Some individuals enter the world of entrepreneurship with a clear vision of the industry they wish to dominate and the path they will take to do so. However, it can be difficult for many aspiring business owners to figure out how to start a business, as well as to choose the best sort of business to invest in.
To help you get started, we’ve compiled a list of the most lucrative businesses, taking into account industry development and competitiveness, startup costs and barriers to entry, and profitability potential.
Most profitable small businesses
With a solid business plan, hard labor, and determination, any profitable business idea can be realized.
However, businesses in industries with rapid growth and minimal startup expenses may have greater profit potential. With the advancement of technology, for instance, you will likely have greater success establishing a virtual assistant business than a grocery store.
Although some of the most lucrative businesses are online-based, others involve in-person services, and others are ideal for the mobile entrepreneur. Here is a listing of the most lucrative tiny businesses:
1. Food Trucks
According to a report published by Grand View Research in 2021, the market for food trucks is expected to increase to $6.6 billion by 2028. This growth is anticipated to continue. You can start a food truck business for less than a third of the cost of opening a brick-and-mortar restaurant; in addition, you have geographic flexibility, the potential for high revenue returns, and the freedom to design your own menu.
Keep in mind that larger, trendier cities such as San Francisco, Boston, and Washington, D.C., already have a fairly saturated food truck market (as well as more stringent regulations), so this venture may be more successful in a smaller midwestern city.
In addition, food trucks typically have their own set of regulations, business licenses, and safety compliance requirements. They also require food business insurance, so you should contact your local health department to determine what is necessary.
2. Car Wash Station
According to a study conducted by Consumer Reports in 2020, car owners are keeping their vehicles for an extended period of time as a result of the rising price and increased features of new vehicles. And as drivers retain their vehicles longer, it is anticipated that businesses such as car washes that help people maintain the value of their automobile investment will continue to grow.
According to the International Carwash Association, 66% of Americans wash their vehicles one to two times per month, or 13 times per year on average. The market for vehicle washes is expected to grow from $14.7 billion in 2021 to $20.7 billion in 2028.
Making a car wash business mobile could potentially increase its profitability. Customers may pay more for a mobile car wash, particularly if they own a prestige vehicle and desire a more personalized service. And as a mobile car wash and auto detailing service, you would circumvent the overhead and start-up costs associated with having a physical location.
3. Auto Repair
The average age of automobiles and light trucks in the United States increased from 9.6 years in 2002 to 12.1 years in 2021, according to IHS Markit (now a division of S&P Global). People are retaining their vehicles longer than ever before, indicating that there is a substantial opportunity in the maintenance and repair industry.
In addition, car owners are more likely to visit a small business for repairs; according to the Auto Care Association, more than 70 percent of repair business is captured by independent repair facilities, as opposed to dealerships or manufacturer-authorized repair facilities.
If you are experienced as a mechanic, an auto repair service could be one of your most lucrative business ideas. You can provide oil changes, fluid replenishment, battery replacements, and headlight repair, among other services. And if you wish to reduce administrative expenses, you could make it a mobile service and travel to your customer’s driveways or office parking lots to perform repairs.
4. Personal Trainers
The U.S. Bureau of Labor Statistics projects a 39% increase in the employment of fitness trainers and instructors from 2020 to 2030, much quicker than the average for all occupations. Department of Labor Statistics. But turning your passion for fitness into a profession does not necessitate working for a large corporate gym, nor does it necessitate having your own facility to train clients. Put a few weights, resistance bands, and yoga mats in the trunk of your car and take your fitness display on the road.
You can become a personal trainer by offering one-on-one sessions in the residences of your clients or by advertising group classes at a nearby park or community center. Making fitness more accessible to your clients may be the key to achieving your respective objectives.
5. Newborn and post-pregnancy services
Although millennials are delaying parenthood longer than previous generations, many do intend to have children in the future. As of 2018, according to a Pew Research Center analysis of government data, more than half of millennial women have given birth.
Now, both millennials and Generation Z are contemplating parenthood, and there is a growing demand for child-focused businesses, beginning with post-pregnancy and newborn-related services. Consequently, a 2018 report by Research and Markets projects that the maternity care market in North America will surpass $3 billion by 2023.
Particularly among new mothers, the demand for doulas and lactation consultants has increased, and both business opportunities have relatively low administrative requirements beyond education and certification.
6. Enrichment activities for children
As Americans continue to procreate, traditional academics and enrichment subjects such as music, art, and athletics frequently take a significant blow due to shrinking education budgets.
