Are you exploring the idea of starting a new business or expanding yours?
Are you wondering what is the best business to start? In other words, what is the most profitable industry, and which can you start with a tight budget?
Of course, starting a business is not the end of the journey; you still need to make sure it grows and stays healthy by making regular investments. Because if you don’t put any money into your business, it will definitely stagnate, and, if you fail to do something about it, you might have to face closing your business.
All small businesses are ruled by one simple law: “It takes money to make money.”
So, once you start your business, always keep in mind that you should always plan for inversions, even if these mean getting external funding.
Here we will provide you with a comprehensive list of the most profitable businesses that are currently thriving in the US. Also, we’ll tell you the best businesses you can start from home and the most profitable ones you can start during the current COVID-19 crisis. Furthermore, we’ll tell you what non-profitable businesses you should steer away from.
35 Of the Most Successful Small Businesses
You’d be surprised at the number of individuals who don’t know how to change a light bulb — or simply don’t have the time! If you’re an expert at building and know your way around a well-manned home, this is the job for you. Handymen are usually paid by the hour and can have multiple clients at once. You can also partner with larger handymen companies as an employee or franchisee partner, meaning they will take a percentage of your pay, but give you loads of work in return, generally.
2. Online courses
It’s a no-brainer. Any form of education is commonly considered as priceless. Think of running an online course – teaching a second language or even English (particularly for immigrants), news writing, design, SEO techniques… The possibilities are endless, depending, of course, on your area of expertise. You can provide a course on real estate brokering or the stock market, auto mechanics, or any subject a student is interested in learning. This is a profitable business venture, and once you establish a base of students, it can be one of the most profitable businesses since the overhead expenses are meager.
You could work out special arrangements with other digital content companies that can provide you with tools to help carry out your lessons. The most costs involved in this would be the minimum amount you pay for your domain name and hosting space or the fee a digital content outfit will charge you for featuring your course in their platform.
3. Child-Oriented Businesses
Whether it is newborn or post-pregnancy services, enrichment activities, or daycare, babies are everywhere. The beauty of child-related businesses is that if you’re a true fan of children, you won’t work a day in your life. This business is less likely to suffer as there will always be a need for childcare, which makes it one of the most profitable businesses.
4. Tutoring Center
With the increasingly demanding and competitive lives we’re leading today, students in their formative years are almost always compelled to excel in their studies. Parents are aware of this. They generally don’t mind spending money to help their kids achieve good academic standing – reason enough to make starting a tutoring center a pretty profitable business. If you are or have been a teacher, this is the type of business that’ll be right down your alley. Some people may simply require a background or some experience of helping someone get through his/her school test requirements. If you’ve got some specialized skills (Math, foreign language, creative graphics, etc.), it’ll help promote your business and start getting students right away. It’ll be good to locate your tutoring center in the vicinity of a big school where you can hand out fliers and install posters or small ads. A tutoring program for a student running for 8 weeks with 1- 3-hour sessions typically comes with a fee ranging from $500 – $1800. That accounts only for one student: definitely, this is one of the most profitable businesses you can consider.
5. Real Estate and Real Estate Brokering
If you have an extensive network, this business is especially for you. Apart from setting your own schedule and working on your own time as a realtor, you can also acquire a broker license and establish a brokerage firm. Brokers act as an intermediary between sellers and buyers. With an average net profit margin of 17.4% for leasing and 14.8% in sales, real estate has a lot to offer, and once you have acquired experience, it can turn to be one of the most profitable businesses.
6. Dental Offices
Smile big — dental offices are high up on the list of the most profitable businesses in 2019. Yes, the overhead costs to set up this type of business are high, but with returning patients and excellent referrals, the practice will pay for itself. Additionally, there’s the added benefit of cosmetic tooth bleaching being a booming business (a $3.2 billion industry to be exact). If you got it, flaunt it — whether that’s pearly whites or a successful dental practice.
7. Gardening & Landscaping
Calling all Southerners and Californians — we love our gardens! If you live in warmer weather states, gardening can be a lucrative business. Take it a step further and go for landscaping — you’ll not only be contracted by homeowners but also by hotels and larger businesses who love a beautiful outdoors.
Because no commercial space is required outside of storage space, it’s possible to start a landscaping business with a modest investment of up to $15,000 for landscaping equipment.
If people need to travel 30 minutes or more to purchase flowers, a florist shop in your community will draw customers into your store. Just like you, they celebrate weddings, birthdays, Valentine’s Day, Christmas, Easter, and other holidays by buying bouquets and arrangements.
9. Business Consulting
If you’re an expert in your industry and have been working at it for years, consider consulting. Consultants who are most successful tend to embark on the journey later in their careers, have niche expertise, and are incredibly organized and well-connected. Plus, they know how to scale a business and have the keys to keeping clients happy. Just like other types of freelancing, being an independent consultant is a business and requires networking and negotiating.
