Service businesses make great options for startups and freelance work. They require low investment and usually allow for high profits.
Since they mostly rely on skills, there is no need to have a vast education in your chosen line of work. Another benefit is that these profitable businesses don’t demand the keeping of stocks or depend on supply chains.
If you want to start your own business, going service-based might be the most promising way.
This article contains a list of the most profitable service businesses that will continue growing in the next few years.
The Most Profitable Business Ideas to Start
Below are 27 small business ideas divided by the job sector to help you understand which are the most profitable service businesses right now. Look into them!
Business, Management, and Administration
Accounting and Tax Preparation
Everybody pays taxes, yet most people don’t know how to prepare and file them. This area of expertise generates some of the most profitable small businesses.
Many business owners depend on accounting services for tax purposes and to keep track of business finances and results.
To start in this field, you must invest in proper education, so startup costs are higher for this small business. You’ll need an undergraduate degree to start. Expanding your business idea will require a CPA license or an IRS Enrolled Agent certification.
On the other hand, the more qualifications, the higher the income. Accounting is a very lucrative business. The average CPA salary is much higher than a general accountant or bookkeeper.
Consulting is one of the most profitable businesses today.
Many larger business owners have internal consultants. Their goal is to help improve their business plan, function, results, and public image. Other small business owners prefer to hire freelance professionals for the same effect.
Either way, a consulting business is perfect if you are acquainted with any line of work or skill.
Promote yourself within the right networks, and you can start a small business and grow your reputation!
Payroll services are a great option if you live near or are in contact with large businesses and corporations.
Startup costs can be high, considering you might have to buy suitable payroll processing software. You can also affiliate with other businesses, promoting their software. In this case, you’ll earn the commission.
Either way, most big companies opt for hiring these services to pay their employees and file employment taxes.
This line of work can be one of the most profitable service businesses. Especially if paired with any knowledge in accounting and tax preparation. Doing so will allow you to make additional profit.
Communications and Information Technology
We live in the world of intelligent technology. Mobile App development for different devices and operating systems is one of the most profitable small businesses.
Apps have changed the user experience. Big and small businesses alike are taking advantage of the movement. Virtual assistant services, for example, were revolutionized by the use of such apps.
Besides code-creating, you should know how to enhance apps and fix glitches. Many have gained the knowledge to do this through online courses.
If you’re looking for great business ideas, consider the cost of creating an app, and the fact that the app-making business business should continue growing for a long time.
Offering graphic design services is one of the most creative and profitable business ideas.
Physical and online advertising uses visual aids to send messages and incite action. Websites depend on graphic design to be engaging and informative. Overall, it’s a great way to pair your love of arts and IT knowledge.
If you have an internet connection, you can work from anywhere. There are also several free apps and programs that you can use to start with a low investment.
Technologies are here to stay. After you build a strong reputation, you can try providing an online course.
With a graphic design business, you’ll be one of many very successful business owners!
IT Support, Technology Consulting, and Repair
We use technology every day. Individuals and companies depend on technological means for almost everything. This means that IT support has the chance to be the most profitable business of all.
Know-how is the most important thing for this small business idea. If you know your tech and have means of transportation, you can start your own business tomorrow.
You can decide on one or more services, between support, consulting, and repair. Or even specialize in a specific device or software. Either way, IT is sure to be a lucrative business.
Developing software requires specific technical knowledge. As with other online business ideas, an online course can help you achieve the necessary know-how to create your own software. Alternatively, you can choose to outsource your software development project to a reliable software development agency.
Afterward, selling that software to other companies will be a successful business.
Employment opportunities will grow faster for software developers than all other occupations. Those are the Bureau of Labor Statistics expectations.
As a business owner, you can also focus on creating specialized software for niches. Doing so is sure to give you an advantage.
Community and Social Services
If you love kids, starting an activities program for them is one of the best small business ideas.
