Thinking of starting your own business? Congratulations, you have already stepped into a life-changing bid. Whether you have come up with a genius idea or questing for one, we have curated a list of the most profitable businesses in 2023. By the end of this post, you will gain the needed clarity and would decide which path is more rewarding. Let’s explore them each!
Entrepreneurs from every corner of the world commence their businesses with distinctive motives. Some want to change the working style and some focus on providing solutions to existing problems. Talking about finance, some take out a mortgage, others save money before starting their business journey. No matter how you start or what size your business is, the key objective is earning profits.
Only a profitable business model can survive this ferociously competitive world. If you earn decent revenue, you can easily entice investors who look for high-value opportunities. You can magnetize profits, if you enter the right business that lures growth, has fewer barriers, and high potential to generate revenue. However, due to economic uncertainties, growing your start-up is challenging this year. But, with a profitable business model, you can turn things in your favor. Let’s introduce you to some!
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Most profitable industries that dominate the economy
If we look at the companies listed in Fortune 500. There are majorly the following sectors that dominate the world.
- Healthcare sector: 45 out of 500 and 4 out of the top 10 companies are into healthcare services.
- Retail sector: 46 out of 500, with Walmart and Amazon near the top list are offering retail services.
- Financial sector: 87 out of 500 companies offer financial services and Berkshire Hathaway is the company listed in the top 10 that is into this field.
- Technology: 47 out of 500 and 4 out of the top listed companies are into technology such as Apple, Samsung Group, Amazon, and Alphabet Inc.
- Energy: From refineries, gas, and solar providers to other companies focussing on manufacturing energy. 20% of such companies have made it to the list of Fortune 500.
All the aforementioned sectors rule the industrial market. However, these are big shots that started their journey decades ago. Companies that have access to venture investors and can run smoothly without making profits for more than 5 years, don’t struggle much in their initial growing years. However, not every budding entrepreneur has access to a chunk of funds and earns profit the moment they introduce their offerings in the market.
Keeping this in mind, we have come up with the following list of the most profitable small businesses this year.
1. Car Wash Services
According to the latest report by the International Carwash Association, an average person in America washes their car 13 times every year. 66% of Americans wash their car multiple times a month. This shows that by the year 2028, the car wash market will grow to $20.7 billion which is now $14.7 billion.
You can think of starting a car wash business. By adding a portable feature to your car washing business you can make huge profits. People are ready to pay more money if they get a service at their doorstep. You can make this business even more rewarding by offering a personalized car service at your client’s home. One added advantage that comes from providing a mobile car wash is that you can completely avoid the cost of having a physical service center.
2. Food Truck Service
In the past five years, the food truck businesses have grown enormously and the graph will only increase. It is estimated that the food truck business will grow by $6.6 billion by the year 2028. You can think of providing food truck services as the cost of commencing this profitable business is half of the cost of starting a physical restaurant. Additionally, if you can provide this service across the states, the percentage of your revenue will multiply, and also the customization in the menu augments. Bigger American cities like Boston, San Francisco, and Washington DC already have a large market for food trucks. Also, the criteria of the state are quite tough to begin this business. Therefore, you can think of starting it with smaller regions. Starting a food truck business have own sort of license, rules, and safety standards. You also will have to reach the local health department to know all the requirements and get food truck insurance.
3. Personal Trainers
According to the United States Bureau of Labor Statistics, the demand for personal trainers is estimated to grow 39% by 2030. This percentage is one of the fastest growth in all professions. If you become a personal trainer, you eliminate the cost of building a gym and turn your love of fitness into a full-fledged career.
Also, check – The Most Effective Method to Become A Personal Trainer
As already said, people are ready to pay a high price for getting different services at their doorstep. You can offer fitness services at your client’s residence. You can also advertise a glimpse of your class in a community center or public park.
4. Entertaining apps for Children
If you are interested or have little know-how of app development, you can cater to the younger generation. Many researchers say that educational focussed applications and mobile entertainment are witnessing a great demand among young children. Over 60% of parents say that mobile devices and tablets which help kids in reading, learning language, and other subjects have benefited them a lot.
If you have a unique idea that can help kids with their academics, it’s time to give a thumbs up to it. This idea can help you make a profitable business model.
