In this article, we will explore 20 small business ideas that have proven to be highly successful. If you prefer to jump straight to the top ideas, you can skip ahead to the 5 most successful small business ideas.
Small businesses are growing rapidly. The rise of technology and artificial intelligence has accelerated this growth. According to a World Bank report, small to medium enterprises make up the majority of businesses globally, accounting for 90% of all businesses and 50% of employment worldwide. In fact, they contribute 40% of the national income (GDP) in developing and emerging countries. Here are some of the most profitable businesses you can start in 2023.
Is Starting a Business Easy?
On August 9, Forbes reported that artificial intelligence is becoming increasingly popular among small businesses. About 28% of respondents in the survey have already integrated AI into their operations and expect to save over $5,000 in the next 12 months. Currently, 26% of small businesses are using AI, while 44% expressed a growing interest in adopting it soon. It’s safe to say that starting a business today is much easier than it was years ago, thanks to the availability of automated tools and AI. Also, check out some of the top marketing software options for small businesses.
Small businesses could be the future of employment. With the advancements in technology, it’s no surprise that more people are becoming self-employed. However, not every business idea guarantees high returns. Now, let’s dive into the 20 most successful small business ideas.
Our Approach
To compile our list of the 20 most successful small business ideas, we used a consensus approach. We drew ideas from four main sources: Shopify, Hubspot, and two Forbes reports, which gave us a pool of 140 business ideas. From there, we narrowed it down to the top 20. We could not rank each business idea based on profitability or potential worth, given the broad nature of the title. In our view, successful business ideas are those in industries with high net margins. We obtained the industry net margins from the NYU Stern database, which provided data as of January 5.
We categorized each business idea according to the most relevant industry or sector available in our data. For example, even though the online retail industry reported negative net margins, we included it because many of today’s successful small businesses operate in this sector.
20 Most Successful Small Business Ideas
1. Clothing and Fashion Boutique
– Industry Net Margin: 2.41%
Selling trendy clothing remains a popular business. You can focus on niches like sustainable clothing, thrift fashion, or rental clothing. As of January 5, the retail industry reported net margins of 2.41%.
2. Tutoring Services
– Industry Net Margin: 4.06%
Tutoring is a very profitable small business idea. With the rise of online tutoring, this industry has grown significantly. The education sector’s net margin was 4.06% as of January 5, across 251 companies.
3. Virtual Assistant Services
– Industry Net Margin: 4.32%
Virtual assistants are becoming more popular, offering administrative support remotely. The business and consumer services industry had a net margin of 4.32% across 961 companies as of January 5.
4. Freelance Services
– Industry Net Margin: 4.32%
Freelance services, including graphic design, content creation, and copywriting, continue to be a strong business idea. The net margin for the industry was 4.32% as of January 5.
5. Dog Grooming Services
– Industry Net Margin: 4.32%
Dog grooming is another profitable business under the consumer services sector, with a 4.32% net margin.
6. Daycare Services
– Industry Net Margin: 4.32%
As more women enter the workforce, the need for daycare services has grown. This business idea also falls under the consumer services sector.
7. Cleaning Services
– Industry Net Margin: 4.32%
Cleaning services are always in demand, as people often lack time to clean their homes or offices. This sector also reported a net margin of 4.32%.
8. Influencer Services
– Industry Net Margin: 5.34%
Influencer marketing has gained momentum. Engaging with influencers can drive business growth, with the advertising industry reporting a 5.34% net margin.
9. Social Media Services
– Industry Net Margin: 5.34%
Managing social media platforms is essential for businesses. Services include content creation, post scheduling, and analytics. The advertising industry reported a 5.34% net margin.
10. Sewing and Alteration
– Industry Net Margin: 4.32%
Tailoring services can be personalized, leading to long-term customer relationships. This sector reported a 4.32% net margin.
11. SEO Services
– Industry Net Margin: 5.34%
SEO services are in demand as businesses aim to rank higher online. If you are skilled in this area, it’s worth offering your expertise. The advertising industry reported a 5.34% net margin.
12. Food Truck
– Industry Net Margin: 6.27%
Running a food truck is a low-cost way to enter the restaurant business. The restaurant and dining industry had a net margin of 6.27%.
13. App Development Services
– Industry Net Margin: 11.17%
Developing apps for businesses is a profitable venture. The software industry reported a net margin of 11.17%.
14. Carpool Services
– Industry Net Margin: 17.05%
Carpooling services allow users to save money by sharing rides. The transportation sector reported a net margin of 17.05%.
15. E-commerce
– Industry Net Margin: -0.05%
E-commerce is popular worldwide, despite the parent sector’s negative net margin. Many successful small businesses operate in this space.
16. Commercial Printing Services
– Industry Net Margin: 2.65%
The global commercial printing market is expected to grow, making it a lucrative business idea. The printing industry reported a 2.65% net margin.
17. Online Teaching Services
– Industry Net Margin: 4.06%
Online teaching is easier than ever with today’s tools. The education sector reported a net margin of 4.06%.
18. Event Planning & Management
– Industry Net Margin: 4.32%
Event management, offering planning and catering services, is a growing industry with a net margin of 4.32%.
19. Coaching and Fitness Services
– Industry Net Margin: 4.32%
Fitness and coaching services are highly successful, with the business and consumer services sector reporting a 4.32% net margin.
20. Photography Selling
– Industry Net Margin: 5.34%
Selling photography online can be profitable as demand for visual content grows. The advertising industry reported a 5.34% net margin.
