Accounting And Bookkeeping
Average profit margin: 16.5%
All businesses should keep a record of their accounting and finance management. That said, the opportunity to provide accounting and bookkeeping services to local small businesses is virtually limitless. Services include bank account reconciliation, tax preparation, managing accounts payable and accounts receivable, and financial statement preparation.
Financial Advisor
Average profit margin: 20.34% – 25.18%
Financial advisors are financial professionals who provide advice and plans to their clients. This can range from investment management, financial planning, insurance planning, and estate planning services. They make money by charging a fixed fee, a commission fee on products they sell, or a mix of these fee structures.
Software as a Service (SaaS)
Average profit margin: 19.66%
Software as a Service (SaaS) allows developers to create software and provide it to customers over the internet rather than via software downloads. SaaS companies are potentially very profitable businesses. Software developers can create a useful software product, then sell that product to businesses or consumers with little overhead.
Real Estate Rentals
Average profit margin: 6% or more
A popular small business is buying and renting out real estate property. Everyone needs a place to live, which creates a great business opportunity for entrepreneurs. You can start with just one rental property and grow slowly by purchasing more over the years, or you can buy multiple properties upfront and rent them all out. Some real estate rental businesses will list their properties for rent on popular short-term rental platforms such as Airbnb or Vrbo.
E-Commerce Store
Average profit margin: 10%
E-commerce stores range from retail stores selling products, Amazon stores, and even online stores that sell digital downloads or courses. Building an online retail store has never been easier than it is today due to e-commerce platforms such as Shopify and Wix. No coding or web development experience is needed. Profit margins will depend on the product or service you sell and can be anywhere from 5% to 20%, with an average of 10%.
Tax Preparation Services
Average profit margin: 20.3%
All businesses and consumers are required by law to pay appropriate taxes on their income, which creates a great business opportunity. Tax preparation services include providing advice and preparation services for taxes. Profit margins for tax prep services largely depend on how much you charge for your services and can start at 20% or more.
Food Truck
Average profit margin: 7% to 8%
A way to start a restaurant business (or an extension of a restaurant business) is via food trucks. Food trucks provide mobile food catering services to businesses and communities, and are relatively easy small businesses to start. Whether it is breakfast food like waffles, ethnic food such as Mexican, or even pastries such as cookies, food trucks are great ways to build and expand a small business.
By Cameron Williams
Culled From: https://www.thebalancemoney.com/the-most-profitable-small-businesses-417201
