The Best Businesses with High Profit Margins
While some people might be content just owning and operating a business where they make enough profit to get by, other people want a business with very high profit margins.
Having high profit margins will increase the amount of money you take in, which will maximise your ability to reinvest in your business, hire more people, and extract as much money as you can from the business through your salary.
Because the risks of business are so high, it’s no surprise that most people want to ensure the safety of their investments by starting a business that’s likely to deliver a healthy return.
Here are 11 business ideas that have high profit margins.
Accounting services - 20%+
Accounting firms have always enjoyed low overheads and high profit rates. Accounting services are, after all, services you can provide as long as you are qualified, and have adequate equipment on hand. Finance is an area of business no company should want to cut corners on, so many companies are willing to pay premium rates for this service.
Accounting is also a field where automation is making its presence felt. In a 2025 survey of accountants by Accounting Today, nearly half said their firms would need fewer employees because of AI, while 68% of firms in a separate study expected AI to reduce demand for some early-career roles, particularly routine compliance and reporting work. As tasks like data entry and reconciliation are automated, firms can maintain service levels with leaner teams.
With low overhead and the potential to eliminate operating costs through automation, accounting services can be incredibly lucrative.
Cleaning services - 6%
The cleaning industry also boasts relatively low overheads. The only things you really need to invest in are the equipment, staff, uniforms and protective equipment, depending on the type of cleaning your business specialises in. In this digital age, you may not even need an office - some cleaning businesses can be run right out of the owner’s home.
To make a cleaning business really profitable, you’ll need to scale it up as much as possible. One employee working 30 hours a week at a 6% profit margin won’t get you too much profit, but 100 employees working 3,000 hours a week will.
Digital marketing - 13%
Digital marketing has overtaken traditional marketing in its importance to businesses that want to get their names, products and services out there. As more companies move their operations, sales and customer service online, having a polished digital presence is no longer optional, and many would rather hire specialists than build that expertise in-house.
A digital marketing agency will offer their customers some of the following services:
- SEO
- Copywriting
- Social media management
- Email marketing management
- Digital branding strategies
- Content creation
- Graphic design
Like our other examples, starting a digital marketing agency has very few overheads. All someone really needs to start a digital marketing agency is experience in the field, computers, and maybe some speciality software.
App development - 10-13%
As companies go digital, they’ll want their own proprietary software to supplement their online offerings. App developers can work with these companies to bring their projects to fruition by building a dedicated smartphone app.
Most developers have degrees in software development or computer science, but a degree isn’t strictly required. You can take advantage of many learning platforms, including coding boot camps and online learning companies to learn how to code.
Warehousing and storage - 10%
As e-commerce continues to rise in prominence, companies will rely more and more on warehousing and storage to store their products. So, those companies that recognize this demand and take steps to meet it will be rewarded.
Building a warehouse can be expensive, depending on the size. However, the initial investment will be offset once you’re able to start charging your customers to rent out your space. Of course, you can also buy the warehouse built, and simply rent it out, too. Warehousing can also be a fairly low-maintenance passive income stream, as there are few resources required to manage a warehouse.
Legal services - 15%
Like with digital marketing and accounting services, most individuals and companies will require some kind of legal service at some point in time. That’s why becoming a lawyer and starting your own firm can be so profitable. Different types of law you could specialise in include:
- Corporate
- Family
- Litigation
- Employment
- Human rights
- Criminal
- Wills and trusts
- Bankruptcy
If you want to set up your own law firm or consultancy, you’ll need office space to meet with clients. You’ll also need basic computer equipment, some specialised software, and insurance for your practice.
Funeral services - 10%-15%
Funeral homes provide a vital service in difficult times for people who need it. Providing this desperately needed service can return a healthy, sustainable business that can last for years.
Investing in the initial start-up costs for delivering funeral services can be very expensive, with furniture, embalming equipment, preparation rooms and other costs can run upwards of $900,000. But once initial costs are covered, the returns on your business will be substantial, with the average funeral costing around $12,000.
Online learning / tutoring - 10-15%
Online learning has become a normal part of how people study, train and pick up new skills. Video platforms have made it easy to teach anyone, anywhere, and students and parents are now comfortable paying for lessons delivered over a screen.
