With a GDP of over 400 billion USD, Austria is known to be the 12th richest country in the world. Consequently, the people of Austria have a high purchasing power, making Austria a business hotspot. If you are looking to start a business in Austria, then you are in the right place. Keep reading to discover some profitable business ideas in Austria for you.
Is Austria Good for Business?
Austria is an excellent business location because of its stable economic and political environment and favourable investment laws. Besides having a prosperous economy, the republic also provides skilled labour and a friendly business environment. For these reasons, Austria is the ideal location for business investors, local and foreign alike.
Why Is Austria a Good Place To Start a Business?
There are several benefits of starting a business in Austria and some of them include:
- Its strategic location in the heart of the European Union (EU).
- High purchasing power of consumers.
- Skilled labour.
- Secure and stable business environment.
- Business-friendly laws.
- Well-developed resources.
Cost of Starting a Business In Austria
The cost of starting a business in Austria heavily depends on the business you want to start. However, the average start-up cost of businesses in Austria ranges from $7,000 to $15,000.
Starting a Business in Austria as a Foreigner
Austria’s business laws are serviceable to foreign and local investors. This is because the trade laws for both local and foreign investors are the same. To start a business in Austria, whether as a citizen or a foreigner, you need to understand the taxation policies of the country. For example, there is a 25% tax rate on company net income and a 20% VAT tax rate, among other taxes. Another important step in starting a business in Austria is getting licensed. The licenses would differ depending on the business you want to operate but getting authorized is paramount. Although Austria has no special laws for foreign investors, you do need a work visa to operate a business in the country as a foreigner.
Most Profitable Business Ideas in Austria
Because there are no discriminations against foreign investors in Austria, these business ideas work for both citizens and foreigners.
1. Manufacturing Business
Manufacturing in Austria is profitable because of the country’s robust chemical and steel industry. Some of the major exports in the country include machine parts, medication, electrical appliances, and flavoured water. To maximize sales, it would be advisable to focus on these products. However, with the right business plan, you could maximize sales on any product.
2. Automobile Manufacturing Business
If you are more of an innovative businessperson, Austria is the perfect place to put your innovative abilities to good use. The country’s leading steel sector and high quality standards make it easy for you to unleash your inventiveness by starting an automobile brand. However, starting an automobile manufacturing business is a high-capital investment as production could cost as much as $12,500 per vehicle.
3. Car Rental Business
Because of the high start-up and maintenance cost of the automobile manufacturing business, it may not be a very practical option. However, you could decide to set up a car rental business as this business idea is a cheaper way of maximizing the thriving automobile sector in Austria. Austria is a known tourist location and for this reason, the chances of success of a car rental business are high. The capital required to start a car rental business could range from $60,000 to $150,000, depending on the car brands you have chosen to rent out.
4. Restaurant Business
With major beverage companies like Red Bull and Coca-Cola located in Austria, opening a restaurant is an excellent way of exploiting the country’s flourishing food and drink sector. Because Austrians have a special liking for green, eco-friendly foods, it would be best to have vegan options on your restaurant menu.
5. Tourism and Hospitality Business
Because of its beautiful landscape, Austria is a very popular location and there are various ways to profit from this. Some of these include:
i) Starting a travel agency
A travel agency plans tourist activities and generally takes the stress of finding their way around off them. Travel agencies are responsible for accommodation plans, preparing tour itineraries, and planning tours. Of course, there are many other responsibilities of a travel agency and because Austria attracts many tourists, starting a travel agency is one of the most profitable business ideas in Austria.
ii) Open a gift shop
Almost every tourist wants to leave the toured city with memorabilia either for themselves or for their loved ones. For this reason, opening gift shops in strategic locations are an excellent idea. A gift shop could generate a yearly income of up to $350,000.
iii) Build a Hotel/Resort
You can decide to lean towards the hospitality industry by building a resort. An additional advantage of owning a resort is that it has the potential to be a tourist centre itself. However, although resorts could have a 35% – 40% profit margin, the start-up cost could be as high as $1,000,000 or even higher. If you do not have the resources to open a resort, you could consider building a hotel instead. A hotel, while not as extensive as a resort, could still have a 20% profit margin. The start-up cost of a hotel ranges from $300,000 to $500,000.
iv) Own a Food Truck
A food truck is a practical way of tapping into both the tourism industry and the food industry in Austria. A food truck business is a low-capital, high-profit one because of its mobility. If a location is simply not working out for you, you could simply move. You could also follow your target market around, and there’s a possibility of making up to $500,000 yearly, depending on your marketing strategy.
Profitable Business Ideas for Students In Austria
1. Tutoring Business
If you are an intellectually gifted student, you could monetize your gift by organizing tutorial classes for other students. Tutoring students can earn you a monthly income of up to $10,000, and because many students struggle with keeping up with their teachers or professors, your chances of success are high. Just remember to simplify your lessons. If they wanted a reiteration of what was said in class, they wouldn’t come to you, so keep it simple. Use easy-to-understand words and keep your students engaged.
