20 of the Most Profitable Small Businesses

Small businesses are a vital part of the economy, accounting for more than half of all jobs in the U.S. And while there are many different types of small businesses, each with their own unique challenges and perks, they all have one thing in common: The potential for big profits.

Meanwhile, some small businesses are inherently more profitable than others. This can be due to expenses and overhead being low or the business charging a lot for its services or products. Still, all businesses, no matter how profitable they are, can be a challenge getting started.

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Any Profitable Business Can be a Challenge

While starting your small business can be incredibly rewarding in so many ways, it takes a certain kind of person to successfully run a small business.

It pretty much takes someone who is passionate about what they do and has the patience to deal with business challenges—someone who is willing to work hard and often for long hours.

As mentioned earlier, some small businesses are going to be more lucrative than others. On the other hand, you may prefer to make less money and find a small business that gives you joy and a sense of fulfillment. Of course, if you are like the majority of small business owners, you do want to make a profit.

Most Profitable Small Business Ideas

If you yearn to run your own business and are ready to put in the work, take a look at the following 25 most profitable small business ideas.

Tax Preparation and Bookkeeping

Without needing fancy premises or expensive equipment, tax preparation and bookkeeping services come with low overheads. Furthermore, the standard rate for quality tax preparers and bookkeepers is a decent salary to live on.

That said, if you’re not good with numbers, preparing people’s taxes and keeping their finances up-to-date, won’t be the business for you.

Catering Business

You don’t need expensive, fancy kitchens and professional chefs to run your own catering business. Also, you could even operate your service from home, keeping overhead to a minimum. People and businesses are willing to pay for quality caterers, making this business profitable for those who work hard and have the determination to succeed.

Website Design

Websites have become the ‘windows of every successful business.’ As a result, quality and creative website designers remain in high demand. Again, low expenses and high rates make web design one of the most profitable businesses to run, providing you have the creative and technical know-how that is!

Business Consulting

A lot of people want more freedom and flexibility in their lives. If this is something that appeals to you, consider starting a consulting business.

Business owners are almost always willing to invest in quality business consultants who can help them achieve the results they are looking for.

They’re also willing to pay hefty amounts for the right advice, which, tied in with low overhead, makes business consulting a profitable business to embark on.

Of course, effective business consultants do require sound business acumen and knowledge, so this isn’t necessarily the right opportunity for everyone.

Courier Services

Other than having a vehicle with good insurance and workers to deliver the goods, self-employed couriers don’t have a large overhead. That fact makes them one of the more profitable business ideas on this list.

Getting lucrative contracts from the major courier firms can prove profitable. However, in a competitive market, being awarded juicy contracts can be a challenge.

Mobile Hairdresser Services

Granted, you can never charge a fortune to cut someone’s hair but that doesn’t take away from the fact that quality hairdressers will always be in demand.

Furthermore, other than a quality pair of scissors and some hair dye, if you run a mobile hairdressing salon, your business expenses are surprisingly low, making mobile hairdressing a profitable business to run.

That said, mobile hairdressers are not difficult to find, so you’ll probably need to spend some money marketing your services.

Cleaning Services

All you need to start your own business tidying up residences and offices is a vacuum, polish floor cleaner and, preferably, a car.

Millions of small businesses are doing it, but there is still high demand for this niche. After all, busy lives and dirty places aren’t going away anytime soon that we can tell.

With comparatively low overhead and little in the way of training required, cleaning can be a profitable small business to get into.

So why isn’t everyone doing this? Well, if you’re looking for a more creative way to make a living that isn’t messy, cleaning might not be for you.

Online Tutoring

If you are good at math, a native Spanish speaker, a nifty guitar player, or something along those lines, you have a skill you can teach others. Whatever your talent, offering to tutor online can become a profitable small business for you.

Also, you can earn a good income with exceptionally low expenses. Depending on how much time you want to spend on it, a tutoring small business can be your main source of income or a side hustle that supplements earnings from your current profession.

One of the main downsides to online tutoring? You need to have a skill that others will want to learn!

Real Estate Brokering

The profits associated with real estate remain high and if you want to enter this industry one of the most cost-effective ways to do so is to set up a real estate brokering firm.

Real estate brokers act as an intermediary between sellers and buyers and all you need to get started is a brokerage license. That said, finding your own clients can be challenging, given the number of real estate brokers there are.

Logo Design

Got an eye for a great logo? If so, you might be on your way to starting a business where you can charge a tidy sum while not having to fork out on expensive overhead.

For being one of the most successful small businesses around, logo designing is a competitive industry. You’ll have to come up with some unique and inspiring logos to remain at the top of your trade.

Warehouse Storage

Got a spare garage or building that’s not being used? If so, warehousing is one of the easiest of profitable small businesses you can go into.

Providing a place for businesses and individuals to store goods and items can provide a highly profitable and predominantly passive income. Though it must be said, the job isn’t exactly stimulating and therefore isn’t for everyone!

Property Maintenance

Although it isn’t glamorous, property management is one of the more profitable small businesses. There will always be a demand for people who are willing to clean gutters, repair chimneys or pull out stubborn weeds.

While the hourly rate for property maintenance might not make you rich, with low overhead and high demand, property maintenance can be a profitable business to enter—as long as you don’t mind getting your hands dirty!

Technology Repair Services

Got a good eye for technology and how it works? If so, setting up your own technology repair business could see you in high demand as the world becomes increasingly dependent on technology.

Repairing people’s much-loved gadgets can pay well and without much overhead, can prove to be a lucrative business. Naturally, those without a knack for technology will want to steer clear!

IT Support

As we become more reliant on IT to run businesses and go about our daily lives, those who offer IT help and support are extremely sought-after.

Quality IT support technicians can charge a decent rate for their skills and don’t require too much overhead or equipment to run their businesses. However, IT support is a competitive industry, so you’ll need to efficiently market your services to get noticed.