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Some people venture into entrepreneurship with a clear vision: They know what industry they want to conquer and the path they’re going to take to get there. However, for many new entrepreneurs, it can be difficult to figure out how to start a business — plus, determine exactly what type of business is the best choice to invest in.
To help you launch your journey, we’ve compiled a list of the most profitable businesses, considering factors such as industry growth and competitiveness, startup costs and barriers to entry, as well as profitability potential.
Most profitable small businesses
With a solid business plan, hard work and determination, any strong business idea may become successful and profitable.
Businesses in high-growth industries with lower startup costs, however, may have greater profitability potential. With the rise of technology, for instance, you’ll probably have more success starting a virtual assistant business than opening a grocery store.
Although some of the most profitable businesses are based online, others involve in-person services, and some are a great fit if you're an entrepreneur on the go. Here’s our list of the most profitable small businesses:
1. Food trucks
The food truck movement has been experiencing consistent growth over the past five years — and it’s expected to continue — with the market projected to grow to $6.87 billion by 2029, according to a 2023 report by Mordor Intelligence
. You can start a food truck business for less than a third of what it costs to open a brick-and-mortar restaurant; plus, you have geographic versatility, the potential for high revenue returns and the flexibility to create a custom menu that’s all your own.
Keep in mind that bigger, trendier cities like San Francisco, Boston and Washington, D.C., already have a pretty saturated food truck market (as well as tougher regulations to get started) — so this might be a more successful business in a smaller heartland metropolis.
Food trucks have their own special set of ordinances, business licenses and safety compliance standards. They also require food business insurance, so you’ll want to contact your local health department to find out what will be required.
» MORE: Best options for food truck financing
2. Car wash services
The rising prices and pandemic-induced shortage of new vehicles are causing car owners to keep their cars longer. And as drivers keep their cars longer, businesses like car washes that help people maintain the value of their auto investment are expected to keep rising as well.
In fact, the car wash market is projected to increase from $15.86 billion in 2023 to $23.79 billion by 2030
. And according to a 2023 study from the International Carwash Association, 96% of U.S. car owners and lessees washed their vehicle at least once in the previous year— and 89% did so at a professional car wash
.
You might make a car wash business even more profitable by turning it into a mobile service. Customers may pay more for a car wash that comes to them, especially if they have a luxury car and prefer a more personalized service. And as a mobile car wash and auto detailing service, you’d avoid the overhead and startup costs of having a physical location.
3. Auto repair
The average age of cars and light trucks in the U.S. rose to 12.5 years in 2023, increasing from 9.7 years a decade ago, according to S&P Global Mobility
. People are keeping their cars longer than ever, suggesting there’s significant opportunity in the maintenance and repair business.
Additionally, car owners are more likely to visit a small business for repairs. According to the Auto Care Association, more than 70% of repair business is captured by independent repair facilities compared with dealerships or manufacturer-authorized repair facilities
.
If you’re skilled as a mechanic, you might consider an auto repair service as one of the most profitable business ideas. You can offer oil changes, fluid refills, battery swaps, headlight repair and more. And if you’re looking to save on overhead costs, you might make it a mobile service and travel to your customers, performing repairs in their driveway or office parking lot.
4. Personal trainers
Employment of fitness trainers and instructors is projected to grow 14% from 2022 to 2032, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics
. But turning your love of fitness into a career doesn’t have to mean working for a big corporate gym — nor do you need the overhead of having your own location to train clients.
Throw a few weights, bands and yoga mats into the trunk of your car, and take your fitness show on the road.
You can become a personal trainer by offering one-on-one sessions in your clients’ homes or advertising group classes at a local park or community center. Making fitness more available to your clients might just be the ticket to helping both of you achieve your goals.
» MORE: Best mobile business ideas for on-the-go entrepreneurs
5. Newborn and post-pregnancy services
Although millennials and Generation Z are deferring parenthood for longer than previous generations, many do eventually want to have kids.
And with both generations considering parenthood, the need for child-oriented businesses is growing, starting with post-pregnancy and newborn-related services. As a result, a 2024 Market Research Future report expects the global maternity care market to reach $106.6 billion by 2032 (up from $62.5 billion in 2023)
.
