While a number of small businesses flop in their first year, a safe way to help your new venture be a success is by tapping into the right industry.
From accounting to legal services to real estate — there are certain industries that tend to see higher profits than others. By analyzing net profit margins of privately held companies over the past 12 months, financial information company Sageworks sought to uncover exactly which industries are the most profitable.
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For the second year in a row, accounting and tax services takes the cake for the most profitable industry. Real estate, legal services and management of companies and enterprises follows closely behind, also landing on the top of the list for most profitable types of small businesses.
“Many of the top performers are service industries in which certifications and education requirements are barriers to entry,” Sageworks analyst Libby Bierman said in a press release.
However, that doesn’t mean other major industries didn’t see higher profitability over the past year either. From healthcare to manufacturing, check out this year’s list of the most profitable industries for small businesses.