Opening a business is something that most of us want to do since working for yourself comes with a unique level of satisfaction, so we’re going to look at the 15 most profitable businesses to start in 2016.
When you’re trying to pick a business to start, you’re not exactly going to be thinking about what’s more profitable, but what you like doing the most since that’s one of the main engines behind going out on your own in the business world. Of course, making money is right there as a second reason since we’re all trying to make a living, so hopefully, the business you’re considering opening this year is also among the most profitable industries. You could also take a look at the 7 most profitable businesses you could start to get some inspiration.
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In order to create this list we took a look at a ranking released by Sagework, a corporation specialized in financial information, who took into consideration businesses with less than $5 million in annual revenue, basing the data on financial statements filed in the 12 months ending in August 2015.
Without further ado, here are the 15 most profitable businesses to start in 2016.
15. Coating, Engraving, Heat Treating and Allied Activities
Net Profit Margin – 10.3%
If your passion involves metalworking, then you’re in luck because it looks like businesses across the US have had a medium net profit margin of 10.3%. There’s always work to be done in this industry, whether it’s coating metals, engraving them and so on. Opening a business in this industry is a bit difficult, but it’s nothing that can’t be done with the right motivation.
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14. Electronic and Precision Equipment Repair and Maintenance
Net Profit Margin – 10.4%
There’s one thing you can count on when it comes to electronics – they’re bound to break at one point or another. Back in the day, such equipment was built more durable, but nowadays things are built to break. The goal is to get everyone to buy a new item once the old one breaks, after all, pushing people to spend more and more money. Fixing things will save people some money on buying new equipment, especially if it’s only going to cost them a fraction of the price.
Therefore, if you like fixing things, specifically electronic and precision equipment, this is your chance to open a new business, knowing that the net profit margin for such a company is 10.4%.
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13. Management, Scientific, and Technical Consulting Services
Net Profit Margin – 10.7%
Consulting services are always going to attract customers because everyone needs a good advice from time to time, not to mention help with asset management, organizational planning, strategic planning and so on. Technical consulting on itself is one of the most profitable since getting the hang of new technologies can be difficult and help is always appreciated. Therefore, if you’re an expert in any of these fields, opening a company focused on offering consulting services might be a good idea since many need help.
Businesses from this area of activity have managed to bring in a 10.7% net profit margin in the year ending in August 2015, so you should keep this in mind before opening a new company.
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12. Specialized Design Services
Net Profit Margin – 10.7%
When it comes to specialized design services, you need to have some education in this department. After all, it’s important to get things correct if you want the structure you design to be strong enough to resist to anything, especially if we’re talking about some type of structural engineering project.
Companies working in this industry have pulled off a 10.7% net profit margin, which is a pretty good number, considering the number is a median one. Therefore, if you want to launch a business offering specialized design services, you might be quite successful if you manage to create a good portfolio.
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11. Commercial and Industrial Machinery and Equipment Rental and Leasing
Net Profit Margin – 11.9%
Sure, it’s nice if all companies could buy their own equipment, but that’s not always the case. On some occasions, they find that they’d rather rent them out instead of buying since they may not have permanent need of them. And that’s where you come in with your company that’s specialized in commercial and industrial machinery and equipment rental and leasing. Whether we’re talking about shop refrigerators or big industrial machines, we’re sure you’ll find a niche to pick, depending on where your interests lie.
In the year ending with August 2015, companies working in this industry pulled an 11.9% net profit margin which is not bad at all.
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10. Activities Related to Real Estate
Net Profit Margin – 12.1%
Real estate has always been a strong activity department. Whether you’re dealing with buying and selling real estate or just acting as an agent, it’s all profitable these days as the economy gives signs of getting back on track after the crisis a few years back. Companies dealing with activities related to real estate have announced net profit margins of 12.1% which is quite an ok number all things considered.
Therefore, if you are passionate about real estate and want to become the next tycoon you can start working on building this dream of yours.
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9. Offices of Physicians
Net Profit Margin – 12.8%
Doctors are always needed, regardless of their specialty. While it’s true that some types of doctors are more in demand than others, they’re all needed to fix us up or to keep us running, depending on how bad our health status is. Therefore, if you’ve graduated from a medical school, you might want to consider investing in opening your office and practicing medicine there rather than in a bigger clinic or hospital.
Physicians’ offices pulled a net profit margin of 12.8% in the year ending in August 2015.
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8. Office Administrative Services
Net Profit Margin – 12.9%
If you’re specialized in some type of office administrative services, such as human resources, for instance, you might want to consider going on your own and creating a company that offers such services to others. Outsourcing this type of services is a common habit of many companies, especially to those that are not necessarily big enough to have their own department handling this kind of thing.
Companies working in this particular industry have announced a net profit margin of 12.9%.
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7. Offices of Real Estate Agents and Brokers
Net Profit Margin – 13.4%
If you have a flare for selling things, then moving on to big properties might be a good idea. Whether you already are or think you could handle being a real estate agent and broker, creating a company handing selling and renting properties might be a good idea, especially since the net profit margin was of 13.4% in the year ending in August 2015.
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6. Offices of Other Health Practitioners
Net Profit Margin – 13.7%
Having a medical degree can be quite a money maker, even though it takes quite a few years before you can practice the job properly. If you have such a degree and want to start out on your own, then you might want to consider opening yourself a private office, be it psychology, or another similar type of practice.
Such offices have pulled a net profit margin of 13.7%, which makes them part of the 15 most profitable businesses to start in 2016.
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5. Legal Services
Net Profit Margin – 15.4%
Getting a degree in law is quite expensive, but it’s well worth the money in the end since you can practice what you love and make loads of money in the process. Legal services are a common necessity, so there’s always work to be found. Businesses in this industry have announced profits of 15.4% in the year ending in August 2015, which is quite impressive.
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4. Offices of Dentists
Net Profit Margin – 15.4%
Everyone needs to see a dentist every once in a while, preferably not only when there’s a need to fix something. Nonetheless, the demand is there, and there’s always room for a new dentist office so if you have a degree and some experience you can go ahead and start out your own office.
Dentists offices have reported net profit margins of 15.4%. It might be a bit tougher before you get a clientele, but once business gets going, you’re surely going to turn a profit.
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3. Automotive Equipment Rental and Leasing
Net Profit Margin – 15.8%
What’s with cars today? They always break down, and you need repairing. Ok, it’s nothing new, but that means there’s always a demand for businesses handling automotive equipment. Whether you’re renting the equipment or selling it, it’s all good and profitable. How profitable? Well, businesses in this industry have reported a net profit margin of 15.8%.
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2. Lessors of Real Estate
Net Profit Margin – 16%
Now that the financial crisis has dimmed out, the real estate industry has made a comeback, including the rental part of it. Rental rates continue growing, and the industry has become more and more profitable. The net profit margin reported by such businesses reach 16%.
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1. Accounting, Tax Preparation, Bookkeeping and Payroll services
Net Profit Margin – 19.6%
The most profitable business to start this year has something to do with this particular industry – accounting, tax preparation, bookkeeping and payroll services. Therefore, if you’ve specialized in this domain you can create a company that does the accounting for other companies, keeps up the books, does the payroll and prepares all the documentation needed to be filed with the authorities. If you create such a company, you’re basically catering to all other companies, or at least, to those that are not big enough to have their own department handling such things.
The 19.6% net profit margin puts this industry at the top of the list among the 15 most profitable businesses to start in 2016.
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