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Most successful small business ideas in 2023 

 

By Felix Osezua Oct 05, 2023

 

Successful businesses are those which have a higher rate of scaling in a highly competitive market. These are businesses that have proven to be reliable in most cases.

 

 

If you are thinking about going into business, it is imperative to know your stands, if you have what it takes, and the things to know before taking the plunge. That said! What are the most profitable small business ventures in 2023? Below is a list of the top profitable businesses you may want to check. 

 

 

First thing first, before embarking on a business adventure, it is important to consider several factors. Starting a business can be an exciting adventure, but it can also be a stressful one. Many new entrepreneurs are often surprised by the amount of effort required to establish a successful business. Therefore, it is advisable to conduct thorough research before quitting your day job. This will enable you to assess the strength and potential of your business idea and increase your chances of starting a successful small business.

 

What to Consider Before Starting a Business:

 

● Determine your financial situation

 

Depending on your financial circumstances, you may or may not be able to launch a new business. If you’re the only wage earner in the family or carry a lot of debt, opening a business might be dangerous to your family. Determine whether you can make it through while building your business. Otherwise, you may want to start your business on the side while you are still working at your 9 to 5.

 

You will also need to check in on your financial situation. Is your cash on hand sufficient to fund the startup and make ends meet while you build your business? Going by the SBA report, the estimated cost of starting up a medium-sized business is between $2,000 and $5,000, for a home-based business. Generally speaking, you ought to have money set aside for 6 months’ worth of bills. Creating a list of your expenses and your predicted sales for the year ahead will help you figure out just how much profit is feasible for your small business. 

 

● Research the industry

 

Research the industry you wish to work with. Knowing the industry now is how you’ll know where you’re positioned among others. What are you seeing in the market that is lacking customers’ demands? Which can inspire one’s own innovative startup plan.

 

There is an array of ways to carry out your competitor research for this. Get in the habit of performing a Google search and see what companies show up when you search for them. Research what other players in the market do; Look at their websites, social media, and annual reports (if they’re corporations). Check out their product/service portfolio, company scale, and branding efforts. Search for reviews from online customers, such as on profiles of Google Business and learn more about what your competitors are making customers say. Is there an unserved market opportunity that you can exploit? This is crucial information you need to be able to stay ahead of your competitors.

 

Most successful business ideas

 

Looking to know which are the most successful Business ideas to choose from? Below are some of the most profitable and successful business ideas in 2023. 

 

● E-commerce

 

The total retail sales from e-commerce businesses worldwide, according to eMarketer, will amount to US$6.169 trillion by 2023. While in-store retail spending has been hit hard by the pandemic in most countries, online storefronts have thrived. With such trends, if becoming a fashion designer does not fit in your lane, starting an e-commerce business could be the right bet for you.

 

E-commerce is very large, which means first consider what exactly you plan on selling and how you’ll be doing so. Some e-commerce business models include:

 

● Print-on-demand

 

If you’re coming from a creative angle, you might be perfect for a POD. If you do not desire to manufacture something actual or store inventory, then POD businesses are good for you. Wholesale printing vendors also have the widest range of items— T-shirts, mugs, canvases, etc.—you can put your design on to sell for profit.

 

If you market the products via a 3rd party platform (Printful, Zazzle, Cafe Press) or even directly from your own website, print on demand allows virtually anybody to create their own business. The way it operates differs on different platforms, but how you use them remains more or less the same. Design what you want, put them on a website, pick your goods from the list of printable, and let the POD do its thing. POD offers low overhead and an ideal small-business opportunity for those who are artistic.

 

 

 

 

● Dropshipping

 

Drop shipping offers another type of e-commerce model in addition to the print-on-demand equivalent, being able to provide a greater range of products. It involves choosing products from wholesaler suppliers which will be shipped to your customers.

 

If You’ve got what it takes to market goods, then beginning a drop delivery enterprise can be just an excellent little company to get started with. Similar to POD-overhead almost anybody can start dropshipping.

