10 great small business ideas for 2024

The entrepreneurial spirit is stronger than ever, with a growing number of individuals exploring innovative ways to start new businesses and generate income. Recent US Census data highlights a small-business boom, showing an average of 440,000 new business applications filed each month between 2021 and 2023—a 46% increase compared to the average of the previous four years.

Whether you aim to supplement your primary income with a side hustle or launch a full-time business, the opportunities are vast. If you are looking for ideas for small-business concepts, or if you have a dream business and could use some expert advice, this guide is an excellent starting point.

Top 10 small-business ideas in 2024

The number of small-business ideas is virtually limitless, with options that suit every dream and goal across all industries. However, to help you focus, here are our 10 favorite small-business ideas for 2024.

1. Freelance digital services

If you’re interested in setting your own schedule and have skills in areas like writing, graphic design or computer programming, freelancing might be the perfect fit. As a freelancer, you will produce content or execute projects for clients on a contractual basis. Payment for freelance work is typically made per project or task, which means your monthly earnings will fluctuate. The average hourly rate for freelancers in North America is $48.

Freelancing tips:

• Find a focus: Choose a niche that aligns with your passions or expertise to build your reputation as a specialist, such as logo design for graphic designers.
• Set up a portfolio and determine your pricing: Develop a portfolio to demonstrate your skills, including personal projects if needed. Set competitive rates informed by market standards and your experience level.
• Promote your services: Use platforms like LinkedIn to promote your services and connect with clients. Continue to update your skills to enhance service quality and ultimately better market your skillset. 
• Manage your time: Stay organized and on deadline with project management tools, especially when working with multiple clients. It’s important to remember that freelancing also involves administrative tasks, such as issuing invoices for completed work and managing your finances, including tax obligations.

2. Boutique bakery

What makes a bakery business stand out from the rest? Whether it specializes in an award-winning pastry, offers vegan options or targets other niche markets to attract specific customers, boutique bakeries can command a higher price for their goods and garner wild popularity.

Barbara Spraggon and Eden Rusak set out to do just that when they started Barbara Bakery, a business with aesthetic pastries, bread and coffee. They were highly intentional about designing the bakery space.

Spraggon shared, “I wanted people to feel at home, and to feel that Barbara Bakery is transparent. We show everything [in the kitchen]. People can sit here in the morning and see all the baking processes.”

Special care was given to menu development, and recipes are inspired by the couple’s home countries and travels all over the world. Their secret to success? Offering a delicious product that you can’t buy anywhere else and is often only available for a limited time.

They use data and customer feedback to evolve their menu seasonally. “We use Square for payment, so we can get analytics about what people buy every day, every week and every month. So for example, we see sales spike for heavier pastries with chocolate and cinnamon in the winter, and when we see sales declining as the weather warms up we can change our menu seasonally, like adding our new babka which is more fresh and citrusy for spring.” said Rusak.

Spraggon’s bakery small-business tips:

• Don’t be afraid to be different from the rest: Stand out in the marketplace with your products. Within six months of opening, people will know you for your signature recipes.
• Be open to feedback: Really listen to people’s impressions and reactions to new recipes — don’t just rely on sales numbers. Make time to talk to people.
• Make things you actually like: As a baker, your taste and intuition is a super power. You can personally enjoy the fruits of your labor, and your customers will feel the love in your pastries, cookies and coffee.

3. Online notary service

This highly flexible small-business idea is rarely discussed but has great earning potential. An online notary public is authorized to electronically notarize documents remotely using digital tools and video conferencing to verify and complete notarial acts.

Online notaries can work as independent contractors, setting their own hours and workload with a US national average annual salary of $61,077.

