Starting a small business requires some level of commitment, knowledge about the business, enough financial capability to kick start the business idea and a proper feasibility study. The purpose of the feasibility study is to determine if your business idea would thrive where you plan on locating the business, most profitable small businesses dedicate enough time to study how profitable their business would be at long run, if the location of the business provides the targeted consumer and profit projection for the foreseeable future. Feasibility study or not, some business ideas have proven to succeed over the years, take for instance, eating is compulsory for survival, which means, neglecting other factors (competition and service availability) a diner would do well in any area provided the area remains habitable.
I have compiled a list of 5 most profitable small businesses from the past decade, the list also includes 5 most profitable businesses online and 5 things most profitable small businesses do, most of the data provided in this article are derived from comparison of various data on the internet, making it a blend of several articles, but I have done my best to verify and add more data. The list comprise of both online and offline small business ideas, in no preferential order.
Most Profitable Small Businesses
CHIROPRACTORS: Health is wealth. According to statistics; it’s said that Americans spend over $100billion looking for relief from different kinds of pain. With such spending, chiropractors offices are always flooded by customers seeking some sort of relief from back and neck pain. Although it is one of the most profitable small businesses, it should be noted that, becoming a chiropractor requires a high level of education in the medical field with several years of experience.
DENTIST: Dental care is mostly paid for by clients and not through insurance policy, this gives the dentist opportunity to bill clients heavily compared to other medical practitioners. Although it cost a fortune to become a dentist, the return on investment is however extremely high, considering that it yield a pre-tax profit margin of 15.4%.
STORAGE FACILITIES: The cost of running a storage house is relatively cheap compared to most profitable small businesses. This gives the facility owner a wide margin income of about 12.3%. All what storage facilities service does is rent out their space to customers and provided the necessary security to keep facility secured. No formal education is required to start this type of business.
TAX PREPARERS: Doing small business tax deductions in a smart and legal way requires some sort of expertise, at least pending the time until the business owner gets a hang of how it is done. In other to avoid getting into legal issues with IRS, tax preparers firm is among the most profitable small businesses, obviously for the same reason why CPA features on this list.
CERTIFIED PUBLIC ACCOUNTANT: In simple term; an accounting firm. The reason why it’s among the list is not far-fetched; firstly accounting service is needed by both small and big firm, on the other hand the cost of running an accounting firm is very low compared to other small businesses. For the record, the profit margin is said to be as high 17.1%, it should be noted that some level of expertise (professional certification) is required to become a certified accountant.
Most of the businesses listed in this most profitable small businesses require some level of professional expertise, hence I compiled another list of 5 most profitable small businesses that does not require professional expertise or a college degree before you can venture into it.
Most Profitable Small Businesses Online
I have collected the data for this post mainly from different forum coupled with my experience online and response from questions directed to successful online entrepreneurs. Take note that the order of arrangement is of little significance as I have no way of determining which is more profitable than the other among the five shortlisted profitable small businesses
SEO/Writing Firm: There is a popular saying in the blogosphere; “Content is king” Over the years the saying keeps reiterating how important it is to publish quality content on blogs and websites, the demand for quality article sky rocket over the year, gradual increase in demand for quality web contents opened up a huge market for freelance writer and content creators, this explains why writing firm finds a place in our list of 5 most profitable small businesses online. The return on investment for this business is very huge, considering the little cost of running the business. SEO (search engine optimization) firm on the other hand is mainly about ensuring that website or blog gets on the good side of search engine and rank high on the search engine result page. I visited WarriorForum, DigitalPoint and BHW, and discovered that a very high percentage of services rendered on this popular forum relate to article writing and SEO services, surprisingly the clients are readily available once the service rating is above average.
MUST READ: Neil Patel on How he Built 7 figure SEO Agency.
Reseller: Believe it or not, people are making thousands of dollars every month from being a reseller online, reseller in the context of this post comprises; internet marketer that invest some amount of money into buying traffic to promote a certain product that earn them commission on sale, eBay reseller and affiliate marketers. Last year, I made a fortune from buying and reselling cheap tablet device from China. I bought the tablet at a very cheap price (less than $100) from a Chinese website, great specification with free shipping, so I bought the tablet and listed it on Ebay, the return on investment was as high as 100%. Take note that the start-up cost was less than $500, and I had no store or personal website, no promotion whatsoever.
