Current Business Trend in Sydney

Current Business Trend in Sydney
Charlotte Snow, Josh martin
Griffith University
Key Terms: Business Trend in Brisbane, Economic Trend, Business Performance in 2018
Introduction
Sydney is the capital city of South Wales and also considered as the Economic Centre of Australia. The
economy of Sydney is showing signs of improvement since the year 2014. Major contributors to
Sydney’s economy are sectors like manufacturing, B2B services, health and retails etc.
In case the inflation remains under control Reserve Bank proposed not to change the interest rates to
give a positive outlook about the economy to the investors. The confidence of Investors has already
increased in last few years in the property market. Renting an office space is also considered to be
cheaper in Sydney making it more popular with the entrepreneurs.
Trend in Manufacturing Business
Sydney is like a manufacturing hub of Australia. In the year 2012-13, Sydney alone had a manufacturing
industry of $21 billion. Same year, manufacturing was the second largest employment generating
industry of Sydney as well. It employed more than eighty-seven thousand people. Although this sector is
on declining side since last few years, it still one of the highest contributor to the Gross Regional Product
and a significant industry in Sydney.
Healthcare
This industry is the largest employer of Sydney workforce (around 9%). This industry is sub-divided into
various specialized services like hospitals, general practitioner and dentists etc. With the aging
workforce, this industry would need a good number of practitioners, dentists and other health workers.
This also involves the health insurance sector which is highly regulated for the private sector. Jobs in this
industry are expected to grow by more than 16% by November 2018, whereas forecast for revenue
increase is at a compounded annual rate of 4.5%.
Technology
Technology is gaining much attention in Sydney and other Australian districts. Every individual, be it a
kid or an adult, is seen fiddling with some or the other gadgets in their hands. People are showing
interest in various social websites by uploading pictures, sharing posts and so on. This advancement has
opened gates for eye care experts and products. People usually spend a good proportion of their day in

front of these gadgets which is providing harm to their eyes. Such technology driven lifestyle drives the
demand for eye care specialists because of the increasing rate of eye care problems.
Travel and Tourism
Sydney is the one of the world’s premier tourism and major events destinations. It has hundreds of eyecatching
historical buildings. People from all parts of the world visit Sydney for mind-blowing cultural
and sporting events. The city has marked a splendid growth in the number of visitors since 2014. Apart
from spectacular tourist spots, people visit the city to work in partnership with Business Events Sydney
to win major international conventions and a lot more. It is expected that the number of tourists will
double the visitor economy by 2020.
Sydney is one of the most beautiful cities in the world. The market is ever growing and never really gets
out of style. It is a perfect destination for tourists and a perfect house for its residents. All the possible
indications show that the market gets into first gear and immediately cranks into the second. . The
bullish market never fails to adopt new and upcoming trends and is truly a city for all
Housing
The year 2015 has seen no sign of slowing down market for houses and suburbs. Rather this year has
built up an unprecedented wave of confidence among potential buyers. Sydney’s market was stuck at a
constant rate since 2002-03, but median house prices increased by 14.1 percent last year followed by a
further growth of 1 percent in 2015. This remarkable growth has brought in changeover buyers from
various parts of the world and is one of the strongest periods in Sydney’s history. This is going be a yet
another bullish year for the Sydney housing market. A main reason for such high rates is the growing
population.
Tips to ready business for sale in Sydney
Selling a business is not a simple task of advertising and waiting for the highest bidders to come your
way. It involves lots of processes which need to be followed keenly. The decision calls for total sobriety
and critical thinking. Although it may be quite involving, you can do it successfully. The most important
thing that you should do is making adequate preparations. Here are some tips that you can use to
prepare your business for sale in Sydney.
1. Prepare Early
You don’t have to wait until the last minute to start making your business ready for a deal. Start
the preparations weeks or even months before the actual sale. So, what are some of the things
that you should do? Maximise the performance of the business. Look for ways to boost the
profit of the company as this will help to increase its value. Doing so late or some weeks to the
actual sale may be an effort in futility. This is because the gains won’t have much significance.
When negotiating for the valuation of your business, potential buyers will be obsessed with the
most recent numbers. They will be wooed by impressive figures that you show them. Cut down

