The 12 Most Profitable Small Businesses

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

800px-Iraqi_physicianPublic Domain Image: Public Domain

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

lossy-page1-423px--Appreciate_America._64,000,00_Americans_Carry_Life_Insurance_Policies._45,000,000_Savings_Accounts_Are_Held_By..._-_NARA_-_513865.tifPublic Domain Image: Public Domain

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

800px-AMD_Austin_campusPublic Domain Image: Public Domain

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

601px-Heart_Mountain_Relocation_Center,_Heart_Mountain,_Wyoming._Optometrist,_Wright_Kawakami,_examines_t_._._._-_NARA_-_539458Public Domain Image: Public Domain

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

800px-FEMA_-_39346_-_FEMA_provided_storage_units_at_a_staging_area_in_Texas

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

800px-US_Navy_110810-N-UB993-024_A_patient_room_in_the_newly_opened_surgical_unit_for_wounded,_ill_and_injured_service_members_at_Naval_Medical_Center_SaPublic Domain Image: Public Domain

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

Twenty_dollar_billsPublic Domain Image: Public Domain

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

786px-MantelbögenPublic Domain Image: Public Domain

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

Dentist_chairsPublic Domain Image: Public Domain

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

USMC-120515-M-LU513-001Public Domain Image: Public Domain

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

318px-Chiropractor_Dr._Donald_DeFabio_in_his_officePublic Domain Image: Public Domain

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

800px-Hauptbuch_Hochstetter_vor_1828Public Domain Image: Public Domain

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.