Some industries are more Soloprenuer-friendly than others. Accountants and bookkeepers, real estate sellers, attorneys, landlords and certain healthcare practitioners are all able to operate a one-person shop quite well, perhaps with a single employee to provide administrative help.
Educational requirements and professional credentials pose a formidable barrier to entry for several of these high-yield business opportunities, most notably dentistry, chiropractic, law and accounting (CPA or certified financial analyst). In contrast, real estate sales requires only a license to do business, the right relationships and no real selling skills if you are in a hot market. If someone with a broker’s license brings you into the business, you can work under the umbrella of that person’s credentials.
I look askance at the stated prospects for attorneys, however. There have been many mergers between big law firms and as a result, many lay-offs. From a former employee of a very prestigious law firm who was let go six or seven years ago and eventually started her own boutique firm, those who venture out on their own can encounter stiff competition in certain legal specialties. Welcome to the new normal. Below are the small businesses that on average have the healthiest profit margins.
Business Net profit margin
Accounting / Bookkeeping 18.4%a
Landlords 17.9 %
Legal services 17.4 %
Management of companies 16.0 %
Real estate sales 14.9 %
Dentist’s office 14.8 %
Health practitioners (chiropractors, etc) 13.0 %
Medical & diagnostic laboratories 12.1 %
Automotive equipment rental or leasing 12.0 %
Graphic and industrial design 11.4%
Warehousing & storage 11.0 %
Management, scientific, or technical consulting 10.3 %