| Vol.
I, No. 2 | Thanksgiving | Nov.
17th, 2000 |
Business
& Finance Small Business
Resources: The Best Businesses?
{continued} Adjusted
Net Income:
How much money comes through the door is one thing. How
much actually stays behind as net income after expenses is another.
Perhaps surprisingly, the top business for adjusted net income is ... public
warehousing. The next eight all come from the medical end of
our world, starting with dentists, then proceeding past osteopaths, physicians,
drug stores, podiatrists, optometrists, the general category of "medical
& health services," and chiropractors. Pity the poor lawyers,
then, who came in 10th. The
Top Baker's-Dozen for Adjusted Net Income/Schedule C Businesses | Industrial
group | Number | % | Net
income | % | ANII* | Public
warehousing | 657 | 0.004% | 65,844 | 0.037% | 9.6134 | Offices
of dentists | 102,424 | 0.604% | 9,003,571 | 5.094% | 8.4321 | Offices
of osteopathic physicians | 11,175 | 0.066% | 917,469 | 0.519% | 7.8753 | Offices
of physicians | 192,631 | 1.136% | 15,752,613 | 8.912% | 7.8442 | Drug
stores | 4,398 | 0.026% | 293,774 | 0.166% | 6.4074 | Offices
of podiatrists | 6,875 | 0.041% | 371,455 | 0.210% | 5.1827 | Offices
of optometrists | 13,182 | 0.078% | 684,777 | 0.387% | 4.9830 | Medical
and health services | 771,450 | 4.550% | 33,667,876 | 19.048% | 4.1863 | Offices
of chiropractors | 31,599 | 0.186% | 1,326,509 | 0.750% | 4.0268 | Legal
services | 291,119 | 1.717% | 11,401,376 | 6.450% | 3.7567 | Veterinary
services, including pets | 19,637 | 0.116% | 728,419 | 0.412% | 3.5582 | Operators
& lessors, other than buildings | 5,464 | 0.032% | 154,182 | 0.087% | 2.7067 | Coal
mining | 1,033 | 0.006% | 26,617 | 0.015% | 2.4716 | | *
The ANII [Adjusted Net Income Index] is calculated by dividing the total
Net Income for a business type or sector by the the total number of
businesses in that sector [Number]. |
If
your main interest is making money instead of following your bliss, which
businesses should you steer clear of? Mobile homes &
movie theaters are two things you may want to steer clear of. Livestock
breeding, hunting & trapping, or producing food products also don't seem to
fare too well. Neither do catalog mail order businesses, gift shops,
bowling alleys, or hobby shops. In fact, notice that the bottom 10 of
these 13 types of businesses actually averaged a loss. The
Bottom Baker's-Dozen for Adjusted Net Income/Schedule C Businesses | Industrial
group | Number | % | Net
income | % | ANII* | Mobile
home dealers | 5,543 | 0.033% | -79,187 | -0.045% | (1.3704) | Motion
picture theaters | 1,623 | 0.010% | -12,160 | -0.007% | (0.7187) | Livestock
breeding | 22,462 | 0.132% | -112,993 | -0.064% | (0.4825) | Hunting
and trapping | 5,401 | 0.032% | -15,397 | -0.009% | (0.2735) | Camps
and camping parks | 3,615 | 0.021% | -2,931 | -0.002% | (0.0778) | Food
and kindred products | 19,613 | 0.116% | -11,598 | -0.007% | (0.0567) | Catalog
or mail order | 125,327 | 0.739% | -57,006 | -0.032% | (0.0436) | Women's
ready-to-wear stores | 17,080 | 0.101% | -3,866 | -0.002% | (0.0217) | Quarrying
& nonmetal minerals, not fuels | 7,289 | 0.043% | -999 | -0.001% | (0.0131) | Gift,
novelty, and souvenir shops | 76,970 | 0.454% | -5,251 | -0.003% | (0.0065) | Other
highway passenger transportation | 4,236 | 0.025% | 182 | 0.000% | 0.0041 | Bowling
centers | 4,494 | 0.027% | 470 | 0.000% | 0.0100 | Hobby,
toy, and game shops | 60,566 | 0.357% | 10,948 | 0.006% | 0.0173 | | *
The ANII [Adjusted Net Income Index] is calculated by dividing the total
Net Income for a business type or sector by the the total number of
businesses in that sector [Number]. |
Of
course, before you jump to any conclusions, you should be aware that, for all
Schedule C business filings, more than 1 in 4 reported no net income or a loss. lmc Sources:
Nonfarm
Sole Proprietorships; IRS. 1996
"The Size & Scope of Schedule C
Businesses," ScheduleC.com, Vol. I,
No. 2; June 1999. *******
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