Executive Summary

This article presents a list of the most lucrative small businesses for entrepreneurs. These businesses are chosen based on industry growth, startup costs, barriers to entry, and potential profitability. Some of the businesses listed include food trucks and car wash services. Others are auto repair technicians and personal trainers. Other business types include mobile apps for entertainment and enrichment for children. This article highlights their growth potential and high demand, which makes them appealing options for entrepreneurs.

Profitable small businesses

Any business concept can be profitable and successful with a good business idea and hard work.

However, businesses in high-growth sectors with lower start-up costs may have greater profit potential. You’ll have greater success opening a virtual assistant company than a grocery shop, for example, due to the advancement of technology.

Some of the most lucrative businesses are online-based, but others are in-person. Others are great for entrepreneurs on the move. Our list of the most profitable small businesses:

Food Trucks

Food truck businesses can be started for less than a third of the cost of opening a brick-and-mortar restaurant. You can start a food truck business at a fraction of the cost.

Remember that the food truck industry is already saturated in big, trendy cities such as San Francisco, Boston, Washington, D.C., and other major metropolises.

Services for car washing

According to a study conducted by Consumer Reports in 2020, car owners are keeping their vehicles longer because of rising prices and new features. As drivers continue to maintain their vehicles, car wash businesses that help them maintain their investment will also grow.

According to the International Carwash Association, 66% of Americans wash vehicles between once and twice per month on average, with a median of 13 times per year. According to projections, the car wash market will grow from $14.7 billion to $20.7 billion between 2023 and 2028.

By turning your car washing business into a mobile one, you could make it even more profitable. If you have a luxury vehicle and want more personal service, customers may be willing to pay more for car washes that come to them. As a mobile auto detailing and car wash service, you can avoid the startup and overhead costs associated with a physical location.

Auto Repair

According to IHS Markit, now part of S&P Global, by 2023, the average age for cars and light trucks will be 12.2 years. In 2002, it was 9.6 years. The average car owner is keeping their vehicle longer, which means there are more opportunities in the repair and maintenance 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.

You might find that an auto repair business is one of the best ideas for a profitable business if you are a skilled mechanic. You can provide oil changes, battery replacements, headlight repairs, fluid refills, and much more. If you want to reduce overhead costs, consider offering a mobile service where you travel to the customer and perform repairs at their home or office.

Personal Trainers

According to the U.S. Bureau of Labor Statistics, the employment of fitness instructors and trainers is expected to increase by 39% between 2020 and 2030. This growth rate is much higher than the national average. You don’t need to work for a large corporate gym to turn your passion into a career. Nor do you have to pay overhead to run your own training facility. Take your fitness show with you by putting some weights, yoga mats, and bands in the trunk of your vehicle.

You can become a trainer by advertising group classes in a park or community center or offering private sessions at your client’s homes. You could help both you and your client achieve your goals by making fitness more accessible to them.

Services for Newborns and Post-pregnancy

Many millennials want children, even though they delay parenthood longer than other generations. According to a Pew Research Center analysis of government statistics, more than half of women in the millennial generation have a child.

Both millennials and Generation Z are now considering becoming parents, and there is a growing demand for businesses that cater to children, beginning with services related to post-pregnancy or newborns. A 2018 Research and Markets Report expects that the North American maternity care market will reach $3 billion by 2023.

Enrichment activities for children

As Americans continue to have more children, budget cuts for education often mean that traditional academics as well as enrichment subjects such as music, art, and sports are severely affected.

One business that could be successful is offering enrichment activities for children. A 2018 U.S. Census Bureau report shows that kids are still as active in extracurriculars as they were fifteen years ago. Some research shows that more than half of American parents invest over $1,000 per year in their children’s extracurricular activities.

You can start a music or gymnastics school, teach yoga to children, or become a swimming teacher. You might have an existing business if you can teach a skill to children.

Children’s mobile apps for entertainment

You might want to consider focusing your technology on the youngest users if you are interested in engineering and development. Children are increasingly requesting tablets, mobile apps, and other forms of entertainment, particularly if they’re educational.

According to a report by the research firm Grunwald Associates on mobile devices in early childhood education, more than 60 percent of parents believe that apps and mobile devices can help teach kids reading, math, science, and world languages.

Have you ever thought of an app that would be educational for parents or children? Now is the time to make your brilliant idea for the future a reality.

Shared accessories, clothing, and apparel

Rent the Runway, Gwynnie Bee, and other sites have embraced the idea of the sharing economy, in which we need less stuff and instead share it.

The companies rent or borrow clothing at a fractional price. Because the same item of inventory can generate revenue more than once, these ventures are profitable. According to a study conducted by the reselling site Mercari in 2021, the market for second-hand clothing is expected to triple by 2030.

Have you got a keen eye for style and fashion that is not offered by any other rental service? You could be the next big star.

You can still profit from sharing fashion locally, even if you aren’t ready to launch a fashion startup worth millions of dollars. Host a borrowing party for high school students, where they can borrow or buy items from your closet.

If you live in a college city, Greek life formals can be a great way to make money from the shared economy. You can be even more profitable if you remove shipping costs from the equation.

Shared Home Improvement Equipment

Do you have a reputation in your community as the person to call for any lawn, gardening, or home repair tools? Why not make your tools a business by advertising them beyond your immediate friends?

Even if you decide to purchase more expensive and specialized equipment, it will be of great use to your customers. If a client doesn’t understand how to use an item, you can combine your equipment rental service with mobile services for more money in the bank.

Home improvement expenditures have increased since the COVID-19 outbreak. According to a Home Advisor study, U.S. homes spent $8,305 on average on improvement projects alone in 2020. This could be an opportunity as more people invest in fixer-upper houses and remodels.

Vacation Rentals

Renting out space in your house to tourists is a great way to make money if you live in an area that’s popular with tourists. Airbnb and VRBO make it easy to profit from your vacation home or extra bedroom. Airbnb reports that the average U.S. host earns over $13,800 per year.

It is not difficult to become an Airbnb host, and the demand has grown over recent years. Airbnb will have 356.9 million nights booked in 2021. This is up from 251.1 million nights in 2020. Some cities have laws governing Airbnb and other platforms for renting out rooms. Check the rules in your city before you start.

Conclusion

This article highlights several profitable small business ideas for entrepreneurs, chosen based on factors like high-growth industries, low startup costs, and ample demand. Some promising options include food trucks, car wash services, auto repair shops, personal training, and child-related businesses like enrichment activities and mobile apps. Tech-savvy entrepreneurs can explore shared clothing rentals and home improvement equipment rentals. Vacation rentals offer another great income stream in popular tourist destinations. Remember, success requires a good business idea, hard work, and adapting to market trends. So, choose your passion, do your research, and get started!