What are the Most Successful Small Businesses? This article will show you the top small businesses.
What are the Most Successful Small Businesses Administration, more than half of all U.S. workers work at companies with fewer than 500 employees, and more than half of these smaller companies are home to between one and four employees – clearly, small businesses are still the foundation of American entrepreneurship!
What are the Most Successful Small Businesses?
These smaller firms contribute an estimated 30% of all sales in the U.S., and many industries remain dominated by small firms despite the growth of large corporations over the past century. So, if you want to start a small business, what are some key components that make some ventures more successful than others?
#1 – Car dealerships
Car dealerships require a large investment, but if you’re looking to open a small business that is sure to succeed, it might be hard to beat selling cars. Car manufacturers pay close attention to dealerships and rank them on their sales performance. If a dealership in your area opens, you can bet it’ll sell hundreds of new cars in its first year. The competition will be fierce though, so look for an opportunity where there aren’t many dealers nearby or one with the overpriced inventory.
Buy low, sell high and build up your inventory as quickly as possible – car buyers have short attention spans! #2 – Massage parlors: It may seem odd, but some massage parlors actually make good money. Customers like massages because they feel pampered and relaxed after getting one, so chances are good people will continue coming back for more.
Plus, most states don’t regulate massage therapists very closely; therefore anyone can set up shop as long as they meet basic health standards. In fact, some massage parlors make thousands of dollars every week without even having to advertise at all! But don’t think that just because you own a massage parlor means that you won’t have any work to do—in fact, it takes quite a bit of effort to keep customers coming back again and again.
#2 – Pharmacies
More than half of all drugs sold in America are dispensed through pharmacies. That’s nearly $300 billion per year. If you’re a pharmaceutical rep, you can enjoy an extremely lucrative career promoting products to pharmacists, who advise doctors on what to prescribe and help patients choose the medication that best fits their lifestyle. Working as a pharmacist is also an option; some pharmacists move into management after gaining experience as a sales rep for several years.
The average salary for both jobs is about $70K per year with top earners taking home more than $100K annually. #1 – Car Washes: There are around 18,000 car washes in America, which generate annual revenue of $4.5 billion (according to IBISWorld). You don’t need any formal education or training to start working at a car wash—just be willing to learn how everything works and put in your time cleaning cars! Average salaries vary by region but range from $15K-$20K per year nationwide.
However, if you have experience operating heavy machinery like cranes or forklifts (which many car wash owners hire), your salary could reach upwards of $40K per year. Some people even make six figures washing cars! It may not be glamorous work but it’s steady employment with above-average paychecks!
#3 – Clothing stores
If you don’t believe that clothing can make a small business successful, think again. Clothing is not just a necessity for our everyday lives, but it is also something people are willing to spend good money on. For example, an estimated $186 billion dollars in clothes were sold online in 2017, and $324 billion dollars in clothes were sold offline. This shows that consumers still rely on physical stores to complete their clothing needs as well as online shopping sources when looking for specific brands and styles of clothing.
Do you have what it takes to compete with major department stores like Gap or smaller boutiques like Lululemon? There’s only one way to find out! Start planning today. #2 – Computer services: While most of us don’t think about computer repair when we imagine a successful small business, it turns out that these types of businesses often do quite well financially. In fact, in 2017 alone there was an estimated $31 billion dollars worth of computer repairs performed by professionals around the world.
With so many computers being used on a daily basis by both individuals and companies alike, there is no doubt that computer repair will continue to be big business for years to come. Whether you prefer fixing computers at home or offering your services remotely through mobile technology such as laptops and tablets, there are endless opportunities available if you have experience working with hardware.
#4 – Restaurants
All you have to do is think about restaurants in your own city, and you’ll realize that restaurants offer countless opportunities for small business owners. Whether you have a passion for cooking or just love to entertain people, consider opening a restaurant. It takes time and money to start up, but once it’s operational, it can be extremely profitable. You might even find that owning a restaurant could be your new dream job.
#3 – Wholesale/Distribution: Do you enjoy working with other businesses and entrepreneurs? Then wholesaling may be a good fit for you. As a wholesaler, you buy goods directly from manufacturers at low prices, then sell them to retailers at higher prices. For example, if you wanted to open an electronics store (like Radio Shack), your supplier would likely sell products directly to stores like Walmart or Best Buy which would then resell them to customers at full price.
