We’ve interviewed over 300 businesses across our YouTube and podcast channels to establish which small businesses are the most profitable. In this blog, we’ll present the 55 most profitable businesses based on the average profit margin for each niche.
We looked at financial reports from early 2024 to ensure relatively recent data.
Each niche includes everything from the smallest business to the largest corporation, so some profit margins might seem much higher or lower than you’d expect when running a small business.
Some good news: When you run a small business that doesn’t aspire to be a megacorporation, you can often expect much higher profit margins.
Read from start to finish, or click on any of the links above to jump straight to info on the category of most profitable business ideas that interests you.
Industries With the Most Profitable Businesses
The most profitable industries include:
- Financials: The monetary sector leads the list of most profitable industries, with over 30% net income and gross profits for banks nearing 100%.
- Oil and gas: The oil and gas industry still has high net profits, with 28.26%, and a gross profit of 58.75%. This industry might be hard to get into, however.
- Tobacco: Selling addictive products pays off, with a 27.52% net profit and 61.25% gross profit. If you could start growing and selling your own tobacco, you’d probably make a killing!
- Transportation: This sector is likely here to stay. Even railroads still have an average net profit of 23.52%, and shipmakers also make a great living.
- Real estate investment trusts (REITs): REITs are big winners this year. They moved up from ninth place last year. Players in this industry earned 23.32% in net profit and nearly 78% gross margins.
- Software: Entertainment and system applications software companies are doing well, with 20% net margins. Entertainment software has gross margins of 63%, while systems and applications have around 72% gross margins.
- Investments and asset management: Managing other people’s money is an easy startup business. People with the right qualifications can tap into 19.82% net income and 67% gross margins.
- Water utilities: Providing water to municipalities can earn a sweet 19.34% net margin and 56% gross margin.
- Semiconductors: Producing parts for electronic equipment can earn 17.94% net profits.
- Computers: With 17.47% profits, computer and peripherals companies are similarly profitable.
But many of the most profitable businesses aren’t practical for people who want successful small business ideas for business owners.
Most of us don’t have access to venture capitalists or the ability to run a business for 10 years before it starts making money. So we’re constraining our list to the most profitable and best small businesses to start.
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What Small Business Is Good to Start?
A good small business to start normally has high growth opportunities and low barriers of entry, works well as a home-based business, and provides great profit margins. We’ve handpicked some of the most profitable small business ideas for you.
Source Disclosure
Our industry data is sourced from authoritative government agencies, industry federations, and key corporate reports, all compiled by IBISWorld. For detailed sourcing information, please visit IBISWorld.
#1. Residential Cleaning Service
• Average Annual Revenue: $53K+
• Average Profit Margin: 6.6%
• Average Startup Cost: $3.5K
• Average Time to Launch: 3 weeks
• Projected Market Growth: 2.4%
• Market Size: $18.8BN
• Best For: Self-motivated, independent, and detail-oriented entrepreneurs
We’re listing a cleaning service as the most profitable business because it’s easy to start on a low budget and has huge profit margins if you keep it small.
Cleaning businesses can be gold mines. They’re easy to start, and they have high success rates. Our friend Chris Mondragon pulls in over $125K monthly with his company, Bumble Bee Cleaning Services (formerly Queen Bee). In his words:
As you start out, your margins are 40-50%.
Forty to fifty percent! Seasoned business owners and aspiring entrepreneurs know how significant that is. With those figures and only 13 weekly cleaning contracts, you can rake in $7,800—not in revenue, but pure profit. Now imagine signing 20 or 30 of these high-paying contracts.
Cleaning is a business built to scale. But be careful: You can’t scale to millions of dollars just anywhere. There’s a tried-and-true calculation that reveals the earning potential in your area. If the numbers line up, you can scale to seven figures.
If you’re curious about how to use the calculation and want to know how to start your cleaning business from scratch—no franchise required—check out our UpFlip Academy program with Chris Mondragon.
You can read Chris’s incredible story here or watch our exclusive interview below.
#2. Social Media Management
• Average Annual Revenue: $817K
• Average Profit Margin: 6.9%
• Startup Cost: $100-$10K
• Average Time to Launch: 1-6 months
• Projected Market Growth: 1.3%
• Best For: Social media experts, writers and content creators, people with search engine optimization (SEO) expertise
Social media marketing is a super complex field. And according to Statista, it accounts for a $153.7 billion industry. All you need to get in on it is a computer, some software, and to find some clients.
Jason Yormark of Socialistics told us:
You can expect each client to be around $2,000-5,000 per month and require 20 to 40 man-hours to give them proper service.
That means a single person can make up to $40K monthly from home without investing in inventory. Find out how Jason turned his company into a $500K-a-year social media marketing agency:
Pro Tip: You can also learn from our blog on how to start a marketing agency.
