While most small businesses fail in their first three years, one major way to better your chances for success in your new company is to tap into the right industry. Industries like software, Real Estate, and accounting tend to see higher profits when compared to others. As an entrepreneur, you can gain valuable insights By analyzing the financials of private and public companies over time.
Any respectable small business list will show that the top industries are accounting and tax services, Real estate, legal services and management of companies and enterprises. Many of the top performers are service industries in which certifications and education requirements are barriers to entry.
However, there are other industries that carry very impressive profit margins and scalability. Industries like healthcare, fin-tech, and manufacturing also carry significant opportunity. Check out this year’s list of the most profitable industries for small businesses.
1. Accounting and tax preparation.
Here is an industry that consistently tops most lists, due to the fact that finances and taxes are part of everyone's lives. Whether you are in business or not, you still have to manage your finances and pay your taxes. This industry is here to stay.
2. Real estate leasing
Real estate and land leasing is also a very profitable, and stable industry. I know what you are thinking; "but there was the whole real estate crash of 2008". Let's just say, that was a once in a lifetime event.
3. Legal services
Here is another industry that has stood the test of time. At some point in life and/or business, most of us will need the help of a legal expert. Due to the fact that certification and training are required, this makes for a reliable industry to be in.
4. Dentists' Office
Coming in at number four is dentistry, or specifically, running your own dentists' office. The industry continues to be very profitable. While startup costs and overhead expenses may be high, these offices manage to do well because they have consistent and recurring patients.
5. Real estate agents and brokers
Despite a significant drop in 2008 and 2016, real estate is still a very profitable space. With such low barriers to entry (Brokerage license), anyone with startup capital, passion and a great work ethic can make large sums of money in the real estate industry.