Building a successful business starts with leveraging your long-held passion. For example, an athlete can turn their sports obsession into a business venture centered around sports apparel, or an avid knitter can consider selling custom items online to start a profitable small business. You can generate ideas.
However, many business owners start from a different perspective. They start by thinking about the finances of their business and brainstorm the most profitable small businesses they could consider starting. Then, leverage those small business ideas to create a company that can reliably generate profits over the long term.
Here are some of the most profitable businesses to start as an entrepreneur.
most profitable business
If you are an ambitious entrepreneur looking for the most profitable business idea, take heart. There are lucrative business opportunities in various industries. Whether you want to start small with a low-cost business idea or have a big budget and aim high, here are some of the potentially most profitable businesses to start.
Technology services and software development
The high-tech and software sectors have long been a large part of the U.S. stock market. Big technology companies like Microsoft and Apple are some of the most profitable companies on the planet, but small software developers can also gain a foothold in the industry.
If you have an idea and strong coding or development skills, you may consider starting your own startup. This is a high risk, high reward option. Alternatively, you can start a profitable business offering technical consulting and technical support.
real estate
The real estate industry includes everything from real estate development to property management and brokerage services. For many aspiring entrepreneurs, becoming a real estate agent is the most affordable way to enter the industry and allows for flexible schedules. The Bureau of Labor Statistics (BLS) provides detailed information on salaries and employment trends for real estate agents in the United States.
e-commerce
An e-commerce business is a business that sells goods and services over the Internet. Although all you need is an internet connection to establish your own business online, most profitable online businesses use customer relationship management (CRM) platforms to streamline their operations. Starting an online store allows you to tap into a rapidly expanding market. In fact, the total revenue of the US e-commerce market will increase for the 10th consecutive year in 2023.
consulting
The business consulting industry is made up of companies and individuals who coach executives on corporate strategy, growth, talent management, optimization, and more. There are no special requirements to become a business consultant, but it is helpful to have a bachelor's degree and relevant experience in the field where you provide consulting services.
digital marketing
Digital marketing businesses may include copywriting, content creation, social media management, pay-per-click (PPC) advertising management, and graphic design services. Profitable companies in this space often target specific niche markets and cultivate a set of loyal customers, from luxury apparel to the food truck industry. As your marketing business grows, you may be able to expand into new business categories and serve more niches.
fitness coaching
Research firm IBISWorld estimates that the U.S. personal training market will generate $14 billion in 2023. This number includes many trainers and fitness coaches who run their own small businesses out of their homes or shared spaces. Like many areas of the wellness industry, fitness coaching has relatively low upfront costs other than education, unless you pursue a niche like Pilates that requires investment in expensive equipment.
house cleaning service
To start a house cleaning business, either do the cleaning yourself or hire a cleaning team to do the work for you while you handle marketing and bookings. You can advertise your cleaning business on your own website, or you can use third-party sites like Craigslist or Taskrabbit to advertise your services.
event planning
If you are an organized and sociable person, you may consider starting an event planning business. One profitable business model is to focus your event planning on weddings. In the United States, the average cost of a wedding is $30,000. Other event service businesses focus on gatherings of companies that can incur large expenses, making you more profitable as a planner.
online course
High on the list of potentially successful small business ideas is the concept of selling courses online. There are very few overhead costs associated with offering an online course, but you do need to market yourself and grow your following. Aim to teach classes that match your known skill set and resume. Famous graphic designers may offer graphic design courses, and successful entrepreneurs may offer online business courses.
Logistics and transportation
You can make your business successful by taking care of other companies' logistics. This includes inventory management, warehousing, shipping, and courier services.
car wash
As long as people own cars, they will need a place to wash them. This can make car washing a very profitable industry. Grand View Research predicts that the global car wash market will exceed $32 billion in 2023.
Although real estate, equipment, and water cost money, car washes, especially self-service car washes, don't require many employees, making them cheaper to operate than many other businesses.
fashion and apparel
If you have an eye for design, a strong business plan, and a sound business structure, you can start your own fashion or apparel company. To ensure the most profitable business results, you should research wholesale suppliers and choose the right sales platform.
Whether you sell online with your own e-commerce store, an e-commerce marketplace, or a brick-and-mortar store, you can turn your passion for fashion into a successful business. Demand for clothing remains strong.
bookkeeping and accounting
Most successful business owners require accounting services, payroll services, and many other finance-related services. You can turn these business owners into customers by creating a bookkeeping, accounting, or payroll business. This can be a sound business idea for a solopreneur, or you can hire staff to scale up.
Vacation rental
If you own real estate or have the means to invest in real estate, you can earn money by renting out your property to vacationers. Although the initial time and financial 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 encompasses everything from huge international corporations 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). S&P Global Market Intelligence estimates that the GWP of the U.S. property and casualty insurance market will reach $1.3 trillion in 2023.
Starting a local insurance brokerage business and connecting with major insurance companies (such as Allstate or State Farm) can potentially be quite profitable. This is one of his best small business ideas for aspiring entrepreneurs.
How can I start a profitable business?
Here are five important steps entrepreneurs should consider when starting a profitable business.
1. Conduct market research. Understand your target market, customer needs, and competition. Identify market opportunities and gaps that your business can address.
2. Develop a solid business plan. Create a comprehensive business plan that outlines your goals, target audience, value proposition, revenue model, and marketing strategy. A well-thought-out plan helps you make business decisions.
3. Manage your finances. Set a realistic budget, manage your spending carefully, and ensure you have sufficient funds. Always keep an eye on your cash flow as it is very important to sustaining and growing your business.
4. Build a strong online presence. Establish a professional and user-friendly online presence through your website and social media. Leverage digital marketing strategies to reach and engage your target audience.
5. Stay customer focused. We prioritize customer satisfaction and build strong relationships. Listen to your customers' feedback, adapt to their needs, and provide superior products and services to create loyal customers who can contribute to your business's profitability.
Most Profitable Business Frequently Asked Questions
Which business generates the most revenue?
Finance, law, real estate, healthcare, and software development are among the most profitable industries in the United States. If you want to make as much money as possible, consider starting a software-based venture like a legal services business, a brokerage firm, a healthcare company, or a virtual assistant business.
Which profession makes the most money?
Several types of physicians, particularly surgeons, top the Bureau of Labor Statistics' list of highest-paying occupations. The type of job that pays the best depends on your region and market conditions.
What is the easiest business to start?
The easiest business to start is likely to be a sole proprietorship and one that allows you to work from home. Adding employees and physical locations means more complex regulations and logistics to deal with.
