The Most Lucrative Small Business Industries To Try In 2016
Starting a new business is quite interesting, yet can be tricky. For many small business starters, understanding what sort of business to begin is very important. There are some small industries, which are the most lucrative and recommended to try in 2016.
Sageworks, a financial information company, has made a rank of the most lucrative business industries as stated in Forbes. The rank was arranged based on the privately held companies' financial statement and their 12 months net profit margin.
From the 15 industries, Sageworks has discovered that from the top 15, seven of them are associated withreal estate or health care. Sageworks analyst, Jenna Weaver, has mentioned that here are also some industries focusing on services in the list, that help to maintain low costs while charging premium.
Compared to last year's rank, several newcomers are spotted and replacing some positions in the list, while the three industries at the top are still the same. As indicated by Sageworks data, privately held companies usually gains 7.2% profit in average. Net revenues do not include taxes, but include the compensation for any market rate salaries excess.
The 15 industries in the list with the net profit margin percentage are Accounting, Tax Preparation, Bookkeeping, And Payroll Services (19.8%), Legal Services (17.8%), Oil and Gas Extraction (16.4%), Commercial and Industrial Machinery and Equipment Rental and Leasing (16.4%), Offices of Dentists (14.9%), Lessors of Real Estate (14.1%), Offices of Physicians (14.1%), Offices of Real Estate Agents and Brokers (14.1%), Offices of Other Health Practitioners (12.6%), Management of Companies and Enterprises (12.6%), Outpatient Care Centers (11.7%), Other Schools and Instruction (11.3%), Activities Related to Real Estate (10.8%), Death Care Services (10.7%), and Support Activities for Mining (10.5%).
For those who have special interests in agricultural industries, there are also some suggestions of the most profitable agricultural businesses from Business Ideas. These business ideas are claimed to fit any starters with low investment costs, and good potential profits. Moreover, "with organic farming coming into vogue, the opportunities have grown manifold."
These 10 agricultural business ideas are quite interesting; Leasing of Agriculture Equipment, Spices Production, Soya Beans Processing, Exports, Solar Drying of Fruits, Mushroom Farming, Herbs and Flowers, Flour Milling, Cashew Nut Processing, and Juices and Jams.
Meanwhile, Entrepreneur has come up with small business ideas for stay-at-home parents, which can be started with very little money. Those are; College Application/Financial Aid Planning Consulting Business, Consignment Shop, Freelance Writing, Gardening Business, Gift Basket-Making Business, Graphic Design, Grant Writing Business, Home Health-Care Agency, House Cleaning, Medical Billing Business, Mobile Spa Business, Medical Spa, Music for Kids, Paper Shredding and Recycling Business, Personal Chef, Pet Sitting and Dog Walking Business, Sewing Business, Soap Making, Website Consultant, and Wedding Planner or Bridal Consultant.
Many of the small industries listed in the rank are related to service businesses. Some do not need high costs, which mean they can be started by anyone with the skills required. It turns out that the industries with the most profit do not always connected to high investments. Small business beginners should consider these options if they want to keep up with the fast-growing business environment and technologies nowadays.