Online entrepreneurs can offer courses through educational platforms or independently on their own websites. The U.S. e-learning market has accelerated growth since the onset of the COVID-19 pandemic and is predicted to increase by $21.6 billion in 2024, according to a 2020 report by Technavio.
A New Era of Earning Money
Having said the above, let’s review some of the industries by profitability, and then I will review some of the possible small businesses that you can open. The goal, of course, is to help you figure out what business you should open, and this article will be an excellent starting point.
I am also very aware that we’re post COVID, and that the business landscape has changed, and in fact, if you’ve now found yourself without a job, or, are looking to create some financial independence in your life, then there’s no better time than the present to open a new business.
There’s no better time to start a business because we’re at the cusp of what will become some entirely new industries and unique business ideas that will span as a result of the virus, which has created havoc for some industries and created a real boom for others.
On this note, it’s essential to start with a business plan. You need to communicate a strategy to start your business. Having a business plan gives insight into actions to be taken, the tools needed to accomplish your company priorities, and a timetable of predicted results.
27 Of The Most Profitable Businesses With Low Startup Costs to Open in 2022
Using the above list, I have compiled some businesses that are potentially ancillary, or complementary to the industries listed above. In addition, I am also mindful that the small business landscape has changed now as a result of COVID-19 and the current recession, which we’re (hopefully) now exiting.
Many of the businesses listed below are potentially even more suitable now considering the current small business landscape. With limited company formations being done at a low cost or, in some cases, for free, there might be many smaller businesses being erected and making way for entrepreneurs to create their own wealth. So, let’s review:
Although technically this one isn’t a small business, it is an easy way to make a few extra bucks, so I decided to throw it into the mix. And don’t worry, taking surveys isn’t one of the business ventures I’m recommending you start. You can take online surveys, even if you’re as young as 13, and you will be paid anywhere from 5000 to $75 per survey. It’s a simple way to make extra money, it’s easy to do, it’s free to sign-up, and although you won’t get rich, you can still earn a few extra dollars while you’re watching TV or in your spare time. My kids have used Swagbucks, PrizeRebel, and Survey Junkie. You can sign up here for Survey Junkie here.
Another potential business that is often overlooked is Affiliate Marketing. Instead of starting your own business by manufacturing and selling a product, you may already have the tools in place to assist someone else in doing that. You can, for example, do this via your blog, video uploads, or review site. So, let’s say you mention a particular product on one of the aforementioned platforms, you may be able to make some money for yourself. How exactly? …if by doing so, you create additional sales for another company’s product.
An affiliate program will provide you with potential offers that you can promote on your own platform by providing a link to buy a product on another website. A reference will be embedded in the link that will allow the partner company to identify you as the source of the click, and you will then receive payment in the form of a commission. Check out this link to gain a deeper understanding of the best ranking affiliate programs currently available.
1. Sticker Shop
If you are a designer or you have little funds, starting a sticker shop online is your wise decision. They are low-cost and easy to create and store. You can make and sell stock stickers online. Or you can make custom stickers for small businesses, clubs, schools, and more.
The stickers on the first way can be created by yourself at home with Cricut or by professional sticker maker like CustomSticker.com .The custom stickers on the second way are often made by sticker makers. Both of them are fast.
2. Start a Blog
The startup costs of starting a blog are really low. You have the cost for the domain, which is usually around $10 per year, and your hosting fees, which you can find for as little as $50 per year or even less if you choose to use discounts for web hosting.
The upside potential is huge in two ways. First, if you are able to build a blog that can produce profits of 800,000 per month, for example, then you’ve also built an asset that’s potentially worth upwards of $30K to $35,000 if you were to sell your blog, so, not only are you making passive recurring money, you’re also building your own small business that has sellable value. I’ve written about blog valuation here: How to Make a 600% Return on a Business Investment Inside 24-Months, and Compare Returns using IRR
3. Business Consulting:
Businesses of all sizes are willing to invest in consulting services, sometimes spending thousands, and even hundreds of thousands of dollars a year on consulting services. Perhaps you have a skill or were educated in a particular function, maybe even from a previous job. You can use those skills to offer consulting services to other businesses. it can also hold live sessions on a coaching platform to paying customers.
4. Courier Services:
Delivering packages is something that you can start on your own, and eventually build into a larger type of business. You, of course, need a website, and vehicle, some polished marketing, and you can pick up and deliver on your own, or even hire drivers to help. Should you decide to focus on a particular area of the city, let’s say the downtown core, you can even offer bicycle courier services.
Most profitable small businesses
Businesses in high-growth industries with lower startup costs , however, may have greater profitability potential. With the rise of technology, for instance, you’ll probably have more success starting a virtual assistant business than opening a grocery store.
