If you type the most profitable small businesses into your search engine, you will pretty soon realize most websites are simply sharing the same information on small business profits based only on the net profit margin. Well, some other factors come into play in our list of most profitable small businesses, so we guarantee you are getting the best possible answer right here.
“What should I start my own business in?” or “How can I start a small business from home?”, are the questions that have been occupying your mind for quite some time, right? It’s been a while since you started weighing in your options on whether to risk it and invest your money, or just put it aside again for the rainy days, or for some other time you have a great idea. Sometimes you even think you should forget the whole thing and just take off to the Bahamas and take the pressure off. You would feel so relieved and stress-free. However, you know that coconut oil and sandy beaches can’t last forever unless you have a small business of your own to provide funds for it. That’s why you’re not going for a swim in Hawaii just yet, and you are reading lists of top 10 most successful businesses to start day after day. The good news is, you don’t have to do that anymore. You’ve come to the right place.
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The internet is swarming with hundreds of ideas for small businesses. This comes as no surprise since the internet itself has made it possible for millions of people to develop profitable business ideas from home. Even though it seems perfectly common nowadays, it didn’t use to be ubiquitous at all. Just think about the state only thirty years earlier. There were hardly any businesses to do from home, unless they involved writing, cooking or teaching. If you don’t feel like suiting up every single day, we can offer you several most profitable businesses to start from home.
Now let’s see how we prepared our list of most profitable small businesses for you. True, our initial step was to check the Inc for the most profitable small business industries in 2016 ranked by their net profit margin. The net profit margin is a perfectly good indicator since it shows the amount of profit left after all the other expenses have been deducted (such as production, marketing, research, etc.). However, we also paid a visit to the Balance, Small Bizz Trends, Under30CEO, and Investopedia. These are all highly reliable sources which gave us information on the best small business opportunities, industries with the highest success rate or the least risky businesses. Having taken all these factors into consideration, we were able to construct our list properly. Those small businesses that had the most recommendations came to the top. If the number of recommendations was the same, only in that case were they listed according to the net profit margin. Those small businesses that weren’t praised as the easiest or safest to invest in from at least one of our four sources have been excluded from the list. It is all nice and neat that generally, such business is currently the most profitable, but starting one is no mean feat. Figures speak for themselves. More than 50 percent of small businesses fail in the first four years. Actually, that means that only 4% make it to the second year, and 3% make it to the fifth year. Pretty discouraging, isn’t it? For that reason, we looked for those recommendations to see which small businesses are most profitable and have good chances of remaining so. Otherwise, they would eventually become businesses that bring expenses rather than income. Even better, some of these are low investment high profit business ideas that you can start with minimum funds (e.g., a computer and good internet connection). Speaking of low investment – before you proceed to today’s list, check out 10 Most Profitable Businesses You Could Start With Little Money, to get some more ideas.
Without further ado, here are 13 most profitable small businesses to choose from.
13. Medical and diagnostic laboratories
Opening medical and diagnostic laboratories belongs to the healthcare sector, which is highly recommendable for being very lucrative. Businesszone gives four most important tips on medical and diagnostic laboratories business plan: decide what type of laboratory you are going to run, find a suitable location, get all the necessary licenses on time and hire professional staff.
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12. Nonmetallic mineral mining and quarrying
The most popular nonmetallic minerals to mine in the world are lime, phosphate rock, and salt. China and India have the largest reserves of it. In the US, the annual revenue of this industry (about 5,000 units) is around $28 billion. It’s worth considering.
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11. Offices of physicians
If you are going to open this office, it’s good to know the estimated job growth in the industry is 1.9% for a 10-year projection. They have been on the rise for some time and continue to do so.
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10. Activities related to real estate
These activities mainly comprise managing real estate for others and appraising real estate. Basically, all services except for lessors of real estate and offices of real estate agents and brokers.
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9. Specialized design services
Specialized design services rank 9th in our list of most profitable small businesses. They are very much appreciated, and they involve diverse services, from logos to tattooing. The global trend is to be creative and individual. Be it a company’s logo or a decoration on the body; it is up to you to decide what you wish to invest in.
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8. Offices of dentists
Provided that you advertise properly, the money will be pouring in. Most reliable (i.e., profitable) dental procedures you should focus on are bleaching and whitening, as well as advanced cosmetic dentistry.
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7. Offices of real estate agents and brokers
The net profit margin of this most profitable small business is 14.8%. The estate markets have their ups and downs, but in the end, there is always a need for a home or an office.
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6. Outpatient care centers
Outpatient care, or ambulatory care, provide care or treatment for patients that don’t need an overnight stay in a hospital or medical facility. Even surgeries are done here if the patient doesn’t have to spend the night.
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5. Lessors of real estate
The lessor of real estate ranks 5th in our list of most profitable small businesses. It is just a fancy name for a landlord. Isn’t it nice to be one? You are gaining profit while still retaining the ownership of the apartment.
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4. Legal services
There are as many jokes about lawyers as there are reasons for starting a legal practice. Like it or not, but legal services that rank 4th in our list of most profitable small businesses are inevitable and pricey. An excellent job to start up.
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3. Other schools and instruction
Online courses, schools for children, tutoring – all these services are growing in numbers and revenues. Opening a child care center or starting teaching online are also recognized as very successful business ideas for small towns.
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2. Offices of other health practitioners
Offices of other health practitioners rank 2nd in our list of most profitable small businesses. They normally comprise all independent health practitioners except for physicians and dentists. That means the industry belongs to chiropractors, optometrists, mental health practitioners, physical, occupational and speech therapists, and audiologists and podiatrists. According to Data USA, the most popular occupations are psychologists, speech-language pathologists and health diagnosing and treating practitioners.
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1. Accounting, tax prep, bookkeeping, and payroll services
And what all our sources agree on is that accounting, tax prep, bookkeeping and payroll services are the way to go when it comes to 13 most profitable small businesses. Though the information on their net profit margin varies, everyone agrees they are in the first place. Do not be discouraged by the sound of the listed businesses. It is perfectly probable that you become a tax expert after a couple of online lessons. Start-up costs wouldn’t be so high either when compared to all the facilities and licenses you need for setting up a dentist’s office, for example. So, what are you waiting for? Get moving and let the cash start pouring in!
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