The growth in small businesses have been phenomenal in recent times, and this change has been brought about by the fast changing economic and technological landscape. Though there are many small business opportunities available, it is very important to know which are the most lucrative ones and select one as per your niche. Starting a small business, though very exciting, is not an easy task. There might be various factors holding you back like limited ideas, fear of failure, and lack of capital.
Certainly, finance is the most important factor that needs to be focused on while starting a business. There are various types of small business loans available, as well as government grants to start small businesses. The key things involved in starting any business is research and planning. A business plan would give an idea about the manpower, tools, infrastructure, advisors, finance, and the time and commitment required to make it profitable. Also, it is important to decide whether the business structure would be a sole proprietorship, partnership, franchise, or a limited liability company.
Five Most Profitable Small Businesses
Forbes has recently released a list of the most profitable small businesses. So on basis of Forbes' wide market research and compilation, these are the five best businesses to start.
1. Accounting Services
Every business needs to keep a track of their finances, including budgets, tax returns, billing, bookkeeping, payrolls, etc. Though there are several accounting software available, an accountant also plays the role of an advisor. Many big companies hire big names like Ernst & Young, Deloitte & Touche for their accounting, but most of the small firms prefer or can afford just solo accounting professionals or small firms. A part-time accountant for small firms just dedicates about 7-8 hours a month, for each client, earning an average USD 300 per month. The advantage of starting this business, if one has the necessary knowledge or manpower of experienced accountants, is the continuous demand.
2. Legal Services
The second in the list of most lucrative businesses to start, is the legal services. There are four choices available in this business. If one has a professional degree in law, then practicing in the chosen field as a lawyer is the first available option. One needs to open a legal service company before taking up any cases. The second option is to represent a large organization on legal matters. For this, one needs to open a legal service firm and hire a few lawyers. Legal services for legal document writing and editing is also a very profitable business. Lastly, one has the option of opening an online legal service business. The quality of service provided is the major factor in this business, as people and firms would continue to require legal and paralegal services for various reasons.
3. Dental Services
This ranks third among the most profitable small businesses to start, but needs intricate planning and dedication. One has the choice of either starting as a dentist, forming a dentists' association, or supplying dental equipment. Every person needs many types of dental treatments throughout their life, so building customer loyalty is very important for this business. Apart from good service, the use of modern techniques and latest equipment too contributes towards its success.
4. Specialized Design Services
Specialized design services can be provided for interior designing in several industries like health care, hospitality, residential, corporate, etc. This involves designing and maintaining interior spaces including health, safety, furniture, electrical and mechanical fittings. Industrial designing is essential for every organization, but extremely important in automobile and furniture industry for creating a good reputation. So, the designers design and check the material, shape, color, etc., of the product. Graphic designing is used in any visual media in order design the graphic layout. Therefore, due to the requirement of specialized design services in a wide range of industries and amidst huge competition among firms to gain recognition, this remains a great field to start a business.
5. Other Health Practitioners
These includes the chiropractors, optometrists, podiatrists, physiotherapists, mental health practitioners, speech therapists, etc. Health care industry is growing at a massive rate and 42 percent of this industry are the professional and related occupations like these. Investing in this booming industry is a very good option provided one has the required degree and experience. Or opening an establishment consisting of these practitioners has been listed as one of the most profitable business ideas. Each of these practitioners must have an experience of 2-5 years, a degree or professional certification, and must be licensed to practice. As per statistics, a median salary of a podiatrist is around USD 180,000, physiotherapist is around USD 200,000, and a chiropractor is around USD 130,000, etc.
Though these are considered as the most profitable small businesses to start and can yield rewarding benefits, the competition is intense and close. Knowledge and skill regarding the chosen business is a prerequisite. Otherwise, people with the right knowledge and skills should be hired to run a successful business. To make the business special, both personal as well as professional involvement is extremely important. Building team spirit is another key to success, as it strengthens both the team members and the leader. These are just some lucrative business ideas, and all depends on how one uses different business opportunities to create a profitable venture.