Congratulations! You’ve decided to start your own small business. Don’t worry, you are in good company. In fact, as of 2016, there are approximately 28.8 million small businesses in the United States, thus making up 99.7% of all U.S. businesses.
Seeing as how small businesses make up most of the businesses within this great country of ours, it only makes sense that there are many highly successful small businesses in the United States. Unfortunately, just as there are countless small businesses that become a success each year, there are also countless small businesses that fail each year.
To ensure that your upcoming business becomes one of the successes, we are going to tell you all about the most profitable industries to start a small business in. In doing this, you will hopefully become the most profitable business to start.
Get ready to become one of the most profitable small businesses in the country!
#1 Most Profitable Industries: Accounting
Because every business needs accounting services, accounting is an industry that will never die and always be in high demand. When we talk about accounting, we are including everything from general financial planning to bookkeeping to preparing your company’s taxes. Accounting is essentially the company or group of people that keep a business’s finances in order.
Accounting is considered one of, if not the most, profitable industries because of its high net profit margin. Net profit margin is the way businesses calculate their profitability. To calculate a business’s net profit margin, you must take the cost of the company’s expenses, debt, and taxes, divide that result by the revenue, or income, and then convert that number to a percentage by multiplying it by 100.
This percentage number is the percentage of profit a company creates from its revenue. Therefore, the higher the percentage number, the more profitable and, in turn, the more successful a business is.
The net profit margin of the entire industry of accounting is 18.3%. This means that 18.3% of the revenue developed in the accounting industry is made into an actual profit. Although this may not seem like much, this percentage is way higher than the percentage of profit gained by most industries.
#2 Profitable Industry: Legal and Law
At some point and time in a human being’s life, he or she will need a lawyer or a legal professional to give him or her some legal tips. This need for legal service could be due to anything from personal injury to legal issues with your employer. When it comes to small businesses, the net profit margin of law and legal services is approximately 17.4% as of 2016.
#3 Profitable Industry: Real Estate
Real estate is an industry that encompasses so many universal skills and jobs that it has no choice but to remain a profitable business. For example, within a real estate office, there are professionals working in accounting, payroll, marketing, maintenance, and every other field of work to make that office run.
The reason the average real estate office can pay for all these employees is because the net profit margin is high enough that even when the real estate market is down, it is still considered one of the most profitable businesses. The net profit margin for real estate is estimated to be 17.4% in leasing and 14.8% for sales.
#4 Profitable Industry: Outpatient Care Centers
Outpatient care centers are clinics with licensed doctors and nurses that give medical and surgical care for patients and then send them home that same day. Although the cost of starting an outpatient care center is quite high, because the cost of treatment is also quite high, the revenue remains high enough to remain one of the most profitable businesses. The net profit margin for an outpatient care center is approximately 15.9%.
#5 Profitable Industry: Copywriting
As technology becomes more and more advanced, so does the demand for high-quality web copy. Although becoming a copywriter does not require that much education, the skill of being a great writer is rare.
This rarity combined with the high demand for professionals in this field makes copywriting a very profitable industry to build a small business in. Plus, if you choose to work as a freelance copywriter, you will most likely get the luxury to work from home.
#6 Profitable Industry: Dentistry
Like with the medical and outpatient care industries, the industry of dentistry is a necessity for people’s health. Not only is dentistry a health necessity, but it is also an industry that caters to people’s desire to look good.
Dentistry is also a very lucrative industry as the cost of treatments are extremely high. The net profit margin of the field of dentistry is approximately 14.1%.
#7 Profitable Industry: Fitness
Due to wellness and fitness becoming more and more popular, fitness has become another one of the most profitable small businesses. As a fitness instructor, you can work at a self-owned gym or a larger franchise gym. To be a fitness instructor, you need to be certified and have a flexible schedule.
#8 Profitable Industry: Funeral Homes
If there is one thing that will never stop occurring as long as humans are on Earth, it is people dying. As a result, the funeral home industry will always thrive.
To get involved in the funeral business, you need to have money to start off your business and get a bachelor’s degree and study mortuary science. Because funeral homes have a high revenue due to their high costs, this too is on our list as one of the most profitable industries.
#9 Profitable Industry: Cleaning
Nearly every company or place has a cleaning service to upkeep it. As a result, the cleaning industry is also very profitable. This is especially true since the cost to start a cleaning business is low. This, in turn, causes nearly every bit of money paid for this service to make a profit.
#10 Profitable Industry: Mobile
A mobile industry can come in different forms. For example, you can have a mobile food truck, car wash service, electronic repair company, IT support company, and more. Mobile businesses are profitable because they speak to the human desire for convenience.
#11 Profitable Industry: Warehouse and Storage
Although it may not be the first industry that comes to mind when you think about making money, owning a warehouse and storage facility can be quite lucrative. In fact, the net profit margin for this industry is approximately 11.6%.
How to Avoid the Risk of Your Small Business Failing
Regardless of what industry you choose, running a successful small business takes a lot of hard work and dedication. Like with any risk, it could end in failure and a large loss of money, or it can it be the most lucrative business decision you will ever make in your life.
To heighten your chances of your small business being one of the most profitable industries, pick the industry that you are most knowledgeable about out of the ones that we listed above.
To learn more about different industries of work, go to our website here.