2. Book Sales Business
Schools are centred around books so selling books to make a profit makes sense. Because schools usually stick with the same recommended materials, you could buy old books and resell them for a lower price or you could even resell your old books. People, especially students are always looking for ways to minimize cost while maximizing value and for this reason, students are likely to patronize your thrift bookstore rather than buying new books. You could even broaden your product options by selling non-academic books like comic books, novels, and magazines.
3. Fashion Business
Students love to stay on top of fashion trends and for this reason, getting into the fashion business is a sound business decision for students.
i) Clothing Business
If there’s any group of people interested in keeping up with the latest fashion trends it’s students. This is why starting a clothing business, be it small-scale or large-scale, is an excellent business idea. With a clothing business of your own, you could be earning a monthly income of $15,000 and look stylish doing it. Just be sure to consider the purchasing power of your target market when pricing your products.
ii) Accessories Business
Accessories are a great way to enhance your look and frankly, everyone loves them, students and professors alike. This is what makes an accessories business a fantastic business venture. Furthermore, an accessories store could fetch you up to $6,000 monthly.
iv) Thrift store
Going into the fashion business can be expensive, especially as a student. The thrift fashion business lowers start-up costs which in turn, reduces selling prices, therefore attracting customers. The average start-up cost for the thrift business is estimated to be between $1,500 to $2,500 with an estimated monthly income of $5,000 to $15,000.
4. Food Business
Evening/nighttime is the busiest time on campuses because it is during this period that students are free from school activities for the day, yourself inclusive. Setting up a small food stand where you’d sell fast food and refreshing drinks in the most active parts of campus is a brilliant idea that is exactly what students need at this time. The start-up cost could be as low as $500, and the monthly income could be ten times your start-up cost depending heavily on your location and marketing strategy. Offering delivery services is likely to boost sales too.
5. Hairstyling Business
Now and then, everyone desires a different look. This is where you would come in with your strategically positioned hair salon and top-tier hairstyling skills. Because you are a student, you might not be able to run a twenty-four-hour hair salon immediately, but not to worry, your target customers are students too and they would likely be unavailable during your salon’s closed hours. You could start a small-scale hairstyling business with at least $100 and make at least five times the start-up cost, depending on your skill.
6. Perfume Sales Business
Over time, the perfume business has proven to be a lucrative one. Selling different alluring scents is sure to bring in student and non-student customers. Starting a perfume business costs between $500 to $2,000 profit and you could either resell already produced perfumes or you could make your own perfumes.
7. Laundry Business
Doing the laundry is quite an arduous chore because it has a lot of sub-chores, and it takes at least twenty-four hours to complete the laundry. For this reason, it is a good idea to make a business of doing other people’s laundry. Because you are a student, you could run a weekend laundry business, collecting people’s dirty laundry and returning them clean before the new week begins. Starting your laundry business costs at least $500. However, you could cut costs by simply taking the dirty clothes to a laundromat and doing the laundry there.
8. Smoothie Stand Business
Smoothies are healthy, refreshing, and filling enough to serve as a quick meal. Strategically positioning a smoothie stand in between lecture halls is sure to make you some profit, and with a minimum start-up cost of $1000 too.
9. Baking Business
While this may sound like a Herculean task, it wouldn’t hurt to bake a few boxes of cupcakes for sale or to take special orders for events. Everyone develops a sweet tooth at some point and because of this, a baking business would certainly receive patronage, and with as little as $200 to $500, you could own a baking business.
10. Logistics Business
For customer convenience, nearly every business offers pick-up and delivery options. You can capitalize on this by starting a logistics business where you deliver various products to students around campus. The start-up cost is heavily dependent on how you want to run your logistics business, but you need at least $300 for it.
Running a business as a student can be overwhelming because you have to find ways to keep increasing your profit while maintaining your grades, but remember, slow and steady wins the race. Don’t bite off more than you can chew. Keep moving at your own pace till you have made enough money to hire extra hands that would keep your business up and running when you are busy with school. You’ve got this, superstar!
Profitable Home-Based Business Ideas To Start In Austria
1. Cleaning Business
There are many benefits to starting a cleaning business. Besides having relatively stable demand, the cleaning business is also low-investment and easy to start. With a few cleaning equipment and a couple of bookings, you can easily start a home-based cleaning business. Furthermore, with a minimum of $500, you could enter the business and make a yearly income of up to $60,000.
2. Printing Business
A printing business is another low-investment business that could be set up in the comfort of your home, all you need are a few printers and basic office supplies. In addition to being a low-capital business, a home-based printing business could earn you a yearly income of $70,000 to $100,000. You could decide to expand your business by offering more services like graphic design, photocopying, and scanning.