5. Post-pregnancy Services
Even after seeing many people putting back parenthood in recent years. There is a huge percentage of the population that want to have a family and kids. According to the data analysis by the Pew Research Center, over half of the millennial group experienced parenthood in the year 2018. This shows that if you offer post-pregnancy and newborn services, you can make huge returns from them.
The demand for maternal and childcare services is growing. Now new mothers look for lactation consultants and birthing coaches. You can take advantage of this demand and make a profitable business out of it.
6. Vacation Rentals
If you reside in one of the major attractions in the city, you can make money by renting your space to tourists. Airbnb has made the entire process of booking a room for vacation easy. Even if you have an extra bedroom in your house, you can rent it out. According to the latest stats from Airbnb, the average host earn more than $13800 in a year in the United States.
More than 356.9 million nights and 251.1 million nights were booked on Airbnb in the years 2021 and 2020. Remember to check the guidelines of VRBO, Airbnb, or other vacation rental platforms before starting this profitable business. This is because some cities have different sets of regulations for such platforms.
7. Academic Courses
The e-learning market has grown to another level after the pandemic hit the world. According to Technavio’s 2020 report, it is estimated to rise in 2024 by $21.6 billion. You can take advantage of this demand and provide academic courses with online instructions for all subjects including preparation for exams and monthly tests.
You can also create online courses for parents which can help them solve algebraic problems for their kids. You just need to be imaginative in whatever you make. Furthermore, creating modules is not limited to academics, you can make political, historical, or even Buddhist theology courses.
8. Electrical Repair
The Pew Research Center stated that 75% of United States adults own a laptop or personal system and 85% have a smartphone in the year 2021. After the pandemic, now there are more people working from home, showing dependency on electronic devices. More usage of electronics leads to their devaluation and people would look for repair services to fix the issue. This makes electronic repair a profitable business idea.
According to the Business Research Company 2022 report, the maintenance and repair market is predicted to grow $9.6 billion by 2026. You can provide solutions for broken phones, laptops, wi-fi cards, and batteries. If you are fine with providing doorstep repair services, you can become more successful in your voyage.
9. Personal Wellness
This business is ideal for you if you have a passion for wellness. By offering counseling, therapy, yoga, or meditation, you not only help others but can make enormous dough from it. According to the Allied Market Research report, by 2025 the yoga market will increase 11%. People who practice yoga in the United States spend $90 every month on it. Furthermore, the number of participants in personal wellness activities has significantly grown.
Don’t forget to check this – Best Yoga Poses for Beginners Everyone Should Practice
Yoga became the most practiced digital workout in 2020 when the pandemic strike the world. It is estimated to rise more in the coming years. Also, the cost of starting a personal wellness business is considerably low. You can turn your knowledge into commercial activity.
10. Graphic Design
Having an attractive and shiny brand image is more than essential for small businesses. Adobe’s research says that 73% of companies hugely invest in graphic design to get that edge in the competition. This demand has taken the demand for graphic designers to another level. According to the report of IBIS World, there is a massive opportunity for freelance graphic designers to make the most of this demand.
If you have knowledge of photoshop, InDesign, and Illustrator, you can turn this skill into a freelance graphic designing business. You can help people create appealing designs for their marketing campaigns.
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If you have gained enough knowledge in your existing business, you can share your expertise with other people and earn money in exchange. You can become a consultant and offer your services to different industries. According to the Bureau of Labor Statistics, it is estimated that the demand for consulting services is going to rise 14% by 2030, which is comparatively faster than other professions.
If you become an independent consultant, you can make money by sharing your knowledge at business events and conferences. You can also start your own consulting business to earn money at your own flexibility.
12. Book-keeping and accounting
Bookkeeping and accounting are inevitable requisites for any company. There are numerous businesses that outsource this task for managing their money efficiently. According to Sageworks report, with an 18.4% profit margin, accounting, tax filing, bookkeeping, and payroll services are counted as the most successful small business ideas for entrepreneurs.
If you know bookkeeping, you can accumulate expense reports, handle payroll and invoices, and much more. You can help businesses file their taxes, process accounting documents, create balance sheets, and much more. Even better, you can start your own bookkeeping and accounting company to make high profits.
13. IT Support
Technology has become an integral part of our daily lives. According to the Bureau of Labor Statistics, the employment graph of IT experts is estimated to take a 9% steep by 2030. If you provide IT services such as installing or repairing the internet, computer software, security patches, remote desktop management, and updating networks in your business, you can earn great revenue from it.
