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Everybody wants their business to pay them well. Still, not all businesses generate good revenue to keep one’s income growth consistent.
There are many small businesses that one can start ranging from a handyman to becoming a consultant. Each small business has its own range of profitability too. This is where you need to look at the most profitable business ideas with great attention to detail. Businesses that do not earn a profit, will at one point, cease to exist. While setting up a small business, one needs to find out ways to maximize the product sales or services that are being offered.
Here’s the thing – you don’t need to invest millions of dollars in business to earn consistent profit. For example, the requirements in a service business are quite different from manufacturing businesses. Let us take a look at the attributes one needs to display while carrying out a service business:
- The service you extend has no physical form. In other words, when you sell a car, the purchaser can form an opinion about it. The purchaser can also go for a test drive before actually buying it. They can see it, touch it and even use it as a trial. On the other hand, a service that you’re offering has no physical form – it can only be felt. To ensure that your service is up to the mark, communication with the client is the best way.
- The service cannot be separated, parted, or dis-joined. Let us take the example of a car again. A car is manufactured in a factory, with some of its parts outsourced from other manufacturers and assembled. This car is transported to various showrooms and sold to customers. On the contrary, service is given and taken at the same location and same time. Hence, devising a carefully constructed customer service plan will address this issue.
- The service cannot be carried forward. For example, for someone running a restaurant, the occupancy differs on weekdays from that of weekends. Hence, there is a variation in revenue. While on weekdays there may be an impact on the profits due to low occupancy, the expenses like the salary of the staff stand at the same level. Here is where one needs to balance demand and supply. In this scenario, you can hire extra staff during the weekends to cater to the rise in occupancy and keep the regular staff limited per the weekday occupancy.
- The service can be highly flexible. When one decides to purchase a particular make of refrigerator, the purchase is final once you decide on the model and the capacity you require. However, in the service sector, a lot depends on who is providing the service, how you provide it, where you provide, and what you provide. The variability can be taken care of by having well-planned processes in place for the services you are offering. This will also help your team to ensure that services provided across the table for all your clientele are in tandem.
The businesses that make the most profit are almost evergreen in nature, where the demand is always persistent. These businesses are mostly service in nature. Seasonality does not affect them and if they’re planned and marketed well, even economic conditions may not have a huge negative impact on them.
Here are the 17 most profitable small businesses which you can think of entering:
17 Most Profitable Small Business Ideas
1. Accounting Services
Accounting is an integral part of any business, yet few business owners carry the knowledge to fulfill this role properly. Here is where accounting services come into the picture.
All businesses need to have accounting discipline and regularly updated accounts – this cannot be compromised. General regulations and rules call for the essential preparation of quarterly, half-yearly, and annual account statements.
If you have adequate experience in accounting, your services will always be in demand. Further, an educational qualification in the accounting discipline and a Certified Public Accountant status will give you a great advantage. These certified qualifications will help you demand higher rates from your clients.
In this business, you charge only for the services you offer, and hence, there is no initial investment in terms of money. You can initially build a clientele in your known circles and spread your reach through your good work and satisfactory customer service.
You can also hire a team in case of an increase in the clientele you are offering your services to. Here, the entire revenue you earn is your profit. The nature of this service is such that it will always be required across various businesses and this will ensure that there is no dip in the business.
2. Legal Services
Again, like accounting requirements, legal service is a major requirement in professional or personal areas. Everyone needs a lawyer or at least advice from a lawyer at some point in their life or business.
In this service, qualifications, and experience play a major role. The role requires a special set of skills to handle the customer’s requirements. The requirement of legal services can be diverse fields like business, family, employment, etc.
You can also offer these services to other businesses who need legal help for once-in-a-while legal matters. Further, many require such services while formulating their policies and manuals which have to comply with laws and government mandates. The requirement of this service can also extend to training their employees on legal issues so that their compliance improves.
At times, there is also the requirement of such legal services to re-draft policies, handbooks, contracts, etc. Like any other business, customer service and customer satisfaction are a continuous requirement in this business if you want to increase the customer base. The fee you are paid is entirely your revenue and once you have an established service you provide with good feedback, you can start charging more.