#3. Accounting and Bookkeeping
• Average Annual Revenue: $244K per employee
• Average Profit Margin: 18%
• Startup Cost: $500-$2.5K
• Average Time to Launch: 3-12 months (plus accounting degree)
• Projected Market Growth: 1%
• Best For: Certified accountants, entrepreneurs with strong math and financial skills
To become a certified public accountant, you will need 150 hours of education in accounting. That’s a bachelor’s degree and passing the CPA exam, which is a test for proficiency created by the American Institute for Certified Public Accountants (AICPA).
Once you have a CPA license, you can start a company and make a great living. There are only 40,000 AICPA members and over 80 million tax returns filed annually by tax professionals, so there’s plenty of work.
Granted, tax prep services do some of those, but CPAs handle “the big ones.” Even at the low end of $100 per tax return, that’s still $8 billion in revenue, and that’s just part of what CPAs do.
Add in payroll, quarterly minimum filing, certifying businesses for SOC 2 compliance, managing business sales tax payments, and other business finances, and it’s obvious why working as a CPA is one of the most lucrative business ideas in 2022.
#4. TikTok Dropshipping
• Average Annual Revenue: TBD—niche too new for definitive data
• Average Profit Margin: TBD—niche too new for definitive data
• Startup Cost: $300
• Average Time to Launch: 2 months
• Projected Market Growth: TBD—niche too new for definitive data
• Best For: eCommerce entrepreneurs who don’t want to hold inventory
TikTok dropshipping can be highly profitable. Just ask Stone Ross, who has created multiple stores that earn $30K or more in the first two months. We share the strategies he uses to create these results in our dropshipping course so you can duplicate his results.
#5. Consulting
• Average Annual Revenue: $364K
• Average Profit Margin: 6.4%
• Startup Cost: $1K-$3.5M
• Average Time to Launch: 6-18 months
• Projected Market Growth: 2.2%
• Best For: Executives and business leaders, entrepreneurs with management or business expertise, people with strong analytic, problem-solving, and communication skills
A consulting business is focused on helping other business owners solve their problems. You can choose a niche if you have a specific area in which you are an expert, or you can be an all-in-one solution.
When I initially started my own consulting business, I was consulting on everything. One day I’d analyze payment processors, and the next, I would look for good influencers for a brand. I eventually gravitated to writing about business and technology because it makes it easier to pass knowledge on to thousands of people per month.
Business consultants can make anywhere from several hundred per day to billions per year. Consultants who specialize in mergers and acquisitions can earn huge commissions.
Check out this interview with Ryan Gromfin, who makes $35K a month with his consulting business:
#6. Face Painting Service
• Average Annual Revenue: $42.5K
• Average Profit Margin: 67.50%
• Average Startup Cost: $2,750
• Average Time to Launch: 3 months
• Projected Market Growth: 5.78%
• Market Size: $304.6BN
• Best For: Artistic entrepreneurs who like being in crowded environments
Face painting and body painting services are offered at events like parties, festivals, and fundraisers. Face painting artists use non-toxic paint and glitter to create fun designs for kids and adults. This small business idea costs less than $3K to get started and can have profit margins of up to 67.5%.
#7. AI Company
• Average Annual Revenue: $86.9BN
• Average Profit Margin: 53%
• Average Startup Cost: $55,000
• Average Time to Launch: 12 months
• Projected Market Growth: 20.40%
• Market Size: $515.31BN
• Best For: People who like to be on the forefront of technology
Small business ideas in AI (artificial intelligence) develop software solutions that seek to increase efficiency for other businesses using machine learning, databases, and prompts to help perform tasks quicker.
This fast-growing field has a 53% profit margin and is currently dominated by major businesses, but there is potential for profitable smal businesses to enter the industry and be highly successful.
#8. Homeschooling Service
• Average Annual Revenue: $65K
• Average Profit Margin: 50%
• Average Startup Cost: $55,000
• Average Time to Launch: 12 months
• Projected Market Growth: 9.80%
• Market Size: $5.41BN
• Best For: People who have a passion for teaching and supporting student growth
Homeschooling services help parents and teachers support students learning via an online environment as opposed to a school environment.
Services may include lesson plans, curriculum, textbooks, tutoring, online courses, and consultations to help parents create personalized learning around their child’s interests.
#9. Coworking Space
• Average Annual Revenue: $4.4M
• Average Profit Margin: 49.30%
• Average Startup Cost: $300,000
• Average Time to Launch: 18 months
• Projected Market Growth: 2.2%
• Market Size: $24.6BN
• Best For: Building owners, commercial real estate professionals, and small business owners with unused space
A coworking space offers a quiet, clean space for small business owners, freelancers, remote workers, and startups to work and receive their mail away from home.
These spaces normally charge a monthly fee and can be the most profitable small businesses because they can overbook spaces depending on the frequency at which each person actually uses the space they’re paying for.