10. IT Support
As we become increasingly technologically inclined, the IT field is one of the most profitable careers, and an IT support company can be one of the most profitable businesses. Those who know how to deliver IT support are in high demand in every industry and can charge high fees for their services.
Write about what you know and offer an ebook or paperback online for passive residual income. High-quality content sells, especially series novels and books on technology, fitness, cooking, parenting, and non-fiction books about business and money.
It doesn’t matter what small business you choose, you’ll need to think of making investments to help it grow. Remember to consider what type of funding is right for you.
12. Website Design
This falls into the previous category, but it’s worth highlighting. Provided you are technology savvy and creative; this could be an excellent choice to run one of the most profitable businesses. Every single company, big or small, has its own website, and the demand for a good website designer is only increasing. Consider the low cost of starting your own website design service company, since you can run it from home. If you think you need some extra education on technology, you can find a course that suits you on this list.
13. Logo Design
Again, another freelance position worth considering. You need to be a visual type of person and highly creative and be able to show a shining portfolio. Make sure you can come up with unique ideas, and do the homework of researching the potential market: while the demand for logo designers is high, also is the competition.
14. Accounting & Tax Preparation
Every year, accounting makes it into the list of the most profitable businesses. This category also encompasses payroll services and bookkeeping. Most people would rather pay someone than do it themselves or learn how to do it. Anything from a small accounting firm to a tax accountant will always be in style.
15. Party Services
We all love a good party, and even better — a good party planner. Even in times of economic despair, weddings and birthday celebration still happen. Party services can be flexible and versatile, covering planning, catering, bartending, and serving, among other functions. Since you can use contractors for most of these services, the overhead costs can be as low as you negotiate them.
16. Personal Training
If you have a passion for helping others feel like their best self, personal training is the route for you. This is last on the list because although it is a booming small business field, it’s also not a field for those who are shy or not willing to get out there. It’s all about networking and sharing your passion. Helping others look better is not a simple task, so be proud of your work, get out there, and train hard.
17. Funeral Homes
They say there are two things you can’t escape from, death and your taxes. As morbid as it may sound, we’re all going out to pass someday, and funeral services will always be a booming market. Funeral homes generally see a steady stream of customers, providing a largely recession-proof business model for business owners who don’t want to experience economic downturns. Do the research beforehand because getting started requires at least a Bachelor’s degree and be prepared for a high overhead cost.
18. Food Trucks
The foodie movement continues to grow! A few years back, consumers were hesitant to buy food from a truck parked in a parking lot. Now, there are actually food truck festivals for foodies who can’t get enough. If you have a mouthwatering recipe and want to make a business out of it, the days of brick-and-mortar are over. You can pick a truck, paint it your favorite color, and get to ridin’ and cookin’. Before you begin considering a food truck business, head to your local health department to inquire about the required permits. In addition to being a street food vendor, you can offer your services to cook for weddings, barbeques, festivals, and other celebrations.
Learn here how to expand your food truck business
19. Catering services
Like the previous one, you don’t need a large investment to start your own catering business. If you have a suitable kitchen, equipment, and a recipe book worth-sharing, you can operate your service from home. If you are extremely well organized and can count on a pair of extra hands to help you (as well as suitable transportation), this is a good way to set foot on the food industry. Think that those requesting catering are willing to pay well for this type of service since it serves in celebrations, important events, or meetings. If you are willing to maintain a high standard not only in your food but also in your customer service and every single small detail, this could be one of the most successful and most profitable businesses for you. Learn here the 5 steps you need to take to start your own catering business.
20. Health Food Kitchen & Delivery
As we become increasingly busier, the time to cook becomes slimmer and slimmer, yet we become bigger and bigger if we don’t make sure to feed our bodies the right nutrients. That said, individuals are always looking for healthy food options that are already prepared. Setting up a service that caters to health-conscious individuals, or perhaps vegan or vegetarians (niche markets), can be profitable if you know how to market the services.
Keep reading: How to Start a Food Business from Home
21. Auto Repair and Auto Leasing
Car emergencies happen 24/7: oil needs changing, headlights go out, you get a flat tire, you name it. Reportedly, auto repair companies made big bucks in 2019, according to National Business Capital & Services. On the other hand, with the rise of ride-sharing companies like Uber and Lyft, consumers are more hesitant to buy cars. This doesn’t necessarily affect the auto repair services industry in a negative way since older cards in households need more maintenance and repairs than brand-new automobiles.
22. Travel Agency
This is probably one of the easiest industries to get into. Not a lot of investment is required. It’s a great business opportunity to help people get their plane tickets or arrange for other transportation options, hotel reservations, tours, and much more. By tying up with a host agency, you could open up a home-based travel agency. You should obtain your IATA (International Air Transport Association) and your ARC (Airlines Reporting Corporation) numbers. These numbers allow you to issue air tickets while earning a commission.
