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Sunday, May 16, 2021

10 High Profit Margin Businesses that you can Start Today

Some businesses are incredibly profitable in nature while some businesses may give you great turnovers but the net profit remains low despite lots of effort and energy. A profitable business with high margin is the one that can fetch you a minimum of 15% return on the investment.

The margin can differ from business to business and also based on your working style, precisely your efficiency. Though, for an entrepreneur, making high margin profit shouldn’t be the only goal while starting a business as it may impact productivity, quality of product or service and loss of customers, but profit definitely should drive the business.

Service sectors like professionals, IT, law, business, scientific, assessments, research offer the highest profit margin. While manufacturing, health, retail and others offer a bit lower margin.

Here is the list of ten high profit margin business ideas that you can start today:-

1. Education Sector

The world has become much more aware and responsible when it comes to education. Every parent tries to provide the best possible business for their children. Education sector doesn’t see any decline in the near future. Thus, investing in the education sector can offer you great returns.

Imparting education through various means based on your resources and finance can be a very lucrative business. You can either start your school, coaching centre, online tutorial or just take hourly classes based on your subject expertise. 

The sector was worth $1410 billion in 2018 and is expected to reach $1950 billion by 2025. Hourly charges for supplementary tutorial offer great returns as you charge on an hourly basis. Moreover, you can also do freelance work related to academic projects, research work, mentorship and much more.

2. Personal Fitness and Diet

The CAGR of the fitness sector in the USA is close to 5254 million dollars. The industry is growing at 2.41 percent annually. Fitness sector not only just includes health clubs but a lot more. Profit margins rise mostly in service sectors that are mostly knowledge based.

For example, your fitness advisor that recommends you your dieting chart, what not to eat, physical exercise suitable to your body needs, mental health fitness advice, mental counselling and much more. Not all health advice requires a professional doctor. 

Motivational speakers, mentors and similar experts can be people with specialized knowledge in such fields. The present time is certainly the one where people are in trouble both mentally and physically. Any sort of business addressing such issues has huge traction among people. 

Such business can also operate through online medium and not necessarily through physical mode. What you require is trained professionals dealing with all the above-mentioned issues. You will require an office and counselling room to kick start your business. The investment is low while you can charge on an hourly basis to your clients. 

3. Business and Legal Advising

Both these fields do already have lots of competition yet there is still much scope if you have researched deep to identify areas where there are still less advisors. Anyone opening a business definitely requires some guidance. You can be the one with your knowledge and skills to help the person out. 

Similarly, legal advising is a bit different from traditional legal advocacy. Here, most of the advice is rendered to people starting some business. Such advice guides your clients towards the right direction and also helps them manage legal formalities like procuring documents, obtaining license and permissions, getting a go ahead sign to start business and much more.

Both these pieces of advice can be rendered by professionals in both these fields. It has a huge profit margin since you mostly have to give knowledge based advice. The investment and expenditure to start this business is very minimal while you charge on an hourly basis and a certain fixed amount for a work to be done. Both these businesses offer close to 15-18% profit margin.

4. Food Delivery and Food Trucks

Business regarding cooked food especially serving regular meals has huge returns. The margin of profit rises when you reduce the cost incurred for restaurant space, waiters, accounts section, and taxes involved. Online food delivery and food trucks are hot business ideas that are making great returns.

In this, you don’t need to traditionally own a restaurant, pay for rents or to buy such space, hire a battery of waiters, chef, accountants and pay huge taxes. You only need to know how to cook with some basic resources and decent investment.

Online food delivery solves most of your problem since you can cook food at your home on your own or can hire a few help to assist you. You also don’t need to be very organized in your menu list and you can just do good with limited offerings. 

It saves your expenditure to a large extent, reduces your taxes and enhances your profit. The same applies for food trucks where cost of space is significantly reduced. The online food delivery market is close to $28486 million in 2021.

5. Business Related with Pet

The pet service market in the USA has reached $99 billion in 2020 and is expected to grow more. The urban class is spending more of its income on their pets in several ways. Pet services are not just limited to vet care and related articles but have a very wide horizon.

Pet services also include pet sitting, pet walking, pet day care, pet boarding, training, fitness centre, breeding centre and much more. Close to 67% of Americans own a pet and they spend close to 72 billion dollars on their pets which has significantly risen.

The market allows you to exploit new ventures and make huge returns as people are willing to spend much more than what one can generally expect. Some of the above-mentioned services like grooming, walking, pet sitting, food, etc. require less investment and can offer great returns. 

These markets are new with not many in competition allowing you to earn more and set your own charges.

6. Business related to Cash Crops

Cash crops should not be confused with regular agriculture. Cash crop revenue totalled 193.3 billion dollars in 2019 for the United States out of which 40% were corn and soya. You can get a land on lease to grow cash crops or you can become an intermediary in this business. 

Cash crops offer great returns with high margin. Mushroom, soyabean, corn, broccoli, peanuts, etc. can offer great returns. You can also go further in dealing with Aloe-vera, fox nuts, honey, poultry products and related products in meat.

Many of the produce can be further processed and packaged to be sold directly to the market which makes value addition. 

7. Information Technology, Social Media, Digitalization and Marketing

Website design, development, app design and development, maintenance, repair, social media management, marketing, target marketing, graphic designing, SEO, etc. are now some of the most known ways of making money.

In most of them, you only need a computer, an internet connection along with the knowledge in the concerned field. With the ever rise of digitalization, you can offer your services in any of the above. With minimal investment, you will be able to easily make great returns for digital marketing, affiliate marketing, website and app development, repair and maintenance. 

The market is expected to reach $100 billion in mobile app development with CAGR of 14% annually. 

8. B2B Businesses

Business to business services do not concern with customers rather they deal only with businesses who can be termed as their customers or client. Many businesses only deal with other businesses. B2B businesses are of many types but some of them are making great returns.

Warehousing, drop shipping, services for different kinds of businesses, are some common types of B2Bs. In the world of E-commerce, warehousing and drop shipping have become buzz words. 

Similarly, delivery services can also be offered as B2B where you offer services to customers on behalf of your client based on pact. Some of them are extremely profitable in nature. 

9. Yoga and Meditation

Unlike the traditional gym setup, yoga and meditation do not much concern with equipment and trainers. You only need a decent space to host 50-100 people per class based on time slot. You need a pair of trainers who will train your clients.

The investment is minimal given you only need a decent space to accommodate your clients along with trainers. The rest of the thing can be managed by you. Additionally, you may require supportive staff like cleaners or guards. Both of them are hugely popular in the USA and people are ready to spend a good amount on these two services.

The market size of Yoga is 16.5 billion dollars with 5.4% growth and close to 35000 yoga training centres.

10. Elderly Care Services

Elderly care services not only mean an old age centre where old people live but it has wide dimensions. For example, you may offer services related to daily meals of three times with perfect nutrition quantity to elders living in their home. 

Many of them find it troublesome to cook on a daily basis. Offering fresh cooked food with nutrition can be a great business. Similarly, daily massage, basic health check-ups, fitness training, medical care like ensuring intake of medicines on time, required assistance, etc. can offer you great returns.

Elderly care service market is close to 500 billion dollars with 7.1% growth and has immense potential to offer high profit margins.

In the end, it should be noted that high profit margin not only matters on the type of business you choose, but also on various factors like efficiency, place of business, class of customers you aim to target, etc. 

A brief and thorough business plan is necessary in order to move further. 

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