on the operating costs and improve efficiencies. These will go a long way in increasing your
profits.
2. Make Yourself Inessential
Selling your business means that it will be under the ownership of new faces. The first question
that you need to ask yourself is, can the business survive without my presence? Look beyond
the survival, gauge whether it will thrive and prosper without you being involved. To know this,
start making yourself redundant. Although this could be deemed as being a stupid move, it can
make a significant impact during the sale. Keep in mind that the buyer will be focusing on buying
the business entity and not you. They need to be assured about the continuity of the business
even in your absentia. It's true that you may be eager to boost the performance of the company,
but try to limit your heavy involvement.
3. Cut Down on Unnecessary Expenses
When negotiating for the sale, you need to show the prospects how your business is efficient
regarding cost management. Start by getting rid of those extraneous expenses that add no
significant value to the company. Do you need the luxury assets that are rarely utilised? What of
the frequent business conferences? Do they add any value to the employees? The earlier you
start doing this, the better.
4. Spread out Your Customer Base
One of the things that prospective buyers will look at before buying your business is the
customer base. Does your company rely on a specific group of customers heavily or is your
customer base spread across different sets of people? Try to reduce overreliance on one
customer base, and instead, focus on diversifying while at the same time giving particular
attention to the loyal customers. However, the lifeline of some businesses may depend on a
specific target group. If yours falls into this category, you can still focus on broadening its size. It
is also prudent to have signed contracts with your frequent customers. This will instill some level
of confidence in your buyers as they will be assured of a seamless performance even after you
leave.
5. Proper Financial Management
You should give the finances some special consideration when preparing your business for sale
in Sydney. Any prospect would be glad to acquire a company whose funds are properly and
seamlessly managed. One way of ensuring that everything regarding business finances is okay is
by employing the right people in the financial field. You can also spare some time to learn and
understand the flow of money in the organisation. Having accurate financial statements will
warm the hearts of the prospects and ignite their urge to acquire the business. Try to show that
there’s a proper cash flow and that the people behind the finances are competent.
6. State The Vision of Your Company
Buyers can get exhilarated and decide to purchase the business if they hear of compelling
stories about it, including the things that have pushed it to grow up to the current level. Spare
some time to tell them where you started and how you have managed to survive up to the
present level. You can also give them an overview of the company culture and where you see
your business in years to come.

7. Seek Advice From Professionals
As much as you may trust your guts, it won’t hurt to get advice from professionals. Selling a
business involves a series of processes that may require the help of experts from various fields.
Some of the people that you may need include tax experts, lawyers, accountants and even
human resource consultants. Selling a business doesn’t have to be a daunting task. With these
preparation tips, you will have an easy time with potential buyers and sell the business at the
best value.
Business and economy
Sydney is recognised as Australia’s only global city and the leading knowledge-based economy in the
nation.
More than $108 billion is generated each year within the City of Sydney local area (2013/14 figures)
representing over 7% of Australia's economy and providing over 437,000 jobs across all skills levels that
offer diverse opportunities for diverse communities.
Despite the growth of business districts such as North Sydney, Parramatta, Macquarie Park, Olympic
Park and the growth corridor to the north-west, the City of Sydney has maintained its pre-eminent role
thanks to its large economic base including a dense network of globally competitive industries, welldeveloped
infrastructure, good governance, and outstanding amenities and living environment.
Over the past 5 years our economy has proven its resilience by withstanding the global financial crisis.
The number of businesses in the city grew by more than 2,000 between 2007 and 2012. However, this
does not mean the City’s economy is not faced with challenges that need to be addressed to maintain
continued growth and Sydney’s global reputation for liveability.
The City's 10-year economic development strategy will help deliver our vision for a dynamic,
environmentally sustainable economy and a liveable city that works for residents, workers, visitors and
students.
The overarching aim of our 10-year strategy is to strengthen the City economy and to support business.
It centres on further improving the solid foundations for success through creating opportunities for
individuals, businesses, the community and future generations, and addressing the challenges that
might otherwise limit Sydney’s potential growth as a global city.
The strategy builds upon the broad economic themes in Sustainable Sydney 2030 and takes into account
contemporary economic challenges. It provides an overview of the City of Sydney’s economy today and
identifies the future directions it may take.
The strategy takes an integrated approach on the basis of the City economy being influenced by a range
of factors such as liveability and amenity, access to affordable housing for key workers, child care for
parents, a diverse and well educated community, as well as those more commonly associated with the
economy such as market access, sector specialisation, innovation and productivity.

