Accounting and Tax Services
Accounting and tax services remain as a front-runner with the highest profit margins. These businesses are hired for bookkeeping by many entrepreneurial ventures. They are better off outsourcing the accounting services rather than handling it internally. In many cases, it saves them hefty costs and efficiently handles all of their financial matters. The profit margin for accounting services stands well above 18%, the highest among other small businesses because of their steady demand and harsh economic conditions.
Private Holding Companies
Exclude some of the most prominent players among holding companies, such as Berkshire Hathaway. Still, the industry has a profit margin of above 15%. They are holding the company’s investments like stocks and mutual funds. Their other holdings include art pieces, real estate, or anything with intrinsic value. It is quite lucrative; however, you need specialized knowledge about the functionality of stock markets and how to keep it profitable to succeed.
Real Estate Brokerage
The real estate industry has recovered dramatically from recessions. It is now among the top businesses in terms of net profit margins. Your advantage in running a brokerage firm is its low operating costs. This lower cost allows you to reallocate the budget to marketing and other functions, ultimately reflecting your business growth.
All you need is a brokerage license, and you can go. However, the industry is quite competitive, and you must do your homework before stepping in. Moreover, it has a direct relation to the state of the economy. A favorable environment will boost the profitability of businesses and vice versa.
Lawyers and Legal Services
Lawyers are some of the most prestigious members of our society. It is also unsurprising that legal services offer a profit margin of 14.2%. High legal fees and low operating cost is a perfect remedy for profitable small businesses. Successful attorneys require excellent communication skills, leading to secure community connections. Most clients come from your connections; however, you must allocate marketing budgets because you can’t be everywhere.
A dental clinic is an excellent business for doctors who may not want an extremely stressful job in the medical field but aspire to earn good money. However, high start-up costs are a bit of a hindrance as the equipment is quite expensive. The net profit margin is quite lucrative if you can raise the money through a loan or any other means. There is a high number of returning patients in dental clinics, which helps in maintaining profitability. We all need our teeth cleaned.
Land and Real Estate Rentals
All types of commercial, industrial, and real estate rentals are profitable businesses. High customer influx commercial properties generate outrageous profit margins. Even if the location is not so ideal, the profit margin is steady. The only issue can be the high land acquisition cost or construction costs. The industry’s average profit margin is 13.8%, which is quite reasonable for a fixed asset.
General Physicians and Healthcare Services
Physicians rely on repeat business like other health consultants, attorneys, and dental services. They incur significantly lower overhead costs, therefore enhancing their profitability. Other profitable small businesses include healthcare services. There have been speculations about some malpractices by healthcare industries. They are linked to significant overcharging to offset insurance services. However, the demand for healthcare is still rising, and businesses are booming.
Auto Renting and Leasing
The auto renting and leasing industry is still among the most rewarding businesses. While auto dealers seem to struggle, the renting and leasing business is booming as more people prefer cheap means of mobility. The initial investment for a rental can be significantly high. However, the running costs are comparatively lower, provided you have the necessary experience. It is one of the most profitable small businesses. It must be on your list if you are considering starting an entrepreneurial venture.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.