If you want to be successful in business, you will need to know what business to venture into to start.
Knowing which business is highly profitable in 2018 will go a long way in helping you make that crucial decision on which business to invest your time, effort, and finances.
In 2018, statistics provided by Sageworks, a financial data services company that examines the net profit margins of a large number of small businesses in the United States, have shown that small tax and accounting services companies obtain an average of about 18.4% in net profit margins and this company tops the list of the most profitable small companies in America.
The list of Top 10 Profitable Small-Scale Companies in the US for 2018 also includes the following;
• In second place are business management services with a net profit of 15.5%.
• In a close third are real estate services with a profit margin of 15.2%.
• In fourth place we have automotive equipment rental services with a net profit margin of 14.55%.
• Legal services and law firms make a profit margin of approximately 14.48% and rank fifth on the list.
• In sixth place are medical services and the dentist’s office has a net profit of 14.41%.
• The generation, transmission and distribution of electricity on a small scale obtains a net profit margin of 14.02% and is located in seventh place.
• In eighth place are the real estate leasing services that enter with a profit margin of 14.01%.
• Other medical services follow in ninth place with a net profit of 13.03%.
• In 10th place is the doctor’s office with a net profit margin of 13.01%.
Sageworks says that the average net profit margin across all small businesses is about 12.82%.
So what makes these small businesses profitable overall?
Jenna Weaver, an analyst at Sageworks, says the main reasons these companies top the list of profitable companies are due to the following;
• All are based primarily on human capital.
• They have low start-up costs and overheads.
• You can work from home for most of these businesses, thereby saving money on potential rent payments, utility bills, and furniture expenses.
It is important to note that while earnings are a great incentive to start a business, you will also need to be involved in that business that really matches your skill set. If you do not have legal training or experience, it would be very risky and unwise to start a legal company, for example.
You also need to acquire the knowledge and training necessary to be successful in your business choice.
Discover all the necessary information on how to start and operate your business within your base of operations, information such as licenses, taxes and local or state policies will help you work professionally and within the limits of the law.