With tourism on the upswing in most parts of the world, getting into this travel business should prove to be one of the most profitable businesses.
23. Social Media Consultant
Many business owners know that social media contacts drive traffic to their products and services, but they don’t know how to go about making that happen. If you know how to engage an audience to attract hundreds and thousands of viewers, business owners will pay for your services.
Is a small business loan what you need to help your business grow?
Here are the perks of getting a small business loan.
24. Marketing & PR Services
Speaking of marketing services… every brand has a story, but not every business owner knows how to tell it. Here is where marketing gurus enter. Marketing & PR professionals have the skill-set and tools to tell your brand’s story and make sure the right audience hears it. It is an ever-changing field with the rise of influencers and the decline of print media, but lucrative nonetheless within the new avenues that are at the marketer’s disposal.
This can go many routes: graphic design, freelance writers, and social media gurus. The outsourcing services are continuing to make a difference in the way companies interact with their employees. Which means more opportunities for freelancers to take on projects. Websites such as UpWork and Creative Circle make it much easier for freelancers to become visible.
For the past couple of decades, the increasing number of hours people spend on the internet has raised the demand for quality web content. This is where somebody with a true talent for language and creative imagination can succeed as a copywriting entrepreneur. Good copywriters create advertising and marketing materials that a lot of online and offline businesses need. What’s more, you don’t have to have a big, expensive commercial space as most copywriters work from their homes as freelance writers with practically no overhead expenses.
27. Language Translator
Without leaving your home, you can translate blogs, website pages, and other documents into a language you speak fluently. Check out platforms like Fiverr and Upwork to connect with clientele looking for your skills. Because the demand for translators is high, make sure you don’t undersell your abilities.
28. Warehouse and Storage
Time and space tend to be some of the factors most people lack. When people have to move, or when they go through a life change, they need the extra space for storage. This industry solves that problem of space. There will always be a need for storage!
29. Property Maintenance
Are you a handyman (or woman!)? If you can multitask and are willing to get your hands dirty, this could be a good choice for you. There is, and there will always be a demand for people who can repair lighting, fix plumbing problems, clean gutters and pools, paint fences, replace doors and carpets… you name it. While the hourly rate for property maintenance is not high, this can turn into one of the most profitable businesses if you live in an area where apartment complexes and rentals abound.
30. Cleaning Services
Like the previous one, other than the right attitude, you don’t need much to start this business. All you need is basically some good cleaning equipment and products, a vehicle, and a catchy website to attract potential customers. If you already do your own cleaning at your own home and people praise your place for being spotless, why not turning this into one of the most profitable businesses you can find?
31. Delivery Services
Some restaurants or other local businesses in your area may provide a delivery service to customers. If you go this route to start a profitable business as a self-employed delivery person, other than a reliable vehicle, you don’t need a large budget. However, make sure you research the demand in your area. And of course, that your vehicle (car or motorcycle) is in excellent condition and up to date regarding inspections.
32. Courier Services
A courier service is a service that allows someone to send a parcel or consignment from one location to another. Courier services are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization, and individualization of express services, and swift delivery times. Delivery doesn’t cost much — other than gas. However, getting contracted by a large firm, such as Amazon, can prove to be profitable for couriers. You can even go fully independent if you have established the right connections of people who will use your services, especially if your fees are more affordable than the fees at larger companies.
33. Vacation Rentals
You don’t need to have all your ducks in a row to put together a business. You can make some extra cash by renting out a spare room. Many rent out their space to Airbnb users to make a living. But it can be as simple as renting out a bedroom once a month for extra income. To recoup costs for advertising, cleaning, and supplies, you need to decide how many days to rent the property and for how much.
34. Pet Handling Service
Most people regard their dogs, cats, and other pets as family members. They’re not a big fan of leaving their pets alone without anybody looking after them. Many pet owners, on many occasions, go away for short or long periods and need to have someone to look after their pets’ welfare. If your business can offer a place to keep the pets, you could earn some good money depending on the duration of their stay. Along with this, your services could include dog walking, training, and grooming. Some start-up capital will be needed to cover the costs of setting up a website, getting a mobile pickup, and stocking up on grooming materials.
35. Dash Cam Business
People use dashcams in vehicles to capture driving and parking accidents, to record a road trip or take videos of sunsets. You can set up a website and post dashcam videos to garner interest from potential customers. Instead of allocating space for inventory, the manufacturer can drop ship orders via your purchase orders.
Keep reading: Profit Margin by Industry
The Most Profitable Home Businesses
Some entrepreneurs love the idea of running a brick and mortar store or physical location. Others would just rather manage their business from their homes.
You can stay home and still have a profitable business; you just need the drive, the creativity, and, of course, the right idea. If you’re one of those creative minds ready to start a business from home, there are several business ideas that you can choose from.
