When starting a small-business, there are several things an entrepreneur should consider. First of all, the most important thing is whether the business matches his or her skills. Then, it is important to consider how the business would fare during a recession, and what licences or training is required. However, new entrepreneurs focus mostly on one thing – profit. While profit is not the only thing a new business owner should consider, it is definitely an important place to start.
“Service industries,” says Sageworks analyst Jenna Weaver, “are very common to find on the most profitable small-business list. This is generally due to lower overhead and startup costs. A lot of these industries you can start from your house.”
We have prepared for you the most profitable small-business industries and these will probably resolve all your questions related to possible earnings.
The Most Profitable Small-Business Industries
1. Accounting, Bookkeeping, Tax Preparation, Payroll Services
No matter what happens and how the finances in the world change, one thing is for sure – the accounting industry will always be on top of the list. Why? Well, it is simple. As long as money is in the game, people will need accountants. Also, the fact that the industry usually has low overhead and repeat clients contributes to the earnings.
2. Management
When it comes to management of companies and enterprises, this industry consists of small offices of bank holding companies and other types of holding companies. The greatest examples in this field (that do not fit into the small-business category) are Berkshire Hathaway and ICahn Enterprises.
3. Real Estate Agents & Brokers
You may wonder how the real estate agents are up so high on our list since the real-estate market is largely dependent on the health of the economy. The reason behind this is very simple. Real estate agents and brokers have very low operating costs. All you need to get started is a brokerage or agent license.
4. Automotive Equipment Rental
According to Libby Bierman, Sageworks analyst, says that people are very likely to be leasing and renting more cars due to the rise of the on-demand economy. She believes that people may be renting more cars using the on-demand services or the traditional rental services.
5. Legal Services
Have you ever hired a lawyer? Even if you didn’t, you probably expect the service to be quite expensive. And, you are right. Lawyers are not cheap, and just like accounting, legal services have low operating costs as well as repeat clients. This category does not include only lawyers, but also settlement officers, title search agents (in real estate), and notaries.
6. Dentists
Startup costs for dentists can be expensive. The dental equipment itself is quite costly, and then you have to find the right place to fit it in. But, dentists, just like physicians, benefit from recurring patients. In addition, the profession has the advantage of handling several clients at the same time.
7. Real Estate Lessors
Lessors of real estate, or better said landlords, claim (and their earnings prove) that renting residential and nonresidential properties can turn out to be quite a profitable gig. That is, once you cover all the initial purchase costs.
8. Other Health Practitioners
Who does belong in this category and how are they different than physicians? Well, first of all they are not different. And, there is a fine line between chiropractors, optometrists, mental health practitioners and podiatrists who belong in this category of “other health practitioners.”
9. Physicians
The reason why physicians are so low on this list is because, in order to become a doctor, you have to spend years in training and certification. Also, there are only a few physicians without their medical school debt. However, all doctors and physicians benefit from regular clients and low startup costs.
10. Office Administrative Services
Office administrative services are the backbone of all business operations, across a great number of industries – from food services to physicians offices. The offices provide everyday administrative services, and they include everything from record keeping to billing.