To get started as an online notary, you’ll need to meet both practical requirements and legal standards:

• Eligibility and training: You need to be at least 18 years old and a legal resident of your state, complete required training programs, which vary by state, and pass your state’s notary exam.
• Licensing and registration: Obtain a notary public commission from your state and register for authorization to perform remote online notarizations (RON).
• Technological setup: Invest in a computer with a reliable internet connection, a webcam and secure software that meets your state’s standards for RON. Consider partnering with a remote online notary (RON) platform, which can provide additional resources, training and support.
• Digital tools: Acquire digital certificates and an electronic journal to securely record notarizations.
• Insurance: Purchase errors and omissions insurance to protect against potential liabilities.

4. Food truck

Food trucks are an excellent small-business option for culinary entrepreneurs, providing lower overhead and upkeep costs compared to traditional restaurants, plus the flexibility of location.

When John Messina and Christine Daly started FM Pizza to serve NY-style pizza by the slice, they embraced a do-it-yourself approach to keep startup costs low. Messina encouraged others to try buying used equipment: “Facebook Marketplace has been awesome.”

He also had some advice for how to keep repair costs down: “You’ll learn a lot along the way (plumbing, electrical, gas). It’s a pain to learn all that but then down the road when stuff breaks, you can fix it versus paying someone else to do it. Once you understand basic plumbing you’ll never pay a plumber again.”

Messina’s food truck small-business tips:

• Give yourself time: If you’re rushing to get your business up and running, you might not think you have time to find things at a major discount — which means you might get your business open a little earlier, but at a huge cost.
• Make phone calls: Digging on the internet for regulations can be exhausting and not productive. Call your inspectors, city officials, sheriffs — literally anyone you need to work with. This helps you to have the strongest understanding of what is required of your business to become street legal.
• Set up a legal structure the right way: Figure out the right legal structure for you and your business — whether it’s an LLC or sole proprietorship. Get set up with the state government that your business is in, acquire your federal tax ID and start protecting your name and associated dba (doing business as) names. You can always pay someone else to set this up for you but if you do it yourself you’ll be better equipped to troubleshoot in the future.

5. E-commerce dropshipping

Dropshipping is when you sell products without having to stock or ship them yourself. Instead, when a customer buys something from you, a supplier handles the storage and shipping directly to the customer. This way, you can focus on selling without the costs of managing inventory or a warehouse.

Low startup and overhead costs and quick access to a global market for scalability make this an appealing small-business option. To start a successful e-commerce dropshipping business, you’ll need to complete several key steps, both practical and legal:

• Business planning: Determine the products you want to sell and define your revenue and profit goals.
• Supplier selection: Partner with reliable suppliers. Choose those that provide quality products and have a solid reputation for timely fulfillment.
• Legal formalities: Register your business, ensuring compliance with local and international laws. You likely need a general business license, and while dropshipping typically requires fewer licenses than traditional brick-and-mortar retail businesses, always check local requirements.
• Create your online store: Set up an e-commerce website where you will list your products, handle customer interactions and process orders. Wix and Shopify are a few of the top-rated e-commerce platforms that can facilitate this.
• Operational tools: Invest in necessary tools for payment, managing orders, tracking shipments and handling customer service.
• Marketing strategy: Develop a digital marketing plan to attract and retain customers. Use SEO (search engine optimization), email marketing, social media and pay-per-click advertising.
• Insurance: Consider getting liability insurance to protect against potential legal claims, ensuring that your business is covered in scenarios that might cause financial loss.

6. Guides and outfitters

If you’re a nature lover, this business offers a rewarding opportunity to turn your passion into a profitable venture. But the nature of this business can come with unexpected challenges, and requires research on the state and federal regulations and licenses required.

Heather Harter, co-owner of Harter and Sons Seafood and executive director at Klamath County Chamber of Commerce, shared:

“Starting a fishing business has been my husband’s lifelong dream, and I had the business experience to complement it. We started out two years ago with commercial fishing. Our goal was to fish and sell it to consumers or restaurants. We quickly learned that the regulations around selling direct to consumers made it almost impossible, especially with the amount of capital we were starting with. We had to pivot. We added the tourism side where we’re getting people to go out fishing with us [as guides].”

