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In today’s global economy, companies are competing like never before. The good news is that there are plenty of profitable industries to choose from if you’re looking to start your own business, and this list will show you the most profitable industries based on data pulled from Statista. Just know that the more profitable an industry, the more competitive it is likely to be, so choose wisely! The chart below shows the top 10 most profitable industries by net profit margin in 2016.

Most profitable small businesses

The most profitable small businesses are in industries where not too many competitors dominate. For example, there are hundreds of software companies, but only a few make it to that billion-dollar status. These types of companies usually offer a product or service so unique and beneficial that they’re willing to pay premium prices for it. Before starting any business, think about what makes your product different and valuable enough to convince people to pay more than they have to. If you can’t do that, then your business is probably not going to be profitable—no matter how big you grow it.

  • IT support

While it may not be as exciting as being a startup, there are plenty of reasons to start up an IT support business—starting with customer demand. People are paying more and more attention to security these days, which means you have a lot of people who will be looking for help in keeping their devices safe.

  • Electronics repair

One reason electronics repair is so profitable is that small electronics usually aren’t as expensive as major appliances, and they are easier to repair. You also don’t need a license or certifications to work with them. Not only that but there’s plenty of demand for people who can fix computers and cell phones: A recent Computer World study found around 3 million service calls were placed in 2009. Many stores, such as Best Buy and Radio Shack, offer free training programs to familiarize you with computer parts and common problems.

  • Car wash services

If you have a passion for cars and are willing to work hard, consider starting a car wash service. You can either do it by hand or invest in automatic washes; depending on your business plan and budget, you might start small and grow your company over time. Either way, you’ll need to market aggressively to generate a steady stream of customers. There are many franchises out there that already specialize in car washes; however, if you want something a little different than what’s already on offer, try creating an eco-friendly option that offers free air fresheners with every cleaning session.

  • Food trucks

An old-school business model is getting a 21st-century reboot. Since many people aren’t able to or don’t want to run a restaurant, it can be hard to find a location and get everything up and running. A food truck is more approachable—it’s an easy-to-operate storefront on wheels. In most cities, you simply need to find (or rent) an open lot where you can park your truck and start selling food.

  • Auto repair

As more cars come equipped with computers, auto repair is becoming increasingly technical. Mechanic-specialized software enables technicians to troubleshoot problems before they become costly engine failures. Automotive repair shops are finding ways to stay competitive by not only offering standard services but by offering customers convenience through car-pickup and drop-off service; using tablet devices to help customers easily schedule appointments, view vehicle status and see charges ahead of time; offering diagnostic testing to pinpoint issues before customers bring their vehicles in for service; and much more. These innovative measures will help keep auto mechanic shops viable in years to come as more technology comes online and consumers demand convenience.

  • Academics courses

For most academic schools, annual tuitions are based on a per-credit basis. So, a three-credit class will be billed three times more than a one-credit class. For colleges and universities that have flat rates, no matter how many credits you take, there’s still an upper limit for tuition. In other words, even if you wanted to pay full tuition for every credit you’re able to take in a semester (or multiple semesters), it won’t work in most cases. You’ll eventually hit a pricing ceiling that caps your potential credit load. This is especially important to understand if you plan on paying out of pocket without any financial aid or outside scholarships coming in.

Final Remarks!

While it’s true that starting a business in a dying industry is more likely to fail, there are some low-hanging fruits when it comes to picking industries. Now that you know what industries to avoid, as well as what industries are most profitable (according to Bloomberg), you can make an informed decision about where to invest your time and money when starting a new venture. With any luck, you’ll find success – but if not, at least you did your homework and made educated decisions.

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