#10. Snow Plowing and Removal Services
• Average Annual Revenue: $285K
• Average Profit Margin: 43.10%
• Average Startup Cost: $15,000
• Average Time to Launch: 6 months
• Projected Market Growth: 1.1%
• Market Size: $25.6BN
• Best For: People who own a truck and like driving
Snow plowing services specialize in clearing snow and ice from roads, sidewalks, and residential and commercial properties during winter months. They may also be combined with snow removal providers that take the snow to another location.
These profitable small businesses often offer routine service contracts and mid-sized snow plowing companies can earn between $100K and $1 million, with an average profit margin of 43.1%.
#11. Hedge Fund
• Average Annual Revenue: $34M
• Average Profit Margin: 40.10%
• Average Startup Cost: $550,000
• Average Time to Launch: 27 months
• Projected Market Growth: 2.0%
• Market Size: $118.4BN
• Best For: Accredited investors with business analysis skills and capital to invest
A hedge fund pools capital from accredited investors and institutions to pursue aggressive investment strategies, including long and short positions, derivatives trading, and alternative assets, with the goal of achieving high returns while managing risk.
Hedge funds are subject to significant oversight but are some of the most profitable small businesses with a 40.1% profit margin.
#12. Podcast Production
• Average Annual Revenue: $3.2BN
• Average Profit Margin: 39.10%
• Average Startup Cost: $5,500
• Average Time to Launch: 3 months
• Projected Market Growth: 29.80%
• Market Size: $17.59BN
• Best For: People with a good public speaking voice or who enjoy managing the marketing side of podcasts
Creating podcasts, hosting podcasts, and marketing podcasts are all extremely profitable small business ideas. The largest players make billions of dollars providing the software to host podcasts while small business owners can publish their own podcasts and make up to 39.1% profits.
#13. Warehouse
• Average Annual Revenue: $136K
• Average Profit Margin: 35.90%
• Average Startup Cost: $550,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.7%
• Market Size: $23.1BN
• Best For: People with a logistics or real estate background
A warehouse stores products and materials then fulfills orders. The revenue earned will vary based on the size of the warehouse, the services offered, and the location. Business owners typically make around a 35.9% profit margin on $136K revenue, making owning a warehouse a highly successful small business idea.
#14. Storage Unit Facility
• Average Annual Revenue: $136K
• Average Profit Margin: 35.90%
• Average Startup Cost: $300,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.7%
• Market Size: $23.1BN
• Best For: People with a logistics or real estate background.
Storage unit facilities rent space to people and small businesses who need to store property. These businesses can be largely automated to generate a source of income. In addition, they may provide living quarters for the small business owner or a property manager.
Successful storage units earn annual revenues between $100,000 and $1 million depending on the amenities, security, and other services offered.
It is commonly better to purchase an existing small business that you have the opportunity to update than to build a storage facility from scratch.
Pro Tip: Learn more about purchasing a business like a storage unit facility from our Ultimate Turnkey Business Guide.
#15. Venture Capital Firm
• Average Annual Revenue: $6M
• Average Profit Margin: 34.80%
• Average Startup Cost: $2,750,000
• Average Time to Launch: 30 months
• Projected Market Growth: 3.2%
• Market Size: $61.8BN
• Best For: Investors with large amounts of capital and business connections
Venture capital firms are financial companies that provide funding, expertise, and support to startups in exchange for equity ownership. Their goal is to achieve maximum returns through initial public offerings (IPOs) or acquisitions.
These small businesses have significant startup costs and will likely invest in multiple failed business ideas, but they still see a 34.8% profit margin because the winning investments tend to provide oversized returns.
#16. Investment Company
• Average Annual Revenue: $13M
• Average Profit Margin: 23.20%
• Average Startup Cost: $275,000
• Average Time to Launch: 30 months
• Projected Market Growth: 3.8%
• Market Size: $392.8BN
• Best For: Financial advisors, stock brokers, and other licensed individuals
An investment company manages assets for investors and institutions to make it easier to invest. This highly regulated financial service will normally require years of experience in the financial field, but the 23.2% profit margin is high for a small business considering investment companies normally take a percentage of all trading fees.
#17. Finance Company
• Average Annual Revenue: $6.1M
• Average Profit Margin: 22.60%
• Average Startup Cost: $550,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.5%
• Market Size: $6TR
• Best For: Financial advisors, stock brokers, and other licensed individuals
A financial services company offers financial products like credit cards, investment management, leases, and loans to individuals and businesses. This is one of the largest industries in the country, but the barriers to entry are high due to more regulations.
#18. Real Estate Investing
• Average Annual Revenue: $94M
• Average Profit Margin: 22.30%
• Average Startup Cost: $10,000
• Average Time to Launch: 9 months
• Projected Market Growth: 1.3%
• Market Size: $249.4BN
• Best For: Anyone with a 20% down payment
Real estate investors buy, manage, or sell properties for profit. Returns on investment can vary, typically ranging from 5% to 15% annually, depending on the location, property type, and market conditions.
