Starting a successful business can begin by tapping into a long-standing passion. For example, an athlete could turn a sports obsession into a sportswear-focused business venture, or a dedicated knitter could generate profitable small business ideas by considering selling custom items online.
However, many business owners start from a different angle. They start by thinking about the finances of the business and brainstorming the most profitable small businesses they could imagine starting. They then use these small business ideas to build a company that can generate reliable profits over a long period of time.
Here are some of the most profitable businesses to start as an entrepreneur.
The most profitable businesses
If you are an aspiring entrepreneur looking for the most profitable business ideas, take heart. There are profitable business opportunities in many different industries. Whether you’re starting small with low-cost business ideas or have a big budget that allows you to aim high, here are some of the most potentially profitable businesses to start:
Technology services and software development
The technology and software sector has accounted for a large portion of the US stock market for years. Big tech companies like Microsoft and Apple are among the most profitable companies on the planet, but small software developers can also gain a foothold in this industry.
If you have an idea and strong coding or development skills, you could consider starting your own startup — a high-risk, high-reward option. Or you can start a potentially profitable business that offers technology consulting or technical support.
Real estate
The real estate industry includes everything from property development to property management and brokerage services. For many aspiring entrepreneurs, becoming a real estate agent is the most affordable way to get into this industry and offers a flexible schedule. The Bureau of Labor Statistics (BLS) offers detailed information on real estate agent salaries and employment trends in the US.
e-commerce
An e-commerce business is any business that sells goods and services over the Internet. It takes more than an internet connection to build your own online business, but most profitable online businesses use a customer relationship management (CRM) platform to streamline operations. Starting an online store allows you to tap into a rapidly growing market. In fact, the total revenue of the US e-commerce market increased for the 10th consecutive year in 2023.
Consulting
The business consulting industry consists of companies and individuals who guide business managers on corporate strategy, growth, human resource management, optimization, and more. There is no specific requirement to become a business consultant, but it helps to have a degree and relevant experience in the field where you offer consulting services.
Digital marketing
A digital marketing business can include copywriting, content creation, social media management, pay-per-click (PPC) advertising management, and graphic design services. Successful companies in this sector often cater to a specific market niche—which can be anything from high-end apparel to the food truck industry—and cultivate a loyal customer base. As your marketing business grows, you can potentially expand into new business categories and serve more niches.
Fitness training
Research company IBISWorld ratings that the US personal training market will generate $14 billion in 2023. This number includes many trainers or fitness trainers who operate their own small business out of their home or in shared spaces. Like many areas in the wellness industry, fitness comes with relatively little startup cost aside from training, unless you’re pursuing a niche like Pilates that requires an investment in expensive equipment.
House cleaning services
You can start a house cleaning business by either doing the cleaning yourself or hiring a team of cleaners to work while you deal with marketing and bookings. You can promote your cleaning business on your own website or you can use third-party websites like Craigslist and Taskrabbit to advertise your services.
Organizing a reception
If you are organized and outgoing, you may consider starting an event planning business. A potentially profitable business model is to focus your event planning on weddings—in the US, the average wedding costs $30,000. Other event services businesses focus on corporate gatherings, which can have large expense accounts, thus boosting your performance as a planner.
Online courses
High on the list of potentially successful small business ideas is the concept of selling courses online. Offering an online course costs very little, but you will need to promote yourself and build a following. Aim to teach courses that match your known skill set and resume. Acclaimed graphic designers can offer graphic design courses, while successful entrepreneurs can offer online business courses.
Logistics and transport
You can run a successful business by handling logistics for other companies. This may include inventory management, warehousing, shipping and courier services.
Car washes
As long as people have cars, they will need a place to wash them. This can make car washes an extremely profitable industry. Grand View Research estimates that the global car wash market will exceed $32 billion in 2023.
You’ll have to spend money on real estate, equipment, and water, but car washes don’t require many employees—especially self-service car washes—which makes them cheaper to run than many other businesses.
Fashion and clothing
If you have an interest in design, a convincing business plan and a sound business structure, you can start your own fashion or clothing company. You will need to research wholesale suppliers and choose the right sales platforms to ensure the most profitable business results.
Whether you sell online through your own e-commerce store, through e-commerce marketplaces or in stores, you can turn a passion for fashion into a successful business. Demand for clothing remains strong.
Bookkeeping and accounting
Most successful business owners need accounting services, payroll services, and many other finance-related services. You can make these business owners your customers by starting a bookkeeping, accounting or payroll business. This can be a good business idea for a sole proprietor or you can hire staff and scale up.
Vacation Rentals
If you own property or have the means to invest in it, you can make money by renting out these properties to vacationers. Although the initial time and money commitment is high, in the long run, these rentals can provide passive income while you work on other projects.
INSURANCE
Insurance is a highly profitable business that includes everything from giant international companies to small businesses focused on local markets. One way to measure the size of the insurance industry is a metric called gross written premiums (GWP). Estimates by S&P Global Market Intelligence US property and casualty insurance market GWP to reach $1.3 trillion in 2023.
You could start a local insurance brokerage and tie it up with a larger insurance company (eg Allstate or State Farm) and potentially make a pretty big profit—making this one of the best small business ideas for business-minded people .
How do you start a profitable business?
Here are five key steps entrepreneurs should consider when starting a profitable business:
1. Conduct market research. Understand your target market, customer needs and competition. Identify opportunities and gaps in the market that your business may face.
2. Draw up a solid business plan. Develop a comprehensive business plan outlining your goals, target audience, value proposition, revenue model and marketing strategy. A well-thought-out plan helps guide your business decisions.
3. Manage your finances. Set a realistic budget, manage expenses carefully and ensure you have sufficient funding. Keep a close eye on cash flow because it is vital to sustaining and growing your business.
4. Create a strong online presence. Create a professional and user-friendly online presence through website and social media. Use digital marketing strategies to reach and engage with your target audience.
5. Stay customer focused. Prioritize customer satisfaction and build strong relationships. Listen to customer feedback, adapt to their needs, and deliver great products or services to create loyal customers who can contribute to your business’ profitability.
Frequently Asked Questions for Most Profitable Businesses
Which businesses make the most money?
Finance, law, real estate, healthcare and software development are among the most profitable industries in the US. If you want to make as much money as possible, consider starting a legal services business, a brokerage, a healthcare company, or a software-based business such as a virtual assistant business.
Which professions earn the most money?
Bureau of Labor Statistics» list of highest paying occupations it is topped by various types of doctors, mainly surgeons. The types of jobs that pay the most vary by region and market conditions.
What is the easiest business to start?
The easiest business to start is likely to be a business where you are a sole proprietor and can work from home. When you add employees and physical locations, you have to navigate more complex regulations and logistics.
