MOST PROFITABLE SMALL BUSINESSES WORTH INVESTING IN
Starting a business, they say, is not about ideas. It’s about making ideas happen. But aspiring founders often find themselves struggling – with investments and ideas – before they join the hustle.
You may have a bunch of ideas in your mind, but there are times when those ideas lack proper direction and you decide to switch plans. This is the period where most aspiring founders struggle to find a balance.
Starting a business needs utmost determination and confidence, but you have to be very clear about your business idea before you step into the entrepreneurial arena.
Small business you can invest in
1. Outpatient Care Centers
Outpatient medical care is a unique field, providing for patients’ needs without permanent beds, around-the-clock staff members, or the licenses and permits required to host patients overnight. Instead, in these facilities, patients receive care, whether medical or surgical, and return home the same day.
Outpatient clinics require access to doctors and nurses who are licensed to practice, and this doesn’t come cheap. The costs of getting started in outpatient care can be steep as well, as any major procedure or even a standard checkup requires a significant investment in costly medical equipment. However, net margins are still good at 15.9 percent, largely due to the cost of procedures and medical reimbursements.
Copywriting serves a valuable purpose in the market, connecting talented writers with companies in need of promotional services. In recent years, the demand for quality web copy has accelerated, increasing the need for skilled professionals. Today’s copywriters create advertising and marketing materials: a realm that now includes social media ads, website copy, blog posts, and even email messages.
Copywriting requires no formal education, making this industry fairly easy to adopt, even for those without experience in content creation. There is also no need to invest in a costly commercial space; most copywriters work from home on a freelance basis and pay very little in overhead expenses.
Demand for good writers is high, making acquisition of work fairly straightforward for those seeking clients. However, writing doesn’t necessarily come easy, and only those with a true talent for language will succeed in this niche field.
3. Dental Offices
Dental health is an important part of maintaining overall wellness, with preventative appointments recommended twice a year for the average American. While not everyone sticks to this schedule, dental services are needed in every area, serving both adults and children. Further, dental care becomes essential when issues like cavities and gum disease arise, creating even more work for those in the dental profession.
With an average net profit margin of 14.1 percent, the dental industry offers plenty of room for success for those with adequate training. Getting into dentistry can be quite challenging; dentists must obtain both a bachelor’s degree and a doctorate in dentistry, with dental hygienists requiring a minimum of two years of school. Dental equipment can be expensive as well, with chairs alone costing $3,000 or more.
4. Personal Training and Fitness Instructors
Over the last several decades, the demand for qualified fitness instructors has only grown, especially as boutique gyms have taken over the market. Athletic centers now dominate in every major metro area, offering a combination of standard gyms and specialty centers like Crossfit boxes. While fitness trends come and go, the need for educated trainers and instructors stays constant.
Personal trainers can work in one of two ways: at a self-owned gym where clients can join and exercise, or under the umbrella of a larger gym on a contractor basis. This provides a high level of flexibility, allowing professionals to work with or without significant overhead. Getting started in personal training can be fairly simple as well; reasonably fit individuals need only to take certification exams to be qualified to work in the field. In some cases, particularly for those who work as instructors, little formal education outside of a demonstrated knowledge of subject matter is required.
No matter the state of the market and the fates of other careers, funeral services will always be a booming business. As morbid as it may sound, a poor economy doesn’t stop the transition from the realm of the living to the great beyond. As such, funeral homes always see a steady stream of customers, providing a largely recession-proof business model for entrepreneurs who are leery of upcoming economic downturns.
Getting started in the mortuary sciences, however, requires at least a bachelor’s degree and capital for a sizable initial investment. Funeral homes need a physical office location, high-cost inventory like caskets, and the space and equipment for preparing deceased loved ones for wakes, funerals, cremation, and interment.
6. Food Truck Operation
Often seen as the new frontier in food service, food trucks are making a mark in virtually every major metro area. Offering a convenient and low-cost alternative to sit-down restaurants that generally exceed fast food and fast casual eateries in terms of quality, food trucks are a trend that shows no sign of dying down
7. Schools and Instruction
Educators provide a universal need, offering necessary skills and resources for children and adults alike. Considered an essential part of self-improvement as well as a legal requirement early in life, the education industry commands billions of dollars on an annual basis.
Outlets for education exist in many forms, providing a wide open arena for those interested in potentially teaching or tutoring developing minds. Professionals can operate in areas including:
- Preschools and daycare institutions
- College prep programs
- Test prep services
- Testing centers
While all academic models have different structures and objectives, the industry’s average net profit margin is a respectable 10.5 percent. This is largely due to the low requirements for the establishment in many of the more ancillary services in the industry; tutoring and test prep companies, for example, do not necessarily require a physical location or substantial assets.
While hiring educators can mean working with those with teaching licenses and a college education, tutors and test prep employees are often college students or recent graduates, providing a pool of lower cost, effective labor.
8. Party Services
There’s no bad time for a party, making the party services industry a great opportunity for those seeking stability and profitability. Even in times of economic depression, weddings, birthday parties, and corporate holiday parties continue to play a role in social calendars, providing steady revenue streams. In addition, party services can be flexible and versatile, covering planning, catering, bartending, and serving, among other functions.
Party-focused operations have significant earning potential, boasting minimal overhead, the ability to bill virtually all outside
9. Warehouse and Storage
Storage facilities are essential everywhere and can be quite coveted in larger cities, like New York or San Francisco. Serving both residential customers in a self-storage format or companies unable to purchase their own warehouse spaces, having ample space to store goods and possessions offers compelling business opportunities.
With an average net profit margin of 11.6 percent, warehouse and storage companies are able to turn building ownership into a lucrative business. While initial costs can be steep – even in rural areas, warehouse spaces are rarely cheap – the initial investment can be easily offset by rental revenue. In many applications, renting warehouse space can be fairly hands-off; clients pay rent and are then free to do with the available space what they will. This makes the time commitment in your business minimal.
10. Doctor Offices
Doctors serve a necessary purpose in all areas of society, creating a way for individuals to address both major and minor health complaints. Doctors are able to diagnose illness, create customized treatment plans, and, if necessary, admit patients to local hospitals to address serious conditions. While the private practice climate has shifted over the last several decades, moving away from traditional small offices to a consortium model, medical offices can still provide a lucrative business opportunity.