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Top 10 Industries for a High Entrepreneur Salary

Growth Strategy

Unfortunately, there is no magic formula when it comes to getting a high entrepreneur salary. The payoffs are big when a business grows and generates long term cash flow or is acquired, but the risk is still extremely high. The hard truth is that 50 percent of small businesses fail in the first five years.

But you can increase your odds of being one of the other 50 percent of small business owners by choosing the right kind of business. The top 10 industries for a high entrepreneur salary break down into three main categories:

  • Innovation Industries
  • Business-to-Business (B2B)
  • Consumer Products and Services

Innovative Industries Thriving in the United States

 

Technology

Despite recent big-name IPO disappointments, technology is still the best industry in the United States to start a business and generate long term cash flow as your business grows, with very high entrepreneur salary estimates. Why is technology such a reliable kind of business to get into as an entrepreneur?

Well, it boils down to two main factors: the industry is booming right now and startups are the driving force of the technology economy. These factors mean that small business owners in tech have a higher success rate and that there is more money to support this kind of business and to provide a higher average salary. Essentially, it’s easier to start a business and make sure the business grows, and the payoff for success is greater.

The main reason is investors. People know that there’s a ton of money to be made from investing in technology companies and that the earlier they invest the more fruitful it is. So the work required for an individual to get the funding they need to generate cash flow and build long term success is much lower. Instead of fighting against the giants as many small businesses have to deal with, startups are the hot commodity that people want to support. This makes it easier to “exit” or get your big payday instead of collecting your regular salary.

 

Health/Biotech

Medicine and biotechnology are areas of constant innovation with high demand and extremely high payoffs from investors and consumers alike. While big pharma companies dominate the market when it comes to many healthcare solutions, biotechnology provides plenty of opportunities for small business owners to carve out their niche and earn a lucrative salary. From medical devices to innovative medical research, there are a lot of ways to launch a successful business in biotechnology.

 

Energy

Energy could easily fall into each of the main categories, but we put it here because the real money to be made for entrepreneur salary is in innovation. Sure, plenty of money is still being made in oil and gas, but the profit margins are very low and the industries are dominated by well-established massive companies. But over 50 percent of the money in energy will soon come from renewable energy, and the industry is ripe for small business owners to get in on the ground floor. Investing in or developing wind and solar energy solutions is an excellent way to earn an astoundingly high entrepreneur salary, provided you have the resources or expertise required to start a business in the field.

 

Business-to-Business (B2B)

Let’s be honest, selling your business to people is hard. It’s one of the reasons why the average entrepreneur salary varies greatly depending on the industry. The work required to generate long term cash flow and working capital by engaging consumers can make it extremely difficult to see that your business grows. That is why B2B small business owners have a higher average entrepreneur salary and business success rate. You can put yourself in the black with just one major deal and a few mid-sized clients can generate some pretty hefty cash flow. These are the five hottest B2B kinds of business for entrepreneur salary:

 

Finance

Money makes money, it’s a fundamental truth of the United States economy. Small business owners and entrepreneurs in finance can make their money from helping other small business owners develop products and services. Why create a technology startup when you can get rich from investing in one?

And you don’t have to directly invest to get a hefty entrepreneur salary, either. You can also provide lending opportunities that minimize your risk but offer lower returns. And if you are investing, a smart way to go about it is to not go it alone: you can organize a VC firm or join an angel network to spread the risk and combine resources for higher rewards.

 

Accounting

It’s not all about giving money to small business owners either. Every kind of business needs to manage its money to maintain positive cash flow and make sure their business grows in the long term. Plus, the IRS requires some pretty hefty accounting to maintain compliance. Companies are willing to pay top dollar to make sure they avoid fines by following the legal structure and to properly manage their money. Which means a top entrepreneur salary for small business owners who develop innovative or high-service accounting solutions to meet these needs.

 

Design

Sometimes, the best kind of business for entrepreneur salary is one that takes on an internal function for other small business owners and helps them develop their products. With marketing and software development driving so many businesses’ bottom lines, there’s enormous opportunity to offer outsourced design and even development. While it can take longer to achieve a high entrepreneur salary in these fields, the success rate is much higher which means your salary will get better as your business grows.

 

Warehouse and Storage

Logistics still make the world go around. Online and brick and mortar retailers and wholesalers rarely handle their own storage and are always looking for ways to cut costs or streamline processes. Someone who starts a business that offers better warehousing, storage, and even transports solutions can earn a serious entrepreneur salary. And don’t just take our word for it: a 2016 study found that warehouse and storage was one of the kinds of business that has the highest profit margins.

 

Consumer Businesses with a High Average Entrepreneur Salary

Retail

When someone starts a business in retail these days, they don’t have to lease retail space. Plenty of small business owners do successfully earn a high salary by setting up shop in prime neighborhoods, but that’s not where most of the opportunity lies anymore. Starting an online retail business just requires the capital for the inventory and website – cutting out many of the logistical and physical expenses. All it takes is a connection with a wholesaler and good marketing, both of which are much easier to accomplish in the internet age. Pick a product, develop a great SEO/SEM strategy, and you’re all set to generate cash flow and rake in a pretty sweet entrepreneur salary.

 

Mobile Businesses

Modern consumers are all about convenience. They want every kind of business to come to them, not the other way around. This is easy enough for online small business owners, but it is also a great opportunity for more traditional service industries. That is why someone who starts a business in fields such as mobile car detailing, electronics repair, and IT can earn a great salary. A few employees and a vehicle can be all it takes to generate cash flow so that the business grows and you find long term and lucrative success. And food trucks are ubiquitous enough these days to show how successful people are being in that kind of business.

 

Real Estate

If money makes money, so does property. Investing in commercial or residential real estate can be a great way to earn a high entrepreneur salary with relatively little work required once you’ve started leasing it out. Many individuals are turning to real estate to generate “passive income” and the same principle applies to small business owners. You can also make big bucks flipping properties for higher short-term rewards, but the risk and work required are both much higher.

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Jeremy Pearlman | Jeremy is a New York native enjoying the good life in the Big Easy. In his writing, Jeremy covers a wide-range of topics, but his specialties are personal finance and business leadership.

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