Heather Harter, Harter and Sons Seafood co-owner

Harter’s tips for starting a fishing guide company:

• Know it, upskill or delegate: People usually start a business because they’re good at something, and then they realize they have to do the business side of it, which they may not always be good at. Recognize that you’re going to have to dig in and get really good at those things — or delegate the tasks.
• Find the right accounting software: Prioritize small-business accounting and get the right tools to help. Being split between two locations (Klamath Falls and the Oregon coast), we needed a way to not lose receipts. The accounting software we got helps scan the receipts, inputs the data and generates reports.

7. Construction and contractor services

Starting a small business as a contractor taps into the construction sector’s current labor shortages, offering a promising landscape for new entrepreneurs.

“Based on my own journey from a corporate position at Nike to becoming a commercial contractor, I believe that industries resistant to full automation, like construction, are particularly promising,” said Isai Montes De Oca, CEO/owner/principal of White Tiger Contractors, a commercial construction company specializing in flooring.

De Oca’s contractor small-business tips:

• Hire a bookkeeper and an accountant right away: I learned the importance of small-business accounting the hard way. Hiring a bookkeeper or accountant early on is crucial. While it might seem like an unnecessary expense initially, the benefits far outweigh the costs. This isn’t just about keeping your books in order; it’s about establishing a relationship where your accountant understands the nuances of your business. This setup becomes invaluable as your business grows, ensuring that you avoid financial headaches and stay compliant with regulations.
• Specialize in a specific area: Become the most efficient and knowledgeable provider, making it hard for clients not to choose you again.
• Learn from the best: Finding mentors is invaluable for gaining insights based on their experience.

8. Selling art online

Starting a small business to sell your art online offers the unique opportunity to showcase your work to a global audience from the comfort of their own home or studio.

Eleanor Baker is the owner of El Baker Art and has fulfilled over 10,000 orders on Etsy since founding her business in 2019.

“My advice would be to make it easy for the customer to buy from you,” said Baker. “Art is an expensive luxury item, and I want the customer to feel like it’s a worthwhile investment and that I appreciate them buying my art, when there are so many talented artists (globally accessible) to shop.”

Baker’s tips for selling art online:

• Include free shipping: This simplifies the purchasing process for the buyer.
• Make prices very visible: Sometimes artists will say that the customer needs to message for the price. This adds an unnecessary hurdle.
• Offer framed originals: Sending art already framed encourages customers to immediately open the box and hang on their wall, or it makes an easy gift.
• Have a website or Etsy shop: Customers can read reviews and buy with a credit card.
• Show photos of the art on a wall: This helps customers visualize it in their own home.
• Timely communication: Respond to messages/emails within 24 hours. A small business can’t be Amazon, of course, but customer service is so important.
• Outsource as much as possible: Consider paying photographers to get high-quality images, on-demand companies to print and ship print orders and UPS to pack and ship originals.

 9. Home cleaning services

Starting a cleaning business can be a rewarding opportunity if you enjoy organizing and cleaning spaces. Cleaning rates average $50 per hour, influenced by factors such as your geographic location, the size of the property and the local market competition. To stay competitive, compare your pricing to other cleaning services in your area.

Here’s what you’ll need to launch your cleaning service:

• Determine scope and initial investments: As you launch your business, you’ll need to decide if you want to go solo or hire a small staff and train them. For baseline business operations, you’ll need quality cleaning equipment and materials and a reliable vehicle for site visits.
• Legal and insurance needs: Secure a business license from your local government and obtain general liability, workers’ compensation and tools and equipment insurance (if applicable).
• Marketing: Set up a website and use social media to attract clients. Stand out by adding unique offerings to your package services (like floor waxing or power washing).

10. Pet services

If you love dogs, cats and all manner of animals, then a pet services business like pet sitting, dog walking or grooming might be right for you.

