Many industries can be profitable, and there are plenty of ways to make money from them, whether through product sales or services related to that industry. However, not all industries can be as profitable as others, so let’s look at some of the most profitable industries out there.
– Technology
The technology industry fastest-growing and most profitable industries in developing and developed countries. Technology often evolves quickly, creating a need for innovation that can be met by starting your own technology business. From improving customer efficiency to saving time, technology is constantly helping companies achieve more significant results for less work than ever before. Startups also need relatively little capital compared to other sectors, which means there is plenty of room for entrepreneurial risk if you’re willing to take it.
– Insurance
Insurance covers damage to property and people, so it’s no surprise that insurance is one of the most profitable industries in America. In 2012, American insurers brought in $860 billion—more than double that of any other industry. All you need to start a career as an insurance agent is an insurance license and a plan of action: make sure you read up on current developments like healthcare reform and learn which companies offer workers comp or life insurance.
– Retail
With a growing number of consumers and an increasing pool of big-box stores like Target and Wal-Mart, more people are expected to spend at brick-and-mortar establishments than online for years to come. The fastest-growing subsectors within retail include office supplies and home improvement stores, likely because online shoppers aren’t yet able to replicate those experiences—that is, buying someone else’s furniture or power tools sight unseen.
– Banking & Financial Services
Banks and financial services companies operate on a pretty straightforward business model: they take deposits, lend money to borrowers and earn interest (or fees) for their trouble. Overall, banks and financial services firms make up 12% of GDP. It might not be as glamorous as what Hollywood produces, but banking is big business—and very lucrative too. On average, U.S. commercial banks paid out $32 billion in dividends in 2015 alone; that’s about four times more than all of Hollywood’s studios made at the box office last year combined! (Sources: Banking & Finance Institute; Motion Picture Association of America .)
– Healthcare
The industry brings in $3 trillion yearly worldwide, with an average net profit margin of 10 percent. Plus, healthcare expenses have been increasing year after year. This means more money for providers. If you’re planning to start a business and want to know what business idea is likely to be successful, your best bet might be to look at healthcare because it’s not going anywhere anytime soon.
– Legal Services
Legal services remain one of the important services industries in North America, providing reliable and often high-profit business for law firms. According to a 2016 report from research firm IBISWorld, legal services earned $44 billion in revenue that year—making it nearly twice as large as all but three other sectors, including healthcare and social assistance. Legal professionals also earn more than average: U.S.
– Real Estate
Real estate is one of those industries that doesn’t seem like it would be all that lucrative – after all, how difficult can it be to sell or rent a house or an apartment building? But real estate turns out to be phenomenally profitable, with high-income potential in both residential and commercial sectors. You can find high profits and excellent growth opportunities in real estate investing and simply buying and selling houses for a living.