Beginning a business that teaches children enrichment activities could be lucrative. The results of a 2018 U.S. According to the Census Bureau, children are just as involved in extracurricular activities as they were fifteen years ago. According to some research, nearly half of American parents spend over $1,000 annually on their children’s activities.
You could open a gymnastics facility or music school, become a swimming instructor or children’s yoga instructor, or concentrate on some other child-focused activity. If you possess a skill that could be readily taught to young students, you may already have the makings of a profitable business.
7. Mobile apps and entertainment for children
If you are interested in development and engineering, you may want to consider targeting the youngest consumers with your technology. According to research, the demand for tablets, applications, and mobile entertainment for children is increasing, particularly if these products have an educational focus.
According to a report by Grunwald Associates for the Learning First Alliance on mobile devices and early childhood education, more than sixty percent of surveyed parents believe that mobile devices and apps are beneficial for teaching children literacy, mathematics, science, and foreign languages.
Do you have a notion for a child- or parent-oriented educational app? If so, now is the time to move forward with your brilliant concept for the next generation and establish this potentially lucrative business.
8. Shared accessories and attire
Sites such as Rent the Runway and Gwynnie Bee rely on the concept of the sharing economy, in which we desire and need to own less material goods and therefore share resources.
Because the same inventory item generates multiple streams of revenue, the profitability of these businesses can be substantial. According to a study conducted by the reselling platform Mercari in 2021, the market for used apparel is expected to more than triple by 2030.
Do you have an eye for fashion and a sense of style that other rental services do not presently offer? Perhaps you are prepared to become the next great thing.
Even if you are not prepared to launch a multimillion-dollar fashion venture, you can still profit from local fashion sharing. Before the next formal dance, provide high school students with the opportunity to rent or purchase accessories and clothing from their wardrobe by hosting a borrowing party.
Greek life formals are a wonderful opportunity to profit from shared economy fashion if you live in a college town. And because you eliminate shipping costs, you have the potential for even greater profitability.
9. Shared home improvement equipment
Are you the go-to person in your community for lawn, garden, and home repair equipment? Why not transform your equipment into a profitable business by advertising it beyond your immediate social circle?
You may even decide to invest in more specialized and expensive equipment that would be beneficial to those in your immediate vicinity. And if a client doesn’t know how to use a particular instrument, combine equipment rental with your mobile service to generate even more revenue.
Since the onset of the COVID-19 pandemic, home renovation expenditures have increased, and U.S. households spent an average of $8,305 on improvement projects in 2020, according to a study by Home Advisor. As more individuals continue to invest in fixer-upper homes and remodel them, this could become a significant opportunity.
10. Vacation rentals
If you reside in a highly desirable tourist destination, you can earn money by renting out your residence to tourists. Sites such as Airbnb and VRBO have made it simpler than ever to generate income from your unused vacation home or even your spare bedroom. According to Airbnb, the average annual income of a U.S. host is over $13,800.
It is not difficult to become an Airbnb host, and the demand for these types of rentals has increased over the past few years. Airbnb will reserve 356,9 million nights in 2021, up from 251,1 million nights in 2020. However, some cities have laws and regulations regarding Airbnb and other rental platforms, so you’ll want to check the local regulations before you begin.
11. Electronics Repair
According to the Pew Research Center, by 2021, 85 percent of U.S. adults will own a smartphone, and more than 75 percent will own a desktop or laptop computer. And as more employees labor from home, the reliance on various electronic devices increases.
This means that when something goes awry, people want assistance fixing it immediately. Thus, electronics repair represents a potentially lucrative business opportunity. According to a report published by Business Research Company in 2022, the global electronics repair and maintenance market is anticipated to increase from approximately $8 billion in 2021 to $9.6 billion in 2026.
You could be the solution for every damaged iPhone screen, Wi-Fi card, and laptop battery with this service. And you may achieve even greater success if you are willing to travel to the customer. Apple stores and other electronic retailers have recently been criticized for their lengthy customer wait periods, which could benefit mobile providers.
Although a mobile electronics repair business incurs some expenditure in the form of purchasing supplies, the lack of a physical location allows you to avoid the costs associated with maintaining a storefront.
12. Business or marketing courses
Since the onset of the COVID-19 pandemic, there has been a significant increase in the number of individuals enrolling in career-focused online courses, particularly as more employees seek to switch positions or work from home. For example, between 2020 and 2021, global hours spent learning increased by 53% on LinkedIn.