The strategy sets out the City’s vision for the local economy and the strategies and actions to achieve
that vision. It provides the rationale for engaging with priority industry sectors and delivering outcomes
through detailed action plans such as retail, tourism, tech startups and the Eora Journey economic
development plan.
Key aspects of Sydney's economy include:
i. Within Australia’s population of 23 million, Sydney is the largest city of 4.5 million people,
situated on the more heavily populated eastern seaboard of Australia. It lies midway between
Brisbane and Melbourne within the major domestic combined market of Queensland, NSW and
Victoria- which it is been estimated accounts for over 80% of the goods and services in Australia.
The NSW government estimates the population to grow to over 5.8 million people by 2031.
ii. In 2013-2014 Sydney had a GRP of approximately $334 billion per year, approximately one-fifth
of Australia's GDP and nearly 70% of the NSW GSP.
iii. Sydney offers Australian and international companies a highly competitive base to expand in the
world’s fastest growing region.
iv. It is one of the world's most multicultural cities attracting people from all over the globe, who
bring a huge range of languages, cultures, cuisines and ideas to share.
v. The city hosts a mature, globally connected economy serviced by an extensive road and rail
network, as well as Australia’s major air and sea ports close to the CBD. Both Sydney’s rail
network and its international airport are the largest facilities of their type in Australia.
vi. Sydney is the leading tourist destination for international travel in Australia. Sydney boasting 7
of the country's top 10 most popular visitor attractions. The city has consistently been named a
favourite international tourist destination over the past 15 years in reader surveys for travel
magazines such as Conde Naste and Traveller.
vii. As well as being Australia’s financial and economic hub, Sydney is known for the stunning
panorama of its harbour, iconic Opera House, large selection of green spaces within the city, and
proximity to beaches which are among the most paradisical not just in Australia but anywhere in
the world. It’s been ranked one of the 10 most liveable cities on the planet by both Mercer and
The Economist.
viii. Sydney has tied with Beijing as the eighth most influential city in the world, according to
analysts at Forbes. They looked at the amount of foreign investment they have attracted, the
concentration of corporate headquarters, business dominance, ease of air travel, financial
services, technology and media power and racial diversity.
ix. Within the world time zones, Sydney is situated in the same broad times zones of the rapidly
growing economies of East Asia-China, Japan, Korea and South East Asia. Sydney is in fact closer
by air to Shanghai, Singapore and Tokyo than London or San Francisco. Within the many new
24/7 worldwide financial services and consulting companies, and design-house industries - in
fashion and defence and IT for example, Sydney provides overnight services between Europe
and the US/Canada in integrated design teams.
x. As Australia's main financial centre, Sydney is home to the Australian Stock Exchange and the
Futures Exchange. More than (75%) of all foreign and domestic banks in Australia have their

