OVERVIEW
The year 2020 was filled with challenges and complications. Well, one might have started 2020 with a specific goal in mind, but this year the life of businesses especially small businesses has changed drastically over the last year. Many profitable small businesses came forward that let these small business owners stay within the course and focus on the business at their best.
In this ever-changing business cycle, it was difficult to plan but these businesses became a trend and now have gone to the next level.
Moreover, digital solutions have enabled the business community the confidence to recover from the drastic impact on the economy of the country.
As per a recent Entrepreneurial survey, it is said that over 60% of these small businesses will continue to thrive and will be on a positive run for the upcoming five years.
This pandemic setback has brought these small businesses together in stepping up and helping out each other to make their stand and build a positive impact.
With so much happening in the field of entrepreneurship, it’s a great time to put your efforts into building these profitable small businesses in the upcoming year of 2021.
THE SMALL BUSINESS LANDSCAPE
Talking about small businesses, it is the one that is independently owned and operated and has fewer than 500 employees or under the industry-specific cap.
AS per the report by Small Business Administration(SBA), there are twenty-seven billion small businesses, contributing a major force in the US economy, generating about 50% of the total Gross Domestic Product(GDP). This also leads to the creation of 1.1 million jobs which helps in prospering and boosting the economy.
Aside from the general economic well-being, the founders of small businesses also contribute to the social and socio-economic development of the country.
As per the second-quarter reports in the year 2014, there has been a substantial increase in the number of small businesses but just the increase is not enough.
Your excellence in building a startup depends on several factors like the choice of industry, market factors, competition level, and the opportunities which are likely to let your business convert into profit.
THE MOST PROFITABLE BUSINESS BY SECTOR
After the general overview and the contribution, the next thing to know about these small businesses is that it takes many sizes and shapes. As per the report of SageWorks in 2016, these are those industries that have the highest net profit margins, or in simpler terms, the percentage amount of profit left after eliminating all the expenses related to providing goods and services.
For better understanding, the following is the list of those businesses which fall under this category along with the profit percentage:
- Accounting = 18.4%
- Lessors of Real Estate = 17.9%
- Legal Services = 17.4%
- Management of Companies = 16%
- Activities Related to Real Estate = 14.9%
- Office of Dentists = 14.8%
- Offices of Real Estate Agents = 14.3%
- Non-Metallic Mineral and Mining = 13.2%
- Office of Other High Practitioners = 13%
- Medical and Diagnostic Labs = 12.1%
- Privately-held Companies = 8.9%
LIST OF THE MOST PROFITABLE BUSINESSES WITH LOW STARTUP COSTS TO OPEN IN THE YEAR 2021
In accordance with the previous information, here is the combined list of the most profitable small businesses which have the potential to grow and need low costs to kickstart your entrepreneurial journey.
1. BLOG CREATION
Starting with your blog requires very little cost and this is something which anyone can start on their own. The ideas are never ending and with blocks of text and images, you can generate amounts. You just need to put in $10 to purchase the domain and maintain it every year. With your blogs, you get the opportunity to produce and to earn passive money ranging from $35 to $35K and also building your small business with a sellable value.
2. CONSULTATION SERVICES
Businesses have different shapes, sizes, and capital. They are willing to pay for the consultation to let them know the optimum utilization of their resources. So if you have the skill to teach and consult, then you can go to offer consultation services to other businesses. This service is most popular not only limited to business but in fields like content, graphics, digital marketing and so on. There is a flexibility to charge as per the requirements.
3. COURIER SERVICES
Delivering and packaging of products is something which is demanded by businesses. You can offer those services by providing vehicles, marketing, and having a delivery system of your own.
4. CLEANING SERVICES
As the work is becoming hectic, time spent on cleaning and home maintenance is getting reduced. So you can take the opportunity to offer cleaning services by designing pamphlets and posting them within your areas. You can mention your way of work in this pandemic time and offer schemes to attract the people. This service is most common in localities with a huge number of houses and apartments who are in the need of the same.
5. CATERING SERVICES
Along with cleaning, the requirement of food services is also in demand. You can prepare foods and can offer them to the people at the prescribed rates. This service requires investment like cooking tools, cutleries, spices or packing materials. These services can be specific to a particular cuisine or expanded to many.
6. TUITION SERVICES
Nowadays, students are likely to be more busy considering tests, assignments, and homework. With this, there must be someone who can help them out in preparing well by offering tuition services of the respective subjects both in terms of online and offline. The rates are divided as per classes, subject or level. This is considered as most earning services because it is required at every level.
7. LOGO AND DESIGNING SERVICES
If you like to experiment with colors and are on the creative side, you can go forward with designing logos and providing other graphical designing offers. This includes designing logos for business, companies, pages and organisations. The other designing parts include visual content, carousels, infographics, presentation and so on. The rates are bifurcated from basic to pro level.
