Small business will continue in 2017 to be the backbone of our economy, but what business are the most lucrative? Service industries are still the most profitable small business since they cost very little to start up and you can keep your overhead very low. Opening your own small business shouldn’t strictly be about profit it also needs to match your skill set. Some of the most profitable small businesses can be started and run from the comfort of your own home. So what are the most profitable small businesses to start in 2017? Let’s find out.
Accounting and Tax Services
According Sageworks to the financial data service that looks at the financials of more than 16,000 small businesses accounting and tax services take the top spot with a net profit margin of 18.4 %. Accountants are needed no matter the state of the economy, their customers are typically repeat clients and your overhead is very low. You do need a specialized education to become a chartered accountant.
Real Estate Agents and Brokers
The real estate market really depends on how healthy our economy is but real estate agents have very low operating costs. It is fairly easy to get into real estate and you need to do is apply and get your agent license. The requirements will vary from state to state but their net profit margin runs around 15%. Here is a video outlining how to become a real estate agent.
Have you ever had to hire an attorney? Then you know they charge and arm and a leg. Law firms run the gamut from small one man firms to huge legal giants with hundreds of associates. However a one man law firm can operate with some pretty low overhead and this category can include other businesses like paralegals, notaries, and title search agencies.
Like an accountant dentist rely on recurring patient visits and like an attorney they charge some hefty fees. However, your start-up costs can be enormous, dental equipment isn’t cheap. You do have the advantage of being able to see multiple patients at a time and many have insurance making them more inclined to use your services.
You can approach this two ways, the first is where you act as a property manager on behalf of the building owner. You look after and show residential or commercial real estate and screen and rent to tenants. The other is to be the building owner yourself and do the same things. Property ownership takes some upfront investment but it is incredibly profitable once you recover the costs of the building purchase. Rent to some good tenants and there will be very little work involved.