 

● Amazon (FBA)

 

It is comparatively much easier than drop-shipping as with FBA all it takes is selling on Amazon — just fill out their form and get started. Whilst merchants can sell wholesale products, Amazon is now letting retail stores also have merchandise for sale through their website. So instead of having to do product listings, shipping logistics, fulfillment of orders etc., the seller ships the products via their FBA service to Amazon (lists them on the AWS website), and Amazon does the rest.

 

Just remember that there’s a lot of competition in certain fields. It’s important to keep reminding yourself not to think about anything else and just focus on your job. 

 

● Virtual assistant

 

If you have any administrative experience then starting a virtual assistant job from home would be an excellent starting point for you. This coupled with the rise in internet users reaching 5.19 billion as of July 2023, and social media users reaching 4.89 billion within the same time, there is more demand for this job. Actually, global growth for virtual assistants will hit a CAGR of $126.6 billion by 2029.

 

These virtual assistants offer a number of administrative services to businesses as well as individuals virtually. Some online platforms where you can apply for a virtual assistant job include;

 

● upwork.com, 

● vaneetingnetworking.com, 

● zirtual.to. 

 

The profitability of your business really depends on what services you offer, how experienced and skilled you are yourself and how much you charge.

 

● Social media management

 

It’s no easy task trying to handle your social media posts on multiple channels. Many companies might not have the resources to pay somebody full-time to handle their social profiles, so they will opt for using an outsourced social media manager instead. In fact, a whopping 57% of the world’s population (or 4.88 billion to be precise) is active on social media. Companies are looking for ways to find their audience in these spaces and here is where startups can leverage that to make money building small businesses of their own.

 

That would suit you if you’ve got some copywriting skills and can write blog posts for companies, or already have one social media management business up and running. 

 

● Cleaning service

 

Cleaning service is one of the most successful businesses around. It's usually in high demand as everyone likes their house tidy and well-maintained; thus, if you enjoy cleaning and love the process of organizing, why not begin your own cleaning business? As more people are spending more time away from home, taking care of children and house cleaning has been an issue for many. The global cleaning services market is anticipated to reach $88.9 billion by 2025. Home cleaning services are in demand due to the busy life of our modern world.

 

● Business consulting

 

You can also decide to assist companies with growth by providing consultancy services. A consultant is someone who offers their expertise to companies for a specific purpose. Consultancy is also another business where there are multitudes of companies that do this kind of work. However, a consultant often has their niche on a certain part of a company’s business. A few of the well-known consulting firms provide digital marketing services, financial advice or business strategies. Either they give advice and guidance or sometimes get into a more direct execution kind of role too.

 

So if you enjoy helping other entrepreneurs and want to start your own small business, Consulting might just be the best way to go. 

 

● Copywriting

 

A copywriting agency is a good choice if you love writing or have great grammar skills. It’s super easy to start a copywriting business because of how low the initial costs are. Copywriters often begin freelancing while also maintaining their day job until they grow their business.

 

That said, while the writing industry is growing at a moderate rate, every company of any size will require good writers for advertising. Businesses hire a copywriter to do a lot of things — writing copies for ads, websites, SEO landing pages, emails, social media, newsletters, brochures, direct mail pieces… all of which will make people buy what you have to offer. There are opportunities in every industry for copywriters that can help power a business’s content marketing strategy.

 

● Graphic design

 

On the other hand, you can also start a graphic designing business, which requires almost no budget to get started. You could even start your own design company if you’re talented at design software. An agency might outsource some of the graphic design works such as logo, Website Design and Business Presentation, Sales Collateral etc. Graphic design services can be availed outsourced for website and application development.

 

There is an approximate 90% success ratio in the graphics design field for freelancers. So if you have got the chops for designing, starting your own graphic design business is surely not a bad idea.

 

 

● Real estate brokers

 

The housing market has been on fire over the past few years, keeping busy real estate agents and brokers. Real estate can be extremely highly profitable — even if you’re building a side gig.

