What are the most successful small businesses?

The majority of business-related articles you'll read have been authored by freelancers with no business background and no understanding of what they're talking about. They also have no concept of what makes a good company idea.

Naturally, some companies are more profitable than others. This could be as a result of minimal costs and overhead or a high price tag for the company's goods or services. Nevertheless, no matter how successful a business is, starting it can be difficult.

Some people start their own businesses with a clear idea of the market they want to dominate and the kind of company they want to launch. But for many aspiring business owners, it can be challenging to decide how to launch a company and precisely what kind of company is the greatest fit. Finding the ideal idea might be challenging.

The top small enterprises for profit in 2020 are shown below. Each of these business categories is expanding swiftly and can earn you a comfortable income. Even better, none of them demands a large initial investment. You may launch one of these most lucrative enterprises in 2020 if you put in the necessary amount of effort, perseverance, and creativity.

Most Profitable Small Businesses in 2020

Because of advancements in technology, many of these most lucrative firms now qualify as possibilities for internet ventures; however, this does not apply to all of the possibilities. In addition, you will find ideas that pertain more to B2B services, daycare, and some that are suitable for business owners who are interested in expanding their operations. Having said that, there is nothing to suggest that any business concept you have won't be profitable, but if you're looking for a solid place to start, you should have a look at this list of the most lucrative small businesses:

Vehicle Repair

Even very simple auto repairs might be challenging to complete successfully at the repair shop. As a result of the fact that the majority of us rely on our autos to get around, getting a car repaired typically requires either waiting for a considerable amount of time at the repair facility, renting a car for the day, or making plans to travel with a close friend or spouse. These other options are not only expensive but also cumbersome.

The good news is that while doing many maintenance and repair procedures only requires a few fundamental tools, performing some repair procedures does require the use of the equipment that is available at an auto shop. A mobile automobile repair service is one of the most lucrative business ideas available to mechanics who are qualified to perform the work required. Directly in the customer's driveway or parking lot, you could perform services such as oil changes, fluid replacements, battery swaps, headlamp repairs, and many other types of maintenance and repairs.

Food Vans

The popularity of food trucks is expected to increase steadily. Up-and-coming specialty food artists are finding it more challenging to fund a brick-and-mortar store in the busy centres of town, where their customers are most likely to be, as rent in major cities throughout the country rises.

Food trucks offer a fantastic remedy. You can start a food truck by travelling about and setting up shop at community gatherings, farmers' markets, and public gathering places—anywhere you think a crowd will gather. A food truck's cheaper operating costs and greater geographic adaptability allow you to transform your grandmother's renowned dumpling recipe or that novel dessert concept into a successful business.

Keep in mind that the market for food trucks is already very crowded in larger, trendier cities like Melbourne and Sydney. Therefore, this company may do better in a smaller heartland city. Contact your local health department to find out what will be needed as food trucks often have their own set of ordinances, business permits, and safety compliance standards.

Services for Car Wash

Mobile vehicle wash services are the next business on our list of the most successful ventures. It's probably safe to assume that a lot of people would pay more for a mobile vehicle wash that came to them rather than having to travel across town to use one. This is particularly true for those who drive expensive automobiles and desire more attentive treatment. The unique value proposition of being mobile wouldn't be your only advantage as a mobile car wash and auto cleaning service. However, you would also save the considerable starting and overhead costs of having a physical location.

Uncertain about how to launch your own mobile car wash business? For those who are interested in starting their own business in this specialized sector, there are many internet wholesalers who provide training and starter kits for the vehicle detailing industry.

Electronics Repair

It would be an understatement to suggest that Americans today are infatuated with devices. Most of the time that people are awake, they are looking at a screen of some kind. People expect assistance as soon as possible when something goes wrong because of the pervasive addiction to technology.

Therefore, it is undeniable that mobile electronic repair services are in demand and have the potential to be among the most successful small enterprises. You might be the one to fix every cracked iPhone screen, WiFi card, and laptop battery using this service. Additionally, if you're prepared to travel to your client, your chances of success increase. Long customer lines at Apple stores and other electronics retailers have recently drawn criticism, which may benefit mobile service providers.

Keeping your business mobile allows you to avoid the high overhead costs of a physical site, making it an even more successful service business concept. This is true even though a mobile electronics repair business entails some expense in the form of purchasing supplies.

IT assistance

In spite of the fact that two thirds of Australians believe they have a good understanding of technology, the fact is that they regularly require assistance with technology. Some individuals even leave their laptops or other electronic devices wide vulnerable to the possibility of identity theft and hacking. When things go wrong, unfortunately, the free consumer phone support that is supplied by manufacturers is often ineffectual or unhelpful to the customer.

If you are normally patient and have a natural knack for technology, creating a mobile IT assistance service in your neighbourhood could be the most lucrative business idea for you to pursue. Because the only resources necessary are your time, a vehicle, and the information you already possess, this low-cost business idea has a high potential for almost 100% successful operation.

Individual Trainers

It is not required to become a personal trainer for a large corporate gym or to manage a facility where you educate clients in order to turn your interest in physical exercise into a profitable career. You can turn your hobby into a career by teaching clients at a facility that you own. By packing some weights, resistance bands, and yoga mats into the trunk of your car, you can take your workout with you everywhere you go. Bring your exercise routine with you!