3. Personal Training and Fitness Instructors – Home Visits
Enrolling at a gym and showing up every day at the same time requires a lot of effort. The tendency is usually to snooze the alarm or turn it off and go back to your peaceful sleep, skipping the gym. This cannot be the case if an instructor is standing at your door, stubbornly ringing the doorbell. In this situation, you need to be ready for the workout before your instructor arrives.
This social pressure is what has lead to the rise of at-home personal fitness trainers. Many people prefer to have a fitness instructor or a personal trainer visit their home for taking care of their fitness requirements.
Besides the everyday fitness training, you can extend your services and actually devise customized fitness solutions for your customers and chart out a daily exercise plan.
As you are visiting customers’ residences, you do not have to invest in any equipment and the revenue for your services will be entirely yours. The only cost you have to bear is the transportation to the customer’s house, which can easily be cut down by taking a shared commute like public transport or carpooling. You can also walk if the customer lives close by!
This is a highly profitable business due to the minimal expenses involved and your customer base will increase based on the good service with visible results that you will extend.
4. Cleaning Services / Solutions
Cleaning is an integral part of any house, office, or any premises where there is public movement.
There is huge scope in this field as such a requirement is mostly daily at offices. Residences too require a deep cleaning every once in a while. However, as it is a hectic job, people usually prefer to outsource the same for getting the results.
You will need cleaning equipment that does not require a lot of capital and the right cleaning solutions. Cleaning solutions come in various packages like bathroom cleaning, kitchen cleaning, cleaning of tiles, floor cleaning, roof cleaning, etc.
Customer service is a major requirement in this type of business. Once your business is on the rise with a good number of customers, you can hike your charges for the services in line with local markets.
The profitability is good in this type of business as expenses would only be towards payment of salaries to the team and expenses of cleaning equipment and solutions. The evergreen requirement of cleaning means there will always be someone who needs your services.
5. Kindergarten School
Kindergarten is the place that forms the foundation for a child’s academics. The teaching of a skill-set in a kindergarten school has to be in a very entertaining way so that the kids stay engaged. Of course, children learn more when they’re having fun!
All you will need is a large space and the requirement of skills as per government rules in a kindergarten school. Develop a good curriculum and make sure to carry out modifications to it every year to match the new developments in the field.
While choosing the location, make sure that it is safe and secure to ensure the safety of small children which is of prime importance. Create a good business plan and also chalk out the costs like:
- Rental for space (if you own space, then the profitability will definitely be higher)
- Expenses for the maintenance of the space, electricity, water, and other requirements
- Salaries and benefits for the staff
Make sure to have the necessary licenses before you start school. You can also take a start-up loan if you do not have the required capital with you. As kindergarten is a continuous requirement in society, there will be no dearth of demand.
Every parent looks for a safe and sound place for their child to commence their academics, which is why they don’t mind paying well for kindergarten schools. Once you establish yourself, the number of kids enrolling year after year will increase and this will continue to give you a good and increased profit.
6. Business Consulting
Consulting is an all-time requirement in businesses as it helps them to achieve the desired results.
A consultant needs to stay up-to-date with the latest rules and regulations to provide useful and beneficial advice that matches the economy or the industry trend.
You don’t need a posh office to offer a consulting service. You can also work as a freelancer and utilize the client’s place to offer your services. Hence, there is no requirement for an initial investment.
Businesses do not mind shelling out a good number of bucks for the right advice. Once your advice helps businesses to grow their profitability, your customer base will increase through word of mouth about your services.
As there is no involvement of expenses, the entire revenue earned will be your profit. You can increase your charges depending on the type of expectation of consultancy services by the customer.
7. Online Tutoring
Online tutoring is on the rise as of the most profitable businesses as this business is linked directly to the development of innovation and technology!
You need to have professional certification as a teacher with good experience and a subject specification to enter the field of online tutoring. Though these requirements are not strictly required, these would help you assure the parents and students approaching you of the quality of your service.
The high demand for tutoring is mainly in mid-school and high school. Still, there is no need to restrict yourself to tutoring only school-going children. You can also keep your eye on other exams which play the role of an entry barrier for certain kinds of professions. You can also be a mentor or a career counselor.
If you have any expertise in any foreign language, you can teach the same online. You can have different methods of online tutoring – one to one for those who need personalized attention, one to a small group of students, and one to many. You can start a website of your own for taking online tuitions. If your student base increases, you can also rope in teachers on a partnership or profit-sharing basis.
