Top 9 profitable small business ideas

 Being proficient with numbers can be a daunting task if you plan to start your own business.

 According to Sageworks, a financial data service that analyzed more than 16,000 SMEs, accounting is at the top of the list of the most profitable small businesses, with a net profit of 18.4%. This is closely followed by real estate services with 15.2%, then by law firms with 14.5%, and medical offices with 13%.

 What makes these industries so profitable? First, they are run by human capital.

 Services, according to Sageworks analyst Jenna Weaver, are very common in profitable small business listings. This is generally due to the low cost of setting up and administering. Many of these businesses can be started at home.

 Although profit is not the only factor that an entrepreneur must consider, other factors also matter such as the extent to which the business is suited to personal qualities and abilities, what kind of license or training is required and how it would deal with a business, possible recessions, however, remains an important starting point.

 Here is a list of the most profitable small and medium business ideas and their net profit estimate:

 1. Accounting, taxes, payroll services

 The accounting industry is consistently a top player in the list of the most profitable small and medium businesses.

 No matter what stage the economy is in, we all need accountants. Also, this type of company has low administrative costs and tends to take customers back.

 2. Management of companies and enterprises

 This industry consists of small, private offices of bank holding companies and other types of holding companies.

 Well-known examples of holding companies (not in the small business category) would be Berkshire Hathaway or Icahn Enterprises.

 3. Real estate business

 Although real estate is largely dependent on the health of the economy, brokers or real estate agents have low operating costs and all you need to start a business is to get an agent or broker license.

 4. Management consulting services

 This category includes, for example, businesses that offer management or consulting services, various expertise, human resources, marketing, or environmental issues.

 5. Legal services

 Anyone who has ever needed to hire a lawyer knows that it is not cheap at all. Law, as well as accounting, generally has low operating costs and resumes clients. This type of industry includes not only lawyers but also notaries.

 6. Dental offices

 Dentists, like doctors, benefit from patients' recurrence. So, even if it is a business that involves quite high start-up costs due to the equipment, this profession has the advantage of being able to treat several patients simultaneously, plus many payments directly from the pocket.

 7. Generation, transmission, and distribution of electricity

 This category of energy business refers not only to traditional electricity but also to hydropower, nuclear, solar, wind, geothermal, and so on.

 8. Medical practice offices

 How does this category differ from that of doctors? Not by many, is a fine line between medicine and physical therapy, psychology, optometry, etc. These would fall into "medical practices", along with all other types of such practices.

 9. Car rental and leasing companies

 Sageworks analyst Libby Bierman argues that as the economy grows on demand, people will tend to rent and buy more cars in installments using on-demand services.