Although some of the most profitable businesses are based online, others involve in-person services, and some are a great fit if you’re an entrepreneur on the go. Here’s our list of the most profitable small businesses:
1. Food trucks
The food truck movement has been experiencing consistent growth over the past five years — and it’s expected to continue — with the market projected to grow to $6.6 billion by 2028, according to a 2021 report by Grand View Research. You can start a food truck business for less than a third of what it costs to open a brick-and-mortar restaurant; plus, you have geographic versatility, the potential for high revenue returns and the flexibility to create a custom menu that’s all your own.
Keep in mind that bigger, trendier cities like San Francisco, Boston and Washington, D.C., already have a pretty saturated food truck market (as well as tougher regulations to get started) — so this might be a more successful business in a smaller heartland metropolis.
Food trucks also tend to have their own special set of ordinances, business licenses and safety compliance standards. They also require food business insurance , so you’ll want to contact your local health department to find out what will be required.
2. Car wash services
The rising price and expanded features of new vehicles are causing car owners to keep their cars longer, according to a 2020 study by Consumer Reports. And as drivers keep their cars longer, businesses like car washes that help people maintain the value of their auto investment are expected to keep rising as well.
According to the International Carwash Association, 66% of Americans wash their vehicles somewhere between one to two times per month, with an average of 13 times per year. The car wash market is projected to increase from $14.7 billion in 2021 to $20.7 billion by 2028.
You might make a car wash business even more profitable by turning it into a mobile service. Customers may pay more for a car wash that comes to them, especially if they have a luxury car and prefer a more personalized service. And as a mobile car wash and auto detailing service, you’d avoid the overhead and startup costs of having a physical location.
3. Auto repair
In 2021, the average age of cars and light trucks in the U.S. rose to 12.1 years, increasing from 9.6 years in 2002, according to IHS Markit (now part of S&P Global). People are keeping their cars longer than ever, suggesting there’s significant opportunity in the maintenance and repair business.
Additionally, car owners are more likely to visit a small business for repairs; according to the Auto Care Association, more than 70% of repair business is captured by independent repair facilities compared with dealerships or manufacturer-authorized repair facilities.
If you’re skilled as a mechanic, you might consider an auto repair service as one of the most profitable business ideas. You can offer oil changes, fluid refills, battery swaps, headlight repair and more. And if you’re looking to save on overhead costs, you might make it a mobile service and travel to your customers, performing repairs in their driveway or office parking lot.
4. Personal trainers
Employment of fitness trainers and instructors is projected to grow 39% from 2020 to 2030, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics. But turning your love of fitness into a career doesn’t have to mean working for a big corporate gym — nor do you need the overhead of having your own location to train clients. Throw a few weights, bands and yoga mats into the trunk of your car, and take your fitness show on the road.
You can become a personal trainer by offering one-on-one sessions in your clients’ homes or advertising group classes at a local park or community center. Making fitness more available to your clients might just be the ticket to helping both of you achieve your goals.
5. Newborn and post-pregnancy services
Although millennials are deferring parenthood for longer than previous generations, many do eventually want to have kids. In fact, according to an analysis of government data by the Pew Research Center, as of 2018, more than half of millennial women have had a child.
Now, both millennials and Generation Z are considering parenthood, and the need for child-oriented businesses is growing, starting with post-pregnancy and newborn-related services. And as a result, a 2018 Research and Markets report expects the maternity care market in North America to reach over $3 billion by 2023.
See how to get your business started quickly
6. Enrichment activities for children
A successful business to start might be one that teaches enrichment activities to children. According to a 2018 U.S. Census Bureau report, kids are just as involved in extracurricular activities today as they were 15 years ago. And some research indicates that nearly half of American parents spend more than 800,000 annually on their children’s activities.
You could launch a gymnastics center or music school, become a swimming instructor or kids’ yoga teacher, or focus on some other child-centered activity. If you have a skill that could be easily taught to young students, you might already have a profitable business in the making.
7. Mobile apps and entertainment for children
If your interests are in development and engineering, you might consider gearing your technology toward the youngest users. Research shows that demand for tablets, apps and mobile entertainment for children is on the rise — especially if those products are education-focused.
According to a Learning First Alliance report on mobile devices and early childhood education produced by research firm Grunwald Associates, more than 60% of parents surveyed believe that mobile devices and apps have benefits for teaching kids skills in reading, math, science and world languages.
Do you have an idea for an educational app for children or parents? If so, now’s the time to move forward on your bright idea for the next generation and make this potentially profitable business a reality.
8. Shared accessories and attire
These companies offer borrowed or rented clothing and accessories at a fraction of their purchase prices, and because the same piece of inventory generates revenue multiple times, the profitability of these ventures can be significant. According to a 2021 study by the reselling platform Mercari, the secondhand-clothing market is projected to more than triple by 2030.
