Looking to start a new business or expand your current services? Look no further than the world of service-based businesses. But which ones are the most lucrative? We will take a closer look at the top service-based businesses that consistently bring in high profits.
Whether you’re a seasoned entrepreneur or just getting started, this guide will provide valuable insights and inspiration to help you build a profitable and successful service-based business.
Accounting and Tax Preparation Services
One of the most profitable small business opportunities today is in the field of accounting. While everyone pays taxes, not everyone knows how to prepare and file them. That’s why many individuals and business owners rely on accounting services to handle their tax needs and manage their finances.
However, to start a successful accounting business, you need to invest in proper education, which can result in higher startup costs. An undergraduate degree is necessary, and obtaining a CPA license or IRS Enrolled Agent certification will enable you to expand your services and increase your income potential.
While the upfront investment may be high, the rewards of a successful accounting business can be very lucrative.
Business Consulting Services
Consulting is a highly lucrative business opportunity in today’s market. Larger businesses often have internal consultants who help improve various aspects of their operations, from business plans and functions to public image and results. Small business owners may also hire freelance consultants to achieve similar results.
Consulting is an excellent business idea for individuals with experience and expertise in a particular industry or skill. By promoting yourself in the right networks, you can start a small consulting business and grow your reputation. With the right approach and networking, a consulting business can be an incredibly profitable venture.
Payroll Services
Payroll services are an excellent business opportunity, especially if you have access to large businesses and corporations in your area. While startup costs can be high, as you may need to invest in suitable software, you can also earn commissions by affiliating with other businesses and promoting their software.
Many large companies opt to hire payroll services to handle employee payments and employment tax filings. If you have knowledge in accounting and tax preparation, pairing those skills with payroll services can result in even higher profits. With the potential for high demand and ample opportunities for additional profit, payroll services can be a highly profitable service business.
App Development Services
Mobile app development is a highly profitable small business opportunity in today’s world of intelligent technology. With apps changing the user experience, businesses of all sizes are taking advantage of this movement. Mobile apps have revolutionized the virtual assistant business, making it more accessible and user-friendly.
In addition to code creation, it’s essential to have the skills to enhance apps and fix glitches. Many people have gained this knowledge through online courses. E-commerce is also a great business idea, with the industry expected to continue growing for a long time.
Graphic Design Services
Offering graphic design services is a highly creative and profitable business idea. Both physical and online advertising rely on visual aids to send messages and incite action, while websites need graphic design to be engaging and informative. This business opportunity allows individuals to combine their love for the arts with their IT knowledge.
One of the great things about graphic design services is that they can be offered from anywhere with an internet connection. There are also several free apps and programs available, making it easy to start with a low investment. With technology here to stay, graphic designers can even expand their services to include online courses after building a strong reputation.
As a graphic design business owner, you will join the ranks of many successful entrepreneurs in the field.
IT Support and Repair Services
In today’s world, we rely heavily on technology for almost everything we do, making IT support one of the most potentially profitable small businesses. The most critical factor for success in this industry is having extensive knowledge of technology. As long as you have the expertise and means of transportation, you can start your own IT support business with minimal delay.
You have the option to provide a range of services, including support, consulting, and repair. You can also choose to specialize in a particular device or software to further differentiate your business. Whatever services you offer, IT support is a lucrative business opportunity that can bring high returns.
Software Development Services
Software development is a highly technical field that requires specialized knowledge, but an online course can provide you with the necessary skills to create your own software. Once you’ve developed your software, you can sell it to other companies and generate a profitable business.
According to the Bureau of Labor Statistics, employment opportunities in software development are projected to grow faster than any other occupation. As a business owner, you can also focus on creating specialized software for niche markets, giving you a competitive edge and increasing your potential profitability.
By leveraging your technical expertise and identifying areas of demand, software development can be a highly lucrative business opportunity.
Kids Activities Program
Starting an activities program for kids is a great way to combine your passion for children and business. You can create a program that caters to different age groups and interests, and schedule it based on the school calendar or during summer break. Offering educational and entertaining content will keep the children engaged and happy, while their parents will appreciate the opportunity to have some time for themselves.
Promoting your program through word-of-mouth and online channels will help fill up your schedule. Additionally, keeping overhead costs low by renting a low-cost or public space will help maximize profits for this fun and rewarding business idea.
Tutoring
Offering tutoring services can be a profitable and fulfilling small business idea for those skilled in any school subject. Many parents are in need of a tutor for their children to help with homework, school projects, understanding a topic, and improving grades. As a tutor, you can quickly establish your reputation and grow your business by offering your services to more clients and even hiring others to work with you.
Specializing in specific disciplines can also give you an edge in the market. With an internet connection, you can work with clients from anywhere in the world, making it a flexible and convenient option for both you and your clients.
