contribute to a small business’ success. Being in a booming industry helps.
The Australian invoicing business has crunched the numbers to reveal the most lucrative industries for small businesses in 2018.
Among the top performers are trade-based industries with glass and glazing, building and construction, and pool and spa sectors coming out on top.
Invoice2go also identified the auto repair industry as seeing the biggest growth, billing 78% more in 2017 than it did in 2016. This is followed by small businesses in the building and construction industry, which saw billing amounts increase by 59% (YoY). Those operating in the landscaping industry saw billing growth of 58% (YoY).
“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,” says Invoice2go CEO Greg Waldorf.
“Aspiring small business owners shouldn’t discount the tried and tested industries that are seeing rapid and continual growth.
“The majority of our users are businesses made up of one or two people, so the most lucrative industries data paints a really unique picture of the success Australia’s smallest traders are seeing.”
The list was compiled by aggregating annual invoicing activity of more than 23,000 AU-based Invoice2go 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.
Here are the most lucrative industries for SMEs based on average invoice volume per subscriber, per annum.
1. Glass and glazing
Ccontractors in the glass industry are invoicing their clients on average $162,107 per annum.
2. Pool and spa
Contractors in pool and spa are invoicing on average $156,210 per annum.
3. Building and construction
Contractors in building and construction are invoicing on average $139,275 per annum.
4. Plumbing & HVAC
Contractors in plumbing are invoicing on average $138,786 per annum.
Security solution providers are invoicing on average $131,271 per annum.
And here are the industries with the highest growth, based on average invoice volume increase, according to Invoice4go:
1. Auto repair
Average invoice volume issued by mechanics and automobile service providers has grown to $129,175 from $72,469.
2. Building and construction
Average invoice volume issued by small businesses in the building and construction industry has grown to $139,275 from $87,793.
The average invoice volume issued for landscaping services has grown to $65,313 from $41,261.
Average invoice volume issued by providers in the food industry, such as cafes and caterers, has grown to $95,193 from $62,142.
5. Glass and glazing
Average invoice volume issued for glass and glazing services (windows and doors, glass replacement and glass glazing) has grown to $162,107 from $106,627.