On average, 20% of businesses shut down after their first year, with 48% closing after their first five years. As a business owner, your goal is to leverage a strategic business idea to create a company that can reliably produce profits over a long period of time.
Educating yourself about the most profitable businesses is a great place to start. When you know more about the types of businesses that can earn the most, it’ll significantly increase your chances of success.
In this guide, we’ll explore 18 of the most profitable businesses to start as an entrepreneur, including tips on how to get started once you decide on your business idea.
Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.
18 most profitable businesses
- Technology services and software development
- Real estate
- Ecommerce
- Consulting
- Digital marketing
- Fitness coaching
- Home cleaning services
- Event planning
- Online courses
- Logistics and transportation
- Car washes
- Fashion and apparel
- Bookkeeping and accounting
- Vacation rentals
- Insurance
- Tutoring
- Pet care services
- Home improvement services
If you’re an aspiring entrepreneur seeking the most profitable business ideas, you’re in luck. There are lucrative business opportunities in many different industries.
Whether you’re starting small with low-cost business ideas or you have a big budget that lets you aim high, here are some of the most potentially lucrative businesses to start:
1. Technology services and software development
The tech and software sector has accounted for an outsized portion of the US stock market for years. The software industry alone is projected to reach $702 billion by the end of 2024.
Big tech businesses like Microsoft and Apple are among the most profitable companies on the planet, but small software developers can also gain a toehold in this industry.
If you have an idea and strong coding or development skills, you could consider launching your own startup—a high-risk, high-reward option. Or you can start a potentially profitable business offering tech consulting or tech support to other businesses.
2. Real estate
Remote work has created a surge in the suburban residential real estate industry, and the industry as a whole is looking at a forecast of almost $635 trillion by the end of 2024.
For many aspiring entrepreneurs, becoming a real estate agent is the most affordable way to enter this industry, and it offers a flexible schedule.
The Bureau of Labor Statistics (BLS) offers detailed information on real estate agent salaries and employment trends in the US, so if you’re curious about what starting a real estate business looks like, that’s a great place to start. To give you a snapshot, the median annual wage for an agent in 2023 was $54,300.
If you decide this is the right move for you, check in with state licensing and education requirements, as they vary across the US. Then, if you meet the age requirement you’ll likely need to do some pre-license education and pass your state real estate license exam.
3. Ecommerce
An ecommerce business is any business that sells goods and services over the internet.
Shopify’s Global Ecommerce Sales Growth Report forecasts that the booming ecommerce industry will be worth $8.09 trillion by 2028. The total US ecommerce market revenue increased for the 10th consecutive year in 2023. Starting an online store lets you tap into this rapidly expanding market.
One of the big benefits of getting into ecommerce is the small amount of capital and investment involved. Depending on what you choose to sell, it takes little more than an internet connection to establish your own business online.
💡Tip: Many profitable online businesses use a customer relationship management (CRM) platform to streamline operations.
📚Learn more: How To Start an Ecommerce Business
4. Consulting
In 2023, the average revenue of management consultants was $212,000, a very compelling yearly salary for most business owners. The consulting industry in general has grown rapidly from 2020 to 2023.
The business consulting industry consists of firms and individuals guiding business managers on key areas like corporate strategy, growth, human resources management, optimization, and more. There’s no specific requirement for becoming a business consultant, but it helps to have a bachelor’s degree and relevant experience in the field where you offer consulting services.
Start a consulting business by: identifying your strengths, researching the market, setting up your business, choosing a pricing strategy, marketing, and growing your client base.
5. Digital marketing
Experts anticipate the digital marketing industry to grow at a compound annual growth rate (CAGR) of 15.5% from 2023 to 2030. If you have digital marketing experience, now could be a great time to establish some offerings online.
Your digital marketing business may include copywriting, content creation, social media management, pay-per-click (PPC) ad management, graphic design services, or any combination of those services.
Profitable companies in this sector often home in on a particular market niche—which could be anything from high-end apparel to the food truck industry—and cultivate a set of loyal clients. As your marketing business grows, you can potentially expand to new business categories and serve more niches.
6. Fitness coaching
Research firm IBISWorld estimates that the US personal training market generated $14 billion in 2023. This figure includes plenty of trainers or fitness coaches operating their own small business out of their home or in shared spaces.
