Most small business owners fail because of one thing – measuring the quality of a business idea by anything other than profitability.
You don’t decide if your small business idea is good. Paying customers do.
This list of the eight most profitable types of small businesses are proven to be the most valuable to their ideal customers.
1 – Consulting Businesses
Knowledge and expertise will always have market value.
Consulting businesses are so profitable because there are hardly any expenses. There is no inventory to keep. You don’t need a fancy office.
All you need is to be able to find clients and prove to them you have the expertise to solve whatever problem you are in the business of solving.
There are a ton of different types of consulting businesses. The catch is you have to be experienced enough for people to actually want to pay for your advice.
This is a good business to start if you have already had a decent career doing something else.
People who have had a career as a police or military officer, for example, often start security consulting businesses.
Coaching businesses like life coaching, fitness coaching, and small business coaching are also considered consulting businesses.
The rule of experience also applies.
No entrepreneur wants to hire a small business coach that doesn’t have proof of success in the business world.
2 – Medical Businesses
People will always get sick, which is why medical businesses will always be highly profitable.
This category of small business includes medical offices of all types.
The practices of dentists, psychologists, surgeons, and eye doctors all have massive profit potential.
You might be thinking that the only way to profit from such a business would be to go to medical school yourself.
That’s the most direct path, but it isn’t the only one. Plenty of medical offices have outside investors.
This is a good option if you would rather invest in a business rather than start one yourself.
3 – Mobile Businesses
Mobile businesses actually have nothing to do with mobile phones.
These are businesses that aren’t tied to a brick-and-mortar location.
Food trucks are the most popular example.
Food trucks have the potential to be more profitable than starting a traditional restaurant because you don’t have to worry about rent costs.
Selecting the right location is also not a concern when you have the ability to drive to where your customers are.
While getting the truck and all of the corresponding licenses takes an investment, this is a small business you can bootstrap on a relatively small budget.
Another example of a mobile business that takes both less skill and money than a food truck is a car-washing service.
You could go right to your client’s homes and wash their cars.
People who drive cars that cost six-figures would jump at this type of service.
Other examples of mobile small businesses include being a personal trainer, auto mechanic, or an electronics repair person.
All of these services can be brought right to the customer. People will always pay a premium for convenience.
4 – Sharing Economy Businesses
Have you ever taken an Uber or stayed in an Airbnb?
These companies started out as small businesses who took a big risk. Now they are multi-million dollar companies with a global presence.
The sharing economy revolves around renting things on an as-needed basis rather than owning them outright.
There are so many ways to start a small business in the sharing economy.Take a stock of the things you own.
Are you the type who owns a bunch of power tools?
Rent them out to people doing DIY home improvement projects.
Are you a fashionista with a ton of clothes?
Let people pay you a fraction of what you paid to rent them for a night.
Both of these can be done on a local level to keep costs low.
5 – Child-Targeted Businesses
Child-targeted businesses are the type of small business that will always be in demand.
There will always be a need for things like daycares and babysitters.
Especially since both parents typically have careers in today’s America.
American public schools are also getting rid of things like art, music, and sports due to budget constraints.
This means a rise in profits for the types of small businesses that offer enrichment activities for children.
6 – Tax & Finance Businesses
Mark Twain once said the only two guarantees in life are death and taxes.
It is exactly why a tax business will always have great profit potential.
Finance business also do well since financial planning and advisement is something people typically can’t do for themselves.
Like a medical business, this takes a high level of expertise to do on your own.
7 – Online Learning Businesses
Online learning is one of the fastest growing types of small businesses.
Course creation platforms like Udemy and Teachable have made startup costs minimal.
All you have to do is create the course content.
You can use pre-recorded videos to minimize your time commitment. Both of these factors make it one of the most profitable types of small business.
Online learning businesses aren’t just about academics.
You can monetize any hobby you are really good at that people want to learn.
Make a list of the things you know you’re good at and do a search to see if any already exist.
If they do and they are popular, you know there is a market for your knowledge.
8 – Auto Repair Businesses
People will always need their vehicle repaired. auto mechanics make great money and learning auto repair is a relatively low cost.
If you have any interest in working on cars, you can teach yourself the basics by watching tutorials online.
Then, you can serve as an apprentice at an auto shop to put your knowledge to work.
Once you have established expertise, you can sell your services to people directly.
It is a big investment time-wise, but it is a type of small business that will always have an overflow of potential customers.
To recap, the most profitable types of small businesses are:
- Consulting Businesses
- Medical Businesses
- Mobile Businesses
- Sharing Economy Businesses
- Child-targeted Businesses
- Tax & Finance Businesses
- Online learning Businesses
- Auto Repair Businesses
Let us know if you have any questions about starting any of these small businesses on a bootstrap budget.