Ten growth areas: Is it a good time to start a new business?

The present cost of living and the high inflation, coupled with customers spending less, doesn’t paint a good picture for small businesses. 

However, tough economic times historically can lend themselves to successful business ventures. So, should you look at starting up a business in such turbulent times? 

Entrepreneurs should seek out a business space that needs filling – an untapped market, for example – and create a business that has the potential to generate sustainable, long-term profit. 

So, you’ve got a great idea for a business. What do you need to do to make it real? 

What should you consider before starting a business?  

• Research the market and potential competitors.
• Create a business plan (maybe pivot along the way).
• Seek funding.
• Check out if there is government funding.
• Make sure you have the right insurance (SEE BOX).
• Create a marketing and business development plan.

10 business start up ideas for FY25  

1. Speciality food
   
   The demand for sustainable and health-conscious food products is growing, with Kiwis spending more than $60m annually on organic produce.
   
   
2. Technology businesses
   
   This is a rapidly growing segment and includes a growing export market. Businesses can vary from software to Artificial Intelligence.
   
   
3. Pet business
   
   New Zealanders spend nearly $2 billion on their pets annually. More than three-quarters of us have pets and there are nearly 200 million pets overall. The business can be service-based, such as dog walking or grooming, or product-based, such as food and toys.
   
   
4. Crafts
   
   What may have started as a hobby, making your own candles or soaps, etc. may become a solid business. The field is wide open to product ideas, selling your products online or supplying shops.
   
   
5. B&B/Airbnb
   
   Airbnb has rapidly overtaken bed and breakfast enterprises. It contributed nearly $3 billion to New Zealand’s GDP last year and supports over 20,000 Kiwi jobs. Our tourist market has recovered from Covid-19 and the number of overseas visitors is increasing.
   
   
6. Health and wellness services
   
   A major growth area world-wide, particularly as we became more health-conscious with the pandemic. The industry includes health, fitness, and nutrition.
   
   
7. Consulting Business
   
   If you have business expertise, then you can offer your services as a consultant where you provide expert advice and strategies to businesses. The market size of New Zealand consultancy services industry measured $10.5 billion last year.
   
   
8. Handy person
   
   The home repair and improvement industry, as well as garden service, is huge. However, you need to ensure you fill a suitable niche as the competition is fierce.
   
   
9. Creative arts and craft
   
   Creative businesses contribute over $17 billion to the GDP and employ over 130,000 people. Locally made products are in demand both locally and internationally.
    
10. Influencer
    
    More and more influencers pop up on social media and some influencers have cornered many businesses to pay for their endorsement. Many influencers have created multiple revenue streams and continue to expand their services to a greater online audience.

Uncertain times can make it harder to start and build a business. But there’s no certain or perfect time to do so. 

What are some common business insurances to consider for your business?  

It’s important when a business is started to be adequately covered by insurance. 

Here are five types of commercial insurance to consider: 

Commercial property

This can help to provide cover for a range of important risks for your business, including natural disasters; fire or accidental damage; breakdown of service machinery; and liability risks.

Business interruption

Sometimes known as continuity insurance, this can help minimise the financial impact of an interruption to your business operations following a physical loss to your assets.

Commercial motor

This cover is similar to personal motor insurance but covers commercial vehicle and business fleets.

Liability

These covers often ranges from general public to product liability. General public liability provides protection from liability arising from damage to third party property or bodily injury. Product liability covers liability for damage or injury caused to another business or person by the failure of your products. There are a number of other liability insurances.

Cyber insurance

It can help businesses financially manage and recover from loss resulting from a cyber incident, such as ransomware, malware, a virus or loss of data.

It’s important you seek advice from a broker when you are starting your business. They can help you have the right cover to protect your business when disaster strikes and help you and your business get back on their feet. 

Important notice  

This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, and seek appropriate financial advice before you act on any information. 

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