You will need a high-end computer and a good internet connection for face-to-face video conferencing and high-quality audio. You can also include an instant messaging service when you are teaching a group of kids.
Also, including a rating review for your tutor app will help you in getting a larger student base. Maintain a time zone that is comfortable for the students enrolling. With minimal investment and running costs, this a highly profitable business.
8. Catering Services
Catering service is all about your skills in cooking, your determination to be committed to it, and customer satisfaction. The catering business can actually earn good revenue, even grossing around $50,000 per year. You can choose to work from home or offer to cook at the customer’s place.
You can manage this business on your own or you can employ staff for some help. If you are starting the business for small events, you will need to invest less.
In fact, you can also stick to an exclusive cuisine depending upon your capabilities to cater to an exclusive niche. To increase your clientele, you can offer good discounts in case the client is referring new customers to you.
All your investment in this business will go towards good kitchen equipment and crockery. Once you have made a business plan as to how much your expenses will chalk up to, you can fix charges for your services accordingly. The increase in revenue and good feedback will keep on increasing your profitability.
9. Wedding Consultant
Another amazing plan on the list! Once you start a wedding consultancy business and get a good going, you can earn a fortune. If you have the coordination skills to manage all the events that are required for a wedding, then you can establish your business very well.
In this business, you do not have any financial risks. You just need to work in tandem with various other service providers like flower providers, caterers, photographers, etc.
Here, your entire cost will be the investment of your time, resulting in the satisfaction of the customers with the services given by you. A wedding is a very important affair for the couple taking the vows, thus people need it to be perfect and are willing to pay for the perfection.
Once you are tied up with various service providers and develop a good rapport with them, your business will reap huge benefits by way of an increase in profits. All you need is to work out a good plan that is beneficial to the client and will also leave you with a good amount of revenue at the end.
Weddings are an evergreen business – there is always someone who wants to get married! This means you will never run out of customers if your service speaks for your marketing. Introducing unique concepts and marking a special event at each wedding will add an additional feature to your business.
10. Beauty Salon
With the kind of innovations for sporting better skin through various beauty treatments, this business can never go down. People will always look for more and more products and services that can make them look beautiful and youthful.
If you own a place where you can set up a beauty salon and have good hands to provide services to your customer, then this business will mint money for you. However, there can never be a compromise in customer service, and no matter what, the customer will always be right. You will need to invest good money initially to enable the business so it can earn good revenues for you.
You can also introduce annual packages with an 11+1 offer wherein customers would pay you for their annual beauty services in advance. This way, you will be tying up your customer for a year. Further, if you keep providing your services in the best possible manner, the customers may continue for a further period too!
More than the product cost, the ambiance and services are what earn their cost and it is your job to make sure that there is no imbalance in that area. The profitability in this business is high and keeps earning a good revenue year after year.
11. Massage Services
If you do this business all alone without a team, then this can earn you good money.
All you need to get started is a Masseuse course and then you can start operating as a freelancer. The investment is your expertise and knowledge in using the right kind of products. As working as a freelancer does not need any investment, all the revenue you earn minus your product costs is your profit.
When you are offering these services at the client’s residence, there is an added advantage of the customer not stepping out of the home.
You can go for annual packages here as well. You can also introduce freebies delivered to the client with such annual packages. As a massage is a door to relaxation for the professionals employed in stressful jobs, the requirement for good masseuses never fades out.
Further, you can introduce massage services for a particular health problem like migraine, back pain, shoulder pain, etc. which will have a lot of takers and will widen your scope of customers.
12. Coffee Shop and Book Café
Who wouldn’t like to sip a good cup of coffee while reading a book? If you own a space where you can craft a cozy sitting arrangement with a few racks of various genres of books, then you are on your way to make good money.
As your capital costs of buying or renting out space have been taken care of, all your investment goes into your furniture and a few coffee machines. Besides, you will also need raw material for making variants of coffee. Pitch in some snacks like cookies, brownies, some salted snacks, etc., to go along with that perfect cup of coffee, and you’re good to go!
As people don’t mind paying a few extra bucks for that perfect ambiance of a coffee shop, this business can bloom in any season.
To attract more customers, don’t forget the perfect playlist for your café. Once you stabilize the business, you will earn good and continuing revenue year after year. However, make sure that there is only betterment in your customer service as time goes on.
