Mining, agriculture and international education might rank as Australia's top export earners, but are they our most profitable industries?
Not according to an IBISWorld report that states a much-used and unheralded industry as producing the most profitable returns over a five-year period ending 2014.
![Sexy doesn't always equal profitable.](/web/20170101200040im_/http://www.theage.com.au/content/dam/images/g/l/d/g/h/u/image.related.articleLeadwide.620x349.gooahc.png/1466568640508.jpg)
What is it, I hear you ask? Administrative and support services.
An IBISWorld report released late last year shows that five years of industry trading administrative and support services comes out on top ahead of mining, retail trade, hospitality and wholesale trade.
And it is not just big businesses in these industries that are doing well. A lot of small players have found a niche and are generating substantial profits.
IBISWorld analysed 1,241 companies to see what patterns and trends have emerged over the previous five years. So how can a support service generate such big profits?
"Most people associate admin and support with lots of people tasks," says Sharon Melamed, founder of Matchboard. "Historically that's true, but more and more we see technology replace people tasks, which means lower overhead and higher profits for service providers.
"In the United Kingdom the three-letter word on everyone's lips is RPA (robotic process automation). Smart support service providers are incorporating RPA in their offering and becoming more profitable in doing so."
In 2012 Melamed founded Matchboard, which is a fast, easy and smart way to find suppliers online. It offers a shortlist of suppliers for anything to do with sales and marketing, customer service and back office.
They claim it takes 60 seconds to get connected with matched suppliers offering services for call centres, debt collection agencies, data companies, digital marketing, training and consulting.
This financial year it expects invoices generated through its company to hit $8.5 million, of which it takes a percentage.
"Matchboard has built a profitable business precisely by developing technology, which automates a tedious task – the task of searching for new suppliers," Melamed says.
"Every business spends money on outside suppliers, but finding the right one at the right price can have a huge impact on a company's bottom line. Our free online matching platform makes it easy for businesses to find quality suppliers to grow sales, improve service and run an efficient back office.
"Our growth will come from the international market, starting with a launch in the UK next month. B2B dating is a borderless business, and we want to make a difference to companies everywhere."
The retail trade business is a mix of good and bad news, depending on what you are offering. There are barren strips of retail shops, which is perfectly illustrated by Oxford Street in Sydney, but there are thousands of retailers online who are doing remarkably well, which is probably why it ranks third for profitability on the IBISWorld list, after mining.
"I first started a bicycle hire business in 2007 with my business partner James Van Rooyen," says Jonathon Allara, founder and director of Bicycles Online.
"Every year we were having to replenish stock, so we thought why not just sell bikes ourselves." And in 2011 that is what they started doing.
Now, five years later, their turnover is in excess of $5 million, employing 13 staff and selling in excess of 5000 bikes a year, but only in Australia.
"Our big break came in 2012 when the factory we were buying Polygon bikes from in Indonesia offered us a 50% discount on last year's stock," Allara says. "So, suddenly we could purchase $800,000 worth of bikes for $400,000.
"The problem was that James and I had just over $100,000 between us in cash, so we had to negotiate favourable lending terms, which resulted in us having to sell our quota of bikes every month before the payment was due. Luckily, we managed to do this."
The burgeoning sales resulted in a move to a much bigger warehouse and an increase in staff.
"We sell more bikes in New South Wales than anywhere else because of our showroom in Manly, but sales are strong across Australia," Allara says. "The bicycle market is strong here in Australia with more than 350 brands sold."
But it doesn't matter what industry you are in, you can make profits if you know your business, your competitors, what the marketplace wants and price your product/service accordingly.
"The biggest muscle in your body is your brain," says Stefan Kazakis, author of From Deadwood to Diamonds, "so use it your advantage".
Kazakis, who has successfully run businesses for more than 20 years and is now a business coach, believes that it is quite simply a matter of knowing, understanding and delivering what the customer wants.
"People spend money because they have a problem that they want solved," he says. "Essential to the growth of your business is having clarity about exactly what this problem is and how you are going to take your clients from their current state of frustration to freedom.
"Most small businesses have become deadwood because the owners didn't understand exactly what their clients wanted from them. If you don't understand this everything else you do will be built on shaky foundations."