If you are considering starting your own business then there’s probably a lot of questions on your mind you’re thinking about how big the market is things you are thinking about though is one of those questions that I just mentioned how much profit could your business earn specifically well your profit margins be because different types of businesses.
Earn different profit margins some businesses bring in a lot of revenue every single year but their profit margins are really small which makes them a more risky type of business to run and it means that the business won’t be earning much actual income much profit until the business becomes a very very large whereas on the other hand there’s some other types of businesses that have pretty high profit margins so you can make a good living running them even before your business becomes very large so I’m going to be sharing with you a study that was done by the company called aviary Joe back in 2016.
So a couple years ago they analyzed a lot of different sectors of business to figure out what the profit margins of those different sectors were to help you figure out which type of business you might want to start because some of them are a lot more profitable than others now just in case you don’t know exactly what I’m talking about let me just give you a quick example if a business brought in 1 million dollars and their profit margin was 10 percent that would mean that after paying all their expenses paying their employees paying their taxes they would have about 100 thousand dollars left over this is money that can then be reinvested back into the company to grow it even bigger or the owner can take it as a draw as basically part of their take-home pay so in this study that abri Joe did they found 15 different industries that had the highest profit margin.
I’m going to share each of them with you however I also wanted to mention that something that’s very interesting about this is that there are two or three different industries that aren’t on this list that I happen to know make high profit margins so after we get through this list.
I’m going to share those with you also because like I said before if a company has a much higher profit margin that means that it’s less risky and that you can support yourself with it and earn more profit before your company gets to be a humungous corporation so with that being said let’s get on into this list of these 15 different companies that are earning the highest profits starting at the bottom of the list the industry that earns the 15th highest profit margin is other school and instruction so this is any sort of educational company that isn’t your standard school or college or trade school is this a type of company that you could start well the answer is actually probably yes because we’re not talking about an accredited university here in fact this 15 the most profitable industry is specifically excluding that type of educational establishment we’re talking here about online training companies or companies that offer trainings to employees at businesses that means that with a bit of hard work anyone could start this type of company number 14 is medical and diagnostic laboratories an example of this would be a laboratory that analyzed medical samples now at first thought you might think you definitely cannot start a business like this.
I’ll admit that this would be a more difficult type of business to start mostly because there are a lot of government requirements that she would have to follow however don’t think that you can’t because you’re not a doctor many businesses in the medical field as you’ll see as we go down this list are actually owned at least in part by entrepreneurs oftentimes entrepreneurs with business know-how partner up with medical professionals who don’t have the capital or the expertise to actually start a business so even if you’re not a doctor today don’t completely cross this option off your list the 13th most profitable industry is non metallic mineral mining coming in with an average profit margin of 11.6 percent so this is a very similar profit margin to several of the other businesses that we’ve just looked at and this might be a good fit for you.
If you know of an opportunity to purchase some land perhaps you can get a bank loan to purchase some land and build a warehouse facility and take advantage of this opportunity the 10 the most profitable industry earns an average profit rate of twelve point three percent and these are companies that do activities related to real estate and this refers to things such as escrow companies or companies that are providing listing services for real estate listings this is not talking about property managers it’s not talking about Realtors or real estate agencies we’ll talk about a few of those other industries in a little bit here because some of them are higher up on our list however title and escrow companies are examples of companies that are doing real estate activities the ninth most profitable industry in automotive equipment rental and leasing companies like this rent out cars they rent out trucks they might even rent out some other equipment and of the equipment that can go along with these vehicles and these companies have an average profit margin of 12.5% the eighth most profitable industry on our list has an average profit margin of twelve point eight percent and that is specialized design services well.
I wasn’t sure exactly what this one meant and so I had to look it up because I was wondering if maybe it meant architecture design or engineering but no it actually specifically excludes things like that and instead is referring to things like graphic and interior design the seventh most profitable industry is offices of dentists and they earn an average profit rate of fourteen point one percent just as we’ve discussed before even if you aren’t a dentist yourself you still might be able to partner with the dentist and help them get their practice off the ground at number 6 is offices of other health.
Professionals this is referring to other types of doctors offices that are a bit more specialized they might be massage therapists they might be physical therapists ophthalmologists or ents the fifth most profitable industry is real estate agencies earning an average profit rate of fourteen point eight percent real estate agencies don’t require an enormous amount of capital to start and become a realtor yourself is not an extremely lengthy process once you are a realtor there are steps that you can follow to become the owner of a real estate agency at number four we find out patient care centers these are medical care centers that don’t require overnight stays and they earn an average of fifteen point nine percent profit the third most profitable industry is lessers of real estate otherwise known as landlords or people who lease or rent out real estate so these people have invested into real estate.