#5 – Hotels and motels
2,104,480 businesses in America. #6 – Restaurants: 1,877,531 businesses in America. #7 – Retail: 1,859,388 businesses in America. #8 – Professional and technical services: 1,442,566 businesses in America. #9 – Transportation and warehousing: 932,109 businesses in America. #10 – Real estate and rental leasing: 887,016 businesses in America.#11 – Health care and social assistance: 864,071 businesses in America.
#6 – Grocery stores
The Bureau of Labor Statistics data shows that food and beverage stores (including grocery stores) have one of the lowest rates of business failure—as little as 4% for some smaller grocers. Perhaps that’s because small grocers have a significant advantage over supermarket chains when it comes to service: They can invest more time in their customers, which they can’t do if they serve thousands at once. Grocery stores represent almost $1 trillion in annual revenue.
Not too shabby. #5 – Restaurants: With restaurants, location is everything. If you’re lucky enough to open up shop in an area with high foot traffic or easy access by car or public transportation, you could be sitting on a gold mine. There are approximately 1 million eating and drinking establishments in America today, according to Census Bureau data. That number doesn’t include bars or cafes; just places where people go to eat or drink meals.
About two-thirds of those businesses are considered limited service, meaning they offer counter-service or limited seating options like fast-food restaurants and coffee shops. But there’s still plenty of opportunity for growth among full-service restaurants; there were only about 300,000 such establishments in 2012.
#7 – Gas stations
With gross profits of $41,071 per employee, gas stations easily made our list of top small businesses. Sure, many gas stations are owned by national chains, but when you look at independently owned establishments, it’s easy to see why these make for great small businesses: They’re open longer hours than other types of stores and there’s little need for customer service.
The major downside is that profit margins tend to be relatively low (meaning not much room for growth) and fuel prices have been historically volatile. Still though, as long as we keep driving vehicles that use gasoline, there will always be a need for places to buy it. How can you start your own station? Become an independent owner or apply for a franchise with one of several big-name brands like BP, Shell, or Sunoco. The best place to find potential franchises is through franchising companies such as FranchiseHelp or FranchiseGator.
These sites offer everything from advice on starting a business to lists of available franchises. You should also check out local newspaper ads and industry magazines for opportunities in your area. #6 – Gasoline Stations: #5 – Restaurants: Gross profits per employee – $46,000 Restaurants may seem like an odd choice given their high operating costs, but they made our list because they are often started with little money down thanks to cheap real estate options and readily available financing options.
It’s not a new idea, but a lot of people don’t think banks are on their list of business ideas. They’re wrong! Banks have lots of potentials: According to CNN, Banks provide services that account for 11% of GDP and almost 15% of employment in OECD countries. The only downside is that they require a ton of start-up capital—though many will finance your startup with your first loan if you get past-due customers. Since they make their money off interest rates, opening a bank might mean investing in CDs or bonds as opposed to loans and mortgages.
But still, better to be an old bank than no bank at all. #7- Health Clubs: While most people associate health clubs with exercise, they can also offer other wellness programs like massage therapy, nutritional counseling, and weight loss classes. With so much more than just treadmills and weights, it’s easy to see why health clubs are one of today’s fastest-growing businesses.
And because most clubs focus on customer service by providing group fitness classes led by certified instructors and personal trainers, there isn’t a huge amount of competition when it comes to starting up your own club. In fact, according to Entrepreneur magazine, only 2 percent of health clubs in America operate independently; most belong to chains like Curves or Snap Fitness. So what does it take to open up shop?
#9- Supermarkets/convenience stores
Although they might seem like one-trick ponies, supermarkets and convenience stores contribute to a significant number of America’s small businesses. If you enjoy interacting with people and getting out into your community, then running a neighborhood store could be a great opportunity for you.
The obvious downside to owning a convenience store is that you will have very little control over how much profit you make—because it all depends on what your customers are willing to pay. To offset that lack of control, try getting involved in community organizations and teaming up with local charities; not only will it build rapport with your community members, but it’ll also drive traffic into your shop.
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By keeping your sales-focused and ensuring that you market yourself in a way that resonates with your audience, you can be a successful small business. You don’t have to be a giant company to succeed: many small businesses generate far more revenue than their larger counterparts.
And if they run out of space they just open up another location. Focus on what makes you unique and give it everything you’ve got because it really is true that only those who try will do.