Strategy

20 Most Profitable Small Businesses

Written by Nathan

The idea of being your own boss is a dream. No more answering to this person, defending your decisions to that person, no more working around everybody else's schedules.

Just being in charge of yourself. It’s a good picture to imagine, you must admit. And many who have that entrepreneurial streak inside them are bubbling and bursting with ideas that they want to turn into reality. To make that dream come true. 

And some will already have detailed plans and extensive knowledge in the area they want to go into.

20 Most Profitable Small Businesses

Along with a deep understanding of their industry, they may also have a clear idea of their customers, have already begun their business plan, and are ready to create an empire. 

But I think for the majority of us, it can seem like a big wide world, with so much to offer, but no idea where to start.

But, especially in today’s climate, a small business is not something you want to rush into feet first. You need to determine the best choices and pick your niche wisely. 

So, to help get you started, I have compiled a list of the 20 most profitable businesses that you could consider going into.

And in this article, you’ll learn a little bit more about each of these industries and hopefully it will spark some inspiration so you are ready to take your first steps toward success.

20 Profitable Small Businesses 

1. Food Trucks

Food truck businesses have been booming and seeing an increase in consistent growth for the better half of half a decade now. And it doesn’t look like it’s on a downward trajectory anytime soon.  

The great thing about food trucks is that the start-up costs are relatively low especially compared to that of a restaurant. There is the potential for pretty high revenues and you can even create your very own menu. 

You’ll need to carefully consider your geographic location when setting up a food truck. Try to opt for areas where the market isn’t already saturated as you’ll have less competition. 

20 Most Profitable Small Businesses

2. Car Wash Services 

Cars are a big investment for any individual, and in today’s climate people are holding onto their cars for much longer than they ever really did before.

And because of this, people are trying to maintain the value of their cars by keeping them as perfect as possible. Hence more people using car wash services.

Around 66% of all Americans will wash their vehicle a minimum of 1-2 times per month and the car wash market projects to be set at around 20.7 billion dollars by 2028. 

3. Auto Repair 

Now, more than ever, people depend upon their vehicles. And it is within the nature of these vehicles to break down or require maintenance the more often they are used.

And customers prefer to get their cars fixed with smaller independent businesses. In fact, 70% of all repair business is captured by small businesses over larger dealerships.

Of course, you’ll need the skill set and mechanic knowledge to go into this sort of business and there are some initial start-up fees that will need to be covered. But nevertheless this is a very lucrative business option. 

4. Personal Trainers 

Health and fitness has always been an in-demand industry, but it seems to be on the rise even more so currently. And if you have a passion for fitness, it’s something that you can definitely turn into a business

Whether you opt for one-on-one sessions at clients homes or rent a room in a local gym, or leisure centre, there is much profit to be made from PT sessions. 

5. Newborn & Post-Pregnancy Services

There has been an outcry for more doulas and lactation consultants, along with many other post-pregnancy services as of late.

And people will always be having children, even if trends have shown that women are waiting longer to have kids now than before. 

This type of business requires very little overheads which can be handy for a new business. But you will need certification and education in this specialised field. 

6. Enrichment Activities For Kids

Due to budget cuts in education, many of the arts and sports side of school has decreased dramatically. And so, parents understanding the importance and value of these subjects look for businesses to provide access to these kinds of subjects. 

Starting a music class, a sports class, a dance class, or any other extracurricular activity could be a profitable business option. 

7. Mobile Apps & Entertainment For Kids

If you have development or engineering skills, opting for a business that targets children through the use of technology will always be a money maker.

The use of tablets and iPads are even being integrated into school learning now, so its increase is certainly in demand. 

8. Shared Accessories & Attire

Companies that offer rented outfits at a fraction of the purchase price of an item are doing significantly well currently And according to recent studies, it is estimated that this business model should triple in value over the next decade.  A small shared local store might be a niche that turns out to be very profitable. 

9. Vacation Rentals

The real estate industry is always promising and profitable. And if you live in a desirable destination, you might want to consider renting your space to eager visitors and travellers.

Using sites like Airbnb and VRBO have made renting easier than ever before and the average US host can look to make around $13,800 annually. 

10. Electronic Repair

Who doesn’t own a smartphone nowadays? Apparently it’s as little as 15% of the American population. Pretty much every job relies on electronics in form or manner and the importance of fixing broken electronics has never been higher. 

If you have the know-how, you can’t go wrong with this 8 billion dollar industry. 

11. Academics Courses

E-learning has shown an impressive acceleration in growth throughout the past few years and is projected to become around a 21.6 billion dollar industry by 2024.

There are many different ways to become involved in this industry. From online courses to courses to help parents with children's work, the possibilities are endless.

20 Most Profitable Small Businesses

12. Personal Wellness

As life continues to get more and more stressful, and more emphasis is placed on mental health and personal wellbeing, there couldn’t be a better time to initiate a business in this sector of the industry

Business in therapy, counselling, yoga, meditation, and life coaching are all profitable ideas in today's climate. 

13. Bookkeeping & Accounting

In the business world, bookkeeping and accounting are unavoidable, but numbers aren’t for everyone. And so you’ll find many owners looking to outsource this laborious task. This is something you can really take advantage of if numbers are your specialty. 

14. IT Support 

If you’re tech savvy, then you won’t find a more profitable business than IT support. This business has fairly low overheads, and all you really need is your knowledge and accessible transport.

There is so much profit to be made here providing you’ve got that much needed patience for such an industry. 

15. Graphic Design

A brand's image has never been more important as many businesses continue to pop up and competition becomes fierce.

According to research by Adobe, 73% of companies are investing into graphic design. So if you have great graphic design skills, going freelance may be pretty profitable for you. 

16. Social Media Management 

To make it as a company or brand, nowadays a strong social media presence is imperative. But when you own a business, you don’t always have the time or the know-how to effectively manage social media platforms. 

So if you know your stuff when it comes to social media and have access to a laptop this may be the perfect venture for you. 

17. Marketing Copywriter 

If you have a way with words, becoming a marketing copywriter is a great business option. In one year digital marketing grew by 33% while blogging, creative writing, and editing grew by just under 50%. 

18. Virtual Assistant Services

In the last few years, working from home has become an increasingly popular option for many companies.

Remote virtual assistants that can work flexible hours are ever in demand and according to ZipRecruiter you can make as much as $63,500 annually. 

19. Courses In Hobbies & Interests

While education courses have seen a heavy increase as of late, so have hobby and interest based courses. As well-being and mental health awareness increases, more people are taking the time to pursue their own interests and passions. 

And they are paying good money to do so. You could really profit from a well-designed hobby course.  

20. Shared Home Improvement Equipment 

How many people go out and spend masses of money on home improvement equipment that they only use once or twice?

Renting out equipment to home renovators proves to be quite a lucrative business with the average homeowner spending $8,305 on home improvement projects during 2020. 

Final Thoughts

Starting your own small business is all about honing in on your specialized skills and using them to your advantage. You want to opt for a business that is in high demand if you want to survive, while trying to avoid markets that are overly saturated. 

Now you know the most profitable business industries, hopefully your next decision will be a little simpler. Ensure that you do the correct research into your desired field before beginning your venture. 

I wish you the best of luck on your road to entrepreneurship!

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