You can offer IT services to your client’s doorstep. This way you can avoid maintaining a shop made of brick and mortar. All you need is a mode of transportation and IT skills. This profitable business model will offer decent returns with less money investment.
14. Hobbies Courses
You must have found innumerable academic courses online, if you are not interested in offering such a program, you can design your course around a particular interest or hobby. There are countless people who are willing to pay thousands to learn more about their hobby.
If you have an interesting skill or know-how about a thing that people might find interesting such as photoshop, painting, dance, website development, etc. convert it into a course. Many popular platforms sell such courses for up to $150 for each module.
15. Marketing Copywriter
If you are a good writer or have an adept vocab, you can use this skill to draft compelling marketing copy for companies. According to recent LinkedIn data, the demand for digital marketing has grown to 33% from 2019 to 2020. It is expected to take a 49% leap in the coming years, making it lucrative for bloggers, editors, creative writers, and content creators.
You can make a lot of money by creating a precise yet catchy product description of any particular company. You can start giving this service with a little cost and earn a handsome profit from it.
16. Social Media Management
Undeniably, having a robust presence in social media has become a necessity for businesses nowadays. So many companies are investing in this arena. You can make money by handling their social media accounts with your expertise. Plus, the job growth in this industry is approximated to an 11% surge by 2020.
Don’t forget to check this – Using Social Media For Local Business Is Profitable?
If you are fluent with social media channels, you can convert this knowledge into an entrepreneurship business. The capital to get started with this profitable business is low because laptops, phones, and access to social media accounts are what you need initially.
17. Virtual Assistance
ZipRecruiter says that in the United States, an average virtual assistant earns $63500 per year. You can also offer this service right from your home comfort. No matter where you reside or how different the time zones are, you can help businesses to address their client’s issues.
If you start this virtual assistance business, you are flexible to pick your clients and work according to your own schedule. You can help businesses in managing their emails, book travel, schedule meetings, and take care of other vital tasks. You just need a fast internet connection and a well-working laptop to start this profitable business.
18. Mobile App and Web Development
It is predicted that mobile app development companies will generate more than $935 billion by the year 2023. Because people are highly dependent on apps to accomplish their work. From choosing the best restaurant for dinner to getting directions to a specific location, people use apps for everything.
Web developers can build software for government, businesses, non-profit organizations, and other industries. As this field is also tech-related, the possibility of making returns is huge. According to InfoWorld, professionals who create different types of software make $70,000 to $200,000 yearly.
To begin with your mobile app development services, you need to acquire coding language, a unique idea, and a well-working laptop. If you have all this in your hand, you can make a lot of money from this profitable business.
19. Catering Business
Offering different types of cuisine through your business is a highly profitable endeavor. It is estimated that by 2025 the catering market will grow to $328.11 billion. According to Cater Source, the average pre-tax margin of catering is 7-8%.
If you are a foodie, like cooking different cuisine, or even have the smallest chef seed inside you, starting a catering business is the right choice.
20. Financial Services
Financial services are one of the most profitable businesses in the market today. Almost every financial institution generates revenue from brokerage and transaction charges. In 2019, the financial investment industry struck $7.8 billion in revenue. This figure makes this business demanded and highly lucrative in the industry.
You can earn through financial planning firms, becoming a financial advisor, and much more. Even if you have little interest in this sector, you can consider making it your source of earning.
21. Courier Services
Courier service providers are making a lot of money because people will not stop shopping for themselves and delivering gifts to their loved ones. Things become even more gainful when you get hired by a big firm like Amazon.
You can start your fully independent courier services and make your charges more affordable than your competition. Make your doorstep delivery reasonable and rapid and earn oodles of money from this profitable business.
22. Pet Handling Services
Most people adore their pets and treat them like their own family. They don’t think twice before spending money on their training, grooming, and walking. You can start a pet handling service. Consider developing a website and offering a doorstep pickup.
You can also dedicate a place to keep pets safe when their owners are not at their house or gone on vacation. This profitable business can help you earn huge profits!
23. Constructing Building Supplies
If you start your business around manufacturing construction materials, you can make huge profits. The need for construction materials will not go anywhere because development is an ongoing process.
