Some people venture into entrepreneurship knowing what industry they want to conquer and what type of business they want to start. However, for many new entrepreneurs, it can be difficult to figure out how to start a business and exactly what type of business is the best option. It’s hard to find that perfect idea.
We have compiled a list of the most profitable small businesses for 2020. Each of these types of businesses is growing rapidly and can provide you with a good life. Even better, none of them require a lot of capital to get started. With the right combination of hard work, determination, and ingenuity, you can start one of these most profitable businesses in 2020.
The most profitable small businesses from 2021 to 2022
With the rise of technology, many of these more profitable companies fall within the realm of online business ideas, but not all. You’ll also find ideas that pertain to the child care arena, others that are more suited to B2B services, and some that are tailored to entrepreneurs looking to get on the go with their businesses. With that said, there’s nothing to say that any business idea you come up with won’t be profitable, but if you’re looking for a good place to start, you’ll want to check out this list of the most profitable small businesses. business:
1. Car repair
Bringing a car to the shop for even simple repairs can be challenging. After all, most of us use our cars to get from one place to another; That means getting a car in for repair often involves a long wait at the repair shop, renting a vehicle for the day, or arranging a trip with a friend or wife. These options are expensive and inconvenient.
The good news is that while some repair jobs require auto shop equipment to complete, there are many maintenance and repair services that only need a few simple tools to complete. If you have skills as a mechanic, you might consider a mobile auto repair service as one of the most profitable business ideas. You can offer oil changes, fluid refills, battery changes, headlight repair and more directly at your customer’s driveway or office parking lot.
2. Food trucks
The food truck movement is set to continue to grow and grow.  As rents rise in major cities across the country, it becomes more difficult for emerging specialty food artisans to finance a physical location in bustling city centers, where their customers are most likely to be. .
Food trucks offer a great solution. You can start a food truck by hitting the road and parking yourself at local events, farmers markets, the local town square, wherever it is likely to draw a crowd. The lower overhead and greater geographic versatility of a food truck mean you can turn your grandmother’s famous dumpling recipe or that offbeat dessert idea into your own thriving business.
Keep in mind that larger, more modern cities like San Francisco, Portland, and Boston already have a fairly saturated food truck market, so this could be a more successful business in a smaller heart metropolis. Food trucks also tend to have their own special set of ordinances, business licenses, and safety compliance standards, so contact your local health department to find out what will be required.
3. Car wash services
Next on our list of the most profitable companies: mobile car wash services. It seems safe to say that many people would pay a premium for a mobile car wash that came to them, rather than having to cross town to access a car wash. This is especially true for people with luxury cars who prefer a more personalized service. As a mobile car wash and auto detailing service, you would not only benefit from the unique value proposition of being mobile, but you would also avoid the significant startup and overhead costs of having a physical location.
Not sure how to start your own mobile car wash service? There are a variety of online wholesalers offering auto detailing starter kits as well as training for those interested in starting their own business in this niche industry.
4. Repair of electronic devices
To say that Americans these days are obsessed with electronics would be an understatement. People spend most of their waking hours staring at a screen of some kind. This widespread addiction to technology means that when something goes wrong, people want help as soon as possible.
So there’s no question that mobile electronic device repair services are popular and could easily be one of the most profitable small businesses. With this service, you could be the solution for every broken iPhone screen, WiFi card, and laptop battery. Plus, you’ll be even more successful if you’re willing to travel with your client. Apple stores and other electronics retailers have recently come under fire for long customer wait times, which could favor mobile phone providers. 
That said, although a mobile electronic device repair business involves some overhead in the form of purchasing supplies, keeping your business mobile saves you from the high overhead costs of a physical location, making it an even more service business idea. profitable.
5. IT support
Although two-thirds of Americans think they are tech savvy, the truth is that they often need to rely on technical support.  Some even make their computers or other devices vulnerable to hackers and identity theft. Unfortunately, when things go wrong, the free phone customer support provided by the manufacturers often does not feel supported or does not solve the problem.
