Small businesses are big players in the economy. As of June 2024, they accounted for 97.2% of all Australian businesses.¹

In recent years, virtually every Australian business has faced a series of economic challenges, from COVID to inflation.

If you’re thinking about starting a business, it makes sense to plan for good times and bad. Here are some types of businesses that may be best suited to navigating economic uncertainty.

Healthcare providers

Healthcare services are in demand no matter the state of the economy. Consumers are likely to continue to seek out even medical and pharmaceutical services even when they’re watching their discretionary spending.

Repair services

Improving your DIY skills – and getting accredited for them – could come in handy.

When times are tough, people are more likely to engage repair services than buying new. For example, if someone’s car breaks down, a person might be more inclined to take it to their mechanic for repair than buying a new car.

You may even find you’re in demand post-recession, too.

Retailers of ‘accessible luxury’ items

Though consumers may have less disposable income during a recession, they’ll still want to treat themselves in a way that’s affordable.

Big-ticket luxury items might be off the cards, but smaller, less expensive luxuries like cosmetics and eating out tend to remain popular.

Setting up your new business

Don’t let a recession put you off your business dreams. Setting up a new business has its challenges regardless of the economic environment. Here are a few things you’ll need to do along the way:

• Test your business idea: Before making any decisions, do your research. Think about the industry and the area where you’re expecting to establish your business. Consider your potential customers and competitors and how you can differentiate your business.
• Create a business plan: A business plan will outline the goals and objectives you have for your new business. If you’re unsure or you’d like a hand, reach out to a business advisor for support.
• Decide on a business structure: This is where you’ll determine if your business structure will be sole trader, partnership, a company or trust. The fun part? You’ll also need to decide on a name.
• Understand your legal obligations: Before you start trading, you need to fulfil certain legal obligations related to licencing, contracts, insurance and tax. Be sure to consult with a legal professional if you’re uncertain about the process or have any questions.
• Organise your finances: You’ll need to arrange business banking accounts and additional finances. Business loans are a common way of funding new businesses. To apply for a business loan, you might need to provide your lender with business projections and plans.

Learn more about business loans

How to seek financial difficulty support

If you’re a Suncorp Bank customer experiencing financial difficulty, get in touch today. We work with our eligible small and medium-sized business customers on a case-by-case basis to provide confidential and tailored support.

Learn more about financial support

Published 24 October 2024

1. Australian Small Business and Family Enterprise Ombudsman, https://www.asbfeo.gov.au/small-business-data-portal/number-small-businesses-australia (statistic obtained on 24/10/24).