When it comes to the differences between small and big businesses, both business types have certain advantages. In this article, we concentrate on small business and, try to figure out which industries provide the most financial potential for those wishing to start a venture. We have based this list is on net profit margins.
15. Salons and Spas
With a net profit margin of 9.75%, spas and salons are making its way into our list of lucrative small businesses. People nowadays are becoming conscious of how they look and with so many celebrations being held in different functions, it’s no wonder that salons are getting more attention for their services. On the other hand, spas are the go-to relaxation place of tired and stressed working individuals. For small businesses, we suggest that you get your own salon or spa software, a POS system that can organize everything from sales to inventory, and even employee management to keep up with the demands of this hectic business model.
Design services – or more precisely, specialized design services – are 14th on the list, with a net margin of 11,4%. Small businesses that can provide web design and graphic design products – like us – are doing really well at the moment, and this trend is set to continue.
- Management and Expert Consulting
Management and technical consulting services can yield a profit margin of a little over 13%. This is due to the highly valuable expertise required in many industries. Knowledge and expertise are a true asset that can quite easily be turned into a financially viable business.
- Religion & Faith
Providing faith-based products and services has always been one of the best businesses, even though many organizations are strictly non-profit. That, of course, doesn’t mean they can’t make money like many small businesses do. If you have your own religion-based small business, you can expect a 12,41% net profit margin for your efforts.
- Commercial Machinery
Buying commercial and industrial machinery and lease it to customers is one of the most risk-free ways of making money. If you have money to invest in the purchase of heavy machinery, your profit margins could reach 12,58%.
- Doctor’s Offices
Health pays, and doctor’s surgeries are always popular because they offer a different kind of experience from the traditional hospital environment. People are willing to pay for that difference, propelling the average doctor’s office profit margins to a shade over 13%. Naturally, you will have to have all the relevant qualifications to set up as a medical professional.
- Other Health Practitioners
There are several other medical practitioners who command sizeable salaries. We are talking about chiropractors, massage therapists, chiropodists, optometrists, and all other health-related professionals Such professionals make a nice living with an average NPM of over 13,30%. Just like doctors, having the appropriate, state-recognized qualifications is a prerequisite.
While the initial costs are rather steep, once you recover from the outlay, being a proprietor can be very lucrative indeed. Often, landlords own several properties, rent them out and make a nice bit of money. The net profit margin of 14,01% makes this the 8th most lucrative small business venture.
- Owning Electric Power
If you are the owner of a small power company, you are unlikely to struggle with your bills. What makes the largest electric power companies rich, works at the lower level too, just not to the same degree. Nonetheless, people always need electricity and often prefer dealing with a smaller power provider. The net profit you can expect here is 14,02.
- Dentist Offices
Dental surgeries come it at number six with an average profit margin of 14,41%. The education and the initial costs are very high, but once you have your own practice, you can make some serious cash quite quickly. Of course, being an orthodontist takes even more training, but the upsides can be even higher. With an additional three years of specialized training around moving teeth, you will be qualified to help with whatever sort of alignment issues your patients might have.
In fifth place we have lawyers or more precisely legal service businesses with a net profit margin of 14,48%. The good thing about a law practice are the low running costs. Naturally, getting a law degree in the first instance doesn’t come cheap.
- Car Equipment and Rental
Well-managed cars showrooms are profitable, and rentals have an even bigger profit margin, currently standing at 14,55%. Indications are that the future of the car sales and rental industry is bright, especially considering the rise in demand for cars by businesses.
- Estate Agents
Real estate businesses can look forward to an NPM of 15,19%. Exceedingly low running costs only help to increase already sizable profit margins.
- Management Companies
With a 15,5% net margin, management companies are quite profitable, but many of these companies team up with larger management companies. These management companies look after the running of privately owned buildings for residential or business use.
- Accounting and Everything Related
According to various online lists, accountancy is the best industry to start a small business in. Accountants earn a net profit margin of 18,4%, which is remarkable. If you have the talent to become a good accountant, you can be sure of making good money, provided you have the necessary expertise and qualifications.