What Small Businesses Have High Profits?
The success of every successful business lies in its business plan, which is a crucial document. It's true that some businesses and industries have far higher profit margins as compare to others. And when it comes to small business opportunities, young and experienced entrepreneurs are constantly looking to reach new horizons and break the fourth wall.
The fact of the matter is that small businesses have become the backbone of the U.S economy in the last couple of years. As per new details shared by SBA, more than 550,000 small businesses are registered every month, which is great for the economy.
To understand the significance of the scale – almost half of the U.S population is either employed or owns a small business.
And one of the safest ways to start a business venture is by seeking out new opportunities for small businesses. This article will focus on 2019’s most profitable small businesses and what it means to limit your choices.
List of Most Profitable Small Businesses
Tax Preparation and Bookkeeping
The reason why small businesses are offering financial services, tax preparation, and bookkeeping is that the success lies in their low overheads. Besides, being a bookkeeper or a tax preparer helps you make a decent living.
Although the basic training to become a bookkeeper or tax preparer is fairly easy, getting a bachelor’s degree is compulsory to get industry acceptable accounting certifications, like CPA or CA.
The average profit margin for bookkeeping and tax preparation business is 18.4 percent.
Real Estate Brokerage
The average profit margin for real estate leasing in the U.S has gone up to 17.9 percent. You only have to take a peek into the shifting dynamic of people's growing need to switch from their rented homes.
Although the requirements to function as a brokerage firm or as an independent real estate agent may vary depending on the state, it’s compulsory to take a training course and an exam to get the license.
Legal Advice Services
Small businesses can provide expertise on a number of legal services, such as employment law, bankruptcy law, property theft, criminal law,personal litigators, and family law.
The legal services have the most consistent average profit margin of 17.4 percent. And it’s quite evident because every business ultimately requires the services of a legal expert.
Also, the need for an established premise is the key to success in legal services. And computer gadgets, software maintenance, and malpractice insurance are some of the other costs attached to rendering legal services.
IT Assistance and Support
Contrary to popular belief, most Americans hire separate IT experts for their businesses. The demand for IT support has gained momentum as most businesses are vulnerable to external and internal threats.
And quality IT assistance can help build a protective network infrastructure that allows businesses to run smooth operates.
The profit margins are constantly increasing whereas the overhead costs have diminished over the course last five years due to the increased flow of technological advancement in the sector.
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While the age of the traditional marketing is yet to be wiped out, the digital revolution has taken over the market.
The ratio of digital marketing agencies in the U.S has skyrocketed in the past two years. And firms are counting on digital marketing specialists and SEO experts to advance their foothold in the industry.
Although getting qualified to be a personal training instructor can be exhausting, you can offer services once you go through the qualification process.
The extremely low overhead cost is why the personal training business has turned out to be profitable for many people. And the operational functions of a personal trainer has somewhat grown to be passionate with each passing year.
That said, personal trainers often feel at odds to properly communicate with their clients.
The medical services of an outpatient departmental service could range from surgical procedures, counseling, possible treatment evaluation to diagnostic check-ups.
The required seed capital to establish an outpatient medical service could exceed $100,000.
Another medical service is dentistry. It is estimated that by 2026 the growth rate will be more than 19 percent for practitioners all across America.
The space required to start a dental practice starts from$400,000 including equipment costs. However, more diagnostic and added machinery could be included in the overall cost.
Also, the wages for assistant and receptionists are also part of the overhead.
Food Truck Services
Food truck services have freedom unlike any other small businesses and that might be one of the reasons why it’s widely used across the U.S.
However, the market for food truck services has already become saturated in cities, like Portland, Boston, San Francisco, and even Austin. The trick is to seek towns and metropolis cities where the need is yet to be filled.
The food truck services have a different set of ordinances that have to be complied with; they are set by the local health department and transport authority. Additionally, getting licenses in the food truck business is comparatively easier as compared to others.
Warehouse and Storage Services
You don’t have to compete with Amazon’s business model to start a storage facility and warehouse business in the country.
The facilities could be residential or commercial in nature.And the purchase of a warehouse or storage requires a heavy investment. And the costs could increase three times as much if you plan on constructing the site.
That being said, the average profit margin is still 11.6%.The biggest advantage of starting a warehouse and storage facility business is that you don’t need specialized training or education.
Also, many of the business decisions are taken on instincts.And that’s why warehousing has always been more beneficial in the long run.
As long as there’s capitalism, there will always be a sufficient need for people whose expertise lie in property maintenance.
Property maintainers have low overhead cost with hourly rate profit. It’s a relatively perfect business model to enter since the high demand is persistent despite economic shifts.