If you are one of the millions of Americans who has always dreamed about owning a small business, but aren’t sure what kind, read on. There are any number of types of small businesses you could start and find success with. In fact, the most common types of small businesses include:
Many people start those kinds of companies because it’s something they are passionate about. However, if you are mainly looking for a way to work for yourself and not have to answer to anyone else, you may want to consider one of these most profitable types of small businesses.
1. Accounting Services
Under the accounting umbrella also falls tax preparation, payroll services and bookkeeping. Accountants usually have to spend money on an education and proper certifications, but after that, they often see a profit margin of over 18 percent. The reason? Low overhead, and repeat customers. Plus, even in times of recession, everyone needs an accountant.
2. Company Management/Holding
The company management industry is filled with holding companies who help manage business’s finances and investments by owning any outstanding stock. One of the most well-known names in this industry is Warren Buffet. He is one of the richest men in the world for good reason: profit margins are about 15.5 percent in this industry.
3. Real Estate Brokers/Agents
Real estate is a fickle game. When the economy is booming, profit margins may hover around 15 percent. People are buying, and agents generally have very low overhead, besides proper licensing and maybe an office. However, when the economy goes into a recession, homes may stay on the market for months, and real estate agents may rely on their savings more than profits.
4. Car and Equipment Leasing
Even in the world of Uber and Lyft, rental car agencies still do quite well for themselves. People love renting cars they may otherwise never get to drive. Likewise, industrial equipment is expensive to own, especially for just one job. As such, car and equipment leading businesses tend to have a profit margin of about 14.5 percent.
5. Legal Services
While an expensive law degree is obviously necessary to be an attorney, there are other legal services you could provide. Other occupations that fall into this category include real estate title search agents, notaries and settlement officers. Once you get the proper training and certifications, you could be looking at a profit margin of about 14.5 percent.
Dentists generally require fewer years of education than other kinds of doctors. But, like other doctors, they tend to have recurring patients, driving consistent revenue. Of course, setting up a dentist’s office isn’t cheap by any stretch of the imagination. But, once you are in business, profit margins average around 14.4 percent.
No matter what kind of small business you start, make sure it is something you can see yourself doing for years and years. The money may be good, but if you don’t at least have a love — if not a passion — for the job, it will be much harder to find success. Once you’ve decided on your business endeavor, ensure your infrastructure, including things like tech support and hiring processes, are set up properly so you can focus on what it is you do best.