5 Most Profitable Small Businesses

To become a strong economy in this capitalistic world, the most important thing that nation need are a very healthy number of small businesses operating and manufacturing within the country. Small businesses are defined by a very simple rule in USA, that is, the total running cost of that business should not be more than $1 million. Having small business is like a win win situation for all the concerning parties and stakeholders. Tax collection is far more for the bunch of small businesses compared to the very large company. Small businesses promote healthy competition in the industries, and almost all the local needs can be fulfilled through those small business ventures.

So it obviously sounds to be a very amazing idea to start your own small scale business. A big thanks to PR and accounting consultancy firm, named Sageworks has complied and collected the data of more than hundreds small scale business which have been most profitable in the past 10 years.

The list of the most profitable small businesses goes below:

Most Profitable Small Businesses

5. Sales Financing

small businesses

The sales financing is the businesses that in layman’s term id ┬ájust the business of credit but for the goods that are being produces and they are being manufactured solely on the credit of the financiers. This business has been booming for quite a time now. The pretax profit margin for this business in the last decade is around 14.9% which is a very healthy profit ratio.

4. Tax Preparation Services

small businesses

No body like to do their taxes, so this niche needed to filled and it was fiiled way back in time, but it is now seeing a steep increase in the profit number of the business. The pretax profit margin of the business stands at the tall 15.1%.

3. Office of Dentists

small businesses

Probably they are most profitable form of the MDs in the medical industry, due to the fact that they are not always bound by the hospital for a job, they open their own clinics which most of the times turn in very handsome profits. The pretax profit margin that the dentists enjoy is around 15.4%.

2. Accounting Services

accounting

The niche of the accounting services has quite a few different types of niches under its belt. The most common of them are, PR, tax preparation services, business counseling, financing guides, etc. As more people are getting into the field of business, the need for the accounting services has been increased. So it means their profits are getting very high. Accounting services firms are seeing up to 15.8% of pretax profit margins for the last 10 year.

1. Offices of Chiropractors

Chiropractor

Most doctors are offended when chiropractors are labeled as “Doctors”. But nonetheless they often have more profit ratios than the normal doctors. They have benefited in the likes of that they do not need very expensive instruments and more often than not they are paid in cash. Their average pretax profit margin goes to up to 16.2%.

The list above is created just to give you some good solid comparable numbers, so you can easily compare it with your business, or if you want to get into any business.




Importance of Maths in Business

Pupils who study maths in their high schools often find maths not very useful in their daily life. But it should be reminded to them that maths is the basic ingredient in managing your own business, as it is era of entrepreneurship and being your own boss. Business is not only a skill of creating some products or providing some services. But it caters all the techniques you would need like you would have in a high level job, only difference is you are doing all the hard work for yourself and not some angered up manager at your job.

So here are few things in your business where basic maths would be of prime importance.

 

1. Business Production Costs

maths

Before being able to establish your business from the scratch, it is very important to know your costs of establishing, costs of production, and other marketing costs. Calculating those costs are not so easy task if you are illiterate in maths. If you want to be in competition with other companies being in a same business as you, then you should be able to analyze those costs of production, so you can be ahead of your competitors at all the times.

2. Pricing of Products

pricing

This is probably the most important of the bunch, as it determines how you will do in the industry. The pricing should not be so low that people will start questioning your products’ quality and neither it should be so high that you will be out priced by your competitors, and to know all that you should be able to calculate all perimeters which will be your building blocks in calculating your final pricing of the products.

3. Profit Calculation

business

The owner of any business should be very much a literate in analyzing the profits of the business, so you are not being deceived by your partners or your employees. By calculating your final and net profits at the end of any time period, you should minus your cost of production, marketing costs, and operating expenses from your net amount of sales, and their you have your net profits.

So in the end by using those maths skills you learnt in your high school you can easily manager and using them you can very much impact your business in financial manners and drastically improve your finances at micro level, it will help you take you business to the next level and become the true entrepreneur that you wanted to be.