headquarters located in Sydney. According to the 2011 census there were over 151,000 workers
employed in the finance and financial services sector in Greater Sydney with more than 55%
located within the City.
xi. According to Australia’s ABS, NSW still has the largest most diverse manufacturing base in
Australia over $33 billion in GRP in 2013-2014, with two thirds of it ($21 billion) based in Sydney.
xii. Sydney has a rapidly growing professional services sector particularly in health, design,
engineering and scientific areas, with a global presence particularly in the Asian Pacific region.
Sydney also dominates the numbers of information and communications technology companies
that have been attracted here and as a result dominates much of the new age digital products,
internet, and media design and production sectors in Australia.
xiii. According to the list in the Startup Ecosystem Report 2012 Sydney is recognised 12th in the top
20 cities start-up eco systems. PwC in their 2013 report ‘The Start-up Economy” predicted that
the Australian startup sector has the capacity to deliver $109 billion to the economy, with
opportunities for growth in the Finance and Insurance, Manufacturing and Health Care and
Social Assistance industries.
xiv. Sydney has well a developed human capital and skill base, with a strong education and research
sector. It is home to five universities featured within the
xv. QS World University Rankings® 2014/15
xvi. and also one of the best student cities in the world, according to the latest QS Best Student
Cities index.
xvii. Sydney, as demonstrated with the successful hosting of the 2000 Olympics Games, has an
impressive quality and quantity of arts, creative and sporting facilities, with specific venues
renowned internationally. These facilities are utilised by the local population as well as by
domestic and international audiences.
Sydney Economic Strength
As per our RDA Sydney 2015 Economic Baseline Assessment Report prepared by the AEC Group, the
Sydney Metropolitan Region recorded an estimated GRP of $334.4 billion, representing nearly 70% of
the estimated Gross State Product (GSP) for NSW. In 2013-14, the Sydney Metropolitan Region recorded
real GRP growth of 2.7%, representing an increased rate of growth since 2012-13.
Over the past five years, the overall economic structure of the Sydney Metropolitan Region has changed
with a trend towards a greater contribution by the services sector, in line with many other regions in
Australia. The financial and insurance services sector ($51.8 billion; 18.9% of GRP) continues to account
for around one-fifth of the Region’s GRP, reflective of the significant financial sector and Sydney’s status
as one of the financial hubs of the Asia Pacific Region. The majority of this activity is focused around the
Sydney CBD.
Other key industries in the Sydney Metropolitan Region include the professional, scientific and technical
services ($28.8 billion; 10.5%) and manufacturing ($21.3 billion; 7.8%) sectors, jointly contributing

around a fifth of the region’s GRP. While the professional, scientific and technical services sector’s GRP
contribution has increased over the past five years, the manufacturing sector has recorded a
proportionate decline in growth.
Other industries recording strong growth include health care and social assistance ($18.3 billion; 6.7%),
transport, postal and warehousing ($17.1 billion; 6.2%) and wholesale trade ($16.3 billion 6.0%). This
reflects growing demand for additional healthcare, the growth of online retail and imported goods.
Industries tied to the housing sector including construction ($15.2 billion; 5.5%) and rental, hiring and
real estate services ($2.3 billion, 3.7%) also recorded strong growth over the past five years.
Conclusions
Sydney is one of the most beautiful cities in the world. The market is ever growing and never really gets
out of style. It is a perfect destination for tourists and a perfect house for its residents. All the possible
indications show that the market gets into first gear and immediately cranks into the second. . The
bullish market never fails to adopt new and upcoming trends and is truly a city for all.
References
i. Australia in Its Physiographic and Economic Aspects by Thomas Griffith Taylor
ii. https://www.rdasydney.org.au/the-sydney-region~1/economic-profile/
iii. Creative Business in Australia by Lisa Andersen, Paul Ashton and Lisa Colley
iv. https://www.business2sell.com.au/businesses/nsw/Sydney
v. https://www.business2sell.com.au/businesses/nsw/western-sydney
vi. https://www.business2sell.com.au/businesses/nsw/sydney/latest_listings
vii. https://www.business2sell.com.au/businesses/nsw/sydney/chatswood
viii. https://www.business2sell.com.au/businesses/nsw/western-sydney/latest_listings
ix. https://www.business2sell.com.au/businesses/nsw/sydney/food
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xii. https://economy.id.com.au/sydney
xiii. https://www.business2sell.com.au/businesses/nsw/sydney/beauty/latest_listings
xiv. https://www.9news.com.au/sydney
xv. https://www.business2sell.com.au/businesses/nsw/sydney/newsagency-andlotto/latest_listings
xvi. https://www.business2sell.com.au/businesses/nsw/sydney/supermarket/latest_listings
xvii. http://www.cityofsydney.nsw.gov.au/vision/towards-2030/business-and-economy
xviii. https://www.business2sell.com.au/businesses/nsw/sydney/cat-wholesaledistribution/latest_listings
xix. https://www.business2sell.com.au/businesses/nsw/sydney-cbd/latest_listings

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