If technology is easy for you, and you are a relatively patient person, then the most profitable business for you might be to hit the road, at least in your neighborhood, with mobile IT support. All it takes is time, transportation, and your own knowledge, so this low-overhead business model is almost pure profit.
6. Personal trainers
Turning your love of fitness into a career doesn’t have to mean working for a large corporate gym, nor does it need the overhead of having your own location to train clients. Drop some free weights, bands, and yoga mats in the trunk of your car and take your fitness show on the road.
You can become a personal trainer by offering individual sessions at your clients’ homes or by advertising group classes at a local park or community center. Making fitness more available to your clients could be the ticket to helping them both achieve their goals. As Americans begin to eat healthier and exercise more, fitness and wellness businesses are gaining popularity and becoming some of the most profitable businesses as well.
7. Newborn and post-pregnancy services
Although millennials are putting off parenting longer than previous generations, they eventually want children; in fact, in 2016, 1.2 million millennials became new mothers.  Therefore, the need for child-oriented businesses is growing, beginning with newborn and post-pregnancy related services.
The demand for doulas and lactation consultants, in particular, has increased among new mothers, and both business options have relatively low overall requirements beyond education and certification, meaning these professions could easily become one of the most profitable businesses to start.
8. Enrichment activities for children
As the number of children in the United States grows, shrinking budgets for education mean that both traditional academic studies and enrichment subjects such as music, art, and athletics have had a significant impact. 
As a result, more parents are turning to private businesses for enrichment activities outside of school. With that said, one of the most successful businesses for you could be a fitness center, music school, swimming instructor, kids yoga teacher, or other child-centered activity. If you have a skill that could easily be taught to young students, you may already have a profitable business in the making.
9. Mobile applications and entertainment for children
On the other hand, if your interests are closer to technology or entertainment, consider targeting your technology towards younger consumers. Research shows that regardless of expert advice, the demand for children’s tablets, apps, and mobile entertainment is on the rise. 
Have an idea for an educational app for kids or parents? If so, now is the time to move on with your brilliant idea for the next generation and make this potentially profitable business a reality.
10. Shared clothing and accessories
Sites like Rent the Runway and Gwynnie Bee have opted for the idea of the sharing economy, where we want and need to own less things, so we share resources. This trend has created small business opportunities for these companies, offering borrowed or rented clothing and accessories at a fraction of their purchase prices. And because the same piece of inventory can generate revenue multiple times, the profitability of these companies is quite significant.
Do you have an eye for fashion and a sense of style that other rental services don’t currently offer? Maybe you’re ready to be the next big thing.
But even if you’re not ready to launch a multi-million dollar fashion startup, you can easily benefit from locally shared fashion. Gather some of your favorite accessories or clothing selections and throw a loan party for the high school students before the next formal dance. If you are in a university city, the Greek way of life is another great opportunity to benefit from the trend of the sharing economy. And because you’re removing shipping costs from the equation, it has the potential to be even more profitable than larger startups.
11. Shared Home Improvement Equipment
Are you the go-to man or girl in your neighborhood for every lawn, garden, and home repair tool under the sun? Why not turn those favors into a profitable business by advertising your available equipment beyond your immediate group of friends?
You might even decide to invest in more specific, 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 your equipment rental with a mobile handyman service to get even more cash in the bank. This could be a great opportunity as one of the most profitable business ideas as more people are investing in home repair and need tools and advice.
12. Vacation Rentals
Sites like Airbnb or VRBO have made it easier than ever to cash in on your unused vacation property, or even your spare bedroom. Plus, it’s not too difficult to become an Airbnb host, and the demand for these types of rentals has only grown in recent years. So if you live in a highly desirable tourist destination, you can easily make a profit by renting a space in your home to travelers.