Like many fields in the wellness industry, fitness coaching comes with relatively few startup costs aside from education, unless you’re pursuing a niche like Pilates that requires investment in expensive equipment.
Many fitness coaches find success by first sharing tips and tricks on platforms like YouTube, Instagram, or TikTok and building a following. You can do this for free and from home or while on the go, so it’s a great way to gauge appetite from potential clients as you’re getting started.
7. Home cleaning services
As the COVID-19 pandemic raised awareness around the importance of personal hygiene and keeping spaces clean, it drove a boom in the US cleaning services industry. Experts cite its CAGR at 5.6% over the next five years.
You can tap into the home cleaning industry by either doing the cleaning yourself or by hiring a team of cleaners to work while you handle marketing and appointment booking.
Promote your cleaning business on your own website, use third-party sites like Craigslist and Taskrabbit to advertise your services, or maximize your reach by using a combination of sales channels.
8. Event planning
If you’re organized and outgoing, you might consider starting an event planning business.
The US Bureau of Labor Statistics says that the event planning industry is growing faster than the average of all occupations combined. The BLS anticipates a yearly growth rate of 7% from 2023 to 2030.
One potentially profitable business model is to focus your event planning on weddings. According to a survey run by wedding site Zola, the average wedding in the US costs $33,000. On average wedding planners make $2,100 per event. Other event services businesses focus on corporate gatherings, which is a lucrative niche to tap into as well.
9. Online courses
You can make a lot selling online courses: experts say the online education market will reach a $87.51 billion valuation in 2024. That growth isn’t expected to slow down either. Experts expect the industry to grow at a rate of 10.52% over the next five years.
While there are many factors that determine how much you’ll net per year, sources say the range can vary between a few hundred dollars per year to six figures.
There’s little overhead involved in offering an online course, but you’ll need to market yourself and build a following. Aim to teach classes that match your known skill set and résumé. For example, established graphic designers can offer graphic design courses, while successful entrepreneurs may offer online business courses.
Online courses are also a great way to diversify your revenue streams. You can teach live courses that your audience signs up for on specific dates, but you can also offer courses in ways that generate passive income. For example, you could pre-record courses and offer access to them on-demand. You’d be able to distribute them via your own subscription services or list them through online course libraries like Skillshare, Udemy, or Domestika.
10. Logistics and transportation
Starting a logistics and transportation business can be highly profitable, given the industry’s critical role in global commerce. In 2024, experts project that freight transportation in the US alone will reach $1.3 trillion annually.
The rise in ecommerce and the need for supply chain innovation continues to drive demand for efficient logistics services, making this a strong time to enter the market.
You might choose to run a successful business by handling logistics for other companies. This can include inventory management, warehousing, shipping, and courier services.
11. Car washes
As long as people own cars, they will need a place to wash them. Grand View Research estimates that the global car wash market will exceed $32 billion in 2023.
You’ll have to spend money on real estate, equipment, and water, but car washes don’t require many employees—particularly self-service washes—which makes them cheaper to operate than many other businesses.
Self-service car washes make an average of $40,000 per year, while large full service car washes make $700,000 to $900,000 on average.
12. Fashion and apparel
The global fashion and apparel market is trending up. Worth $1.5 trillion in 2022, Statista anticipates positive growth to come.
If you have an eye for design, a cogent business plan, and sound business structure, you can start your own fashion or apparel company. You’ll need to research wholesale suppliers and select the right sales platforms to ensure the most profitable business outcomes.
Whether you sell online via your own ecommerce store, through ecommerce marketplaces, or in brick-and-mortar stores, you can turn a passion for fashion into a successful venture.
📚Learn more: How To Start a Clothing Business in 14 Steps
13. Bookkeeping and accounting
Most successful business owners need accounting services, payroll services, and many other services related to finance. If you have a knack for bookkeeping or want to earn money on the side of a full time accounting or payroll job, this is a great way to tap into entrepreneurship.
Get your feet wet as a sole proprietor or you can hire staff and scale up—either option is great depending on what works best for you.
The average profit for bookkeepers will range based on billable hours, how much you charge clients, the type of work you do, and the types of clients you work with. Sources say that the average bookkeeper who works 80 billable hours per month can make around $48,600 per year.
14. Vacation rentals
If you own real estate or have the means to invest in it, you can make money renting those properties to vacationers. Though the initial time and monetary commitment is high, in the long run, these rentals can bring in passive income while you work on other projects.