Now they are leasing or renting it out to others and I love that this is number three on the list most profitable industry because there is such a low barrier to injury here yes you do need to acquire a bit of capital however you can get started with as little as about ten thousand dollars because of the availability of bank loans for real estate and by the way to anyone who thinks no you need more that’s actually how I got started with real estate investing myself with ten thousand dollars that I’ve saved from my job the second most profitable industry is legal services that would be our lovely attorneys.
they earn an average profit margin of seventeen point four percent and coming in at number one as the most profitable industry is quite fittingly accountants tax preparers and bookkeepers these financial professionals are in an average of 18 point 3 percent in profit and because there are several different types of financial professionals in this industry there are also different levels of difficulty to get into this industry you can become a bookkeeper relatively easily but become something a bit more technical like a certified public accountant or certified financial planner will require a bit more schooling ok well that brings us to the end of this list of the 15 most profitable industries that you could possibly start a business in these days however I leavened at the beginning of this video there are a couple industries that were left off this list.
I find that very interesting now these are industries that have arisen in very recent years and they’re also industries that are on a much smaller scale and so I think that a lot of people who are doing studies and even the government has a bit of trouble tracking how much money these businesses are earning and how large or small their profit margins are however I work in one of these industries and I work with a lot of other people who work in these industries so I have some insider knowledge on how much money people are bringing in and how much they are actually keeping so let’s talk about these three different industries the first one.
I want to talk about is freelancing now I understand why this one wasn’t on the list because freelancing income is actually many different industries and at least one type of freelancing was mentioned on this list in the industry at label as specialized design services also some bookkeepers are freelancers however there are many other freelance career options and many of them have very high profit rates the thing about freelancing is that your business typically is going to be quite small maybe you’re bringing in $20,000 a year fifty thousand a hundred thousand or a couple hundred thousand but the great news is that you get to keep most of that as profit in fact after paying for your taxes and your expenses you might be keeping anywhere between 25 and 75 percent of your earnings as profit and that’s because typically with freelancing your expenses will be fairly low and you won’t have any employees or payroll expenses another industry left off this list and perhaps the most difficult to measure is personal brands and one reason why these would be so difficult to measure is because I don’t think it’s even classified as an industry yet however we find all of these people online who are professional or youtubers or instagramers and they have a personal brand.
they’re MAKING MONEY perhaps from advertising they’re making money from sponsorships and from different types of partnerships people in this industry range from micro influencers with just a few thousand followers who are bringing in perhaps a few hundred dollars a month all the way up to the likes of Kylie Jenner who recently became the world’s youngest self-made billionaire and just to illustrate how amazing the profit margins can be in this industry Kylie’s cosmetic company actually has only a very very small handful of less than a half a dozen employees and they’re able to have such a small team because they outsource a lot of their production it also means that they outsource their production costs and so most of the money that the business itself brings in is pure profit and the final industry that I want to share with you that wasn’t on this list is digital content businesses.
Now these businesses are in some ways a lot like personal brands however they go a step further they’re not necessarily just one person and the brand isn’t necessarily based around the things of one person it can be a bigger company with a bigger mission than that but the other thing that sets these companies apart is that they’re not selling a physical good but they’re also not just doing partnerships and collaborations rather they’re selling digital content they might be selling online video courses or ebooks or even a web series these businesses are extremely profitable because they can be run with very small teams and the production costs for these digital content products are extremely minimal this means that these digital content businesses typically have profit margins well over 50%.
I shared with you a lot of different business opportunities and some of them were a lot more accessible than others personally I run an online business and I love the flexibility that it provides me because not only can I run my business from anywhere in the world but I also can run it on my own schedule if you’re interested in starting your own online business then I have a free resource that can help you out it’s a short diet called the 8 ways to make money online there’s basically eight main ways to make money online including everything from affiliate marketing to selling courses to starting a membership site to selling physical products.
In that guy I break it all down I share which ones are more profitable which ones are easier to run and also the one that I most recommend myself if you’re interested in grabbing that guy it’s completely free and there’s a link in the description box down below where you can grab it for yourself thank you guys so much for watching this video I hope you found it really helpful and really interesting to hear these different numbers on the profit rates the different companies and different industries earn and let me know if you want to see more videos like this in the future hit that like button if you enjoyed it and if you want to see more videos like this and be sure to subscribe to my channel I make new videos every single week and I’d love to have you join me for the next one alright well that’s it guys thanks so much hope you’re having an amazing week and I’ll see you next time oh and by the way it looks like I’m sitting a little closer to my camera than normal but it’s actually because I got a new lens and I’m sitting a lot further away from my cameras in normal and I’m hoping that you guys can hear me because I mean really look at how far away this is.