There are other types of real estate investing companies that go beyond a small business. A real estate investment firm will require about $300K and another three months startup time, while a real estate investment trust normally requires over $5.5M in startup costs and 18 months to start.
#19. Laundromat
• Average Annual Revenue: $330K
• Average Profit Margin: 22.20%
• Average Startup Cost: $350,000
• Average Time to Launch: 9 months
• Projected Market Growth: .2%
• Market Size: $6.6BN
• Best For: Anyone with the 20% down payment
The laundromat industry plays a vital role in providing convenient laundry services to communities across the United States.
The laundromat sector is growing slightly, but a small business that offers diversified services and amenities can see stellar profits of 22.2%.
Pro Tip: Join the UpFlip Academy to learn how Dave Menz makes over $1.8 million annually in the laundromat biz.
#20. Urgent Care Clinic
• Average Annual Revenue: $7.4M
• Average Profit Margin: 22.10%
• Average Startup Cost: $750,000
• Average Time to Launch: 18 months
• Projected Market Growth: 2.9%
• Market Size: $46.7BN
• Best For: Healthcare professionals
Urgent care clinics provide walk-in medical services for non-life-threatening illnesses and injuries. They help with services that require a quick doctor’s appointment but not an ER visit.
They provide services like diagnostic tests, minor procedures, and vaccines. Like most medical facilities, they tend to be highly profitable, with a 22.1% profit margin.
#21. Law Firm
• Average Annual Revenue: $896K
• Average Profit Margin: 20.50%
• Average Startup Cost: $75,000
• Average Time to Launch: 6 years
• Projected Market Growth: 1.7%
• Market Size: $381BN
• Best For: People who have attended law school and passed the bar
Law firms provide legal services for people, companies, and other organizations. Many law firms specialize in a specific segment of law. As a small business, the profits average 20.5%, which makes it a great profit margin if you have a law degree and professional license. Paralegals can also start a law firm, but they can not give legal advice.
#22. Credit Union
• Average Annual Revenue: $25M
• Average Profit Margin: 22.20%
• Average Startup Cost: $5.5M
• Average Time to Launch: 30 months
• Projected Market Growth: 1.5%
• Market Size: $124.8BN
• Best For: People looking for a community-oriented, customer-focused banking experience
A credit union is a financial services cooperative that allows its members to own the profits and services. Credit unions function mostly like banks, providing financial products and services including savings accounts, loans, and credit cards.
Credit unions make profits from the fees they charge to customers for holding their money and offering loans. The profit margins average 20.2%.
#23. Tax Service
• Average Annual Revenue: $112K
• Average Profit Margin: 19.80%
• Average Startup Cost: $6K
• Average Time to Launch: 17 months
• Projected Market Growth: 0.10%
• Market Size: $13.9BN
• Best For: Certified accountants and tax professionals, people who are good with math, numbers, and finances
Becoming a tax specialist doesn’t mean you have to be an accountant, but it definitely helps. You just need a PTIN or to become an enrolled agent, according to H&R Block.
These businesses make 19.8% profit margins, and you can start for under $6K. Of course, the most profitable businesses include accountants, too. You’ll be able to make way more if you are a CPA or work with someone who is.
#24. Energy Drink Company
• Average Annual Revenue: $111M
• Average Profit Margin: 19.60%
• Average Startup Cost: $275,000
• Average Time to Launch: 15 months
• Projected Market Growth: 1.5%
• Market Size: $21BN
• Best For: Marketing professionals, product innovators, and individuals with strong distribution networks and regulatory knowledge
Energy drinks have replaced coffee for many younger people. These companies use a combination of caffeine and other energy-boosting vitamins and minerals to help people get through their days.
The manufacturers of these drinks make an average of $111M per year with 19.6% profits, making it one of the most profitable small businesses to start.
#25. Estate Sales
• Average Annual Revenue: $193K
• Average Profit Margin: 19.40%
• Average Startup Cost: $6,000
• Average Time to Launch: 8 months
• Projected Market Growth: 0.7%
• Market Size: $236.4BN
• Best For: Antiques enthusiasts, experienced appraisers, and individuals with strong organizational and marketing skills
A small business that manages estate sales helps a homeowner sell all their possessions. Their clients are normally people who inherited a property from a deceased relative—or a business or government agency that has claim to the property.
The small business may earn a flat fee for its services plus commission on all sales. The more valuable properties tend to have higher profit margins, but the average estate sale business makes approximately 19.4%.
#26. Real Estate Agency
• Average Annual Revenue: $193K
• Average Profit Margin: 19.40%
• Average Startup Cost: $55,000
• Average Time to Launch: 18 months
• Projected Market Growth: 0.7%
• Market Size: $236.4BN
• Best For: Outgoing and friendly people who are skilled communicators and salespeople
Real estate agents help people buy, sell, and lease residential or commercial properties. You’re required to have a real estate license to become a real estate agent or broker, but the average agency makes $193K per year with a 19.4% profit margin, which makes it a highly profitable small business to start.
