The 15 Most Profitable Industries by Forbes
That means that a business is profitable?
First let’s look at some concepts.
To analyze always talk about small businesses and microenterprises and the world of big business is all an aside, more and more complex issues to analyze it.
Using simple terms so that our readers can understand, we must first distinguish between profitability and utility. They are different concepts.
Income: more concrete and simple sense, the word refers to the difference between the price at which a product is sold and the total cost of the same.
The total cost of the project is quite complex to set up, but a micro entrepreneur must know how. Not only the cost of the raw material used, or the price at which a product is bought to resell, but includes a percentage of all costs necessary to operate the business, such as interest, taxes , taxes, transportation, energy, maintenance costs of the tools and machinery used, staff costs, if any, provisions for compensation for accidents, commissions and etc.
The cost analysis is an issue on which the micro or small entrepreneur must be internalized because costs should be calculated as accurately as possible.
Performance: This refers to the ability of an economy to generate sufficient profits or earnings.
In very simple terms a business is profitable when it generates more income than expenses.
If at some point the business is not profitable, this does not mean that it will never be or the business fails.
For example, to start a business, it is very common, for various reasons, do not throw the profits for a time, but if you can do it later when the product or service in the market consolidates.
So, we say that there are more profitable and less profitable businesses, according to whether higher or lower profits generated relative to the invested money, I used to work, to cost.
How to know if a business is profitable?
Although we said that every business that generates profits or earnings is profitable, we all understand that here we refer to if we generate the necessary revenues to cover our expectations.
This is something that must determine yourself in relation to your needs, because believe it or not, the fact that a business is highly profitable or not, is a subjective matter.
Why ?, because what is profitable for someone may not be for another. That is the concept of profitability in the sense that we are using it also has to do with the expectations and needs of the entrepreneur.
For example, a business that yields net proceeds of $ 10,000 per month, even if you spend eight hours per day, it would be rather interesting to me, but not for Donald Trump.
Anyway in the list to the top of this page shows you which are some of the businesses where profits are usually very high with regard to costs, so we can say that these are profitable businesses and their high profit margins make are safer for success.