If you want to start a business, then you are probably wondering how you can launch the most profitable business. The truth is that the profitability of business industries is never the same; some are more profitable than the others.
That’s why it’s so important to check industry trends to decide what business offers the safest most profitable investment.
What is business profitability?
The ultimate goal of any entrepreneur is to increase their profit margin, as it’s the indicator of a business’s financial health. Your business profitability is calculated depending on several factors, such as the business industry of your company, whether it’s a start-up or not, your long term goals, and how much money you’re making (compared to how much you’re investing).
Small businesses are especially vulnerable to bankruptcy due to low profits, and yet the number of start-ups increases slightly every year. One way to avoid shutting down your venture is to get into a profitable industry
If you want to have one of the most profitable businesses, consider the following investments that allow you to be your own boss and to make profits. Here are3 some industries that are becoming more profitable by the second:
- Auto Repair
Today, a car is an essential asset that allows us to get from place to place daily. However, the long wait at the car shop is an inconvenience. This is where mobile car repair comes in.
While it’s true that some repair jobs need equipment in an auto shop, there are plenty of simple maintenance and repairs that only require a toolbox to complete. If you have the skills needed, you can offer mobile oil changes, battery swaps, fluid refills, and headlight repairs at any of your customer’s convenient location
- Food Trucks
The increasing rise in rental costs continues to undermine the ability of food artisans to afford their business in town centers. The solution to this problem is food trucks. Once you hit the road, you can conveniently park and set up your trade wherever you feel that you are likely to draw customers.
The low start-up overhead and mobility means that you can turn your recipes and cooking skills into a thriving business. However, be sure to analyze possible locations, as some areas may have saturated food trucks, compliance standards, and different business licenses required.
- Electronics Repair
The use of electronics has and continues to increase daily. More and more people spend their hours glued to electronic screens for one reason or the other. You may find that people seek the fastest possible solution to any problems that occur as they use their electronics.
Though you will need to purchase some supplies, a mobile electronic repair business is a profitable industry with no signs of slowing down.
- Accounting and bookkeeping
Everyone will always, always, need accounting services. After all, sound accounting is necessary for the management of a business and a household.
With more firms outsourcing their non-essential tasks such as accounting, then setting up an accounting firm should be considered as a profitable business.
- Real Estate
Real estate agents help people find places to buy or rent, be it homes or offices. If you have an extensive network and do not mind working odd hours, then this may just be the business for you.
Today’s the day you start a profitable business
There are so many profitable small businesses that you can start. However, every business comes up with various challenges and competition. For the success of your business, you will need a unique trait that draws your customers and makes you stand out.
Let us know in the comments what industry you’re looking to start a small business in!
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Siemens Healthineers gains EU nod for $16.4 billion Varian buy
BRUSSELS (Reuters) – EU antitrust regulators on Friday cleared with conditions Siemens Healthineers’ $16.4 billion acquisition of U.S. peer Varian, paving the way for the German health group to become a world leader in cancer care therapy.
The European Commission said Siemens Healthineers pledged to ensure that its medical imaging and radiotherapy equipment will work with rivals in return for its approval, confirming a Reuters story. The pledge is valid for 10 years.
“High quality medical imaging and radiotherapy solutions are crucial to diagnose and treat cancer. The efficiency and safety of treatment relies on the ability of these products to work together,” European Competition Commissioner Margrethe Vestager said in a statement.
Varian is the leader in radiation therapy with a market share of more than 50%. The deal received the U.S. antitrust green light in October last year.
(Reporting by Foo Yun Chee)
Battling Covid collateral damage, Renault says 2021 will be volatile
By Gilles Guillaume
PARIS (Reuters) – Renault said on Friday it is still fighting the lingering effects of the COVID-19 pandemic, including a shortage of semiconductor chips, that could make for another rough year for the French carmaker.