#27. Hotel
• Average Annual Revenue: $2.1M
• Average Profit Margin: 19%
• Average Startup Cost: $2,750,000
• Average Time to Launch: 30 months
• Projected Market Growth: 2.3%
• Market Size: $239BN
• Best For: Hospitality managers, real estate developers, and individuals with strong customer service and marketing skills
The average hotel makes $2.1 million per year with a 19% profit margin. You’ll benefit from being in a high-traffic location for business travelers or tourists. It should be noted that tourism tends to be seasonal, which means you’ll need to save some of the money from the busy months to cover the slow season.
#28. Business Loan Services
• Average Annual Revenue: $2M
• Average Profit Margin: 18.7%
• Average Startup Cost: $60,000
• Average Time to Launch: 9 months
• Projected Market Growth: 1.3%
• Market Size: $23.5BN
• Best For: Financial analysts, credit officers, and individuals with expertise in risk management and financial technology
Business loans are a highly profitable part of the financial services industry. The average business loan servicer makes more than $2 million per year with 18.7% profits.
You’ll need proper licensing and strong knowledge of risk management, but if you can provide innovation in the industry, it can be even more profitable.
#29. Check Cashing Service
• Average Annual Revenue: $2M
• Average Profit Margin: 18.7%
• Average Startup Cost: $125,000
• Average Time to Launch: 9 months
• Projected Market Growth: 1.3%
• Market Size: $23.5BN
• Best For: Individuals with a background in retail banking, customer service, and financial management
Cash checking services help people who don’t have bank accounts cash checks in exchange for a fee—typically a percentage of the check.
These services may be combined with a payday lender. The average cash checking service makes more than $2M per year with a 18.7% profit margin.
#30. Software Company
• Average Annual Revenue: $10.6M
• Average Profit Margin: 18.3%
• Average Startup Cost: $55,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.8%
• Market Size: $528.5BN
• Best For: Coders and developers adept in programming languages, independent and self-motivated entrepreneurs with strong communication and project management skills
A software company creates and sells applications, platforms, and solutions to people and businesses. The average profit margins are 18.3% on $10.6 million in revenue, but many of the most profitable companies on the planet are in this sector.
#31. Drug Testing Service
• Average Annual Revenue: $200,000
• Average Profit Margin: 22.10%
• Average Startup Cost: $250,000
• Average Time to Launch: 20 months
• Projected Market Growth: 16.6%
• Market Size: $8.3BN
• Best For: Medical professionals, compliance officers, and individuals with expertise in laboratory science and regulatory compliance
Drug testing is part of the healthcare industry that focuses on screening people for substance abuse. Their main clients are other small businesses and government agencies. Drug testing facilities make an average revenue of $5 million with a profit margin of 17.5%.
#32. Campground
• Average Annual Revenue: $698K
• Average Profit Margin: 16.2%
• Average Startup Cost: $550,000
• Average Time to Launch: 18 months
• Projected Market Growth: 2.1%
• Market Size: $10.7BN
• Best For: Outdoor enthusiasts, hospitality managers, and individuals with experience in property management and outdoor recreation
Campgrounds are recreational areas for people to camp, park their RVs, and rent cabins. These vacation destinations may also provide opportunities for boating, hiking, and other leisure activities.
In addition to charging for the space, you can also set up a shop and rentals to increase your earnings. A campground normally makes over $698K per year with a 16.2% profit margin.
#33. RV Park
• Average Annual Revenue: $698K
• Average Profit Margin: 16.2%
• Average Startup Cost: $300,000
• Average Time to Launch: 42 months
• Projected Market Growth: 2.1%
• Market Size: $10.7BN
• Best For: Entrepreneurs with a hospitality background, real estate investors, and individuals with experience in campground management and outdoor recreation
While an RV park may be part of a campground, some locations have RV parks for people who live full time in their RVs. Even if you’re in a concrete jungle, you can still offer these services.
You’ll need hookups in every parking space and should offer amenities to make your location more attractive than parking in the free space at Walmart and other locations.
RV parks average $698K per year with a 16.2% profit margin.
#34. Car Detailing Service
• Average Annual Revenue: $272K
• Average Profit Margin: 16.1%
• Average Startup Cost: $6,000
• Average Time to Launch: 4 weeks
• Projected Market Growth: 2.1%
• Market Size: $17.3BN
• Best For: Car enthusiasts, detail-oriented entrepreneurs, and those who enjoy working with their hands
The car detailing industry focuses on the thorough cleaning, restoration, and finishing of automobiles. The U.S. market for car detailing was valued at over $12 billion in 2023 and is growing, driven by increasing luxury car sales and consumer awareness about car maintenance.
