Friday, September 18, 2009

Profitable?

I happened to come across this article in Forbes, published last year. "The 10 Most Profitable Businesses to Start". These businesses are a constant demand and relatively low overhead.

#1 Accounting services (Average Pretax Margin: 25%)
Reason: Pricing power (everybody needs accountants, no matter how the economy is doing), low overhead and marketing scale, thanks to plenty of repeat clients. I may for the first time consider I may not be taking the wrong course. Hehe.

#2 Legal services (Average Pretax Margin: 21. 6%)
Reason:  Almost the same as the one above. I did law too!! Not enough to open a firm though.

#3 Dental Services (Average Pretax Margin: 20.9%)
Reason: Operating scale. Their equipments etc are very expensive so they charge a lot. I'm not talking about the government ones. Those don't earn much as far as I know.

#4 Specialized Design Services (Average Pretax Margin: 17.6%)
These are interior designers, industrial designers (not architects) and graphic designers. Reason : Talent and technology.

#5 "Other" Health Practitioners (Average Pretax Margin: 17.5%)
Examples are chiropractors, optometrists, podiatrists, physical therapists, speech therapists and mental health professionals. Reason: Specialization


#6 Outpatient Care Centers (Average Pretax Margin: 16.9%)
Examples are kidney dialysis centers, spas, HMO medical centers, etc. Reason: Uprising field


#7 Insurance Brokers (Average Pretax Margin: 15.9%)
Reason: Annuity-style profit streams


#8 Physicians' Offices (Average Pretax Margin: 15.8%)
Reason: No matter how the economy is, there will still be sick people.


#9 Medical And Diagnostic Labs (Average Pretax Margin: 15.3%)
Reason: Small marginal costs to do extra testing


#10 Depository Credit Intermediation (Average Pretax Margin: 13.6%)
Examples are small banks, credit unions, etc. I don't know about now as lending money has made giant creditors such as Citigroup and Lehman Brothers what they are now. Lehman Brothers has already been declared bankrupt, the largest bankruptcy in the history of US, with $639 billion worth of assets. Small lenders have been more insulated from the credit crisis than them.

But, no matter whatever business, with God as the CEO, it will surely be a profitable one.

No comments:

 

Designed by me =p