Even if you’re not prepared to launch a multimillion-dollar fashion startup, you can just as easily profit from shared fashion at the local level. Gather some favorite accessories or clothing picks and host a borrowing party — where customers can rent or purchase items from your closet — for high school students before the next formal dance.
If you’re in a college town, Greek life formals are another great opportunity to profit from shared economy fashion. And because you’re taking shipping costs out of the equation, you have the potential to be even more profitable.
9. Shared home improvement equipment
Are you the go-to person in your neighborhood for every lawn, garden and home repair tool? Why not turn those tools into a profitable business by advertising your available equipment beyond your immediate friend group?
You might even decide to invest in more specialized and higher-cost equipment that would be useful to those around you. And if a customer doesn’t know how to use a specific tool, combine equipment rental with your mobile service for even more cash in the bank.
Home improvement spending has increased since the start of the COVID-19 pandemic — and U.S. households spent an average of $8,305 on improvement projects in 2020 alone, according to a study from Home Advisor. As more people continue to invest in fixer-upper houses and remodel, this could be a big opportunity.
10. Vacation rentals
If you live in a highly desirable tourist destination, you can make a profit renting space in your home to travelers. Sites like Airbnb or VRBO have made it easier than ever to profit from your unused vacation property — or even your extra bedroom. According to Airbnb, the average U.S. host makes over $13,800 a year.
It’s not too difficult to become an Airbnb host , and the demand for these types of rentals has only grown in recent years. In 2021, 356.9 million nights were booked on Airbnb — up from 251.1 million nights in 2020. However, some cities have laws and regulations regarding Airbnb and other rental platforms, so you’ll want to make sure you check the guidelines in your area before getting started.
11. Electronics repair
According to the Pew Research Center, as of 2021, 85% of Americans own a smartphone, and over 75% of U.S. adults own a desktop or laptop computer. And with more employees working from home, there’s an even greater reliance on a variety of electronics.
That means that when something goes wrong, people want help fixing it as soon as possible. This makes electronics repair a potentially lucrative business idea. According to a 2022 report from the Business Research Company, the global electronics repair and maintenance market is expected to grow from about $8 billion in 2021 to $9.6 billion in 2026.
With this service, you could be the solution for every broken iPhone screen, Wi-Fi card and laptop battery. And you might be even more successful if you’re willing to travel to your customer. Apple stores and other electronics retailers have come under fire recently for long customer wait times, which could work in favor of mobile providers.
#32. Become a Lawyer
Starting a legal services business can be accomplished in two ways. The easiest way is to become a paralegal, but paralegals aren’t allowed to give advice on the law. To provide legal advice, you have to pass the bar exam.
Business is Booming! The Covid-19 pandemic caused a considerable uptick in long-term care. Given that nearly one in five people living in the US have gotten Covid and 50% of people who survive it claim to have new ongoing health issues , we need doctors.
We’re not here to discuss politics, but there’s a huge market for all medical professionals when you combine that with our aging population. If you’ve ever wanted to be a doctor, now is the time to spend a decade in school, then become a small business owner.
- Caregiver: Formally called Personal Care Aides by the BLS, they help people with medical conditions by performing tasks such as running errands, cooking, and cleaning. The BLS estimates the median earnings land around $27,000 .
- Certified Nursing Assistant (CNA) : Seventy-five hours of training and median pay around $31,000.
- Licensed Practical Nurse (LPN) : All the duties of a CNA plus administering medications, need to pass an exam and take continuing education (CE), but it can mean about $49,000 median pay.
- Registered Nurse (RN) : Requires an associate’s or bachelor’s in nursing, licensure, and CE. RNs can do everything an LPN does plus, supervise other nurses, and make a media of $75,330 .
- Nurse practitioner, nurse midwife, or nurse anesthetist : These are similar to doctors, but depending on your state, may require the supervision of a physician. See the scope of practice from Simmons University below. They make a median of $118K .
- Phlebotomist : They draw blood and do transfusions. Requires a certificate and makes a median of $37K . If you know vampires in need of human blood, it can be one of the 5 most profitable businesses to start in 2022.
#40. Stock Brokers
If you have a firm grasp of finance, mathematics, and economics, starting a stock brokerage can be an excellent way to invest business capital, capitalize on your knowledge, and help other families build wealth.
Brokers typically have an MBA, but you can get started with a bachelor’s. You’ll need to pass several tests and complete the registrations with FINRA.org , but once you’re fully approved, you can sell stocks and bonds. The barriers to entry on this one are higher than some categories, and there are plenty of risks, so make sure you have some experience before you start asking families to invest with you.