Detailing businesses can make between $50,000 and $500,000, with the average car detailing company making $272K per year and earning 16.1% profit margins.
#35. Car Wash
• Average Annual Revenue: $272K
• Average Profit Margin: 16.1%
• Average Startup Cost: $267,500
• Average Time to Launch: 8 months
• Projected Market Growth: 2.1%
• Market Size: $17.3BN
• Best For: Car lovers, detail-oriented entrepreneurs who like working with their hands
Car washes are similar to car detailing, but they’re mostly stationary. You might start a hand-washing, self-service, or automated car wash. Either way, they’ll be more expensive to start than a car detailing company, but they’ll still average around $272K per year with 16.1% profits.
#36. Dog Walking Service
• Average Annual Revenue: $39K
• Average Profit Margin: 16.1%
• Average Startup Cost: $2,750
• Average Time to Launch: 4.5 months
• Projected Market Growth: 1%
• Market Size: $1.3BN
• Best For: Pet owners, animal lovers, and those who like working outdoors
Lots of pet owners need someone to walk their dogs when they aren’t home. You’ll mostly be working with affluent customers in your local area. The average pet walker makes $39K a year with 16.1% profit margins, but if you have a full calendar, you can make way more.
#37. Equipment Rental Business
• Average Annual Revenue: $13.5M
• Average Profit Margin: 16%
• Average Startup Cost: $150,000
• Average Time to Launch: 9 months
• Projected Market Growth:1.3%
• Market Size: $47.8BN
• Best For: People who own rentable assets, collectors of cars, boats, or other equipment
An equipment rental company can be a successful business. With a 16% average profit margin and average revenue of $13.5 million annually, the average equipment rental business is making nearly $2.16 million in profits each year.
The type of equipment, your location, and your competition will impact the amount your small business will make and what equipment performs best.
Pro Tip: Make great money renting out your stuff with inspiration from our profitable rental idea list.
#38. VPN Solutions Provider
• Average Annual Revenue: $9.8M
• Average Profit Margin: 15.8%
• Average Startup Cost: $55,000
• Average Time to Launch: 9 months
• Projected Market Growth: 2.7%
• Market Size: $5.2BN
• Best For: Technology entrepreneurs, cybersecurity experts, and individuals with expertise in network infrastructure and software development
Many businesses and people use Virtual Private Network (VPN) solutions to protect privacy. Offering software, services, and technologies to help protect other small businesses can make an average of $9.8 million annually with a 15.8% profit margin.
#39. Bail Bonds Service
• Average Annual Revenue: $238K
• Average Profit Margin: 15.7%
• Average Startup Cost: $55,000
• Average Time to Launch: 9 months
• Projected Market Growth: 0.6%
• Market Size: $2.4BN
• Best For: Legal professionals, licensed bail bond agents, and individuals with expertise in finance and risk management
Bail bond companies are small businesses that help people get their loved ones out of jail at a fraction of the cost. They make money by requiring a percentage of the total bail and then put up the rest.
When the person appears in court, the bail bond company gets all the money back and the retainer is their profit. When someone doesn’t show, they pay a head hunter to find them, and take them out to the middle of the desert…err…back to jail to get their bail money back.
The average bail company makes $238K annually with a 15.7% profit margin, but successful ones can make much more.
#40. Radio Station
• Average Annual Revenue: $17M
• Average Profit Margin: 15.6%
• Average Startup Cost: $275,000
• Average Time to Launch: 30 months
• Projected Market Growth: 0.1%
• Market Size: $5BN
• Best For: Media professionals, broadcast engineers, and individuals with experience in advertising sales and content production
Radio stations are part of the media and broadcasting industry focused on music, news, and talk shows. This includes podcasts and streaming services.
The average radio station makes $17M annually with a 15.6% profit margin—primarily by selling ads and sponsorships.
#41. Trailer Rental Service
• Average Annual Revenue: $3.6M
• Average Profit Margin: 15.4%
• Average Startup Cost: $150,000
• Average Time to Launch: 9 months
• Projected Market Growth: 1.7%
• Market Size: $37.1BN
• Best For: Entrepreneurs with a background in logistics, fleet management, and customer service
This segment of the logistics and transportation industry focuses on renting trailers to contractors, moving companies, and other people.
Trailer rental companies average $3.6M in annual revenue at 15.40% profit margins.
#42. Cargo Van Rental
• Average Annual Revenue: $3.6M
• Average Profit Margin: 15.4%
• Average Startup Cost: $30,000
• Average Time to Launch: 4 months
• Projected Market Growth: 1.7%
• Market Size: $37.1BN
• Best For: Entrepreneurs with a background in logistics, fleet management, and customer service
Buying cargo vans and renting them to people has a 15.4% profit margin, with the average cargo van rental company making $3.6 million per year.
You can rent them out as is or convert them into camper vans for vacation rentals.