8. REAL ESTATE AND PROPERTY AGENTS
If there is a locality in which there are vacant houses and if you have good communication and negotiation skills, then you can offer services like management, rent collection and so on. The property agent manages the overall demand and requirement of homes and if selected, you can get the commission which is paid in thousands or lakhs.
9. TECHNOLOGY CONSULTING AND REPAIRS
If you have good skills in computer hardware and software, knowing in depth knowledge of everything, you can offer services related to the consultation and repairs related to the network establishment, server installation, server maintenance and repair services like bug repairs, server problems, monitor problems and so on. Most likely, you can offer services to fix bugs as well as remove viruses.
10. MARKETING SERVICES
Marketing is considered the gem of any business. With marketing, you can offer SEO, SEM, Web designing services and also assist other businesses to grow and expand. You can offer customised marketing services and a plan that can align with the respective business needs too.
11. PERSONAL TRAINER
Providing training services at the gym or any fitness studio is a good business plan. As a trainer you can provide services and work with clients, maybe a small or a large group on their fitness goals which includes body movements, exercises, strengthening cardiovascular capabilities and increase in their flexibility.
12. TRANSPORTATION SERVICES
If you have a minivan, you can offer it as a service for the transportation of goods and services and also, to move people from one place to another. As per your capital, you can offer services through bus, passenger trains or passenger air services. To start with the business, you need a logo, investment of vehicles and a track over cash flow!
13. GARDENING
If you are a nature lover, then you can’t miss having your gardening services to offer to many households. You can cope up with all the tasks including weeding, grass cutting, streaming, planting, feeding and spraying. Alons with this, you can also offer services like landscape, season planting, maintenance and so on. This requires investment in the fertilizers, pesticides and tools needed to maintain the same.
14. CLEARING OF SNOWS
In the places where there is heavy snowfall, people will need assistance who can help them clear off roads such that people can travel easily. This service can be executed by individual households, governments or institutions. On average, the professionals get $38-$53 for removing the same.
15. HAIR CUTTING SERVICES
Nowadays mobile hair cutting services are at a boom, what you can do is simply going to family homes, doing the services, and getting paid for that. It is convenient for you as well as your family too. You can offer services like hair colouring, beard set and so on.
16. HANDYPERSON
A handyperson is someone who acts as all in one. The person can act as a reliable person who can assist you in fixing the day to day things. He/She is usually charged for service and the cost dependent on the work taken. On average, the handyperson charges $48 on a per hour basis.
17. FOOD TRUCK
A truck full of meals to offer to 30-40 people. If you have the cooking skills to mesmerize the public with your taste, then a food truck is an awesome idea for you. The startup cost of a food truck is very low and rest is maintained as per the demand. You can open food trucks related to BBQ, Pizza, Burgers, Ethopian Food, Indian snacks and so on!
18. SOCIAL MEDIA CONSULTANT
Just like a business consultant, you can offer social media consultancy to businesses. You can help them in setting up their websites, social media platforms, build digital presence and create their own brands. Businesses needs these consulting services and they are willing to pay $15-$50 for the service you offer and if it’s something very particular, then the rates increases.
19. TAX PREPARER
It can be good to get paid in the busiest season by helping in preparing taxes to businesses, companies, organisations and even on a personal level. You can also offer services to prepare VAT Return services, GST filing and registration, tax processing, sales return management and so on. The cost of the services ranges from $180-$250
20. TRANSLATOR
If you can speak in different languages and understand it in depth, you can offer translation services to companies, organisations and people. A translator can come in varied forms like spoken interpretation, localization. This can also include translation of a written document into the language prescribed.
21. VIDEO PRODUCTION
If you have the skills in video production and are ready to face the camera, get your hands in videography and offer services to take videos of birth, pre-wedding shoots, and so on. You can have a team which can take care of editing, production and maintenance from pre to post production.
22. TRAVEL PLANNING
If you are keen on travel and well know what to do well, you can help others in creating their travel plans. Not only that, you can offer services like full vacation planning, ticket booking, transport booking without spending any cost over it.
23. TELEMARKETING
As business is growing, and the demand for sales pitch arises, you can well offer telemarketing services to small businesses. There can be offers of additional services like answering queries of clients/customers. The cost ranges from $35-$50 on a per hour basis.
24. BICYCLE REPAIR
These services require very little cost for starting with the business. Not only you can offer repair services but also bikes which can be offered to the public for sale.
25. BOAT CLEANING
If you are down into the mechanical side, you can spend your time in the sun at the beaches and offering services like cleaning and servicing to other boats. Trust me, this is the most lucrative services to offer.
And here’s the end of the list!
Ending this article with a positive note that these small businesses can be set up in both big and small towns. What you need to do is taking a dig at these businesses, choosing the right one, setting up the business, and finally getting into action!
