When Reed Hastings, Netflix CEO, said “Stone Age. Bronze Age. Iron Age. We define entire epics of humanity by the technology used”, it was because he knows the importance of finding what is most profitable at every moment.
Entrepreneurs, like him, should know the importance of starting a business in the most profitable industries because those are the ones that make money. Otherwise, small business owners running unprofitable businesses face an uphill battle to become successful.
Knowing which ones are the most profitable businesses will help you find the industries that already are, or are becoming, successful. After all, you need to thrive in the business world.
So where does that leave you when you have an idea for a business that has a good chance of failing?
You may be a passionate inventor or you might desire to help the elderly live independently in their later years, but those industries have high overhead costs. In those situations, it’s important to strike a balance between something you’re passionate about and focus on industries that are more profitable than others.
In time, you may be able to use those profits to fuel your passion. That’s what the following entrepreneur did when his business succeeded.
An IT Technician Wants to Live His Dream
Dave is all about using technology to help people. For several years he had worked for a company to hone his skills and help business owners that need IT support. By working part-time, he earned income while getting CompTIA, Cisco, and other IT certifications.
At the heart of Dave’s passion was his desire to start his own IT consulting business. One day he decided that it was time to move forward with his dream. After all, this billion-dollar industry is very lucrative and he had developed the skills to succeed.
Dave started his IT business by working from home saving thousands of dollars in rent, insurance, and overhead costs. In addition to upgrading his current software and hardware, he purchased assorted office supplies and an all-in-one printer.
He met with an attorney to register his business as an LLC and get the necessary permits required by local authorities. He also had to formulate an LLC operating agreement, which helps you formulate relations between business owners, members and managers. Dave also met with the local chamber of commerce and they agreed to provide a list of businesses he could contact.
Dave planned to offer IT management, cloud storage, hardware repairs, and other consulting services. Getting the IT certifications and working for another company had paid off. He marketed his services successfully because of his on-hands experience and proven expertise.
Now, to assess the customers’ IT needs, he asks potential clients to complete a survey. Based on their feedback, Dave can make recommendations and offer a consulting package tailored exclusively for them. Additionally, he advertises in the local newspaper, pays for Google Ads, and uses social media to inform others about his business.
Because IT is one of the most profitable businesses, Dave has more clients than he can handle. He’s thinking about hiring an IT technician to handle repairs. Then, he can focus on what he loves the most—consulting.
In the future, as his business grows, he wants to expand his business by teaching IT courses at a local community college and opening a commercial office downtown.
Which One of the Most Profitable Businesses Is Right for You?
Before you hang up your open-for-business shingle, it’s important to review which businesses are profitable and which ones aren’t. That way you can move forward confidently and passionately when building your business from the ground up.
Because some industries yield higher profits than others, it makes sense to choose a business that reaps the biggest financial rewards. You can select a tech business or one of the other industries that are equally successful.