Tech Firm: Web designers, app developers, and video editors are making fortune online, simply because the market is huge enough to provide a very robust client base, and the demand for their service is increasing from day to day. If you’re tech savvy and you’re proficient in one of this areas, it just might be your ticket you another source of income.
Gambling Company: “The house always wins” That’s to infer how easy bookmarkers find it to make money all the time, simply because the house rule will always come to play. Starting an online gambling company however requires proper understand of how the gambling system works, and acquire the proper license for your proposed business.
Web Hosting and Domain Registrar: Truth be told, the competition in this niche is very fierce, but the fact still remains that, thousands of websites are being created every day, hence it’s imperative to seek the service of web hosting company, starting a own web hosting company is highly rewarding provided you have a targeted customer niche. Considering the advancement of cloud server, the startup cost is moderate.
MUST READ: Alexa Mason on 10+ Lucrative Offline Small Businesses to Start in 2014
That’s my list of 5 most profitable small businesses online, and I hope it would inspire you into starting a small business along the line of these businesses, take note that all this businesses can be done alongside your regular day job.
In case you’re wondering why this business are the most profitable, I took it upon myself to conduct a little research on factors responsible for the success of small businesses.
Things most profitable small businesses do.
Although some factors are constant; (if the cost of running a small business is minimal, and there is a huge market to support the business, there is every tendency that the return on investment would be on the high end), other than the factors that are somewhat constant, there are some things synonymous to most profitable small businesses, I have done my best to compile a list of most profitable small businesses.
Personal Relationship: It’s a small business, and that is one of the reasons why you should have a personal relationship with your customers, know something personal about them, the name of their kids, their favorite sport, TV show e.t.c. It’s a great way to keep them coming, even when you have competitors in your neighborhood. There is a salon around my area, it’s a big shop and the owner employs some hair dressers, one of the hairdressers relates exceptionally well with old clients, from my observation, this keeps them coming to the salon, even when their hair is not due to be made, they come around, insisting that their hair needs to be done, with the real intention of having a nice conversation with the hairdresser because they’re probably bored sitting in their home.
MUST READ: 9 Customer Relationship Management (CRM) Apps for Small Business
From the list of 5 most profitable small businesses that I compiled above, it should be noted that the top four businesses requires personal relationship with clients, as a service provider, you must be able to relate exceptionally well with those you’re rendering your service to.
Sincerity is a rule of thumb: Sincerity in your business should never be traded for anything, if in a bid to make huge profit, you fail to be sincere with your clients, two things are bound to happen; you end up losing the customer, and your profit margin is affected negatively at long run. I would use a car dealership shop as an example to further explain this concept. If a dealer decided to sell a flashy car with bad engine to a first time buyer (who knows little about cars), he might probably end up hitting the sale and make an immediate profit from the sales, if eventually the car begins to act up after some period of time, and his mechanic explains the ordeal to him, one thing is sure, the buyer would never buy his next car from the same dealership and he wouldn’t even refer his enemy to the dealership.
Respond to Client’s complaints: if big corporations can get away with bad customer service attitude, small businesses can’t. If you’re to follow the footstep of most profitable small businesses, your customer service must be top notch, in my research, I observed that lucrative small businesses creates avenues of listening to their customers, they don’t just listen, they act on it, often they seek customer’s opinion on a particular product/service and what they would want the company to do in other to serve them better. Create a feedback form, an email, a suggestion box, a survey paper e.t.c to obtain customer’s view about your service and find a way to implement their suggestion if possible.
They’re Online: Most profitable small businesses are on the internet, they make it easy for potential customers to find them. Creating an online presence for your business is very important, a blog, website, or official page on popular social networks (G+, Facebook and twitter) is a must for small businesses.
Price Issues: Most profitable small businesses are not afraid of inflating their price if there is a need to do so. Take for instance dentist, they offer quality service at a price they deem fit. Often, the loss of customer after price inflation is really not because of the price, it’s often because the customer doesn’t think the service rendered worth the price tag. So if your service worth the price, you should not cheat yourself by offering it at a cheaper price. Remember, if a customer is willing to pay $50 for a particular product, it’s better than 5 customers willing to buy the same product for $10.
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