10 niches where very lean companies make a lot of money

Many entrepreneurs are looking for businesses with high incomes and where the chances of making a profit are high. When I wrote Tiny Business, Big Money, I analyzed census data to determine the niches in which micro businesses with up to four employees have the most money after making the pay. Payroll is the largest cost for many businesses, and this data gives an idea of ​​how much is left to cover other costs, such as real estate or energy.

While these niches won't be everyone's cup of tea, the results are nonetheless fascinating.

Here are the top 10 categories, based on which ones had the most money left over after payroll. Keep in mind that this data is only for businesses with 4 or fewer employees. I didn't even know it was possible to run some of these types of businesses with such small teams, but apparently many entrepreneurs do.

1. Casinos/Gaming Cruises/Riverside Casinos (NAICS code 73210): For various reasons, this industry will not appeal to everyone, but with average revenue per business of $28.1 million, average payroll per business of 316, 458 and 27.8 million dollars. remaining after payroll, these small businesses generate on average far more revenue, after payroll, than any other type of business.

2. Dairy Butter Making (NAICS code 31152): Who would have thought there was so much money to be made in this niche, which includes both butter and ghee making. Average revenue per company was $26.3 million, with an average payroll of $849,538 and $25.4 million remaining after doing payroll, thanks to heavy use of automation in this area . Is there an upcoming craft trend here?

3. Ethanol and grain alcohol manufacturing (NAICS code 325193): With an annual turnover of $10.4 million, an average payroll of $172,917 per company and $10.2 million remaining after payroll, this is a promising niche for small manufacturers. Grand View Research predicts that the global ethanol market size will experience a compound annual growth rate of nearly 5% between 2020 and 2027.

4. General Medical and Surgical Hospitals (NAICS code 622110): Although this niche requires significant training, there are many opportunities for providers with a unique, patient-friendly approach in this field, which include diagnostics and treatment providers. . This category includes children's hospitals, general medical and surgical hospitals, and osteopathic hospitals. With $8.9 million in revenue on average and a payroll of $2.7 million, they have an average of $6.7 million left after payroll.

5. Electric power generation from fossil fuels (NAICS code 221112): These are small energy companies and electric cooperatives. The long-term potential of this niche remains to be seen, as the world begins to shift from fossil fuels to renewables, and many people are concerned about climate change. Right now, however, the average business has average revenue of about $9.4 million, an average payroll of $202,346, and that's about $9.2 million left when you subtract the average revenue. of the average payroll.

6. Manufacture of flavoring syrups and concentrates (NAICS code 311930). One of the hottest foodie trends is flavored products, like flavored water, and it is this industry that makes flavors. The average business generates $7 million in annual revenue, has a payroll of $84,552, and has $6.9 million left over after payroll.

7. Hospitals (NAICS code 622). This code includes both general hospitals and psychiatric and drug addiction hospitals. For professionals in the field, becoming independent could be a way to make a difference. These hospitals bring in an average of $8.9 million with an average payroll of $2.3 million, and $6.7 million remains after you make the payroll.

8. Corn wet milling (NAICS code 311221): This is the industry that manufactures corn-based sweeteners such as glucose, corn oil and starch. This field can be difficult to enter as an entrepreneur if you are not already involved in it, but it can be lucrative, with average revenue per company of $6.5 million, average payroll per company of 80 $545 and $6.4 million remaining after making payroll, on average.

9. Coal and other minerals and ores merchant wholesalers (NAICS code 423520): These are wholesalers who sell products such as metal ores, fuller's earth and certain minerals. While this niche won't appeal to those trying to move away from fossil fuels, for those involved, the average business generates $6.5 million in annual revenue, the average salary...