The amount of money you can make from a vacation rental depends on factors like: location, property type, features (luxury or rustic), how you market the property, where you list it, seasonality, and occupancy rate.
Small properties could make $20,000 to $40,000 per year. On the other end of the spectrum, a large luxury property in a sought after area like Breckenridge, Colorado could make $200,000 in yearly income.
✨More ideas: 20 Profitable Rental Business Ideas You Can Start Now
15. Insurance
Insurance is a highly profitable business that encompasses everything from giant international corporations to small businesses focused on local markets. S&P Global Market Intelligence estimates the US property and casualty insurance market GWP hit $1.3 trillion in 2023.
You could start a local insurance brokerage and connect it to a larger insurer (e.g., Allstate or State Farm) and potentially earn a sizable profit—making this one of the best small business ideas for driven entrepreneurs.
16. Tutoring
Starting up a tutoring business could be more lucrative than you think. Demand for flexible learning continues to grow at a rapid CAGR of 14.5%. If you contract out freelance tutors to meet client demand, you could be looking at a six or seven figure business.
All you need to start this type of business is a computer, video call software, and expertise in a particular area. Consider offering services to different age ranges across different disciplines, like English, math, or science, or specialize in prep for different tests, like the LSATs, MCATs, or SATs.
17. Pet care services
People love their pets and are willing to put up big bucks in order to keep them safe, happy, and healthy.
Starting a pet sitting or pet care business can be a lucrative way to earn cash on the side. You could also build it into a thriving full time business over time. This high-growth industry is anticipated to grow at a CAGR of 6.45% from its 2024 valuation of $259.37 billion.
In order to break into this business, first make sure you love pets and are up to the challenge. Then, choose a legal structure for your business, get the appropriate insurance and licenses, and begin building and marketing it.
If you just want to dip your toe in at first, consider signing up to walk a dog or cat sit on platforms like Wag! or Rover.
📎Resource: How to Get Business Insurance in 6 Simple Steps
18. Home improvement services
Starting a home improvement or handyman business can be flexible, rewarding, and profitable. The home improvement market saw growth of 69% from 2013 to 2023. And the amount of money homeowners spend on repairs grew by 81% from 2014 to 2023.
It’s also a relatively simple and affordable business to start. All you need to have is a set of tools, the knowledge of how to do various home repairs, insurance, and any proper licenses per state requirements. Then, post about your business on local sites like Nextdoor or register on sites like Angi.
How do you start a profitable business?
Here are five essential steps for entrepreneurs to consider when starting a profitable business:
- Conduct market research. Understand your target market, customer needs, and competition. Identify opportunities and gaps in the market that your business can address.
- Draft a solid business plan. Develop a comprehensive business plan outlining your goals, target audience, value proposition, revenue model, and marketing strategy. A well-thought-out plan helps guide your business decisions.
- Manage your finances. Set a realistic budget, carefully manage expenses, and ensure that you have adequate funding. Keep a close eye on cash flow and your cash flow versus profit, which is crucial for sustaining and growing your business. You’ll also need to understand gross profit versus margin.
- Build a strong online presence. Establish a professional and approachable online presence through a website and social media. Utilize digital marketing strategies to reach and engage with your target audience.
- Remain focused on customers. Prioritize customer satisfaction and build strong relationships. Listen to customer feedback, adapt to their needs, and provide excellent products or services to create loyal customers who can contribute to your business’s profitability.
Most profitable businesses FAQ
What is the cheapest business with the most profit?
Ten businesses that have low startup costs and a high profit potential include starting an online store, tutoring, affiliate marketing, consulting, selling online courses, pet sitting, photography, owning a car wash, content creation, and event planning.
What is the easiest business to start?
The easiest business to start is likely to be one where you are a sole proprietor and can work from home. When you add employees and physical locations, you must navigate more complicated regulations and logistics.
What businesses earn the most money?
Finance, law, real estate, health care, and software development are among the most profitable industries in the US. If you’re looking to make as much money as possible, consider starting a legal services business, a brokerage, a health care company, or a software-based venture like a virtual assistant business.
What professions earn the most money?
The Bureau of Labor Statistics’ list of highest-paying professions is topped by several types of physicians, notably surgeons. The types of jobs that pay the most vary based on region and market conditions.
