Profitable Small Businesses Worth Starting in 2021
Do you want to become a small business owner in 2021 but don’t know where to start? Then, this blog post is for you!
Operating and running a small venture might seem tempting to you. But, in reality, it’s an extremely tough job. Research shows that almost 80% of the new businesses shut down in the first year. And nearly 25% of the businesses make it to 15 years or more.
These numbers are huge! And one of the major reasons for this is choosing the wrong business idea. You might have the prettiest logo and an actionable business plan, but you are more likely to fail if you’re not passionate about your business idea. Are you worried about choosing the right and profitable small business idea? Don’t fret!
In this guide, we’ll walk you through ten profitable small businesses that you can start in 2021.
Let’s dive right into these!
1. Digital Marketing Services
Digital Marketing or online marketing, in general, refers to the promotion of a brand or company using digital platforms. Promoting a brand online is way cheaper and effective as compared to traditional offline methods.
This is why more businesses are shifting towards digital marketing to generate more leads and sales. Hence, starting your digital marketing agency can be a profitable small business.
Starting as a digital marketer doesn't need high educational qualifications. Anyone can learn it quickly and start earning. Also, you can save your money by starting your business from home with skilled freelancers.
The key services offered by a digital marketing company include Content Marketing, SEO, Pay Per Click, Web Development, and Social Media management.
2. Content Writing
Content Writing is one of the key services offered by digital marketing companies. Content Writing is the process of creating web content, blog posts, social media captions, etc., to engage with customers and generate leads.
Everything you see on the Internet is a part of content writing. Any brand that wishes to create an online existence needs content writing services for developing their web pages and product information.
Content writing is one of the unique small business ideas and is in high demand. To start with, you can join Facebook groups related to content writing. Also, an active Linkedin profile of your business goes a long way here.
3. Tutoring
COVID-19 has changed the landscape of the education sector. The government is not allowing schools to open at full strength as a safety measure. So, students and parents are looking for safe alternatives like online tutoring services.
This makes tutoring one of the best small businesses ideas by which you can earn a decent amount from the comfort of your home.
You must start tutoring one of the subjects from your area to help students understand better. Also, the starting cost is meagre. All you need is your smartphone, tablet, or laptop with a fast internet connection.
4. App development
App development is another major requirement of growing online businesses. It is one of the small profitable business ideas which you can consider if you love to code.
Every brand is in a hurry to develop its custom app to provide users with more effective services. The increase in smartphone users increases the need for apps, and so the app developers.
Being a good app developer doesn't necessarily need a degree. Proper training and adequate knowledge are enough. Companies are ready to pay a significant sum if someone can fulfil their needs. Therefore, it is a profitable small business too.
5. Dropshipping
Dropshipping is one of the best small business ideas in which the seller doesn't keep the products that it sells. In this method, customers will place orders at your portal. You have to contact a third party seller and ship the products directly to your customers. Conclusively, you don't need to buy and manage a store.
To start with, create a good e-commerce platform. Now, partner with merchants who are ready to store and ship the products directly to your customers. Every time a customer shops at your platform, you will earn a reasonable margin.
6. Home-based catering
If you have a knack for cooking, then home-based catering is among the best business ideas to make money. Investments are also not very high if you start from your home and target small events.
Some essential things you must keep in mind for home-based catering are:
- An attractive menu with reasonable prices.
- All the necessary equipment. Don't cut your cost on tools.
- Build some adequate storage space.
You can also start your blog or a website about catering to create awareness about your business. Also, there are many platforms for cooking experts to join and earn a decent living.
7. Consultant
If you have good knowledge and experience about a specific niche, it's worth starting your career as a consultant. Companies pay consultants a considerable amount for helping them shape their business. Starting as a single person is better to avoid substantial startup costs.
You can also expand your small business by hiring consultants from different fields and start consultancy on every topic. Undoubtedly, it is one of the top small business ideas in 2021.
Some common consultancy fields are Business, Sales, Marketing, Technology, Accounting, Legal and Public Relation Consultancy.
8. Stock Photographer
If you are a photographer and like to capture every small event of life, then stock photography can be a profitable venture for you. You can register yourself on companies like Adobe Stock and Shutterstock and start uploading beautiful images captured by you.
These platforms will pay you some rewards every time someone downloads your photo from their website.
It's also worth starting your website to sell your portraits directly to people, or you can earn by promotion on your website. Why does anyone use a stock photograph? Because purchasing a stock photo is significantly cheaper than hiring a photographer.
Thus, people use stock photographs to make their content and ads more engaging.
9. Accounting Services
Accounting services is the process of maintaining financial lists of a company like tax returns, track expenses and revenue, and providing consultancy to business. Every company requires such services, which makes accounting services one of the best small business ideas 2021.
The startup cost for accounting services is also minimal, and you can start your office at home. But you must have a bachelor's degree and relevant experience in the field. It will be better if you have an IRS enrolled agent certification or a CPA licence.
Plus, agents with higher qualifications and experience can charge higher rates.
10. Medical courier service
Who doesn't need medicines today? In today's modern world, people are surrounded by diseases, and the need for medication has increased. So, if you have a vehicle, then you can start your medical courier service.
Your work is to deliver prescriptions needed by people to their home, and you can earn by charging them. You can also start transporting lab equipment and specimens. Further, by adding more people, you will be able to expand the boundaries of your business.
This brings us to the end of this article.
By going through the above-mentioned ideas, we hope that you’re pumped up to start your own little venture. But remember, no matter what business you start, focus on one idea at a time until you find the one that aligns with your passion and goals.
Also read:
1) Best Tips for Customer Retention for a Small Business
2) Tips to Understand Your Market while Starting a Small Business
3) Tips for Businesses to Overcome the Covid Blues - Revival Tips for Businesses
4) What are the keys to success when operating a small scale business?
5) OkCredit: All you need to know about OkCredit & how it works.
FAQs
Q. What factors should you consider before choosing the right business idea?
Ans. You can’t start any business and wait for it to succeed. There are numerous factors that you need to consider before selecting the right idea for your small business, such as:
- Your skills, passion, and goals.
- The target market of that particular business.
- The demand for your product or service.
- Who are your competitors?
- The cost involved in running your business, etc.
Q. What factors should you take into account while conducting market research?
Ans. To understand your target market, consider the following points:
- The size of the market.
- The geographical concentration of the market
- Market trends and changing customer behaviour.
- Age, sex, marital status, etc., of your target audience, etc.
Q. Are there more small business ideas other than those mentioned in the list?
Ans. Yes, there are many other small business ideas that you can choose from, such as personal assistant, voiceover artist, pet sitter, vending machine owner, etc. We have provided you with a list of the top ten ideas you can start in 2021.
Q. Can choose the right idea to guarantee the success of your business?
Ans. Choosing the best profitable idea is just half the battle. In addition, you need to consider numerous factors such as fund allocation, hiring the right people, promoting the venture on various social media platforms, upgrading your business with the changing market trends, etc.