Renault reported an 8 billion euro ($9.7 billion) loss for 2020 which, combined with gloomy take on the market, sent its shares down more than 5% in late morning trading.
“We are in the midst of a battle to try to manage a difficult year in terms of supply chains, of components,” Chief Executive Luca de Meo told reporters. “This is all the collateral damage of the Covid pandemic… we will have a fairly volatile year.”
De Meo, who took over last July, is looking at ways to boost profitability and sales at Renault while pushing ahead with cost cuts. There were early signs of improving momentum as margins inched up in the second half of 2020.
The group gave no financial guidance for this year, although it said it might reach a target of achieving 2 billion euros in costs cuts by 2023 ahead of time, possibly by December.
Executives said they were confident the carmaker could be profitable in the second half of 2021, but that they lacked sufficient market visibility to provide a forecast.
Renault struck a cautious note, saying it was focused on its recovery but warned orders had faltered in early 2021 as pandemic restrictions continued in some countries.
The group is facing new challenges as the European Union tightens emissions regulations and after rivals PSA and Fiat Chrysler joined forces to create Stellantis, the world’s fourth-biggest automaker.
The auto industry endured a tough 2020 but a swift rebound in premium car sales in China helped companies such as Volkswagen and Daimler to weather the storm.
Auto companies globally have since been hit by a shortage of semiconductors that has forced production cuts worldwide.
“The beginning of the year has shown some signs of weakness,” De Meo told analysts, but added the chip shortage should be resolved by the second half of 2021. “We have taken the necessary measures to anticipate and overcome challenges.”
Renault estimated the chip shortage could reduce its production by about 100,000 vehicles this year.
The group was already loss-making in 2019, but took a sharp hit in 2020 during lockdowns to fight the pandemic, which also hurt its Japanese partner Nissan.
Analysts polled by Refinitiv had expected a 7.4 billion euro loss for 2020. The group posted negative free cash flow for 2020.
The 2018 arrest of Carlos Ghosn, who formerly lead the alliance between Renault and Nissan, plunged the automakers into turmoil.
In a further sign that the companies have been working to repair the alliance, De Meo told journalists that Renault and Nissan will announce new joint products together in the coming weeks or months.
Renault has begun to raise prices on some car models, and group operating profit, which was negative for 2020 as a whole, improved in the last six months of the year, reaching 866 million euros or 3.5% of revenue.
Analysts at Jefferies said the operating performance was better than expected. Sales were still falling in the second half, but less sharply.
Renault is slashing jobs and trimming its range of cars, allowing it to slice spending in areas like research and development as it focuses on redressing its finances. It is also pivoting more towards electric cars as part of its revamp.
It was already struggling more than some rivals with sliding sales before the pandemic, after years of a vast expansion drive it is now trying to rein in, focusing on profitable markets.
De Meo told journalists on Friday that the French carmaker will make three new higher-margin models at its Palencia plant in Spain, where manufacturing costs are lower, between 2022 and 2024.
($1 = 0.8269 euros)
(Reporting by Gilles Guillaume and Sarah White in Paris, Nick Carey in London; Editing by Christopher Cushing, David Evans and Jan Harvey)
UK delays review of business rates tax until autumn
LONDON (Reuters) – Britain’s finance ministry said it would delay publication of its review of business rates – a tax paid by companies based on the value of the property they occupy – until the autumn when the economic outlook should be clearer.
Many companies are demanding reductions in their business rates to help them compete with online retailers.
“Due to the ongoing and wide-ranging impacts of the pandemic and economic uncertainty, the government said the review’s final report would be released later in the year when there is more clarity on the long-term state of the economy and the public finances,” the ministry said.
Finance minister Rishi Sunak has granted a temporary business rates exemption to companies in the retail, hospitality, and leisure sectors, costing over 10 billion pounds ($14 billion). Sunak is due to announce his next round of support measures for the economy on March 3.
($1 = 0.7152 pounds)
(Writing by William Schomberg, editing by David Milliken)
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