 

Real estate agents are realtors who have additional education and are also licensed as a Broker. Agents can operate alone or also recruit more real estate brokers under them. The broker supports property buyers and sellers in their search efforts and intercedes for their customers in offering to help customers put together their best offer. Real-estate agents, for example, receive as income commissions from selling homes — typically a percentage, such as 5 or 6 percent of the sale price. If you sell one home where you live, commissions can be large in some markets.

 

● Online courses

 

Selling your online course is an awesome business enterprise with limitless potential. Actually, the projected increase in the world's e-learning market is expected to reach $325 trillion by 2025. Make use of the subject matter you know in a specific field and teach someone. 

 

● Pet services

 

Remember when you were a kid and you said to yourself “I should just start an animal service?” Well, now’s your chance. With pet ownership skyrocketing during the pandemic, there are so many people willing to pay for someone else to handle their animals’ needs. According to a report, $103.6 billion was spent on pets in 2021 in the U.S.

 

Based on your skills and preferences, you can make a business out of grooming pets or walking dogs. And if you want no costs at all? You can just walk dogs around your neighbourhood and it’s money in the bank! Of course, being a groomer requires some experience and start-up costs but it’s still an option. You can even start this business full-time or part-time.

 

If you have reached this stage, it is likely that you have concluded that starting a business is the right path for you. After considering your choice from the business ideas discussed above, the next step is to carefully navigate the process of starting your own business. In the following sections, we will outline the most important steps involved. However, we recommend consulting our comprehensive guide, "What is a Business, Guide, Types, And Facts" for a more detailed overview.

 

1. Create a thorough business plan

 

Developing a well-structured business plan is crucial as it acts as a guide for your business operations. It will help you make informed decisions that align with your core values and messaging. Additionally, a business plan is often required when applying for a business loan.

 

2. Obtain sufficient financing for your business

 

Managing your business finances requires careful consideration. By projecting your business's income and expenses, you can determine the amount of capital needed to start and sustain your operations. Some businesses require significant capital investment before starting, while others, like home-based ventures, can be launched with minimal expenses.

 

Depending on your financial situation and startup costs, you may need to explore different financing options. Some potential avenues to consider include securing a loan, attracting investors, or launching a crowdfunding campaign.

 

3. Choose an appropriate business structure and complete the necessary registration process for your business

 

Once you have developed a business idea and selected a name, it is important to determine the most suitable structure for your venture. If protecting your business and obtaining liability protection are priorities, consider options such as a limited liability company (LLC), partnership, or corporation.

 

Once you have decided on the business structure, it is crucial to register your business with the relevant federal, state, and potentially local authorities. You will also need to obtain a federal tax identification number, and in some cases, state and local tax identification numbers. Depending on your business, you may also need to obtain permits and licenses.

 

4. Establish business bank accounts to separate your personal finances from your business income and expenses

 

It is recommended to open a dedicated checking account for your business and consider getting a credit card for expenses while earning rewards.

 

Alongside setting up bank accounts, maintain thorough records of all business transactions. Using accounting software will help organize your income and track expenses, making tax preparation and financial statement creation easier. For corporations, accurate record-keeping is necessary as many states require the submission of an annual report. Consider hiring a professional bookkeeper to effectively manage your business finances.

 

5. Promote your business

 

It is essential to promote your business to ensure that your target audience is aware of your existence. Businesses use various strategies like advertising, promotions, public relations, and other marketing techniques to achieve this goal. These methods effectively spread information about the newly established business. Additionally, word-of-mouth and referrals are crucial in expanding the customer base for many businesses.

 

As your business grows and expands, it becomes necessary to continue marketing efforts through different channels. Whether you choose traditional print advertising, digital marketing, or a combination of both, marketing endeavours will help improve brand recognition and increase sales.

 

Regardless of the business idea you choose, success depends significantly on your dedication, strategic planning, and execution. In the competitive business landscape, it is crucial to continually innovate, stay updated with industry trends, understand your target audience, and provide superior customer service.