Here are a few essential steps to starting a pet services business:

• Define your business model: Decide if you’re operating solo or planning a larger venture. Assess your goals, whether for full-time income or as a side hustle.
• Get registered and figure out your finances: Check with your local and federal governments for required licenses and obtain any necessary insurance, like liability insurance. Calculate startup costs and consider how you’ll finance your business, potentially through small-business loans or savings.
• Marketing and operations: Develop and implement a marketing strategy using both online and community-based approaches to attract clients. Set up your business location, whether at home or elsewhere, and invest in administrative systems like a professional website and pet sitting software to manage clients and appointments.
• Create policies and procedures: Define clear business policies on pricing, services and emergency procedures to ensure professionalism and customer satisfaction.

How to choose the right business idea for you

Determining the right business idea involves self reflection, identifying your passions and skills, understanding your goals and then aligning them with market needs and opportunities.

Harter shared, “At the Chamber, people come in and talk to me about starting a business and the ideas that they have. Whether it’s fishing or retail, it’s important to think about it in terms of, ‘do you want to spend your time doing that?’ This question is actually a lot of soul searching to tell you the truth.”

Harter offered a few key questions to ask yourself about potential business opportunities:

• What do you want to gain financially? Decide if your idea for a small business could get you there.
• Realistically, how much time and energy are you willing to put into it? I get a lot of people that come in because they like to cook and they think that would be kind of an easy thing to do. My parents both owned restaurants and the thing I always ask people is, “Do you realize how tied to that business you were going to be?” Especially for the first few years because hiring people is hard, and as soon as you start adding employees there is overhead.
• Can you afford it (finances and risk)? For example, if you are raising young kids and you’re going to go into something risky where you may not be making money right away, can you afford to do that?

Make an informed choice about your small-business idea

Here’s how you can narrow your list and vet your idea for a small business:

• Match your skills with market needs: Inventory your skills and experience by listing your talents, certifications and professional experiences. Identify which ones are best suited for a small-business context, considering factors like market demand. Act as a potential customer and search online for existing businesses in the field you’re considering. Focus on finding a niche that is underserved in your area or where you can offer a unique advantage.
• Assess start-up costs and potential profitability: Take into account any limitations such as startup costs or time constraints from your current work schedule. This will help you narrow down business ideas that are logistically feasible for you. Take guidance from sources like the Small Business Administration when writing your business plan. Remember to take into account fluctuating and rising costs — according to the MetLife & US Chamber of Commerce Small Business Index, 52% of small-business owners rank inflation as their top concern.
• Consider tax implications and liabilities: Explore the tax implications and potential liabilities associated with your business idea. Knowing these can help you plan better and avoid surprises in the future.

This structured approach ensures that you choose small-business ideas that not only match your capabilities but also have the potential for success in the competitive market.

Small business resources

Small Business Administration

The US Small Business Administration (SBA) is the singular federal resource and advocate for small businesses. The SBA equips entrepreneurs and small-business owners with the necessary tools and support to launch, develop or expand their businesses or to rebound from declared disasters. They offer online resources to help register your business, calculate startup costs, apply for licenses and permits, get funding and pay taxes. The SBA offers its services via a widespread network of field offices and through collaborations with various public and private entities.

Chamber of Commerce

A chamber of commerce is a collective business network focused on advancing the shared interests of small businesses within local communities across the US. Joining your local chamber can enhance your business’s visibility and credibility and provide valuable benefits for both new and expanding enterprises. The US Chamber of Commerce website offers a variety of resources for small-business ideas.

“Definitely connect with your local chamber of commerce, especially if you’re operating locally, but even for at home or tech-based businesses,” said Harter. “Your local chamber of commerce can open doors and introduce you to those people that can help like accountants, bookkeepers and other professionals.”

Further reading: Practical tips

Frequently asked questions (FAQs)