You can prepare a plan for each age group and work based on the school calendar, maybe even set up a summer program.
Offering educational and fun content in different interest areas will make the children and their parents happy. Then, you can do some publicity and use word-of-mouth to have a fully booked schedule.
Using a low-rent or public space will ensure a low overhead.
Tutoring—Both Online and In person
Being skilled in any school subject gives you the chance to be a tutor.
Most parents have neither the time, energy, or education to help their kids through school. A hired tutor can help with homework, school projects, understanding a topic, and improving grades.
You can quickly become known and grow your small business by hiring others to work with you. You can also offer tutoring in specific disciplines that are lacking in your area.
If you have an internet connection, the option to work online provides freedom and enlarges your reach.
Food and Beverage
To start a catering business, you need significant cooking and organizational skills. The opportunity to use your kitchen and gear makes this a low investment business.
If you haven’t got your own vehicle, you can use delivery services. If you do, getting into the logistics side of catering might be an option. This is a niche that provides opportunities for expansion into other areas, such as pharmaceutical shipping.
Catering is one of the most profitable businesses in the food and beverage industry. With some help you are sure to be successful.
In fact, according to Catersource, the average pre-tax profit margin for caterers is 7-8%. Double the average of the full-service restaurant industry. It’s also anticipated that the market reaches a staggering $328.11 billion in 2025.
The overhead costs are more elevated than in other small businesses. But a food truck is one highly profitable business.
Besides being trendy, a food truck will allow you to switch locations and offer a creative menu.
First, you should create a strong business plan. Then, you need to put in a lot of effort and produce efficient social media marketing. Marketing is key to standing out in the current small business landscape.
For this small business, location is critical. You can start in a smaller area and move after you become known. Or you can opt to stay at a place with a heavy flow of people. Cooperating with courier services in your area is also a great option. Very successful food trucks even have followers that travel along with them!
Becoming a personal chef is one of the most profitable business ideas. Using your clients’ kitchen and equipment brings down startup costs.
The job requires good organizational skills and lots of creativity. Depending on your clients, this business idea also allows you to travel.
The average income is nearly $63.5K. Profit margins vary in relation to the number of people in your employment.
If you follow food trends and love cooking and ingredient shopping, you can start planning your business venture as a personal chef.
Installation, Repair, and Maintenance
Offering cleaning services is one of the best ways to go amongst low-cost business ideas.
Because of the pandemic, people worry about maintaining a clean and healthy environment. This applies to their homes and workplaces. Pet owners might also have difficulty keeping furniture neat and in good condition. So, your small business may offer a more specific cleaning service for such clients.
Depending on your location, you can choose between domestic and commercial cleaning. In fact, until 2026 the market for commercial cleaning is expected to grow 6% annually.
Handyman and Maintenance
Since it covers many areas, this is one of the most profitable small businesses. Lack of time and knowledge can make people retract from completing simple tasks.
If you know a thing or two about plumbing, electricity, painting, and et cetera, this might be a great small business for you to try.
You’ll have to supply your own transportation and tools, but you can establish an hourly rate. According to the US Bureau of Labor Statistics, the average salary reaches $20.76 per hour.
Creating a small business that offers an all-in-one solution for people in your area can be a great idea!
Mobile Car Wash
Low startup costs and high profits make this an outstanding small business idea. The investment is much lower than a physical car wash would demand.
With a mobile car wash, you can charge extra for travel. You can also provide your clients with personalized cleaning services.
You can reach a larger audience by advertising in an auto repair service shop. In this line of work, you are sure to build a very profitable business.
Dental care is one of the most profitable service businesses today. Startup costs are high, considering all investments in equipment, education, and training. To practice, Dentists must get a bachelor’s degree and a doctorate in dentistry. Hygienists also need at least two years of school.
Although setting up a dental office isn’t the lowest-cost alternative, it’s a very rewarding one. The average cleaning costs $288. So small business owners can make significant profits with simple interventions.