In recent months, companies have expanded or introduced new tuition reimbursement policies, allowing employees to pay for these types of courses. According to a 2022 Harris Poll conducted on behalf of Fortune, 14% of employees reported that their employers offer coverage or reimbursement for online training courses; and 10% of employees reported that their employers have expanded or launched new coverage for these types of training opportunities within the past six months.
If you have career-related skills to share, you can create online courses with minimal upfront investment. Bookkeeping, QuickBooks accounting software, WordPress web development, graphic design, and even how to write an excellent cover letter or resume are popular course topics.
13. Graphic design
As the number of brands competing for consumers’ attention increases, a slick and polished image is more crucial than ever for small businesses. Adobe’s research indicates that 73% of companies investing in design do so to distinguish themselves from the competition.
And despite the fact that, according to the Bureau of Labor Statistics, employment for graphic designers is projected to increase by only 3% from 2020 to 2030, there are opportunities available, particularly for graphic designers who work freelance — as 90% of graphic designers in the industry do, according to a report by IBIS World from 2021.
Are you proficient with Adobe Photoshop, Illustrator, and InDesign? Have you taken several design courses and do you have an eye for effective branding? Create a business as a freelance graphic designer using your talents. You’ll have almost no overhead and be able to assist small-business proprietors in the creation of outstanding marketing graphics.
14. Personal wellness
Are you a licensed therapist or counselor, yoga instructor, life coach, or longstanding meditator? If you have a strong interest in personal wellness, you may be able to assist others while also earning a substantial income.
According to a 2019 report by Allied Market Research, the United States accounted for approximately 50% of the global yoga market in 2017. The same report forecasts that the U.S. yoga market will grow at a CAGR of 11% between 2015 and 2025. According to a 2019 survey by OnePoll and Eventbrite, Americans who practice yoga spend approximately $90 per month on the activity on average. In addition, the number of individuals participating in online wellness activities has increased significantly. Yoga was the most popular digital exercise on ClassPass in 2020, with a 25% increase in bookings over 2019.
As with many of the options on our list, the costs to start a personal wellness business are low if you have the necessary knowledge.
Online courses are all about self-improvement, which is something that everyone desires. If you have this knowledge to share, you could transform it into a lucrative business.
15. Courses in hobbies or interests
While many online courses are designed to advance education or career prospects or promote significant life changes, you can easily create a course based on any hobby or interest.
Do you enjoy calligraphy or small-batch brewing? Are you an expert at a specific video game? You would be astonished by how many people are willing to pay to learn about topics that interest them. Web development, ethical hacking, cryptocurrency, Photoshop, and drawing are among the most popular courses on the prominent online learning platform Udemy, and each class can cost up to $150.
Unsure of how to begin creating your own online course? There are even online courses that teach you how to create your own online course. You can leverage one of these courses to advance your own online course business.
The business with the highest income varies depending on industry, economic conditions, and market trends. As of my last update in September 2021, some of the highest-income-generating industries included technology, finance, healthcare, and energy. However, it’s essential to note that this information might be outdated as business landscapes constantly evolve. Conducting up-to-date research and analysis is crucial to identify the current business with the highest income potential.
- What type of business generally has the highest income?
Answer: The business sector that typically has the highest income is the finance and investment industry. This sector includes various financial institutions such as banks, hedge funds, private equity firms, and investment management companies. These businesses often deal with large sums of money, investment portfolios, and financial assets, leading to substantial income potential.
2. Are there any other industries besides finance that can generate high income for businesses?
Answer: Yes, apart from the finance industry, the technology sector is also known for having businesses with high-income potential. Technology companies, especially those involved in software development, data analytics, artificial intelligence, and cloud computing, often experience exponential growth and profitability due to the scalable nature of their products and services.
3. What factors contribute to a business having the highest income?
Answer: Several factors can contribute to a business having the highest income. These include:
a) Market Demand: Businesses operating in high-demand industries or offering innovative products/services tend to attract more customers and generate higher revenue.
b) Efficient Operations: Companies that streamline their processes, reduce costs, and optimize resource utilization can improve their profit margins.
c) Strong Market Position: Established brands with a dominant market share and competitive advantage are more likely to earn higher income.
d) Global Reach: Businesses with a global presence can tap into diverse markets, expanding their customer base and revenue potential.
e) Strategic Investments: Companies that make strategic investments in research and development, technology, and expansion can often drive higher income over time.
Remember that while certain industries have a higher likelihood of generating significant income, individual business success ultimately depends on various internal and external factors, including effective leadership, adaptability, economic conditions, and market trends.