Certain individuals embark on their entrepreneurial journey with a well-defined goal, having a clear understanding of the industry they aim to dominate and the strategy to achieve it. Yet, numerous budding entrepreneurs struggle with the basics of initiating a business and deciding on the most suitable and profitable type of business to invest in.
To aid in kick-starting your entrepreneurial endeavor, we have put together a list of the most lucrative business options. This list takes into account various critical aspects like the growth and competitive nature of the industry, initial investment and entry barriers, and the potential for profitability.
What TOP10 Business Are Most Profitable
A robust business plan, coupled with hard work and determination, can turn any promising business idea into a successful and profitable venture.
Businesses in industries experiencing rapid growth and requiring lower initial investments may offer higher profitability potential. For example, starting a virtual assistant business might be more successful today than opening a traditional grocery store, thanks to technological advancements.
While many of the most profitable small businesses operate online, others offer in-person services. Some are particularly suitable for entrepreneurs who prefer being on the move. Here are some top profitable small business ideas:
Food Trucks
The food truck industry has seen steady growth over the past five years and is expected to continue, with a market value projected to reach $6.6 billion by 2028, as per a 2021 Grand View Research report. Starting a food truck requires significantly less capital than a traditional restaurant and offers geographical mobility, high revenue potential, and the opportunity to create a unique menu.
However, it’s worth noting that in larger, trendier cities like San Francisco and Washington, D.C., the food truck market is quite saturated and comes with stringent regulations. Smaller cities might offer more opportunities for success. Food trucks also come with their own set of regulations, licenses, and safety standards, so it’s important to check with local authorities about necessary compliance and insurance.
Car Wash Services
The trend of car owners keeping their vehicles longer, as noted in a 2020 Consumer Reports study, bodes well for car wash businesses. The International Carwash Association reports that Americans wash their cars an average of 13 times a year, contributing to a market expected to grow from $14.7 billion in 2021 to $20.7 billion by 2028.
Making a car wash business mobile can increase its profitability. Mobile services are often more appealing to customers with luxury cars who seek personalized service, and they reduce the overhead and startup costs associated with a fixed location.
Auto Repair
With the average age of cars and light trucks in the U.S. reaching 12.1 years in 2021, as per IHS Markit (now part of S&P Global), the auto maintenance and repair industry presents a significant opportunity. Over 70% of repair business goes to independent facilities rather than dealerships, according to the Auto Care Association.
Skilled mechanics can find auto repair to be a highly profitable business idea, offering services like oil changes, fluid refills, battery replacements, and headlight repairs. To reduce overhead costs, consider a mobile service model, providing repairs in customers’ driveways or office parking lots.
Career in Personal Training
The field of personal fitness training is expanding rapidly, with an expected growth of 39% from 2020 to 2030, outpacing many other professions, as per the U.S. Bureau of Labor Statistics. Transforming your passion for fitness into a career doesn’t necessarily mean joining a large gym chain. Instead, consider a more flexible approach by loading your car with essential fitness equipment like weights, bands, and yoga mats, and offering mobile training services.
Becoming a personal trainer could involve conducting individual sessions at clients’ homes or organizing group classes in community centers or local parks. Providing accessible fitness solutions could be the key to achieving both your professional and your clients’ fitness goals.
Services for Newborns and Post-Pregnancy
Millennials are starting families later than previous generations, but they are still keen on parenthood. Pew Research Center’s analysis of government data revealed that over half of millennial women had children by 2018. With both millennials and Generation Z stepping into parenthood, there is an increasing demand for child-focused services, particularly those related to post-pregnancy and newborn care. A 2018 Research and Markets report forecasts the North American maternity care market to surpass $3 billion by 2023.
The demand for doulas and lactation consultants is rising, and these professions offer the benefit of low overhead costs, requiring primarily education and certification.
Children’s Enrichment Activities
As school budgets shrink, impacting subjects like music, art, and sports, there’s an opportunity in offering enrichment activities for children. A U.S. Census Bureau report from 2018 notes that children’s participation in extracurricular activities has remained consistent over 15 years, and many parents spend upwards of $1,000 annually on these activities.
Potential business ideas include opening a gymnastics center, teaching music, becoming a swimming instructor or a children’s yoga teacher, or focusing on other child-centric activities. If you possess a skill suitable for young learners, you could be on the path to establishing a profitable venture.
Mobile Apps and Entertainment for Kids
For those with a knack for development and engineering, creating technology for children presents a growing market opportunity, particularly in educational apps and mobile entertainment. Research from the Learning First Alliance and Grunwald Associates shows that over 60% of parents see the benefits of mobile devices and apps in teaching essential skills like reading, math, and science.
If you have an idea for an educational app for children or parents, now is an opportune time to develop and launch your concept, potentially creating a successful business for the next generation.
Rental Fashion and Accessories
The concept of the sharing economy has been successfully embraced by platforms like Rent the Runway and Gwynnie Bee, focusing on the idea of owning less and sharing more. These companies rent out clothing and accessories at a fraction of their retail cost. Given that each item can generate revenue repeatedly, such ventures can be quite profitable. The secondhand clothing market, as per a 2021 Mercari study, is expected to grow exponentially by 2030.
If you have a knack for fashion and can offer styles not yet available in rental markets, you might be onto a significant business opportunity. Even without starting a major fashion enterprise, local shared fashion events can be lucrative. Organizing rental events, especially for high school dances or college formals, can be profitable, especially when you cut out shipping costs by operating locally.
Shared Home Improvement Equipment
If you’re known in your community for having a comprehensive collection of home improvement tools, consider turning this into a business. You could expand your inventory to include more specialized, high-cost equipment that would benefit your neighbors.
With the increase in home improvement projects since the start of the COVID-19 pandemic, as evidenced by a Home Advisor study showing average household spending of $8,305 in 2020, this market segment offers substantial opportunities. Offering both equipment rental and a mobile service to assist with usage can significantly boost your earnings.
Vacation Rental Business
For those living in popular tourist destinations, renting out part of your home or a vacation property can be highly profitable. Platforms like Airbnb and VRBO have simplified the process of monetizing unused spaces. The average Airbnb host in the U.S. earns over $13,800 annually, with total booked nights on Airbnb increasing significantly in 2021 compared to 2020.
Becoming a host on these platforms is relatively straightforward, and the market for such rentals has been growing. However, it’s important to be aware of and comply with local laws and regulations regarding short-term rentals before starting this type of business.