13. Academic courses
Once again, with the growth of technology, online business owners are doing some of the most profitable business by offering courses through educational platforms or independently through their own websites. So you can start with traditional academic studies, offering supplemental online instruction in grade-level reading, math, science, or history, or even standardized test preparation.
You could even create a refresher course for parents to help teens with their algebra homework. If you are creative, the possibilities are truly endless. And academic courses don’t have to end in high school or even college. You can create an online course to share your love for political history, Buddhist theology, or space science. If you are interested in a particular topic, chances are someone else is too.
14. Language courses
Furthermore, as communication improves and borders blur, consumers around the world are looking to learn languages. Whether you adopt online education with an English language experience or take advantage of your command of Swahili, there is likely someone who wants to learn a language from you. And they are probably willing to pay for it. You may have a successful business on your hands, especially if you speak the most requested languages in 2020 and beyond, such as Arabic, Spanish, and Mandarin. 
If you have skills in a little-known language or are especially adept at teaching a more well-known language, a language-based online educational session could be one of your most profitable business ideas.
15. Business or marketing courses
The sad reality is that while liberal arts degrees can develop critical thinkers, many college graduates don’t gain the marketable skills that make them successful in business. Your ability to fill in those gaps with your own experience could be one of the best small business ideas that you can start with a very low upfront cost.
What skills and lessons have you learned the hard way in your own business or career? Share your experience with fellow entrepreneurs through a B2B-oriented online course. Popular course topics include accounting, QuickBooks accounting, WordPress web development, graphic design, how to develop a great client proposal, or even how to write a great cover letter or resume.
16. Personal well-being
Are you a long time therapist or counselor, yoga instructor, life coach or meditator? If you have a deep passion for personal wellness, you may be able to help others find their own Zen, while also earning a significant income. All you have to do is share what you know.
If you are skeptical about the combination of personal wellness and online courses, look no further than Oprah. She is the queen of personal wellness and has been an early proponent of online courses, including author Brene Brown’s CourageWorks on the power of vulnerability.
Every person has a desire to excel, and that is exactly what online courses are all about. If you have this experience to share, you could easily turn your knowledge into one of the most profitable businesses.
17. Courses of other hobbies
While many courses are designed to promote education or career prospects or to promote a major life change, you can easily design an online course around any hobby or interest. Do you have a passion for calligraphy or craftsmanship? Have you mastered a certain video game? You would be surprised how many people are willing to pay to learn about topics that interest them.
Not sure how to start designing your own online course? Well, there are even online courses for business owners. You can use one of these courses to boost your own online course business, or any of the other ideas on our Most Profitable Small Businesses list.
18. Bookkeeping and accounting
Accounting and bookkeeping are an unavoidable reality of business ownership. But for many entrepreneurs, money management is the worst part of owning a business. Whether you’re a licensed CPA or just a QuickBooks assistant, you could be the perfect candidate to launch your own business while keeping the personal and small business finances of your fellow entrepreneurs in order. With a net profit margin of 19.8%, bookkeeping, accounting, tax preparation, and payroll services have long been some of the most profitable businesses for entrepreneurs. 
As an accountant, you can process invoices and payroll, compile expense reports, and more. If you have a CPA license, you can help business owners file taxes, generate balance sheets and other accounting documents, and make your professional recommendations on your client’s results.
If you’ve been in the business world for a long time, people may be clamoring for your knowledge and expertise within your industry. Why not turn all that knowledge into a new career as an independent consultant?
You may be paid to speak at industry conferences or events, serve on an advisory board for a startup, or lend your expertise to shape the strategy of an existing contract company. Whatever your skill set, starting a consulting business is a great way to earn your dream income while working on your own terms.
20. Graphic design
As the number of brands competing for consumers’ attention grows, a sleek and polished image has become more important than ever to small businesses. Regardless of whether they can afford a large-scale advertising or marketing agency, almost every small business will need a certain amount of graphic design work from time to time.
