Have you ever wanted to be your own boss?
If your New Year’s resolution includes striking out on your own, you may wonder what sectors of businesses are the best to consider. A review of The US Treasury’s Report on Small Business (August 2011) shows that as of 2007 (the last year for which data has been analyzed and published), businesses classified as Financial, Mining-Utilities, Health Care/Social Service and Professional/Technical were the most profitable industries. Other sectors yield greater total income, but are not nearly as profitable. Retail, one of the most popular types of small businesses, is a labor of love judging by these statistics, with the average shop netting $5,659 of income a year for the owner.
So what types of businesses are the best? Financial businesses offer the highest return, including in this category financial advisors, brokers, and insurance agents. Mining/Utilities had the second highest return. This sector includes solar and wind power technologies, irrigation, sewage systems.
A great deal of satisfaction can come from being your own boss and being responsible for your own destiny. The desire for independence needs to be a driving force because, as the numbers show, the financial upside may take a while. This same report indicates that nearly 90% of small businesses reported net income of less than $50,000. Since half of these businesses were in real estate rental, construction or professional-scientific sectors, it may reflect work that is part time, rather than full time. Only slightly more than 20% of small businesses had employees, further suggesting the challenges of scaling a business and/or part-time commitment.
For more detail on the profitability of small businesses, click here.
Are you ready to be your own boss?
photo credit: mharvey.nyc via photopin cc