Prospective business owners need to know their industry very well before rolling out their business plan. Having the skills or expertise and other resources are not enough. The profitability of the industry directly impacts your business’ opportunity for growth.
Before you start your small business learn as much as possible about the industry you will venture into. Research about the size of the market, the level of competition, and others. To guide you in choosing what kind of business you should build, here’s a list of the most lucrative small business industries!
- Accounting, Tax, Bookkeeping Services
This is considered one of the most lucrative industries in the small business category because it tends to have low overhead and startup costs. In fact, it tops the list of the most profitable small business industries based on a study conducted by financial data services company, Sageworks, between September 2014 and August 2015. It revealed that accounting, tax, and bookkeeping services have an 18.4% net profit margin.
Regardless of the state of the economy, people need accountants. So, if you’re good with numbers, you might want to consider entering this business.
- Real Estate Agents, Brokers, Lessors
Do you have an agent or brokerage license? If you do, good for you! If you don’t, go get one as soon as possible. This industry is highly-profitable plus you don’t need a lot of money to run your small business.
Real estate lessors or landlords also make happy business owners. Buying a property requires a big amount of cash. But once you recover from the initial costs, you can gain big profits by renting out your residential or commercial property.
- Automotive Rental and Leasing
While automotive dealership isn’t a very lucrative industry, automotive rental, and leasing is. If you’re toying with the idea of starting a car rental company, you’ll need a big capital to purchase several vehicles. But once you have your vehicles all set, your operating costs will be low, leading to more profits.
Take inspiration from car rental company Hertz. You, too, can make it big in the automotive rental industry!
- Legal Services
The high fees of lawyers make legal services a highly-profitable industry. Like accounting, law generally has low operating costs and repeat clients. Aside from lawyers or attorneys, this business industry also includes notaries, settlement officers handling transaction of securities, and title search agents in real estate.
- Offices of Dentists and Physicians (Private Practice)
This industry includes dentists, doctors, and other health practitioners such as optometrists and chiropractors. The startup costs for this business depend on the type of equipment needed. The equipment used by dentists and optometrists can be expensive. The others require simple or no equipment, so their startup costs are minimal.
These professionals also have lower overhead costs. Moreover, they rely on repeat business or returning patients.
- Businesses On The Move
Because more and more people look for convenience and everything that’s easily accessible, this is considered one of the most lucrative small business industries today. These are businesses that travel to customers to offer their services and products.
One of the best examples of a business that’s mobile or on the move are food trucks. People love food and it’s a wise idea that foodie entrepreneurs bring their specialty to where the customers are. It could be at the park during music or art events, farmer’s markets, local shopping square, and others. Who knows? Your business will also be featured in Forbes in the future, like Nom Nom and Rito Loco food trucks!
Other business ideas in this profitable industry are electronics repair and IT support if you are techie and willing to travel to a customer and auto repair if you are a skilled mechanic. If you are a personal trainer, you can also make fitness available to your clients by doing sessions in their homes, at the park, or community center.
- Child-oriented Businesses
According to a Child Trends report, there were almost 74 million children younger than 18 in the U.S. in 2014. The report also suggests that the child population will continue to grow in the future. Entrepreneurs can take advantage of this fact and put up businesses that cater to children-oriented consumer needs.
More parents nowadays look for enrichment activities and learning tools for their children. This means business is promising for martial arts or gymnastic centers, music schools, and amusement and play centers. If you’re a swimmer, you can hold swimming classes for kids. You can also teach kids yoga, arts and crafts, and more. If you’re a software or app developer, you can design an educational app or game for kids.
- Sharing Economy
Uber and Airbnb are two of the best examples of sharing economy and they prove that this industry can really be lucrative. As an entrepreneur, these companies can inspire you to start your own small business focused on sharing resources.
If you love fashion, you can put up a business that offers borrowed or rented clothing and accessories. Think of how much money you can make by letting other fashionistas rent your beloved Chanel purse. This is the kind of business Rent The Runway does, and their business is doing good!
You can also make bucks by offering your high-cost home improvement equipment for rent. Or did you just redesign your garage and turned it into a cozy living space? You can rent it to travelers or friends and make extra profits.
- Online Education
Do you have a computer and an Internet connection? Do you consider yourself an expert in a certain subject or topic? If yes, then you can make big money offering online courses. You can be an instructor teaching English as a second language, a life coach, a marketing guru, a video game expert, or a calligraphy instructor.
- Freelance B2B Services
A lot of business owners are hiring freelance or contract workers these days to help them get the work they need done while avoiding giving benefits and long-term commitment. You can start a freelance graphic or web design business if you have the skill. Before becoming famous in the graphic design industry, companies like Triboro and Saffron Brand Consultants, were considered only a small business. Who knows? You’ll become renowned worldwide in the future!
You might also want to consider a career as a consultant, who gets paid speaking at industry conferences. You can also start a social media management venture or offer virtual assistance and be part of the lucrative freelance B2B industry.
If you are an entrepreneur looking to build a small business, you need to learn the profitability of the industry you’re considering before you start your venture. Take note of some of the most lucrative small business we mentioned like accounting, legal, automotive rental, freelance B2B services, and more. It’s good to start in a profitable industry especially for a startup. It decreases your risks and increases your potential for growth!
We can provide your small business with virtual assistance. Learn how by availing of our free five-hour trial!
Take a look at these blogs for our small business series:
- How To Grow Your Small Business Without Spending A Lot
- Infographic: Low-Cost Ways to Grow Business / 10 Lucrative Small Business Industries
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