A small business can be a great way to start your entrepreneurial journey. If you don't like the usual 9 to 5 job or are bored with your existing job, a small business can be a refreshing change. You don't have to invest a great deal of money. And you can always return back to your earlier profession if things don't work out as expected.
Before you start your entrepreneurial journey, it will be good to know the options you have. It would be better to choose a small business that has the highest profit margin. If that is your priority, here's a look at some of the most profitable small businesses.
Food truck
If you like cooking tasty stuff, you can consider starting a food truck business. This could even be a first step towards launching your own restaurant. You can start your food truck near offices or other places with high footfall. You can specialize in food items of your choice or choose a menu that is popular with customers in the area. A food truck business can have profit margin of around 10%.
Accounting and bookkeeping
On an average, the profit margin for a small-sized accounting and bookkeeping firm can be around 16.5%. You will be providing your services to local small businesses in your area. Usual tasks will include tax preparation, financial statement preparation, managing accounts payable/receivable and bank account reconciliation. Depending on work load, you can manage things on your own or have a small team.
E-commerce store
If you have anything unique and useful to sell, you can launch your own e-commerce store. There are quite a few e-commerce platforms that allow you to easily build your e-commerce store. You won't even need to know coding to launch your e-commerce store. There could be a waiting period, before you are able to build a decent sized customer base. Depending on what product or service you are selling, the profit margin from your e-commerce store can be up to 20%.
Software as a Service (SaaS)
Most software professionals get high salaries. However, if you start your own firm, you could be making a lot more money. An easy way of doing that is to create a software and offer it as Software as a Service (SaaS). This way, you won't have to worry about things like piracy. Also, investment cost will be very less. Software as a Service (SaaS) business can easily fetch you average profit margin of around 20%.
Financial advisor
Financial advisory is among the small businesses with highest profit margin. As a financial advisor, your firm can earn average profit margin of anywhere between 20% to 25%. The usual range of tasks will include estate planning, financial planning, insurance planning and investment management. You can earn commission or earn a fixed fee based on the type of work. Before starting your financial advisory services, you will need to get the license from relevant authority. In US, you need to get a license from FINRA.
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