Product or Service Business: What's More Profitable?

[Spencer]

When it comes to business, what sort of business makes the most profits, I think it all depends on the individual and the kind of capital they have and how they plan on utilizing it; for those with a small capital, it will be more ideal for focusing on services, think about business like Lawn Mowing or Roof Cleaning business, the only thing you need is a broom and blower, and you're in business for yourself.

However, a product business can be extended to buying machines or equipment and hiring a space from which you plan on running the business.

 

[Mika]

It is really hard to give an exact answer whether product is profitable or service is profitable. Some of the factors that determine profitability is the demand and supply of the product or services you are trying to sell, quality and uniqueness of the product and services you are trying to sell, your ability to market, and the usefulness of the products and services. If you have to create a service each time you sell, it will not be very different from selling products, but if you can sell the same thing again and again, it can be profitable.