#43. Mobile Oil Change Service
• Average Annual Revenue: $360K
• Average Profit Margin: 15.3%
• Average Startup Cost: $30,000
• Average Time to Launch: 7 months
• Projected Market Growth: 1.4%
• Market Size: $10.8BN
• Best For: Automotive technicians, entrepreneurs with a background in vehicle maintenance, and individuals with experience in mobile service operations
Business professionals are busy and don’t have time to take their cars to a physical location for preventive maintenance. That’s why many companies have started offering mobile oil changes and vehicle maintenance.
The average oil change company makes $360K per year with a 15.3% profit margin. Best of all, this portion of the industry has low startup costs and a small skill set you need to learn.
#44. Barbershop
• Average Annual Revenue: $32K
• Average Profit Margin: 15%
• Average Startup Cost: $87,500
• Average Time to Launch: 6 months
• Projected Market Growth: 0.6%
• Market Size: $4.9BN
• Best For: Beauticians, barbers, and hair stylists with excellent customer service, communication, and organization skills
A barbershop is part of the personal care industry that focuses on cutting men’s hair and beards. The industry can be extraordinarily profitable when you rent a chair or open your own barbershop.
Most places require education or an apprenticeship, but the average barber makes $32K and 15% profit. Once you develop a reputation, get a full calendar, and learn to charge right, it can be much more.
#45. Event Venue
• Average Annual Revenue: $73K
• Average Profit Margin: 15%
• Average Startup Cost: $275,000
• Average Time to Launch: 15 months
• Projected Market Growth: 0.7%
• Market Size: $6.9BN
• Best For: Strong networkers, great party planners, outgoing and social entrepreneurs
Providing space for gatherings like corporate events, concerts, and weddings can be a highly profitable industry. The average event space makes approximately $73K per year with 15% profit margins, but if you offer additional services related to the industry, you can increase your profits dramatically.
#46. Crime Scene Cleanup Service
• Average Annual Revenue: $100K
• Average Profit Margin: 30%
• Average Startup Cost: $100,000
• Average Time to Launch: 16 months
• Projected Market Growth: 6%
• Market Size: $24BN
• Best For: Entrepreneurs with experience in biohazard remediation, individuals with a background in hazardous materials handling, and professionals with expertise in property restoration
If cleaning homes and businesses sounds boring to you, consider your own business doing crime scene clean-ups.
You’ll get to clean the mess left behind from murders, suicides, and biohazard incidents. There’s nothing boring about these cleaning companies. They make an average of $500K per year, almost 10x the average residential cleaning company. Plus, they have a 5.2% profit margin.
#47. App Development Company
• Average Annual Revenue: $30M
• Average Profit Margin: 14.6%
• Average Startup Cost: $55,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.8%
• Market Size: $178.1BN
• Best For: Tech entrepreneurs, software engineers, and individuals with expertise in mobile technology and digital product development
Web development companies that focus on building applications make an average of $30M annually with 14.6% profit margins. Whether you have a web development background, have offered consulting services, or are just good at hiring and managing people, you can make a great living with this small business idea.
Pro Tip: Want to make an app? Check out our How to Make an App: The Ultimate Guide.
#48. Coffee Brand
• Average Annual Revenue: $972K
• Average Profit Margin: 14.50%
• Average Startup Cost: $55,000
• Average Time to Launch: 18 months
• Projected Market Growth: 0.9%
• Market Size: $13BN
• Best For: Baristas and coffee experts who excel at customer service
Coffee brands roast, package, and sell coffee and coffee products through a physical location, food trucks, or an online store. The average coffee shop makes around $972K in revenue annually with a 14.50% profit margin.
#49. RV Rental Service
• Average Annual Revenue: $425K
• Average Profit Margin: 14.50%
• Average Startup Cost: $150,000
• Average Time to Launch: 10 months
• Projected Market Growth: 1.9%
• Market Size: $829.7M
• Best For: Entrepreneurs with a background in hospitality, tourism, and fleet management, as well as individuals with experience in outdoor recreation and customer service
RV rental services provide short-term and long-term rentals to people who want to use recreational vehicles for their outdoor adventures and road trips.
You can start with one RV or a whole fleet. This profitable business idea makes an average of $425K per year with a 14.5% profit margin.
#50. Billboard Advertising
• Average Annual Revenue: $605K
• Average Profit Margin: 14.2%
• Average Startup Cost: $55,000
• Average Time to Launch: 8 months
• Projected Market Growth: 7.2%
• Market Size: $7.9BN
• Best For: Entrepreneurs with a background in marketing, outdoor advertising, and real estate, as well as individuals with experience in sales and client management
Billboard advertising has been going strong since 1835. Think about all the changes in technology and digital marketing over that time, and that shows some real staying power. Billboard companies make an average of $605K per year and 14.2% profit margins.
If you’re trying to build generational wealth, starting a billboard company might be the right move for you.