Catering Services
Starting a catering business can be a lucrative and enjoyable small business idea for those with excellent cooking skills and organizational abilities. One of the advantages of catering is that you can operate from your own kitchen and don’t need to invest a lot of money in equipment.
Delivery services can also be used if you don’t have a vehicle. Catering is a highly profitable business in the food and beverage industry. According to Catersource, the average pre-tax profit margin for caterers is around 7 to 8%, which is double the average of the full-service restaurant industry.
Moreover, the market for catering services is expected to reach a whopping $328.11 billion by 2025. With some hard work and support, you can establish yourself as a successful caterer and take advantage of this growing industry.
Food Truck Services
A food truck is a highly profitable small business idea that has become quite popular recently. While the overhead costs may be higher than in other businesses, the flexibility and creativity offered by a food truck make it a worthwhile investment. To start, it’s crucial to create a strong business plan, as well as to put in a lot of effort to produce effective social media marketing.
Your food truck’s location is critical, and you can start in a smaller area and move after you become known. Alternatively, you can stay in a place with heavy foot traffic. Partnering with courier services in your area is also a great option. The most successful food trucks even have followers who travel along with them, showing how essential it is to create a loyal customer base.
Personal Chef
If you are passionate about cooking and enjoy creating personalized menus, starting a personal chef business may be the perfect small business idea for you. With the ability to use your clients’ kitchen and equipment, you can keep startup costs low. Organization skills and creativity are necessary for this job, but it also offers flexibility and travel opportunities.
The average income for personal chefs is nearly $63.5K, and profit margins depend on the number of people employed. To be successful in this business, you should stay up-to-date with food trends and create personalized menus that cater to your clients’ needs and preferences.
Cleaning Services
Starting a cleaning service business requires no particular education, only an eye for detail and some cleaning supplies. It’s a low-investment and low-overhead business idea that can easily grow through word-of-mouth. The pandemic has made people more conscious about cleanliness, making it the perfect time to launch your business.
Whether you focus on homes, offices, or specialized cleaning services, you are sure to find a large customer base. It’s also an excellent opportunity to set your own hours and be your own boss. With the commercial cleaning market growing annually, it’s a good time to consider starting your own cleaning business.
Handyman and Maintenance Services
Starting a handyman business can be a lucrative opportunity as it covers various areas of home improvement and maintenance. Many people lack the time or expertise to complete simple tasks around the house, such as plumbing, electrical, or painting. If you possess these skills, you can offer your services to your local community.
You will need to have your transportation and tools to get started, but you can set your hourly rate based on the average salaries in your area. According to the US Bureau of Labor Statistics, handymen earn an average of $20.76 per hour. Offering an all-in-one solution can help you stand out and gain loyal clients who appreciate the convenience of having a reliable handyman.
Mobile Car Wash Services
Starting a mobile car wash business can be a profitable venture with low startup costs. Unlike traditional car washes, a mobile car wash doesn’t require a physical location, which significantly reduces the investment. Moreover, offering personalized cleaning services and charging extra for travel expenses can increase the revenue.
Advertising in an auto repair shop can also help to reach a larger audience. This type of small business can easily be scaled up as demand increases, making it an excellent opportunity for entrepreneurs looking for a flexible and profitable business idea.
Dental Care Services
Providing dental care services is an extremely profitable business venture. While the initial investment is high due to the cost of equipment, education, and training, the long-term rewards make it worthwhile. To become a dentist, you must first obtain a bachelor’s degree and a doctorate in dentistry, while hygienists require at least two years of schooling.
Setting up a dental office may not be the most cost-effective option, but it can be a highly rewarding one. The average cost of a dental cleaning is $288, which means that small business owners can make significant profits even with simple interventions.
Newborn and Post-Pregnancy Services
Starting a business that provides post-pregnancy services can be a profitable and rewarding idea. Many new mothers require assistance during their recovery but may not have access to long-term help from the local health department. As a business owner, you can provide support to new moms by helping them with daily tasks, such as house chores, caring for other children, and managing medication.
You can also offer guidance and support as they navigate their new roles as mothers. As your business grows, consider hiring professionals with specialized training and certification, such as therapists or doulas, to expand the range of services you can offer. By providing essential support to new moms, you can build a successful and fulfilling small business.
Senior Care Services
Starting a senior care business can be a great idea due to the increasing need for senior care services. The elderly population is growing, and people are searching for solutions that allow their loved ones to age at home. A senior care company can offer services like housekeeping, meal preparation, medication management, and companionship.
The Bureau of Labor Statistics projects that employment in this line of work will grow by 25% until 2031, making it a potentially profitable business venture. You have several options to choose from when starting your business, such as becoming a freelancer, opening your own company, or opting to become a franchisee.