It isn’t limited to school subjects, either. Online learning works for all sorts of formats, such as cooking classes, writing workshops, professional training, language lessons and one-to-one tutoring.
To start your own business as a tutor, all you really need is expertise in your field, a good internet connection, and some video equipment. The overheads are low, so your profit margins are likely to stay quite high.
Food trucks - 8%
The restaurant business has a notoriously high failure rate, but that doesn’t mean there isn’t money to be made. Food trucks can be a more viable route in, thanks to lower start-up costs, fewer staff and the freedom to move to wherever the customers are. If you can get the initial formula right, you can build a loyal following that seeks you out every day.
Some food truck owners are able to make it big with their ventures, growing into multi-vehicle operations or bricks-and-mortar restaurants. For most, though, success means building a steady local following at markets, festivals, private events and busy lunchtime spots. Low-overhead formats like coffee vans can be a particularly accessible way in.
The biggest barrier to entry for starting a food truck is the initial investment in the truck, cooking equipment, food, and fuel.
Coffee shops and coffee vans - 5% - 15%
Coffee is one of the highest-markup products in hospitality. A single cup costs pennies to make, which is why so many people dream of opening their own café. Rent, wages and energy eat into that markup, though, so day-to-day cost control is what separates a profitable coffee shop from a struggling one. Coffee shop margins typically range from 5% to 15%, averaging around 12%.
A coffee van is a lower-cost way into the market. You avoid high-street rent and business rates, and you can take your coffee to where the customers are, whether that’s commuter stations, markets, events or office parks.
Either way, speed matters. Most coffee businesses do the bulk of their trade in a few short rushes, so a fast, reliable coffee shop EPOS system that tracks stock down to the last bag of beans can make a real difference to your bottom line.
Beauty salons - 8% - 10%
Hair and beauty services are something customers come back for again and again, every few weeks for some treatments. That repeat business gives salons a steady, predictable income. Hairdressing margins typically sit around 8–10%, and well-run salons can do better by pricing their time properly, cutting no-shows and selling retail products alongside treatments.
To start a salon, you’ll need qualified staff (or qualifications of your own), suitable premises, equipment and insurance. Some owners keep costs down by renting chairs to self-employed stylists or starting out as a mobile or home-based business.
An all-in-one beauty salon POS system can handle bookings, client records, stock and payments in one place. That frees up more of your time for clients.
Keep your profit margins high with a top-of-the-line POS
Keeping your business profitable is vital for maintaining its longevity. In industries like retail and hospitality, where margins can be very tight, it’s incredibly important to keep a close eye on all your incomings and outgoings.
With Epos Now’s top-of-the-line POS systems, you can manage things like inventory, sales reports, food cost percentage, clothes prices, and more. You can also:
- Track single item performance so you can forecast with accuracy
- Receive stock alerts so you never miss a selling opportunity
- Easily add, edit and bundle items to create new revenue opportunities
- Access reports and data from anywhere
- Track sales, profit, and trends in real-time to understand more about your business
- Identify your top-performing products and staff members
Contact our team to find out more about our systems.
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Frequently asked questions
- What business has the highest profit margin?
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Professional services usually top the list, because they sell expertise rather than physical stock. Of the businesses here, accounting firms lead with margins of around 23%, followed by legal services and digital marketing agencies. Margins vary widely, though, depending on a firm’s size, location, pricing and how tightly it controls costs.
- What is a good profit margin for a small business?
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It depends on your industry. As a general rule of thumb, a net margin of around 10% is considered healthy, 20% is strong, and under 5% is low. Hospitality and retail businesses often run on thinner margins than service businesses, so compare yourself with others in your sector.
- What businesses have low start-up costs and high profit?
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Service businesses built on skills rather than premises or stock tend to be the cheapest to start. Online tutoring, digital marketing, bookkeeping and app development can all be run from home with a laptop and the right expertise. Cleaning and mobile coffee vans are also relatively affordable ways in.
- How do I calculate profit margin?
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Subtract all your costs from your revenue to get your net profit. Then divide that by your revenue and multiply by 100. For example, if you take $100,000 and spend $85,000, your profit is $15,000, giving a 15% profit margin. An EPOS system can track these figures for you automatically.
