With its flourishing business and economy, Perth is rapidly becoming an attractive place to invest or open your own business in. Not to mention, the government offers assistance for small businesses. However, if you want to be completely sure the business you will buy or open succeed, you need to do thorough research and planning. Explore what Perth business broker experts have to say about these profitable small businesses to buy or invest in 2023 so you can make an informed decision regarding which business to buy in Perth.
Perth Business Broker Recommends Buying Beauty Salon
On average, Aussies spend $3,600 annually on the beauty industry, making a total of $22 billion spending on beauty products. If this number does not convince you yet, an average salon profit margin is 8.2 percent. That is higher than the overall average business profit margin, which is 7.7 percent.
Since a profit margin can be broken down as the revenue your business makes minus the cost of running it, our Perth business broker professionals have elaborated what you can consider before buying a beauty salon in Perth.
First, to increase your revenue, you can increase the number of customers your beauty salon has, or the money each customer spends in your salon. For example, you can offer more sophisticated or specialty service to your customers and cut a higher profit margin from such services. Alternatively, you can create a referral or treat a friend program to incentivise your customers to bring their loved ones to your business.
Second, to decrease your cost, you can optimise your fixed cost, or your variable cost. For instance, you can split your rent by sharing your space with another business. Or, you can negotiate a long-term contract with your local suppliers in exchange for better prices.
If you are interested in discussing the profitability and sustainability of buying a beauty salon in 2023, get in touch with our Perth business broker experts today.
Perth Business Broker Recommends Buying Local Bakery
How often do you shop baked goods? And how much do you spend on baked goods? Considering the market size of Australian bakery and cereals products is $9.05 billion in 2021 with projected 2 percent growth, and on average $0.11 out of every dollar of wages is spent on bread and cake, it’s safe to assume that a bakery is a profitable business to buy.
The average profit margin for a bakery is up to 9 percent, but baking is a competitive industry due to the relatively low barriers to entry and saturated market. This means, buying an established local bakery would be a better investment than building your own from scratch.
For more details on what other consideration you need to take into account before buying a bakery in Perth, reach out to our friendly, experienced Perth business broker team today.
Perth Business Broker Recommends Buying Cleaning Service Business
Cleaning service is a business most people overlook. With a market size of over $20 billion in 2021, it’s clear that this is a profitable, in high demand business.
In Australia, cleaning service business is further categorised as Residential, Commercial and Industrial Cleaning, based on the area they cover. On top of the type of properties they serve, cleaning service business can be further segmented by service type, such as window cleaning, floor care, vacuuming, janitorial, to carpet and upholstery cleaning. Whilst janitorial cleaning service business is the sub-segment with the highest revenue and fastest growth, you can consider other aspects of the business you are thinking of buying before making your decision.
To help you understand more about the profitability and sustainability of a business you want to buy, our Perth business broker team are more than happy to give you a consultation at your chosen time.
