Most profitable small businesses: When you say small business, you might think of a venture with a limited target audience and an equally limited profit. But you might be mistaken, as there are numerous small businesses out there that are actually immensely profitable. Some small businesses have a loyal clientele because they’re able to cater to the personal shopping experience. Some grow, some get acquired, some stay the same but profitable enough for a consistent and dependable paycheck. Small businesses built this country; it’s a part of the American psyche. Yes, there might be a billionaire who invents an app for making a peanut butter and jelly sandwhich make a coctail do the hustle, but who needs that guy.
These businesses were ranked using the statistics issued by Sageworks, a financial information corporation.
If you get to the end and think you could handle a bigger bet, check out our piece on the best large businesses.
No. 12: Offices of Physicians
Average profit margin (before taxes): 11.2%
The training required to become a physician is nothing short of grueling: 8 years of medical school and several others of residency. But physicians working in small private or co-owned practices are some of the best paid individuals in the country.
No. 11: Insurance Agencies & Brokerages
Average profit margin (before taxes): 11.3%
Insurance agents make the bulk of their profit by receiving a commission on each policy they sale, as well as additional fees for each of the years in which the policy remains active.
No. 10: Lessors of Non-residential Buildings
Average profit margin (before taxes): 11.6%
This category includes any owner of a non-residential building who leases their property, real estate agents who acts as lessors, and those who offer office space on the basis of a service contract.
No. 9: Office of Optometrists
Average profit margin (before taxes): 12.2%
Optometrists are the individuals in charge with examining, diagnosing, and treating visual impairments or ailments. Private practices require a substantial initial investment, but they are some of the most profitable small businesses in the country.
No. 8: Lessors of Self-Storage Units
Public Domain Image: Public Domain
Average profit margin (before taxes): 12.3%
The biggest advantage of leasing a storage unit is that there is very little upkeep or maintenance required and that you get your money mailed directly to you.
No. 7: Freestanding Emergency and Surgical Centers
Average profit margin (before taxes): 14.8%
These are a type of outpatient care centers, which are typically small in size but provide all the facilities and equipment needed to treat patients outside of hospitals. The investment required to start a business of this kind might be substantial, but the profits are undeniably rewarding.
No. 6: Sales Financing
Average profit margin (before taxes): 15.1%
This type of small business is particularly profitable anytime there is a credit crunch. Given the economic situation of the past years, sales financing remains a rather lucrative sector.
No. 5: Tax Preparation Services
Average profit margin (before taxes): 15.1%
We all know how much of a hassle doing our taxes each year is. Well, so do businesses that offer tax preparation services.
No. 4: Offices of Dentists
Average profit margin (before taxes): 15.4%
While opening your own dental practice might require a substantial investment, it certainly pays off in the long run. A dentist can handle more than one patient at a time, procedures are generally short in length, and most patients will pay from their own pocket, as opposed to through their insurance.
No. 3: Other Accounting Services
Average profit margin (before taxes): 15.5%
This type of business refers to any type of accounting or bookkeeping service that does not have to be managed by a certified accountant.
No. 2: Offices of Chiropractors
Average profit margin (before taxes): 16%
Independent chiropractors have seen their businesses and revenues soar over the past few years and it is safe to assume that this trend will continue in the future.
No. 1: Certified Public Accountants
Average profit margin (before taxes): 17. 1%
If you’re an accountant, it does pay to get yourself certified. A 2% higher profit margin than an uncertified accountant, to be more exact.