Newborn And Post-Pregnancy Services
Most moms need assistance during recovery after giving birth. However, resorting to the local health department for an extended period might not be an option.
As a business owner, you can provide them with much needed post-pregnancy services. The goal is not only to help the mom recover but also to assist her while she adapts to her new reality.
These services include simple tasks, like helping with house chores and caring for other children. You’ll also need to help the new mom with her medication and other responsibilities.
Like all successful businesses, you can plan to expand over time. Hire professionals that have specialized training and certification, like therapists or doulas.
Many areas have a large elderly population or lack the necessary support systems to help senior citizens. Besides, to prevent putting elderly family members in senior citizen homes, people hire care workers.
A senior care company is one of the most profitable service businesses to start. The Bureau of Labor Statistics says employment in this line of work should grow 25% until 2031.
A senior health care worker helps with the housework and medication. They also care for plants, pets, and other duties.
You have several different ways to go with your business. You can start as a freelancer, open your own company, or opt to become a franchisee.
Law and Public Policy
Providing legal services is possibly the most lucrative of all profitable businesses.
Individuals and businesses must fulfill different obligations to respect the law. So, this is a line of work that always has great demand.
Investment is high since it involves extended education. To become an attorney, you must complete a four-year undergraduate course. Then, attend law school, and pass the state bar exam.
But this also allows you to specialize in a particular branch of law. You can choose from commercial patents to real estate to divorce. If you provide services solely in your area of expertise, you can further profit.
Marketing and Advertising
Marketing and PR Services
Introducing your company the right way to the right customer is essential for a successful business, making marketing one of the most profitable industries.
The internet is an amazing place, but you must know your way around it. So, no matter how big or small businesses are, they usually need to reach out for help. This means that digital marketing services are a very profitable business. It also means that startup PR agencies, as well as other digital marketing agencies will be on the rise for a long time.
Marketing is a growing industry. This year, digital advertising spending in America should reach more than $200 billion.
If you have good social skills and contacts, why not start your own business in this field?
Social Media Management or Consulting
With the rise of social media, businesses need to maintain a constant online presence. Most online businesses depend on effective social media marketing. They use it to stand out amongst other businesses in the same line of work or area.
In social media management, you take on the task of posting engaging content. As a social media consultant, you’ll be able to help others do just that. Statista asserts that building online communities is a $153.7 billion industry.
Working from home is also an advantage. If you build a strong network, you can even offer online courses for freelancers and small businesses.
Property management is amongst the most profitable businesses to start.
Real estate investors resort to property managers all the time. Facilitating daily tasks related to maintaining their assets.
Property management involves things like: collecting rent, dealing with maintenance matters, and hiring contractors. Most of the time, these are the tasks for which your business will be responsible.
According to your location, you can opt for housing or commercial management. Depending on the size of your company, you can expand to both.
Vacation Rentals Management
Vacation rentals are some of the most successful small businesses in tourist areas. Many property owners don’t have the time, interest, or energy to manage their vacation estates. Others lack the skills required to market them online and handle guests, which is where you can help.
Tourism is a highly profitable industry. Using the right approach, you can pair the perfect guests with each property. Make sure the stay runs smoothly to get good reviews on different websites. You’ll be a small business owner with almost no startup costs.
Real estate is one of the most profitable businesses in the world. In the last few years, many people decided to leave big cities and move to the suburbs. Others are establishing themselves in country areas. Even small businesses are moving to expand or get a new start.
Either way, real estate agents can pair the perfect property with each owner.
There are no requirements regarding training or education. Working location and hours are flexible, making this one of the best side business ideas.
There is a growing need for storage facilities.
The real estate market has developed, and people are constantly moving. Home-based small businesses are increasing and use specific equipment. Shopping habits are changing. All this makes self-storage one of the best businesses to start.
