Some of the most profitable small business types are easy to spot; others are more elusive. There are many ways to make a dollar in this world, but few can compare to the rewards of starting and running a successful, small business. You get to be your own boss, and you directly get to reap the benefits of your success. However, this doesn’t mean that all small businesses are created equal: some will make more money than others, some will have higher start-up costs, and others will require a lot more risk. In this post we’ll look at five small businesses that offer high returns on investment (ROI).
1. Most Profitable Small Business – Real Estate Agent
If you’re looking for a career that can have a huge impact on your bank account, becoming a real estate agent may be the right fit for you as it is easily one of the most profitable small business types in our list. The average annual salary for real estate agents is over six-figures, and it’s quite common to make much, much more, especially in this housing market. In addition, many agents are able to set their own hours and work remotely because they don’t need to work in an office setting. Keep in mind, you must be licensed as an agent to sell a home by your state government before you can begin operating as an agent. If this sounds appealing, wonderful! There are lots of resources out there to help aspiring agents on their way. The National Association of Realtors offers courses and certifications that teach people how the industry works and give them skills they need to be successful.
2. Most Profitable Small Business –
Pet groomers offer many types of grooming services, including bathing, brushing, clipping, and more. According to Small Business Trends, the average cost to start a pet grooming business is between $10,000 and $18,000. This includes the equipment you need for the job, such as shampooing stations, pet barriers, drying tables, grooming products, and more.
3. Most Profitable Small Business –
Food trucks are a great way to getting started in the food industry without the overhead of a restaurant. They’re easy to set up and have a tendency create a ‘cult-like’ following, in a relatively short time period. In addition, not having a sea of employees is good news for your wallet. A typical, lightly used food truck will cost around $40,000 to get you started. Food trucks are an incredibly popular industry right now, so if this is something you’re interested in getting into, today is the day.
4. Most Profitable Small Business –
Auto detailing is a a service where you go to someone’s car and clean it inside and out in hopes to bring it back to that ‘showroom’ quality. This includes washing, waxing, buffing, vacuuming, interior cleaning (eliminating odors), tire dressing, window tinting and more. Auto detailing can be very lucrative. It is a great business to start if you want to get into the car wash business but don’t have the working capital or space for an automatic car wash system. It also allows you to gain experience before investing in equipment needed for an automatic wash. As with any other type of small business, there are costs associated with starting up an auto detailing shop:
- The cost of converting your vehicle into a mobile unit (this can vary depending on how much work needs to be done)
- Supplies needed for washing cars (soap/chemicals/brushes etc.)
5. Most Profitable Small Business –
Personal training is a great business to start because it doesn’t require a degree and you can work from home or in a local gym. Although you don’t need certifications, it would be wise to get at least certified in CPR and first aid certification in the event of an emergency. The best part about personal training is that you don’t need a lot of equipment or expensive machines in order to help your clients reach their fitness goals. Look at what videos like T-25 and P90X achieved using compound movements did for their followers; it’s impressive to say the least. One client at a time is ideal when starting out; however, once your clientele grows larger, then it may be worth looking into having multiple trainers working under your business name so they can further grow your clientele. In addition, you get paid while teaching others how-to-be-healthy. It’s a win-win.
These businesses are pretty lucrative, but they’re not necessarily cheap to start up.
As a small business owner, you will need to put in a lot of hours upfront and a lot hard work, but the return can be worth incredible. Before you jump into the fray though, make sure you have enough capital on hand to get started. This is especially important if your business will require a lot of start-up costs for equipment, etc. You will also want to make sure that the market for your product is one that’s growing or has room for growth in the future. You don’t want to invest time and money into something that isn’t going anywhere fast—or worse yet, could face significant competition from other firms with better products or better distribution channels than yours.
These are just a few of the best small businesses for investors, but there are many more to choose from. If you’re looking to start your own business, do some research and make sure it has good ROI potential before jumping in head first.