With a focus on quality care and service, you can build a successful senior care business that provides much-needed support to the elderly and their families.
Legal Services
Legal services are a highly profitable business that can help individuals and businesses meet their legal obligations. Although the initial investment is high due to the extensive education required, this also allows for specialization in a particular branch of law. To become an attorney, you must complete a four-year undergraduate course, attend law school, and pass the state bar exam.
Specializing in a particular branch of law, such as commercial patents or real estate, can increase profitability. Legal services are always in high demand as individuals and businesses seek to stay within the bounds of the law.
Marketing and PR Services
Marketing is an essential aspect of any successful business, making it one of the most profitable industries to venture into. In today’s world, businesses need to effectively reach their target customers, and with the rise of the internet, digital marketing has become a necessary tool.
As a result, digital marketing services have become a very lucrative business. According to recent statistics, digital advertising spending in the US is expected to surpass $200 billion this year. If you have strong communication skills, creativity, and an understanding of digital media, starting your own digital marketing business can be a profitable venture.
Social Media Management or Consulting Services
As more and more businesses shift their focus to online platforms, maintaining a strong social media presence has become crucial for success. Social media marketing is a rapidly growing industry, with businesses of all sizes seeking to stand out from their competitors and engage with their audience.
As a social media manager, you can offer services such as content creation, scheduling, and community management. This field is highly lucrative, with the industry projected to reach $153.7 billion in revenue. Plus, the ability to work from home is a significant advantage. With a strong network, you could even expand your services to include online courses and coaching for freelancers and small businesses.
Property Management Services
Starting a property management business can be a very profitable venture, as real estate investors are always in need of reliable property managers to handle daily tasks related to their assets. As a property manager, your responsibilities include collecting rent, handling maintenance issues, and hiring contractors, among other tasks.
Depending on your location, you can choose to specialize in either residential or commercial property management. As your business grows, you can expand to both. This line of work requires a great deal of organization, attention to detail, and communication skills to ensure that both the property owner and tenants are satisfied with the services you provide.
Vacation Rentals Management Services
Starting a vacation rental business is a lucrative venture in tourist areas. Many property owners do not have the time or expertise to manage their vacation homes, making it a perfect opportunity for you to offer your services.
With the right approach, you can pair the ideal guests with each property, ensuring that their stay runs smoothly, leading to positive reviews on different websites. The tourism industry is highly profitable, and with almost no startup costs, becoming a small business owner in this field can be very rewarding.
Real Estate Services
Real estate is a lucrative industry that offers opportunities to make significant profits. With the recent trend of people leaving cities for suburban or rural areas, the demand for real estate agents has increased. Real estate agents help people find the perfect property that fits their needs, preferences, and budget.
Fortunately, you don’t need to have any specific training or education to become a real estate agent. The flexible working hours and location make it an excellent choice for a side business. If you have a passion for property and a talent for matching people with their dream homes, real estate might be the right field for you.
Self-Storage Services
Self-storage is a business that provides an answer to the need for extra storage space. With the real estate market developing and people frequently moving, this business idea is one of the most profitable ones. Not only homeowners but also small businesses need storage to store their specific equipment.
Investing in a secure and climate-controlled storage facility can be expensive, but it can also bring in significant returns. There are different storage opportunities, such as warehousing storage, that can help cut down costs. Challenges may arise, but advertising on social media can be an effective way to reach customers and minimize costs.
Personal Training Services
The fitness industry is booming, and personal training is one of the most profitable service businesses. More and more people are recognizing the importance of physical activity and the role of professional trainers in achieving their fitness goals. As a personal trainer, you can turn your passion for athletics into a successful business venture.
Starting small and building a client base through networking and referrals can be a great way to launch your business. Depending on your location and target audience, you may need to obtain certification to be a recognized personal trainer. But with strong motivation and social skills, personal training can be a fulfilling and profitable business idea.
Why Should You Venture on Service Business?
Many people believe that starting a successful business requires a billion-dollar idea like Facebook or Amazon. However, these types of businesses are incredibly rare and difficult to succeed in. In fact, research shows that 75% of venture-backed startups fail. Instead, you can start a service-based business today with a much higher likelihood of success.
Service businesses have several advantages, including high profits, premium prices, and the ability to start right away. By selling your own skills and talents, you can eliminate the need for additional staff and overhead costs. Additionally, specialized services are considered high-value, allowing you to charge premium prices.
Best of all, you can start a service-based business using your existing skills, meaning you can start right away.
Conclusion
Starting a service business can be a great way to build a profitable venture that provides you with the freedom and flexibility to work on your own terms. The service industry offers a vast range of options, from personal fitness training to vacation rental management, that require minimal startup costs and can be started with just one person.
So, don’t hesitate to take the plunge and turn your skills and passions into a successful business venture.