Are you familiar with Photoshop, Illustrator, and InDesign? Have you taken some design classes and have a good eye for a good brand? Turn your skills into a business as a freelance graphic designer. You’ll have almost no overhead, and you’ll be able to charge significant hourly rates to do what small business owners can’t do for themselves – create amazing marketing graphics.
3 steps to starting a profitable business
As you can see, the most profitable companies span different industries, time commitments, and start-up costs. With that said, regardless of the most profitable business idea you’re leaning towards, there are a few things you’ll need to get your business started.
So, if you’re still in the early planning stages, you can check out these three steps to get started rolling:
Step 1: Find the perfect idea and do your research.
A business starts with a good idea. But to bring that idea to life, you need to do your research to make sure the concept succeeds. Go through an idea validation process, including market and competitor research, and financial feasibility analysis, before you go too far. Consulting this list of the most profitable companies will be your first step in this process.
Step 2: get organized and make it official.
When you’re sure you have a good idea to work with, it’s time to plan your business logistics with a well-formulated business plan. When you’re sure you have everything in writing, you’ll want to take steps to make it official. This includes choosing a business structure, applying for an EIN, registering your “Doing Business As” name (if required), and obtaining the business licenses and registrations that your specific business needs to open its doors.
Step 3: find the right financing.
Every business needs capital to grow, and startups are certainly no exception. But as a new startup owner, you may have a hard time qualifying for traditional business loans early on. That’s why we recommend that you start financing your initial growth with a business credit card. Not only will it be easier for you to qualify for a credit card than it is for a traditional business loan, it will also jumpstart your business credit history, earn benefits and rewards as you spend, and take advantage of zero interest benefits. % of introductory APR periods (that’s like a free loan).
Toolkit for business start-ups
As we mentioned in the last step, finding capital and managing your finances is an important part of starting your business. Even if you don’t have a ton of finances to manage yet, setting yourself up for success can be the key to ensuring your business is profitable.
So, to help you with this process, we’ll break down a few recommendations as part of our toolkit for the most profitable business startup, including major business bank accounts, business credit cards, and accounting software.
Business bank accounts
Opening a business bank account is one of the first and most important steps you will take to separate your business and personal finances. Fortunately, there are several different business checking and savings accounts to choose from, depending on what you are looking for.
Chase Total Business Checking Account
First, if you prefer a business bank account from a traditional financial institution, you could consider Chase Total Business Checking.
With this account, you will only have to pay $ 12 per month (if you sign up for electronic statements) and you will receive 100 free transactions per month, plus unlimited free electronic deposits. Plus, you can deposit $ 5,000 in cash per month, at no additional charge. Additionally, Chase has a network of 16,000 ATMs in 26 states and does not require a minimum first deposit.
Azlo business checking account
On the other hand, if you prefer a commission-free online bank, you can search Azlo Business Checking. You can choose from the free Azlo account, or you can upgrade to an Azlo Pro account for advanced features, including unlimited envelopes, advanced billing, and reduced instant transfer fees.
With Azlo, you can open and manage your account completely online; Furthermore, you will not have a minimum first deposit or a monthly fee. Additionally, Azlo includes free electronic payments, free incoming electronic deposits, unlimited in-app billing, mobile check deposit, and free bill pay. Also, although Azlo is an online bank, they give you the ability to withdraw cash, free of charge, at more than 55,000 ATMs within the network.
With that said, while these are two of the many business bank accounts you might decide to open, it’s important that you find the right one for your business and check off the first item in our most profitable business starter kit.
Business credit cards
Once you’ve chosen a business bank account, the next thing you’ll want to get to help you manage your finances, and in this case, finance your business, is a business credit card. With a business credit card, as we mentioned earlier, you will be able to cover business expenses, build business credit, and even earn rewards along the way. So, like business bank accounts, there are a number of business credit card options to choose from, including those with cash back rewards, reward points, and travel-specific rewards.
