The profitability of any business depends on various factors and is usually directly related to the public demand for the desired goods or services. It is evident that different factors such as geography, economy, culture, etc., influence the type and amount of demand in different countries.
Therefore, what is important is considering the basic and necessary needs as well as the secondary but important needs of the people in the country you have chosen for investing in a business. Additionally, it is essential to consider the level of competition in the market because no matter how many businesses there are, some always have sufficient demand, but others have essentially expired and the market is saturated with them.
What is profit?
Profit is the amount of income remaining after deducting all expenses from total revenue. However, profit as defined in accounting differs from its definition in economics. In accounting, profit is calculated by determining the difference between income and the total costs associated with goods or services, resulting in three types of profit: gross profit, operating profit, and net profit.
Gross profit is obtained by calculating the cost of goods sold or services provided and subtracting this from total revenue. Operating profit is then calculated by deducting operating expenses from the gross profit. Finally, net profit is derived by subtracting non-operating expenses, such as taxes, from all these amounts.
Thus, accounting deals only with the amounts of revenue and financial costs related to services and products, while economics pays more attention to alternative scenarios and estimates opportunity costs.
Therefore, the concept of profit in accounting impacts the evaluation of company management and performance, as well as future decision-making, but economic profit shows you alternative options with similar or greater profits.
The difference between profit and income
Profit and income are both positive financial flows in accounting and might be used interchangeably, but there are some slight differences between them. In fact, income represents all cash inflows from the company’s primary and initial activities, such as product sales or service provision, over a specific period before deducting the costs of goods sold or services and non-operational expenses.
A company’s income might be high, but when income and expenses equal out, the company’s profit becomes zero. Also, if expenses exceed the generated income, the profit turns negative, indicating that the company is operating at a loss. Therefore, the seven most profitable businesses in Iran are not necessarily the highest-grossing ones, but those whose total expenses are not disproportionately high compared to their income.
What business is profitable?
Given that the profit from each business is directly related to the type and amount of demand by the community, it’s evident that wherever there is more demand for a product or service, the profit from that business will be higher. Thus, businesses that meet the basic and essential needs of all people—such as food, clothing, housing, and health and safety—are never out of demand and always have a steady market.
What makes the demands of one society different from another are the secondary needs of those people, which can stem from geographical, cultural, social, and economic conditions. Often, cultural backgrounds, the specific needs of a region, and values created by the media generate these secondary needs.
Therefore, to identify the type and level of demand in each country for specific products and services, one must first pay attention to the values of that society. For example, in our country, given the high rate of surgery and beauty services, establishing a beauty clinic is one of the seven profitable businesses in Iran.
Introducing 7 profitable businesses in Iran:
As mentioned, high-income businesses are those for which there is a significant demand in society. Typically, the most profitable businesses globally are similar. The following will examine the seven high-income businesses in Iran:
1.Food Industry
The focus on food as a fundamental and essential need in Iran has historically been of great importance, leading to significant growth in the country’s food industry. According to the latest report from the Statistical Center of Iran in 2015, the food industry in Iran, with a turnover of about 100 billion dollars, has generated the most employment compared to other industries, creating a value added of approximately 144 trillion Iranian Rials.
However, there are still many untapped opportunities for more efficient use of Iran’s abundant natural resources and for establishing factories and industrial workshops to produce new and diverse products, including for export purposes.
2.Apparel
Just as food is a fundamental need, clothing is equally essential for human life, with different garments worn according to the seasons and locations. The production and sale of apparel always demand high and have the potential to become one of the top seven profitable businesses in Iran, provided that the products are of high quality and competitively priced with global market products. Ultimately, all products produced by retailers and fashion designers are directly available to consumers.
Despite the lack of rich cotton resources, the absence of diverse fabric production, and some cumbersome laws and regulations, apparel production and sales, especially in the domestic markets of Iran, remain among the top seven profitable ventures in Iran and are capable of competing in global markets in terms of quality, design, and sewing.
Additionally, due to economic sanctions and the significant rise in currency prices in recent years, followed by the COVID-19 pandemic, which led to the prohibition of foreign apparel imports into Iran, there has been an increase in local designers and manufacturers. According to the Vice President of the Iranian Textile and Apparel Production and Export Union, the quality and variety of products have seen a 70% growth, and apparel exports have increased by 30%.
3.Construction
The construction sector, recognized as one of the seven most profitable businesses in Iran, directly addresses the fundamental human need for housing and shelter. For many in Iran, purchasing property is the most significant investment they can make, serving not only as a basic necessity for living but also as an ideal investment for those averse to high risks.
Investment in real estate can take various forms, each potentially leading to the establishment of a lucrative business. One of the oldest businesses within the housing sector is the buying and selling of homes and construction, which involves a wide range of participants from material suppliers to interior designers, installation services, and real estate agencies—all counted among the seven most profitable businesses in Iran.
4.Healthcare
The level of healthcare in any country always impacts the quality of life and the average lifespan of its residents. The necessity of health and hygiene leads people to incur very high costs when visiting medical centers during illnesses. Therefore, businesses related to the medical and healthcare industry, as well as the production and sale of pharmaceutical, care, and hygiene products, are among the top seven profitable businesses in Iran, with a turnover equivalent to 150 trillion tomans.
Healthcare is not limited to physical health but also includes mental health. In a society like Iran, where economic problems, air pollution, rising unemployment rates, etc., often deprive people of mental health, businesses related to psychotherapy and psychiatry, alongside medical, pharmaceutical, and veterinary affairs, are considered among the top seven profitable businesses in Iran.
5.Entertainment
6.Beauty Industry
In addition to establishing a beauty clinic, this option allows you to start your business with a sensible and collaborative investment, even with just one device such as the Radoplus laser hair removal machine, which covers different laser wavelengths, and achieve profit and revenue. Gradually, you can expand your beauty services.
7.Digital Business
Many people associate digital business only with activities related to virtual advertising and digital marketing, such as content creation, website design, SEO, etc. However, digital business actually refers to any type of business that operates digitally, often through the internet.
Since these businesses do not have some of the costs associated with physical and traditional businesses and allow you to work from anywhere at any time, they have been of great interest to both consumers and business owners, with significant profit and revenue growth over the past decade.
On the other hand, digital advertising and marketing and related professions are among those jobs that all the aforementioned businesses and any other business need in order to increase their customer base and consequently their profit and revenue.
Therefore, establishing advertising companies or digital marketing agencies that offer services such as environmental and virtual advertising, website design, search engine optimization (SEO), production of textual and visual content, and marketing strategy planning are among the seven most profitable businesses in Iran, still offering growth opportunities for experts.
