Hi! I'm Dane Carlson, and welcome to the Business Opportunities Weblog. I've been publishing this website, by myself, and sometimes with the help of others for over twelve years now. You'll notice two things about this site right away:

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Entrepreneurs start companies for all sorts of reasons. Maybe they have a passion, like being in control, want more flexibility–or even hate their current jobs.

But no matter the inspiration, one thing’s for sure: They’d better make money. A rising revenue line might make for good cocktail conversation, but if you don’t turn a profit–and keep turning one–you won’t be an entrepreneur very long.

With the help of Sageworks, a Raleigh, N.C.-based private-company data provider, Forbes.com has assembled a list of the 10 most and least profitable businesses–on a pretax basis–that aspiring entrepreneurs might hope to launch. Average pretax profits ranged from a juicy 25% to a knee-wobbling negative 7%.

The data were drawn from recent financial statements for nearly 100,000 privately held companies in the U.S.–most with annual revenues under $10 million–and bucketed by Internal Revenue Service classifications. We included only industries for which Sageworks had data from at least 50 companies–750 in all–and eliminated categories too broad to be meaningful.

1: Community Care Facilities – Average Pretax Margin: -7.2%

2: “Other Support” Services – Average Pretax Margin: -2.6%

3: Beverage Manufacturing – Average Pretax Margin: -2.2%

4: Real Estate Related Services – Average Pretax Profit: -2.1%

5: Bakeries And Tortilla Manufacturing – Average Pretax Profit: -0.9%

6: Amusement and Recreation Services – Average Pretax Profit: -0.9 %

7: Motor Vehicle Parts Manufacturing – Average Pretax Profit: -0.7 %

8: Specialty Retailers – Average Pretax Profit: -0.5%

9: Beer, Wine And Liquor Retailers – Average Pretax Profit: -0.18%

10: Travelers’ Accommodations – Average Pretax Profit: 0.26%

Photo by Comstock.

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Originally posted by Rich Whittle on January 29, 2008 in Ideas.


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