Why a great idea doesn’t guarantee business success

A great idea alone is rarely enough to secure business success.

Small business owners must also arm themselves with knowledge about which sectors are growing, what problems other businesses are solving and where consumers are willing to spend their cash.

Lisa Bora, KPMG partner in charge of clients and markets, says it’s crucial that for businesses to have a really clear proposition in the market.Credit: Louise Kennerley

Successful companies evaluate the landscape and work out where they fit within it, says Lisa Bora, KPMG partner in charge of clients and markets. “It’s crucial that you have a really clear proposition in the market,” she says. “Who is my audience, what is my true proposition and how do I differentiate from competitors?”

Whether you’re already up and running or toying with the idea of going out on your own, here are three growing sectors that hold valuable lessons for business owners of all kinds.

Healthcare disruptors

The nation’s health services market generates a whopping $207 billion in revenue a year, according to industry analyst IBISWorld, and is one of the most resilient sectors when economic times are tough.

In 2023, the global digital health market was worth $US241 billion ($361 billion) and is expected to increase fourfold to $US947 billion ($1.4 trillion) by 2030, according to forecasts by Grand View Research.Credit: Manuel Balce Ceneta

In 2023, the health and social assistance sector posted the largest increase in business numbers, according to the Australian Bureau of Statistics, with a 6.7 per cent jump in the number of businesses to more than 185,000 companies.

The boom in digital healthcare that began during the first days of the pandemic is continuing. Digital healthcare accelerator ANDHealth has seen a 36 per cent year-on-year increase in the number of health startups on its database since June 2020.

ANDHealth co-founder Grace Lethlean says that patients are more ready than ever to use digital products, setting the scene for a new generation of businesses.

“People in their everyday lives interact with apps now. Post-COVID, everyone can use a QR code, whether you’re a grandma or a seven-year-old. The digitisation of life has really enabled patients to interact with digital health and they are coming to expect it.”

Australian companies are already solving a range of healthcare challenges, from Perx Health, which helps patients manage their treatment plans, to VaxApp, which lets health services and pharmacies streamline immunisation bookings.

In 2023, the global digital health market was worth $US241 billion ($361 billion) and is expected to increase fourfold to $US947 billion by 2030, according to forecasts by Grand View Research. “Australia has an opportunity to build the foundations of a globally competitive digital health industry,” Lethlean says.

Sustainability and community

Meanwhile, as households pull back on discretionary spending, consumers are demanding more from companies when it comes to sustainability and social responsibility. This trend helps support the rise of social enterprise businesses, which trade intending to support and improve their communities. There are 12,000 social enterprises in Australia that deliver a $21.3 billion economic impact, according to Social Enterprise Australia.

Younger consumers are willing to pay more for ethically produced products than their older counterparts.Credit: iStock

Earlier this year, the federal government unveiled $11.6 million in funding for social enterprise development across the country. Bora says that consumers are also demanding more from businesses on sustainability, and companies must understand that consumers want more than platitudes about their goals.

“There is a lot of focus on environmental, social, and governance (ESG) and sustainability, but the real issue that we need to focus on is the move to action from just intent,” she says.

As cost-of-living pressures rise, there has been speculation that shoppers may be less willing to pay for sustainable or ethically made products.

However, there are signs that consumers of the future are spending in line with these values. Research from Monash Business School’s Australian Consumer and Retail Studies Unit released last month showed that younger consumers are more willing to pay more for ethically produced products than their older counterparts.

Artificial intelligence for real growth

Every founder has read glowing news headlines about the AI boom. Experts say now is the time for small business owners to get familiar with artificial intelligence or risk getting left behind.

“In a way, small and medium businesses are the big winners out of all of this because billions of dollars have been invested in AI, and that has made it accessible and inexpensive,” says the founder of UNSW’s Business AI Lab, professor Mary-Anne Williams.

“It’s like giving a farmer a giant robot tractor – AI really is a gift.”

Founder of UNSW’s Business AI Lab, professor Mary-Anne Williams.Credit: Jesse Marlow

While the hype over AI-focused businesses might be waning, the sector’s growth now has implications for smaller operators across all industries.

“It’s super important for Australian businesses to learn, experiment and utilise this new technology,” Williams says.

Bora notes that practical applications of AI are already being found in businesses right across the retail sector, where brands are using it to streamline personalisation and customer service.

“There is a lot of interest now in how to do customer support and customer care with the support of AI,” she says.

No matter the industry, business owners should spend the time getting familiar with AI tools and running small, manageable trials of the technology within their businesses.

“You want to create a little kind of project that transforms your work product, in a small way, but critically in a way that can scale,” Williams suggests.

“If a business is not strategic around this technology, then their long-term future is in jeopardy.”

Next in the series: Nailing your unique idea

This story was created in partnership with Google. The content is independent of any influence by the commercial partner.