Demand for doulas and lactation consultants, in particular, has risen among new mothers, and both business options have relatively low overhead requirements beyond education and certification.
6. Enrichment activities for children
Shrinking budgets for education mean that both traditional academics and enrichment subjects like music, art and athletics often take a significant hit.
A successful business to start might be one that teaches enrichment activities to children. According to the U.S. Census Bureau, kids are more involved in extracurricular activities today than they were 20 years ago
. And some research indicates that approximately half of American parents spend more than $1,000 annually on their children’s activities
.
You could launch a gymnastics center or music school, become a swimming instructor or kids’ yoga teacher, or focus on some other child-centered activity. If you have a skill that could be easily taught to young students, you might already have a profitable business in the making.
7. Mobile apps and entertainment for children
If your interests are in development and engineering, you might consider gearing your technology toward the youngest users. Research shows that demand for tablets, apps and mobile entertainment for children is on the rise — especially if those products are education-focused
.
Do you have an idea for an educational app for children or parents? If so, now may be the time to move forward on your bright idea for the next generation and make this potentially profitable business a reality.
8. Shared accessories and attire
Sites like Rent the Runway and Gwynnie Bee have banked on the idea of the sharing economy — where we want and need to own less stuff, so instead, we share resources.
These companies offer borrowed or rented clothing and accessories at a fraction of their purchase prices, and because the same piece of inventory generates revenue multiple times, the profitability of these ventures can be significant. According to a 2023 study by the reselling platform ThredUp, the secondhand-clothing market is projected to nearly double by 2027
.
Do you have an eye for fashion and a sense of style not currently offered by other rental services? Maybe you’re ready to be the next big thing.
Even if you’re not prepared to launch a multimillion-dollar fashion startup, you can just as easily profit from shared fashion at the local level. Gather some favorite accessories or clothing picks and host a borrowing party — where customers can rent or purchase items from your closet — for high school students before the next formal dance.
If you’re in a college town, Greek life formals are another great opportunity to profit from shared economy fashion. And because you’re taking shipping costs out of the equation, you have the potential to be even more profitable.
9. Shared home improvement equipment
Are you the go-to person in your neighborhood for every lawn, garden and home repair tool? Why not turn those tools into a profitable business by advertising your available equipment beyond your immediate friend group?
You might even decide to invest in more specialized and higher-cost equipment that would be useful to those around you. And if a customer doesn’t know how to use a specific tool, combine equipment rental with your mobile service for even more cash in the bank.
Home improvement spending has increased since the start of the COVID-19 pandemic — and U.S. households spent an average of $13,667 on improvement projects in 2023 alone, according to a study from Angi, a home services marketplace
. As more people continue to invest in fixer-upper houses and remodel, this could be a big opportunity.
» MORE: Best small-town business ideas
10. Vacation rentals
If you live in a highly desirable tourist destination, you can make a profit renting space in your home to travelers. Sites like Airbnb or VRBO have made it easier than ever to profit from your unused vacation property — or even your extra bedroom. According to Airbnb, the typical U.S. host makes approximately $14,000 a year
.
It's not too difficult to become an Airbnb host, and the demand for these types of rentals has only grown in recent years. In 2022, 394 million nights and experiences were booked on Airbnb — up from 301 million nights in 2021
. However, some cities have laws and regulations regarding Airbnb and other rental platforms, so you’ll want to make sure you check the guidelines in your area before getting started.
11. Electronics repair
According to the Pew Research Center, as of 2023, 90% of Americans own a smartphone
, and 80% of U.S. adults subscribe to high-speed internet at home
. And with more employees working from home, there’s an even greater reliance on a variety of electronics.
That means that when something goes wrong, people want help fixing it as soon as possible. This makes electronics repair a potentially lucrative business idea. According to a 2024 report from the Business Research Company, the global electronics repair and maintenance market is expected to grow from about $8.69 billion in 2022 to $9.88 billion in 2028
.
With this service, you could be the solution for every broken iPhone screen, Wi-Fi card and laptop battery. And you might be even more successful if you’re willing to travel to your customer. Apple stores and other electronics retailers have come under fire over the past few years for long customer wait times, which could work in favor of mobile providers.
Although a mobile electronics repair business involves some overhead in the form of purchasing supplies, being mobile saves you from having to pay the costs associated with a physical location.
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