Most Profitable Small Businesses To Start

Most Profitable Small Businesses To Start – Real estate businesses and funeral homes may not be the most attractive small business ideas compared to, say, a web startup or a local coffee shop. But private companies in these areas have the healthiest cash flows, according to new data from Sageworks, a Raleigh-based financial data firm.

For those looking for new businesses, companies with a history of stability and credibility may be a good place to start. Sageworks used the highest average current ratios to create a ranking of 12 types of businesses with healthy cash flow for the year ended August 31, 2014. [See list below.]

Most Profitable Small Businesses To Start

Most Profitable Small Businesses To Start

Cash flow is a primary indicator of financial strength because if a company has enough cash, it is more likely to meet its short-term obligations, such as accounts receivable and employee salaries, on time.

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Companies on the list “have the ability to pay their bills and are cash flow positive on average,” says Sageworks analyst Jenna Weaver. While these companies aren’t necessarily fun or flashy, he adds, it’s useful for anyone to understand why some industries or business models are more prone to default than others.

After land division and death care services, this year’s ranking also includes grocery stores, real estate businesses, clothing stores, liquor stores, gas stations, laundry and dry cleaning services, specialty food stores, employment services, stores Health and personal. and investigative and security services.

Subsidiary companies divide the land into lots to facilitate the sale of the property. Weaver explains that its first ranking may reflect a strong recovery in the real estate and construction market since 2009.

The rest of the results show themes: half of the list shows the retail sector. While giants such as Walmart are known for their ability to quickly turn inventory into cash, operating at low current ratios, small, privately held retailers may have difficulty predicting consumer behavior and can therefore carry inventory to meet unexpected demand. Consumer save. Weaver explains that the ability of these smaller institutions to convert these levels of inventory into accounts receivable and accounts receivable into cash plays an important role. Additionally, he says, a third of the industries on the list are service-related businesses, which typically require little or no inventory.

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Although every industry operates with different economic cycles and models, brainstorming sustainable business ideas should always consider debt solvency.

“Often when companies fail, they fail because of an inability to manage these ratios and generate positive cash flow,” Weaver says.

It is important to note that a very high current ratio is not always ideal. A business wants to have enough cash or liquid assets to pay its short-term liabilities, but doesn’t want to sit with too much cash or inventory, so its assets remain productive for the business. When people think about profit, they think about it in different ways. For example, there is a significant difference between the most profitable companies and the most profitable small businesses.

Most Profitable Small Businesses To Start

But if you’re asking what the most profitable businesses are for small business owners, that’s often a separate category. Most of us don’t have access to venture capitalists or the ability to run a business for ten years before it starts making money. So I’m narrowing down the list to the most profitable small businesses.

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We identify which small businesses are the most profitable, look at some of the most profitable home businesses to start, and provide examples of successful business owners in these fields.

We hope these real success stories and small business ideas will spark your creativity and help you earn a lucrative income.

A consulting firm focuses on helping other business owners solve their problems. You can choose a niche if you specialize in a specific area or you can be an all-in-one solution.

When I first started my consulting business, I consulted on everything. One day I was analyzing payment processors and the next I was looking for good influencers for a brand. Ultimately, I became interested in writing about business and technology because it’s easier to impart knowledge to thousands of people a month.

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Business consultants can earn anywhere from a few hundred a day to billions a year. Expert M&A advisors can earn huge commissions.

Although only ⅙ of real estate agents are successful, those that do can run a profitable business. Santino Filpeli told us:

I have been a real estate agent, broker and investor making over $2 million a year.

Most Profitable Small Businesses To Start

Find out how award-winning real estate agent Paul Balzotti built his real estate business in our exclusive interview.

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Below, check out another real estate investment interview we did with legendary real estate broker Santino Filipe, where he also explains how he built his agency:

One of the most profitable businesses to start is cleaning services. Whether you want to start a cleaning service or a more specialized niche like carpet cleaning, you can make a lot of money in the cleaning industry.

My father loaned me $3,000 and I took a carpet cleaning technology course offered at a local janitorial supply company.

Today it does this three times a month. Read our blog on how to start a carpet cleaning business to learn more about why it is one of the most profitable small business ideas.

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You can also check out our interview with Chris Mondragon, who makes over $125,000 a month from his cleaning business. He told us:

Social media marketing is a huge industry. According to Statista, the industry is worth $153.7 billion. All you need is a computer, software and finding a client.

You can expect each client to be around $2,000-$5,000 per month and require 20-40 hours of work to service properly.

Most Profitable Small Businesses To Start

This means that a single person can earn up to $40,000 a month from home without investing in inventory. Learn how Jason turned Socialists into a $500,000/year social media marketing agency:

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Another most profitable business is creating online courses. E-learning is expected to grow at a compound annual growth rate (CAGR) of 14.6% to reach $374.3 billion by 2026.

Developing an online course can cost a few hundred dollars if you know how to do it yourself, or up to $20,000 an hour if you pay others to create it.

Not only is it relatively cheap to get started, but people are willing to pay for online courses if they add real value. In fact, some of the most popular courses can cost up to $5,000. However, most are under $300 for a course.

One of the entrepreneurs I’ve found most influential since I started writing is Jazmin Richards, owner of BlkSunflower. He started his small business in early 2020 with $100 and grew it to over $200,000 in annual revenue.

The 40 Most Profitable Businesses To Start In 2023

Most candle makers have a 40-60% profit margin if they sell wholesale, and even more if they are direct to consumer. This makes it a very profitable business. See our conversation with Jazmin:

Payroll services charge a monthly fee for their time plus an additional fee per employee. There are two paths to take:

You can easily affiliate with some of them, help people sign up for services, get them up and running and get a commission on their monthly fees.

Most Profitable Small Businesses To Start

It can be a very profitable business, especially if you combine it with something like accounting or tax preparation, because the extra money makes your job easier.

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Delivery services can be some of the most successful small businesses. While big players like Uber and DoorDash hold the lion’s share of delivery service revenue, the industry is expected to grow to $192 billion by 2025.

If you start such a business, just focus on the local area and find a better way to market the business. You can earn around 17% net profit margin. This is why delivery services are one of the most profitable business ideas.

If you enjoy creating websites, logos and marketing materials, graphic design can be a good fit as it is always in demand. You can start with just your computer and some design software. Find clients on Fiverr or Upwork and start a profitable business from home.

Many people start food trucks because they are more profitable than owning a restaurant. Save money:

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To begin with, it cost me about $41,200. Today I make $417,000 a year and my goal is to keep my food expenses under 35%.

Personal trainers also make a living. They can earn anywhere from $50 to $250 an hour while training people to reach their fitness goals. Although a personal trainer doesn’t need an education, a master’s degree earns up to 140% more than a bachelor’s degree.

Since people are paying for your knowledge, the main costs are licensing and marketing. If you’re interested in fitness, coaching might be for you.

Most Profitable Small Businesses To Start

The construction supply sector has a gross margin of 22.73% and a net margin of 7.92%.

Profitable Small Businesses To Start On A Shoestring Budget (infographic)

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