For any country to prosper in an economic environment, it must have a great number of quality and thriving businesses that could eventually become the most profitable small businesses in the economy. The more entrepreneurship lessons and ideas there are, top small businesses are likely to emerge. Small ventures are key to the flow of the capital in profitable niches and they also feed the growth of business development.
The dollar threshold of some small businesses, requires a business finance, where total investments does not go beyond the mark of $10 million. To achieve the success in your small business and get it ranked among the most profitable small businesses, you must investigate the pretax profit margins of thriving businesses and what make them do so well in their niches.
Luckily Sageworks, an accounting consultancy firm has compiled data of most profitable small businesses in USA. The data was collected during the period from 2001 to 2013, where more than 100 companies were reviewed and all of their revenues and profits were looked very carefully for almost a decade. Later, based on these facts and figures, they compiled a list of most profitable small businesses.
Few of the most profitable small businesses in the US for the last decade are listed below for a better understanding of the niche you want to pursue.
List of Most Profitable Small Businesses
5. Sales Financing
On the most profitable small businesses list, it stayed on the number 5 position for a whole 10 years. During that period, the pretax profit margin was 15.1% which is extremely satisfying for a small business’s point of view.
- Tax Preparing Services
Many people do not like to do their taxes on their own, so for that reason there are quite a few small companies taking that responsibility on their shoulders and reaping the benefits from it. During that period the pretax profit margin of this niche was around 15.2%, enough to motivate new people to enter the field.
- Dentist’s Offices
Having bunch of patients gives them the pleasure of very good revenue flow. Though some dental equipment does cost more than the normal, pretax profit margin of these offices are almost touching 15.4%, hence ranking it 3rd among most profitable small businesses.
- Accounting Services
Accounting services comprise of a large group of professionals. An accounting services firm can include tax preparation, financial consultancy, business counseling, and many more. It is very hot in the business world right now as very large numbers of people are entering the entrepreneurial scene and a great number are calling on the accounting services for different consulting services . Their pretax profit margin is 15.7% for quite a time now, thus ranking it 2nd on the list of most profitable small businesses.
So the number 1 spot on most profitable small business goes to the chiropractors. Though not all medical doctors consider them in the same league as they are, in some cases, chiropractors post more profits than the “MDs”. The main reason being that, their operating cost is very low compared to some other small businesses. Their medical services are always questioned but they don’t care as far as they are getting the cash for it. The pretax profit margin of chiropractors is up to 16%.
Having an entrepreneurial and rewarding small business takes a lot of effort. But if you intend to enter a small business niche, you should consider the above mentioned fields and keep track of facts that tend to keep them be among the most profitable small businesses.