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9 Most Profitable Types of Businesses to Start or Buy in 2022
Taking off with a new business is both an exciting and intimidating venture. However, not everyone knows exactly what they want to build and invest in. What kind of company will succeed? What do the most profitable businesses all have in common? How do you weigh risk and reward?
Not all businesses are created equal. The world is rapidly evolving and becoming more digital, which means there are new concerns and needs: and new opportunities. To have a profitable business, you must start with an idea or opportunity that will thrive in today’s world. With the right plan and a promising service or product, you can be confident that your business will be successful.
What Does It Take to Be Profitable?
To have one of the most profitable small businesses, you’ll need to make a plan and estimate what costs and revenue will be like. Once you have a sustainable idea or know what your product or service is, you can dive into the financial benefits and roadblocks.
Not only do you need the funds to get started, but you also want to analyze how the potential revenue can outweigh the expenses so that you have a long-term strategy. The most profitable businesses aren’t made without a little risk, but how you invest and spend your money should still be a calculated risk.
Revenue vs Margins
Small business owners need to consider not just revenue, but profit margins. Revenue is the amount of money that your business is bringing in, or the total earnings of a business; this amount doesn’t include the cost of acquiring that money. This is different than a business’ overall net profit, which takes into account the cost of your business. There are all sorts of expenses that come with providing a product or service: employee wages, production or shipping costs, rent, materials, etc. Margins refer to the percent of profit you’re making based on both cost and revenue.
To find your gross margin, you would simply divide your revenue by your net profit (or the money left over after subtracting the costs). Margins are usually expressed as a percentage. For example, if your revenue is $200,000, and your overall net profit is $20,000, you divide the revenue by the net profit and get 0.1, meaning you have a 10% profit margin. This percentage is an indicator of how “profitable” a business is.
Starting a Business vs Buying a Business
Something that not every new business candidate considers is buying a business rather than starting one from scratch. If you’ve got a unique idea that you’re especially passionate about, it might be worth chasing that dream and investing in a brand new start-up.
However, buying a small business is a viable and profitable option. Not only does it save a lot of leg work so that you can pour your drive and resources into perfecting your business, but it’s often easier to secure funding.
There are pros and cons to both, so carefully consider the options you have at your disposal. If you want to start your own business, you have a little more control over the entire life of the business, but there’s usually more demand on your shoulders. If you’re considering buying a business, make sure you understand the full history and records of the company when deciding.
Profitable Business to Start
Ready to start your own business from the bottom up? Here are some of the most profitable businesses to start on your own in 2022, especially considering that these options tend to have low start-up costs.
1. Food trucks
Food truck services are growing in popularity, in both rural and urban areas. Not only can owners travel to different locations, but this business can offer mobile catering for different events and companies. It’s also increasingly difficult (and expensive) to find a building to rent for a restaurant or food joint, so when you can cook and serve your food from anywhere, there’s not much appeal for a pricey permanent locale.
Food truck businesses are trendy and practical, so not only can you be successful this year, but it’s likely to stay relevant for years to come. Be sure to go through the proper channels for accurate and complete licensing, parking regulations, and other legal requirements based on the city you frequent. Also, be aware of the competition: not every city may work, so it’s still important to do your own research.
Do you have a lot of experience in the business world already, but aren’t quite sure what to do with all of your expertise? Consulting is a great place to start and is one of the most profitable businesses in the digital world. When you can work remotely and virtually, this type of job puts you directly in control of your schedule and offers decent flexibility.
Generally, this isn’t the most expensive type of small business since you are mainly offering your own service and expertise. There may be some tools or resources you’ll need to invest in, but it’s a great way to start a business in 2022, particularly with the boom of small businesses that started growing in 2021.
3. IT Support
IT support companies are some of the most profitable businesses, especially considering how technology continues to advance. With the exponential growth of technology, IT support is more needed than ever, and will only continue growing after 2022. It also requires very little overhead, which means you can make decent revenue if you’ve got the skills and the time required to perform the job.
4. Auto Repair
Cars are incredibly useful and even essential for more rural communities, but they are also expensive, and even more so when they aren’t working correctly. Auto repair shops will be around for a long while, so it’s a worthwhile venture for a business. What might make it especially profitable is if you can travel and offer mobile repair services. Rather than bringing a car in for smaller issues, a traveling auto repair business could go to the customer; this type of service is more convenient for many. You would save on renting or buying a shop, and stay ahead of the competition by offering faster, personalized repairs.
5. Entertainment and Activities for Children
If you have a skill that you can teach to kids, you could potentially make a lucrative business out of it. More and more, parents are looking for fulfilling activities for their children, so providing wholesome and enriching activities designed for kids could easily be one of the most profitable businesses moving into 2022.
Plus, considering the effects and aftershocks of the COVID-19 pandemic, families are looking for ways to safely spend more time out of the home. Gymnastics, athletic or musical instruction, martial arts, or other creative outlets are not only great for kids and their development, but you’d get to spend your day doing something you love and excel at.
6. Personal Wellness
Coaches, trainers, and other lifestyle specialists can make a pretty penny by helping others navigate their health, use of their time, and more. Developing and marketing an online presence, making videos for virtual courses, meeting with clients in-person or online; there are endless possibilities for all sorts of wellness support.
Personal trainers upload workout videos for mass consumption. Dietitians meet with their clients one-on-one for instruction and encouragement. Dating coaching, organization experts, therapists—you name it! You have a worldwide reach when you set up your business online. There are so many ways to make money, but this kind of health expertise, mental and physical, is quickly becoming one of the most profitable businesses.
Profitable Business to Buy
Maybe you’re interested in owning a small business, but you don’t want to build one from scratch. These are some of the most profitable businesses and booming industries to consider buying for the 2022 year rather than starting one yourself.
What do people always seem to want more of besides money? Space! Smaller apartments and homes are being built, which makes space a lucrative, relevant, and increasingly valuable product. Storage and warehousing are not only one of the most profitable businesses, but it’s also considered one of the most reliable, despite fluctuating economic conditions.
The trucking industry is a huge pillar of modern commerce and delivery. As an essential part of the supply chain, a trucking company is a great potential buy for a new business. Though you should keep in mind that many industries are dealing with labor shortages, trucking and other logistic management companies support thousands of other companies, which means they are always in demand.
Data consumption, increased use of the Internet of Things, global communications, and mobile advances are just of the few technologies that create some of the most profitable businesses. From common household items to massive smart cities, buying into the telecommunications industry is a relatively safe investment.
How QuickBridge Can Help
Now that you have some profitable business ideas, you can begin making a financial game plan that will prepare you for success. No matter how you look at it, starting a new business is a lot of work and can be overwhelming. Getting a loan from a trusted source can be the difference between a rocky start versus smooth sailing. Small business loans from QuickBridge can help you reinvigorate an old small business or boost a young one to reach peak performance.
You can have one of the most profitable businesses with the right resources. Get started today and apply now!