Find what some of the most profitable home businesses are:
The Most Profitable Businesses During a Pandemic
Unfortunately, there will always be times when starting a business seems like a bad idea. One such moment is the current coronavirus pandemic, which has affected the bottom line of millions of American citizens. That’s why many have been trying to think of ways to support their finances and make some extra cash when they need it the most.
If you’re looking for ideas to start a business during the COVID-19 economy, we’ve got you covered. These businesses are thriving where others are failing, and, as such, they’re great candidates to help you keep your finances strong
10 Of the Least Profitable Small Businesses
Naturally, when you are considering what the most successful and most profitable businesses are, you also have to think of the other side of the coin. Here you have a list of the 10 least profitable small businesses:
1. Oil and Gas Extraction
Market volatility is the main reason small business owners stay away from this kind of business. Crude oil prices have dropped since 2014, and profits average, minus 7.6%. If your goal is to strike it rich, this isn’t the business for you.
2. Manufacturing beverages
Capital-intensive manufacturing equipment. Large warehouse space. Low-priced products. Sophisticated technology. An incredibly fierce competitive environment. These are the big reasons why it’ll be too tough to break ground in the beverage market. With these things working against you, you’ll be old and gray by the time you get your ROI in the black, and who needs to be profitable when you’re 91?
3. Assisted Living
Baby boomers face the possibility of needing eldercare. The need is real, but small business owners have high overhead costs, a shortage of skilled professionals, and must abide by Medicaid and Medicare pricing regulations.
Costs for cameras, studio space, lenses, business insurance, and training are ongoing. Photographers need to have a steady stream of clients to break even.
5. Online Surveyor
Here’s another part-time business that might provide income for gourmet coffee but not much else. The advantages are that you can fill out surveys anywhere, and there’s no investment. If you have an hour commute each way on a train, you could earn money filling out surveys.
6. Wholesale business
Think twice if you’re planning to put up something like this. The profit margins here are low and thin. Those wholesale businesses that thrive have incredibly sophisticated and efficient working systems and procedures, rigid credit and collection control, and more importantly, they have huge volumes of sales over which they’re able to spread their overhead costs, which are a-plenty.
7. Retail business
When you’ve got the Walmarts and the Kmarts of this world (and other large discount department store chains either steadily increasing their market share or threatening smaller retailers in various kinds of categories), retailing gets to be tougher than ever before. Not only that – you will also have to contend with big names like Amazon and a host of other online retail shops. Retail business is simply too competitive, and making a decent profit is like pulling teeth. It hurts! Sure, you can compete with these giant retailers, but it’s hard. You will need a strong strategy that will give your business a proper motivation for shoppers to choose your store.
8. Lawn garden tools and supplies store
This is a niche market. We have seen above that it can actually be a very lucrative business in rich states with warmer climates like Florida and California. Still, in most of the other states, there’s no need for year-round access to lawn and garden supplies and equipment. Winters are bad, and your potential customers would most likely stop tending their lawns from about mid-October to about March. And, when the tough times come – what non-essentials do you think homeowners will cut? Outsourced lawn care. What you need is an all-year business that will provide you with good, steady revenue.
Putting up an e-commerce site sounds easy enough. Set up your website and wait for a surge of orders, right? Nope. It’s a lot harder than you think getting internet users to visit your site. It’s an uphill battle to have your website ranking on the first page of search engine results. Of course, there’s advertising you can buy to drive traffic to your site, but it’ll cost you plenty. And, when you do get people to visit your website, you’ve still got to worry about converting these into sales and revenues. If e-commerce is in your mind as a business venture, it won’t hurt to think again.
You may have plenty of ideas for products, but you’ll need to convince someone to invest in your ideas if you don’t have money. It takes capital to create prototypes and secure patents. Only 5% of patents see the light of day commercially, with only 1% reaching five figures.
Are You Ready to Become a Successful Business Owner?
We hope this gave you an insight into what are the most profitable businesses and also the least successful small businesses currently out there.
Did this give you some ideas?
Maybe you found the inspiration you were looking for, but if you need more useful information, learn here how much it costs to start a business and the resources you need to start yours. This info will help guide you in determining where to invest your hard-earned money.
And just remember, at Camino Financial, we can help you with your investment needs. Our mission is to help all small businesses thrive, no matter what their goal is. So, when you’re ready, we can be your financial partners, and, together, we’ll help your small business grow beyond your wildest dreams.
*For this compilation of the most profitable businesses
we have used the following sources, among others:
the annual report made by the University of Arkansas,
the Small Business Administration,
the Small Business Administration Office of Advocacy,
National Business Capital & Services,
and Passive Airbnb.
For the ranking, we have used the data provided by BizStats.com
for sole proprietorships with $400,000 in annual sales.