The investment world is full of opportunities in various forms. While small businesses may require more effort and come with higher risks than many traditional investments, the rewards can be substantial. Small businesses play a vital role in the economy, employing nearly half of the U.S. workforce. For those who choose wisely, they can also be a path to long-term financial security for you and your family.
Best Small Businesses to Consider for Investment
Having a separate bank account for business helps keep your personal and business finances organized. Here are some small business ideas you might want to explore:
1. Real Estate Sales and Management
Getting into real estate doesn’t require a specific degree. By earning a real estate license in your state, you can start a career in this field. Some roles, like operating your own real estate office, may require specialized licenses, but the startup costs are minimal.
Success in real estate often hinges on building strong relationships, generating a steady stream of clients, and marketing properties effectively.
Agents typically earn a 6% commission on the sale price of a property, split between the buyer’s and seller’s agents. Selling a $250,000 house could mean $7,500 for each agent. Closing just a couple of sales per month can lead to a six-figure income.
For those just starting out, platforms like Roofstock can simplify the process of investing in real estate. You can purchase properties with existing tenants and begin collecting rental income immediately.
2. Accounting
If you have a knack for numbers, accounting might be a good fit. Many accounting roles only require a license and a computer. The most recognized credential is the CPA (Certified Public Accountant).
While a degree in accounting, finance, or business can lead to higher pay, basic services like bookkeeping, payroll, and tax preparation don’t always require a college education.
Accounting services are always in demand, as every individual and business needs them. Over time, you can expand your business by hiring additional staff.
3. Copywriting
Every website needs well-written content, from blog posts and how-to guides to advertisements and articles. If you have strong writing skills and an eye for detail, you can thrive as a copywriter.
This business has low startup costs, requiring only a computer and a creative mind. Success depends on delivering quality work and maintaining a steady stream of clients. With consistency, you can build a profitable business with minimal overhead.
4. Personal Training and Fitness
The fitness industry offers consistent opportunities, whether it’s yoga, Pilates, or other workout styles. Personal trainers can work one-on-one with clients or as freelance instructors in gyms.
While certifications aren’t always required, having knowledge and experience in fitness can improve your services and help your clients succeed. This business often requires minimal equipment, making it an excellent option for fitness enthusiasts ready to turn their passion into a career.
5. Cleaning Services
Many people are willing to pay to avoid cleaning tasks they dislike. Starting a cleaning business requires basic supplies and can offer competitive hourly rates, typically $20–$30 per hour.
With time, you can expand by hiring employees and investing in equipment like vans and marketing. Contracts with businesses can also lead to higher income than residential work.
6. Storage Facilities
While storage facilities require more upfront capital, they demand less daily effort. Real estate costs vary widely by location, so your investment can range from modest to significant.
Managing a storage facility involves renting out units, handling customer inquiries, and maintaining the property. Alternatively, you can invest in real estate investment trusts (REITs) for a simpler, lower-cost way to enter this market.
7. Party and Event Services
From DJs and photographers to event planners, party services are in demand. Event planning requires strong organizational skills, while other roles may require specialized equipment.
This field often involves minimal overhead, as you don’t need a dedicated office. By focusing on your strengths and delivering excellent service, you can build a reliable client base and grow your business.
Conclusion
Investing in a small business can be a rewarding way to grow your wealth while contributing to the local economy. With careful planning and dedication, any of these options could become a profitable venture for you. Focus on areas that align with your skills and interests to maximize your chances of success.