#51. Escape Room
• Average Annual Revenue: $182K
• Average Profit Margin: 14.1%
• Average Startup Cost: $18,500
• Average Time to Launch: 4.5 months
• Projected Market Growth: 1.1%
• Market Size: $654.5M
• Best For: Entrepreneurs with a background in entertainment, game design, and customer experience, as well as individuals with expertise in event management and marketing
Escape rooms are entertainment businesses that give people the opportunity to solve a series of interactive puzzles to find their way out of a staged scenario. These themed rooms charge by the hour and make additional revenue from selling merch, food, and drink on the side.
The average escape room makes $182K per year with a 14.1% profit margin.
#52. PR Agency
• Average Annual Revenue: $418K|
• Average Profit Margin: 14%
• Average Startup Cost: $55,000
• Average Time to Launch: 10 months
• Projected Market Growth: 1.8%
• Market Size: $20.4BN
• Best For: Entrepreneurs with a background in communications, marketing, and media relations, as well as individuals with expertise in strategic planning and client management
Public relations companies focus on helping businesses and governments manage their reputations through communication. These companies may work with their clients on an ongoing basis or just when critical events occur.
The average PR company makes $418K annually with a 14.00% profit margin.
#53. Dental Practice
• Average Annual Revenue: $845K
• Average Profit Margin: 14%
• Average Startup Cost: $625,000
• Average Time to Launch: 18 months
• Projected Market Growth: 2.9%
• Market Size: $154.9BN
• Best For: Dentists, dental hygienists, and individuals with experience in healthcare management and patient care
Oral healthcare is crucial for people’s physical and mental health. Providing these crucial services can be highly profitable, with an $845K average revenue and 14% profit margin. You’ll need eight years of higher ed to become a dentist, though.
#54. Amusem*nt Park
• Average Annual Revenue: $45M
• Average Profit Margin: 13.9%
• Average Startup Cost: $5.5M
• Average Time to Launch: 48 months
• Projected Market Growth: 2.3%
• Market Size: $29.9BN
• Best For: Entrepreneurs with experience in entertainment management, hospitality, and customer service, as well as individuals with expertise in theme park operations and event planning
Amusem*nt parks are one of the more costly businesses on this list. Expect to spend $5.5 million to start an amusem*nt park, but know that the average annual revenue is $45M with a 13.9% payback.
That means you’ll likely make your money back each year after you develop a reputation.
#55. Funeral Home
• Average Annual Revenue: $846K
• Average Profit Margin: 13.9%
• Average Startup Cost: $550,000
• Average Time to Launch: 18 months
• Projected Market Growth: 1.20%
• Market Size: $19.1BN
• Best For: Entrepreneurs with a background in funeral services, mortuary science, and grief counseling, as well as individuals with experience in customer service and event planning within the funeral industry
Death is the only thing that is inevitable. Even taxes can be avoided. There are laws about handling dead bodies that most people are ill-prepared to handle. That means every year, there are a potential 2.9 million customers across the U.S. prepared to spend an average of $8K each.
The funeral home industry makes an average of $846K annually per home with a 13.9% profit margin.
Least Profitable Industries
There are some industries that are really struggling right now. You might want to avoid these industries if you want to make a profit fast.
| Industry | Net Income |
| Entertainment | -0.23% |
| Telecom Services | -0.28% |
| Chemical (Diversified) | -1.01% |
| Broadcasting | -1.41% |
| Furniture & Home Furnishings | -2.24% |
| Rubber & Tires | -2.53% |
| Electronics (Consumer & Office) | -3.05% |
| Real Estate (Operations & Services) | -3.14% |
| Precious Metals | -4.26% |
| Drugs (Biotechnology) | -11.88% |
| Software (Internet) | -14.32% |
| Real Estate (Development) | -16.35% |
Most of these industries are tied to big purchases. We’re seeing losses tied to inflation of expenses like materials and wages, combined with people cutting back on making new purchases. This is expected when discretionary income decreases.
Pro Tip: Assuming wage growth continues and outpaces inflation, we should see these return to profitability in a few years. Until then, our blog on recession-proof businesses can provide even more inspiration for getting started in a bad (or questionable) economy.
So What Are the Most Profitable Businesses to Start?
We’ve discussed the most profitable business ideas from multiple vantage points. Some are easy businesses to start from home, and some are not as easy to get into because of education requirements or other barriers to entry.
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When it comes down to it, the most profitable business for you to start is one you have knowledge in, you know how to find customers for, and you want to spend the rest of your life exploring and working with.
You can make any of your favorite 2024 business ideas one of the most profitable and successful business ideas if you:
- Create a business plan: Read our guide if you’ve never created one.
- Provide excellent customer service: Check out HelpScout’s blog on what makes great customer service.
- Educate yourself on the industry: Follow our blogs and YouTube.
- Don’t give up: Many business owners give up right before they hit exponential growth. Learn how to run a business.
What other profitable and successful small business ideas are you thinking about starting?