Here are three main options you could consider:
Chase Ink Business Unlimited
First, for a fixed rate cash back card that also offers one of the longest 0% introductory APR periods on the market, you can choose Chase Ink Business Unlimited. This card allows you to earn an unlimited 1.5% cash back on all purchases, has no annual fee, and offers a $ 500 welcome bonus if you spend $ 3,000 on the card within the first three months after opening your account.
Also, and particularly notable to new business owners, this card offers a 12-month 0% starting APR period, which means you can keep a balance on purchases you make interest-free during this time. However, after the 12 months have elapsed, your APR will be set at a rate that will vary based on the market prime rate and your creditworthiness.
American Express Blue Business Plus
You could then consider American Express Blue Business Plus. Like Chase Ink Unlimited, this card offers a 12-month 0% starting APR period on purchases. Again, after the 12 months, you will receive a variable APR based on the market prime rate and your credit worthiness.
Additionally, Blue Business Plus has no annual fee and offers rewards in the form of points, rather than cash back. You will earn 2x reward points for the first $ 50,000 you spend on purchases and 1x reward points on all purchases after that threshold is reached.
Capital One Spark Miles Selection
Finally, for a business credit card with travel-specific rewards, you might consider Capital One’s Spark Miles Select. This card earns 1.5x miles on each purchase with no limits on the amount you can earn. Spark Miles Select also has no annual fee, no overseas transaction fees, and offers a welcome bonus of 20,000 miles if you spend $ 3,000 within the first three months with the card.
Additionally, Spark Miles Select offers a nine-month 0% initial APR period on purchases, which means you can maintain an interest-free balance on the card during this time. However, after the nine months are up, a variable APR will be set based on the market prime rate and your creditworthiness.
Again, there are many other business credit card options in addition to these three. So you’ll want to explore all of your options and find the credit card that works best for your business.
The last item in our most profitable business startup toolkit is accounting software. Choosing a business accounting software is critical in helping you automate your daily accounting tasks and keep your finances up-to-date and organized. With that said, you can look into either of these two top accounting solutions for your business:
Perhaps the most popular accounting software for small business owners, QuickBooks Online can serve businesses of all shapes and sizes. With QuickBooks, you can manage your basic bookkeeping and bookkeeping tasks, prepare your taxes, bill clients, and more.
There are five different QuickBooks Online plans, each of which varies in price and functionality. Plus, with the popularity of QuickBooks, you can easily find a professional accountant to help you with your books or answer any questions you may have about this platform.
Wave accounting software
On the other hand, if you are not ready to pay for accounting software, you might consider the best free solution, Wave accounting. With Wave, you can track your income and expenses, bill customers, connect your bank account and credit cards, customize sales taxes, export reports, and more. Also, the basic Wave software is completely free; all you have to do is sign up for an online account to get started.
However, if you decide you want to get the most out of your Wave software, you can also opt for its payroll or payments plug-in, to accept payments from your clients through Wave or to manage your payroll processes.
Once you’ve added these three items to your most profitable business start-up toolkit, you’re in a great place when it comes to your business finances. At this point, you may consider other business tools or platforms that you may need, such as legal services, payroll software, or other solutions that will be useful for your specific business or industry.
The bottom line
At the end of the day, while industries like healthcare technology, finance, and product manufacturing may dominate the stock market and the Fortune 500 economy, those same industries aren’t necessarily the most profitable or accessible options for entrepreneurs. of small businesses.
Instead, many of the most profitable businesses for first-time entrepreneurs will be those that are easy to start, have low start-up costs, and can capitalize on a market need or trend. As you’ve seen on our list of the most profitable small businesses, there are plenty of ideas that will suit the full range of business ownership experiences and preferences.
Ultimately, all you have to do is pick the winning idea for yourself, start planning and getting things going, and before you know it, you will quickly reap the benefits of a most successful business venture in 2021-2022.