3. Retail Sales Business
You can operate a successful retail business without even owning a shop; accomplishing this is not as complicated as it may seem. After conducting thorough market research and finding out what product appeals to your target market the most. Stock up on these products and watch your profit grow. How much you invest in starting your business is entirely up to you. You don’t need a whole production line to run a retail business at home. Buy as much as you can afford and remember to market yourself with every opportunity you get.
4. Consultancy Business
All you need to start a consulting business is a desk, a chair, internet access, and business expertise so you’re not out there ruining lives…just kidding. No, not really. The consulting business is a very delicate one because the wrong business advice could ruin a person financially. For this reason, you have to be well-versed in the business world before you can run a business consultancy. Although acquiring the knowledge required to own a consulting business might take time, it is certainly worth your while. Business consultants earn as much as $75,000 yearly from offering their expert opinion so it is certainly a business idea to consider. It would help if you built a strong online presence for your consulting business.
5. Childcare Business
The childcare business is certainly one you should consider if you are emotionally and psychologically fit enough to take care of kids. A home-based business could give you an annual income of up to $100,000, however, you shouldn’t accept more kids than you can take care of as this would only cause your business harm.
Profitable Online Business Ideas in Austria
1. Website Development Business
Online presence has become an important factor in any business’s success, and what better way to boost online presence than with a website? For this reason, the demand for website designers is growing exponentially. This is what makes the website development business a profitable one as the average web developer makes at least $7,000 monthly.
2. Social Media Influencing Business
Imagine making money from what everyone calls a distraction and a catalyst of failure. Well, you don’t have to imagine anymore because it is very possible. Social media influencing is a lucrative business venture all by itself, and it is also a door to other business opportunities. Being a social media influencer gets you promotional deals, ambassadorial deals, and some social media platforms, like TikTok and X (formerly called Twitter), pay users with high engagement. The average social media earns about $4,000 per month therefore social media is certainly worth your time.
3. Online Tutoring
Many people are seeking to improve their skills and abilities for different reasons. Because of this, online courses are in high demand, and this makes online tutoring a sound investment and an excellent side job. By sharing your knowledge in your area of expertise, you could earn as much as $1,000 weekly. You could either organize live classes or compile all your classes and reading material into a course and put it up for sale.
4. Online Advertisement
With various businesses looking to increase their online presence, starting an online advertisement agency is an excellent business idea. The business is a lucrative one because you can earn $2,000 every week.
5. Voiceover Business
Another online skill with a rapidly increasing demand is the voiceover business, and if you are fluent in spoken English, this is the business for you. Because most video ads require a voiceover, voice actors have become indispensable in the business world, and they earn at least $5,000 per month.
6. Graphic Design Business
Every business or program has a graphic design representing it, and with the increasing number of entrepreneurs, there is always a need for a graphic designer. The graphics design business has stood the test of time, proving that it is a secure business to go into.
7. Dropshipping Business
Many people have made a fortune from the dropshipping business. The dropshipping business is an easy way of making money through online marketing, and a dropshipper’s average income is $8,000 monthly.
8. SEO Writing Business
Creating quality content for Google search engines can be a highly profitable business, and if you already have an affinity for writing, it is certainly worth your consideration. There are many benefits to having a strong SEO profile some of which are advertisement and partnership deals. An average SEO writer gets paid at least $150 per article.
9. Content Creation Business
Many people make a living off creating content online, and there are many ways of creating online content. The content creation business has many niches, and it is important to find the one that works best for you. A content creator’s salary is dependent on the content created and the platform it is broadcast on.
10. App Development Business
These days, everyone owns a phone, and phones need apps. This is why app developers are in high demand. App developers make as much as $90,000 annually.
Helpful Tips For Starting a Business In Austria
1. Quality Over Quantity
People of Austria are known to prefer quality products, regardless of their price. Therefore, you must prioritize the quality of the products you sell or the services you offer.
2. First Impressions Count
Austrians, like every other person, are likely to return when they are satisfied with your product and service. When a customer considers your product worth the price, they will return with even more customers. The right mindset to have is that you are always trying to make a first impression.
3. Be Polite
Nobody likes to be disrespected. You could have the best product in the world but if you don’t have the right attitude, you won’t go very far. Treat all customers with respect and cordiality, irrespective of their age.
4. Online Presence is Important
Most Austrians have smartphones with speedy internet connection therefore, their online presence is strong. For this reason, it will be helpful to your business’s growth to increase its online visibility.
5. Be Patient
Austrians are not the best when it comes to trying new stuff and because of this, it may take time for your business to take off. There’s no need to beat yourself up if business is slow at first. Instead, you should work on ways to build customer trust and boost sales. Remember that true success takes time.
One of the best places to start a business in Austria is Vienna. Although the competition may be stiff, the state provides skilled labour and a large market, and as long as you have a flawless business strategy, the competition won’t be much of a problem for you. Generally, Austria is an excellent location and your decision to start a business there proves that you are business-savvy. We already trust that you will make the best business decisions, all that’s left is for you to trust yourself too.
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