You need to set up a suitable space with proper security, lighting, and climatization. Unlike other small business ideas, self-storage requires a high initial investment. However, there are great storage opportunities, such as warehousing storage and cutting self-storage costs, and having a flexible storage system.
Despite financing, there are a few challenges. You can also cut down on advertising costs by using social media.
With the increasing concern for health and the environment, cycling has become one of the main transportation means. In America it increased 61% between 2000 and 2019, going up to 80% in major cities.
Be it selling, renting, repairing, or improving the user experience (by offering courier services, for example), there are several small business ideas you can choose from. Especially since you can choose between electric bikes (e-bikes), regular bikes, or both. It is easy to find a bicycle for sale and use it for many activities.
Fitness is in fashion. People are more aware of the importance of physical activity for good health and self-esteem. They also realize the need for professional help. So, the fitness industry’s personal trainers branch is one of the most profitable service businesses.
If you are outgoing, have strong motivation, and love athletics, why not give it a go?
You can start as a small business and grow over time.
Having a list of contacts will help you build a client portfolio. Depending on your location and target clients, you may also need to acquire certification.
Becoming a personal trainer can be a very fulfilling and profitable business idea.
FAQs about most profitable service businesses
1. What are the most profitable service businesses?
Depending on the market and industry, different service firms can be the most profitable, however, some of the most consistently profitable service industries are IT consulting, finance, healthcare, marketing, and advertising.
2. What are the key factors that contribute to the profitability of a service business?
The essential elements that affect a service company’s profitability include efficient and effective resource management, pricing tactics, marketing strategies, client retention initiatives, service quality and customer happiness, and a thorough awareness of the target market and market trends.
3. How can I start a profitable service business?
Finding a market need or gap that your service can fill, conducting in-depth market research, creating a business plan and strategy, obtaining the necessary funding and resources, and placing a priority on customer satisfaction and high-quality service are all essential steps in starting a successful service business.
4. What are the common challenges faced by service businesses and how can they be overcome?
Competition, client retention, maintaining quality and consistency of service, and successfully managing resources and finances are common issues faced by service organizations.
Through efficient pricing and resource allocation techniques, strong attention to quality and consistency, and successful marketing and client retention initiatives, these difficulties can be overcome.
5. What are some effective marketing strategies for service businesses to attract and retain customers?
Targeted advertising, social media campaigns, word-of-mouth marketing, content marketing, thought leadership and excellent customer service are all examples of effective marketing techniques for service organizations.
6. How can service businesses optimize their pricing strategies to maximize profits while remaining competitive?
By conducting market research, comprehending their target market, offering tiered pricing and packages, adding value through bonuses or incentives, and routinely analyzing and revising pricing based on market developments and consumer feedback, service organizations can optimize their pricing strategy.
7. How can service businesses differentiate themselves from their competitors to stand out in the market?
By offering outstanding customer service, creating a distinctive brand identity and messaging, concentrating on niche or specialized services, and routinely innovating and reacting to market trends and client needs, service organizations can set themselves apart from their rivals.
8. What are the key metrics that service businesses should track to measure and improve their profitability?
Customer acquisition and retention rates, revenue and profit margins, return on investment (ROI), customer satisfaction and feedback, and employee productivity and contentment are important metrics that service organizations should monitor.
9. How can service businesses scale their operations to increase profits while maintaining quality and customer satisfaction?
By investing in technology and automation, employing and training more employees, increasing their service offerings or geographic reach, and routinely reviewing and refining their processes and systems to ensure quality and client satisfaction, service organizations can scale their operations.
10. What are some emerging trends in the service industry that could impact the profitability of service businesses in the future?
Growing demand for sustainable and ecologically sensitive services, the rise of the gig economy and freelance employment, and changing consumer preferences for convenience and customization are just a few of the emerging trends in the service sector.
The profitability and success of service businesses that innovate and adapt in response to these changes will probably increase.
If you liked this article about the most profitable service businesses, you should also check out this one with service business examples.
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