According to our research one of the the most profitable types (or categories) of small businesses to start today are professional services like accounting, legal services, and insurance agents. One of the main reasons these types of service businesses enjoy high profit margins is because they generally don’t have a lot of high over head expenses including a large payroll and equipment expenses. These types of businesses also offer the types of professional services that have a higher experience and training barrier to entry which can help support the rates of the services they offer. The also have the ability to generate highly sought after repeat business and residual income.
Another very profitable and high margin small business category is health care and medical related services such as dental services, medical practices, medical labs, chiropractic services, physical therapy, and out patient services. These types of businesses also enjoy relatively high profit margins and are considered recession proof or resistant because they are always in demand with very favorable market demographics because of our huge aging population.