What Are the Most Successful Small Businesses?
The convenience of setting up small businesses enables this subsector to thrive to unimaginable heights with economic reports putting it as the highest employer going into another decade. Despite the dominance of the sector by large scale enterprises, small scale businesses continue to be the backbone of a majority of economies in the world. They are referred to as small and medium scale enterprises (SMEs). At least 2 out of 3 employments gained in an economy are attributed to the SMEs.
Setting up a small-scale business requires the entrepreneur to come up with a good business idea with a plan on how to implement it. The plan, in this case, is what is called the business. These two tools are imperative for the success of any business.
This post seeks to discuss some of the most profitable and successful small-scale business enterprises. It should be noted that since notable business giants have set a precedent of outsourcing services that would otherwise be in-house activity puts these services on demand hence providing a market gap to be filled by potential entrepreneurs.
Large companies choose to outsource to cut on operational costs to maximize profits. For instance, it is not a daily norm when a company will need a defense attorney; therefore, they will hire one when they are in need.
This sector is spontaneous; however, the figures obtained do not vary with grater margins over time. By the turn of the decade, scientific, professional and IT services were leading in profit margins in the sector with a margin of 11.9% from a report compiled by the Sageworks . In decreasing order, the margins for healthcare followed with manufacturing, hospitality and retail in that order.
Here are some of the businesses that are thought to be most profitable:
· Financial accounting
This is a professional field which involves financial planning, tax and tax preparation, and bookkeeping. The clientele is the general public as well as businesses. This will, therefore, guarantee a steady flow of business since the target market is high, translating to the continuous demand for financial services.
This enterprise is skill-based; therefore, it reduces the overhead starting cost considerably.
In fact, one can use a home office for the job. Little equipment is required, including computers and stationery. The barrier for entry in the industry is work experience. Therefore, if you have accounting training with new CPA and ACCA certifications, then you are eligible to set up practice. This, however, sounds easier than the projected 18.4% profit potential, which is practical and viable.
· Real estate
This is a vast area consisting of services such as construction, interior decoration, leasing, development, etc. you can fit anywhere in these areas as a small-scale business entrepreneur. Home leasing is one of the most lucrative ventures with steady growth in renting houses. As the economy becomes harder, the cost of purchasing a house becomes unattainable hence mortgages become more expensive.
Due to this, a real estate agent will find a niche here where a majority of people will choose to rent a home rather than buying.
As an agent, you need mobility, advertising, communication and valuation skills; this makes overhead cost attainable. Barriers for entry into the industry involve the requirement of a valid real estate license and leasing agent’s license. It is a jurisdictional requirement; hence, one can have just one, but both are recommended. The cost of acquisition is the performance in the licensing exam. With a potential margin of 17.9%, it is worth a try.
Property management is another sector under real estate with a much lucrative deal. This service is home-based with minimal overhead costs and capital investment requirements. Just like leasing agents, managers and appraisers require a real estate license which is obtained after rigorous training starting with coursework which completed n over 100 hours and more experience under an experienced appraiser for 1000 and more hours.
Real estate brokerage has an expected growth rate of at least 6% in a decade; therefore, making brokerage business a lucrative fiend to set up practice.
Business requires prospective practitioners to have a vehicle, internet, phone service, consultation office and professional dressing code. The industry is receptive to all the persons with a practice license. The license is obtained after passing an exam which then gets you to be admitted to the local real estate association. This job requires sales and marketing knowledge; therefore, if you are well versed with sales, you can give it a go.
· Legal services
Every business and individual need an attorney at some point. Businesses always need a lawyer for varied reasons. The following are some of them: incorporation, litigation, employment laws, bankruptcy law, commercial laws, and recently on the rise, the intellectual property law, also known as technology law.
Law firms can also extend a number of services to individual clients ranging from family laws, wills and trusts, criminal law, personal injury laws, etc.
Overhead costs for running a law firm range depending on the size of the firm. For example, one can comfortably operate from home, rent small office space as a solo attorney or have a massive practice firm with many divisions under the same roof. In all the instances, consultation spaces need to be elegant and have a quality touch.
Entry into the industry requires a practising certificate which is obtained by obtaining a bachelor’s degree in law which takes you four years and three more years in the school of law before seating for the bar exam which you must pass.
Average margins of profit in such a business are 17.4%. It is a long trajectory by a fair and worthy trajectory.
The bottom line
Additional fields of business that one can engage in and be guaranteed of success, which is further reinforced with solid profit projection are as follows:
Medical services such as outpatient clinics
dental services, and other health practitioners such as fitness doctors etc.
Also, warehousing, IT consultants, managerial consultations, employment agencies, etc. Retail services are also in contention as stable small-scale businesses with sizable returns. If you need a loan, check out https://www.a1credit.sg