There are almost 28 million small businesses in the United States, nearly all of them are privately held, and approximately 22 million are single proprietorship's run by a single person. If you were looking to become an entrepreneur or "solopreneur" and wanted to work in a field where healthy margins were the norm you might consider accounting services. Why? Because accounting services is one of the most profitable kinds of business to operate according to a release by Sageworks.
According to the release, the top five most profitable businesses include accounting services, legal services, oil & gas extraction, equipment rental and dental offices. Sageworks ranked the 15 most profitable businesses by industry average net profit margin over the last 12 months. Net profits in accounting services were 19.8 percent in the 12 months ended July 2014. Seven of the top fifteen industries are related to health care or real estate. In our most recent blog post - Experian noted Bureau of Labor Statistics research pointing out how much of our economy is now being driven by service oriented businesses.
According to Sageworks analyst Jenna Weaver, "Service-based businesses can attain strong profit margins based on their ability to keep costs low, while being able to charge a premium for their specialized services."
For more information go to www.sageworks.com.