Industries that are into construction supplies have a 7.92% net margin and 22.73% gross margin. The best part is companies that are capable of offering the best service can make more than this figure.
24. Handyman & Maintenance
According to the United States Bureau of Labor Statistics, the workers who provide repair and maintenance services make $18.79 each hour. Which makes it $39080 every year. Handypersons are paid per hour and are free to serve numerous clients at once.
The demand for repairs related to plumbing, lighting, gutters, and pools will always be there. You can make most of this need and earn a handsome profit from it.
25. Warehouse & Storage
According to the US Bureau of Labor and Statistics, it is estimated that in the next 10 years, the warehouse and storage industry will grow by 6.32%. If you want to start your storage and warehousing business, you need to arrange sufficient space.
The main problem that you will solve through this profitable business will be space and storage issues that many people face when they move or experience a life-changing incident.
26. Self-publishing Author
On Amazon, 40% of top-selling and hit eBooks were self-published in the year 2016. During 2019, the revenue generated from eBook publishing was $12.32 billion. These figures tell us the authoritative hold of self-publishing authors in the market.
If you have little interest in writing high-quality content, you can write about cooking, technology, parenting, business, fitness, and so on. Choose what you have in-depth knowledge of. By picking this path, you not only make handsome money but also make millions of readers your fan.
Also, check – Best Note-Taking App for iPad
27. Party Services
The party services market has experienced a growth of 2.6% from 2015 to 2020. We can say that this market is a $billion industry. Every person loves partying; this tells that offering such a service is a money-spinning opportunity.
If you want to start a party arranging business, it should include planning, bartending, catering, and serving. You can take the help of contractors and make the overhead cost even lower after negotiation.
28. Healthy Food Provider
People are too busy and they hardly find time to cook. To stay fit while eating their favorite snack, they look for healthy food options. You can start a business that provides healthy snacks and light food that the working class often looks for and make huge money by catering to this need.
Don’t forget to check this- Best Diet Plans for Your Overall Health
29. Tutoring Centre
Parents never mind spending money on their children’s academic growth. This very reason should be enough for you to start your tutoring center.
A 1-3 hour tutoring program that lasts for eight weeks can cost $500 to $1800. The biggest advantage of this business is that you can provide tuition at your home. Therefore, you can earn thousands with less overhead cost and capital investment.
30. Property Management
If you are a good talker then property management is a great option to start your business journey. This field requires interacting with people and managing subcontractors. You would be responsible for running periodic maintenance of rental homes and commercial properties.
There are more than 275,000 companies in the United States that are offering these services. Each company makes 10% of rental charges. You can expect a 20% revenue margin from this profitable business.
31. Photography Services
Professional photographers earn as much as top entrepreneurs in the world. The owners of Mile High Production, Korbin and Whitney Korzan make more than $400,000 yearly. According to them, you only need video, photo, and a drone to fully start your photographic company which will cost you around $2000 or even lesser. As the initial capital investment is not that much, starting a photography service is one of the small profitable business ideas. It has fewer hurdles when comes to entering this field and most of the marketing and promoting can be done via social media channels. You can start this journey from your home comfort. If you have a slight or more interest in photography and think that you can shoot remarkable images, then go for this option.
32. Stock Broking
Last but not least, stock broking. If you have a good grip on economics, maths, and finance, you can begin your entrepreneurship journey with a stock brokerage. It is one of the brilliant methods to make huge money. Through this path, you can get the most out of your knowledge and help your clients to multiply their wealth.
Most brokers have MBA. Don’t worry if you are not. You can start with bachelors. You will be required to do the registration with FINRA.org and pass some tests. Once you are thru, you can enter broking and sell bonds and stocks. The only risky barrier in this field is the danger of losing money which is very high. Before asking people to invest in any stock, thoroughly study it and gain some experience in it. According to BLS, the average base of stock brokers is $65000. However, this figure can go up and strike millions after adding on commissions.
Also, check – Common Mistakes Every Stock broker wants you to make
So, all these aforementioned businesses are highly money-spinning this year.
However, to be honest, the most profitable business for any budding entrepreneur is the one in which they have knowledge and interest. It doesn’t matter if you have a minute understanding of things that interest you If you find something exciting then go ahead, learn more about it, and make it a medium of pulling money. Always remember that the possibilities are endless!