Profitable Service Industries

We have all heard the saying that money doesn’t grow on trees.  Well, does it, really?  Business marketing professionals agree that there are certain businesses worth starting because the potential profit margins on these businesses are much higher than, for example, selling common day products.  You wouldn’t need to make money only in situations where you sell in huge volume, but rather, you would make a significant amount of profit per each individual sale.

Do these businesses exist?  The standard return on the stock market is close to 5% to 8% over the last 40 years.  Profit margins on products sold in big department stores like, Walmart, for example may be close to that, if not even lower, on certain items that they use as loss leaders to attract customers into the store.  Is it presumptuous for businesses to shoot for 30% or even 40% profit margins?  Businesses in the high tech industries certainly desire to see these type of profit margins on new inventions and patented items.

What about local mom and pop businesses?  Are there specific avenues in which we can dream of a business that gives these types of returns for the small business owner?   Yes, and yes.  There are specific areas of business in which does give a 30% to 40% profit margin.  One such service business is carpet cleaning.  That’s right!  You probably have all seen multiple carpet cleaning trucks in your life that you have lost count.  You may even know more than a few different carpet cleaning companies yourself.  The best carpet cleaning companies that have a systematized process and great marketing can see returns in the 30% to 40% range.  See Veritas Carpet Cleaning Orlando.

What about other types of service businesses?  Concrete pouring and driveway repair is another such business with profit margins that can range in the high 40%.  Concrete professionals beautify your home and create driveways that are not only functional but also can add significant curb appeal to any home.  A single driveway concrete pouring job can mean an extra $10,000 for the concrete company.  How does that sound?!

What do you enjoy doing?  There are significant benefits to finding profitable service industries to work in, espeically one where you can learn the trade and then work for yourself by being your own boss.  These types of trades are not taught in school, but can be learned under the mentorship of a more experienced tradesman.  Spend 1 or 2 years to learn the entire system.  What are the highest profit margin services that are provided in the field?  What equipment will you need?  What would be the cheapest way to get started?  Do you live in a higher populated city where there is demand for this service?  Basically, is it busy where you currently work?  After you answer all these questions, you have a much better idea of how to start your own company and rake in the profits.

There are many questions to answer as you look into specific businesses you can start today that do not require a PhD.  Make sure you look at the profit margins.  It would not be profitable to spend your time going into a businesses where your profit margins are very minimal.  Research your industry.  Research your profit potential.  And then go full steam ahead in your pursuits.  Work hard and you will see your dividends in the long term.

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