13. Gym / Exercise Studio
Exercise turns out to be the best medicine for a large number of people who have stressful professional and personal lives.
As there is a large number of people who work desk jobs, there is an ever-growing demand for this business. If they want to get some activity into that passive body, they have to hit a gym.
If you have a large capital that can be invested into a gym in regards to space, equipment, and other accessories, then this business can give you continued profits month after month. However, nowadays gyms aren’t limited to treadmills, cycles, weights, and other cardio exercises.
In fact, they have a whole lot of fitness regimes to offer that attract customers from different fields. It may include dancing variants, yoga studio, in-house nutritionist, personal trainer, physical therapist, and many more such innovative additions.
If you can build a facility of this kind, then there is definitely no looking back on the profits you can make. You can also add a blog that can give tips on physical wellness to your clients from time to time. This will act as a marketing tactic and will encourage new members to join your customer base.
Though there is an initial investment involved, it will continue to earn profits once you have stabilized your business.
14. Grocery Store / Specialty Food Shop
In a world of health-conscious people, specialty food shops are a roaring business. It is always a good idea to target a specific niche to reduce competition, and this idea will definitely make your business stand out from the dozens of grocery stores in your city. This store can include diet foods, fiber-rich foods, gluten-free foods, sugar-free foods, and many more such items that would draw the interest of your target consumer. These foods offer a good margin for the retailer as they need all they need is special attention while preparing them.
People don’t mind paying a few extra bucks as they actually prefer paying more for healthy food rather than spending heftily on medicines. You can also offer a home delivery service along with some freebies like samples if one exceeds a particular billing amount.
You will need a space to open such a specialty store. If you own it, then you don’t have to spend money on rentals. Once you have your own space to run it, all you need is an initial investment to stock up on groceries, pay maintenance bills for space, and salaries to the staff you may hire.
However, the onus will be on you to keep yourself updated on all the new products in the market and store them in your shop. This will ensure that your clientele does not shift to any other such store and stays loyal!
15. Opening A Restaurant
Restaurants are the most happening business with real good margins and the best part? You don’t actually need a fortune to start one!
The convenient types of restaurants that can be run are food trucks, mobile food trucks, and pop-up restaurants, which do not need much space.
If you already own a place that you can convert into a restaurant, you’re halfway there! Now all you need is a group of good chefs to help you and some ideal waiters who are gifted at customer service. The money you make in a restaurant business is majorly earned by the service, ambiance, and taste of food. If you can add your own signature dishes, then nothing could beat you!
Once a restaurant is established and earns a good name, it will bring you good profitability over a long period of time. Food lovers don’t miss out on good restaurants and their signature dishes!
16. Music Teacher
Music lovers search for good music teachers who can teach them the basics and carve them into good musicians.
If you have the art and expertise in any instrument with good training and maybe even a degree, then go for it! You can actually start classes to pass on the beautiful art of crafting melodies to interested people.
Here, it is entirely your art that will make money for you with no costs attached. It is your time and your teaching skills which you will convert into good revenue for you.
You can opt to start a music center at your place. Here, you can teach a group of students that have similar interests. Otherwise, you can also give home lessons wherein you may have to cater to one student at a time.
However, personalized attention will certainly fetch you more revenue than getting students at your place to teach.
17. Freelance Writer
In this business, all you need is a good command of language and the capacity to pen down articles on topics of various interests. As you are solely using your own capabilities to write articles, there is zero investment involved.
The only thing you have to do is identify such websites and editorials who recognize your skills and get ready to pay you. You will be paid for your thoughts, analytical skills about the topic you are addressing, and your capacity to hold and engage the audience while they read your articles.
Once you have gained enough experience and goodwill, you will have a strong portfolio on your hand. This will allow you to contribute to different websites and editorials, thereby increasing your revenue generation.
As your entire investment is based on your time and skills, there is hardly any expense involved and all your revenue is your profits. Further, this is a constant requirement and there will be no dearth of people approaching you with their requirements.
At the end of the list, you should already be brainstorming a business plan for your next venture. Just remember, the most important thing isn’t experience or a huge investment – it is a carefully thought-out plan of action that includes analyzing your investment, risk, and profit return period. Once you have these nailed down, the world will be yours to conquer.