One of the ways to get started in a career as a personal trainer is to offer group sessions in a neighbourhood park or community centre. This might be one of the ways to get your foot in the door. One more choice is to travel to the homes of your customers and perform private sessions there. It is probable that the amount of access to fitness options that your clients have will determine whether or not you and your clients are successful in achieving your goals together. The fitness and wellness industry is seeing explosive growth in Australia and is soon becoming one of the most lucrative business verticals as a result of the increasing number of people in the country adopting healthier diets and exercise routines.

Post-Pregnancy and Newborn Services

Even if millennials waited a longer amount of time than previous generations did before having children, they still want kids in the end; in fact, 1.2 million millennial women gave birth for the first time in 2016.

As a direct result of this, there is an increasing need for companies whose primary focus is on children, beginning with companies that provide services connected to post-pregnancy care and newborns.

Because there is a growing need for lactation consultants and doulas, in particular among new mothers, and because both professions involve relatively moderate overhead requirements other than study and certification, they are among the most lucrative businesses you might start. In particular, the demand for lactation consultants has been growing at a faster rate than the supply.

Activities for Children's Enrichment

In spite of the fact that the number of children in Australia is increasing at a rate that is faster than average, the country's education budget has been decreased, which has had a considerable harmful effect on both the conventional academics and extracurricular activities such as music, art, and sports.

A direct result of this is that a rising number of parents are enrolling their children in extracurricular activities that are provided by private businesses. Because of this, a gymnastics centre, music school, swimming instructor, kids' yoga teacher, or any other business that focuses on children has the potential to be one of the most profitable enterprises that you undertake. You may already be on the cusp of beginning a successful business if you possess a skill that can be quickly taught to pupils in elementary school.

Children's mobile games and entertainment

If, on the other hand, your interests are more focused on technology or entertainment, you might want to consider constructing your technology with younger consumers in mind if you want to appeal to them. This is something that you ought to give some consideration to, so keep it in mind. The findings of the study indicate that the market for children's tablets, smartphone applications, and other kinds of mobile entertainment is rising despite the suggestions of industry professionals. This is the case despite the fact that industry professionals are aware of the trend.

Do you have any suggestions for applications that are helpful for parenting or apps that are educational and aimed towards children? If you believe that the answer to this question is yes, then you should not delay in putting your incredible plan for the next generation into action and establishing this business that has the potential to be very profitable.

Shared Jewelry and Clothes

According to companies such as Rent the Runway and Gwynnie Bee, the sharing economy is one in which people want and need to possess fewer products, and as a result, they share resources rather than owning them. Because these companies may now rent or borrow clothing and accessories for a far smaller cost than what it would normally cost to buy them, they now have the potential to grow into tiny enterprises. And because a single item of products can earn cash numerous times, these firms are highly profitable.

Do you have a sense of style and an eye for fashion, which other rental firms don't currently offer? If so, this could be a competitive advantage for your company. It's possible that you'll become the next big thing.

On the other hand, even if you aren't prepared to launch a fashion empire worth many millions of dollars, you can still generate money through shared fashion on a smaller scale. Host a borrowing party for the students of your high school in advance of the upcoming formal dance by collecting some of the students' most cherished accessories and clothing options. If you live in a college town, another fantastic method to make money from the shared economy fashion industry is to sell tickets to Greek life formals. As a result of the elimination of shipping expenses, you have the opportunity to achieve even greater levels of profitability than the larger companies.

Shared Tools for Home Improvement

Are you well-known across the community as the person who knows all there is to know about every equipment that may be used for gardening, landscaping, and home repairs? Why not put those favours to use by promoting your equipment to people who are not in your close circle of friends? Those people may be interested in purchasing it.

You also have the choice to spend additional money on specialised equipment that might be of benefit to individuals who are in close proximity to you and could be purchased with additional funds. In addition, if a customer does not know how to operate a particular instrument, you can rent out your equipment together with a mobile handyman service in order to make even more money in the bank. Given that an increasing number of people are investing in fixer-upper homes and thus have an increased demand for tools and knowledge, this might be a significant possibility as one of the most lucrative business ideas. In addition to this, there is an ever-increasing demand for services of this kind.

Holiday Rentals

Because of services such as Airbnb and VRBO, it is currently less difficult than it has ever been to generate income from a vacation property that is underutilised or even from an additional bedroom in your home. Additionally, becoming a host on Airbnb does not need a lot of effort, and recently there has been an increase in demand for accommodations of this kind. Therefore, if you live in an area that is highly well-liked by tourists, you will have a far better chance of turning a profit if you rent out space in your home to people who are travelling.

Academic Programs

To reiterate, as a result of advances in technology, online business owners are able to launch some of the most fruitful ventures possible by teaching others how to use the internet through either pre-existing online learning environments or their own websites. As a consequence of this, you might start with traditional academics and then offer supplemental online education in grade-level reading, mathematics, science, or history as well as preparation for standardised tests.

Even a refresher class for parents who help their adolescent children with their algebra homework is something that could be offered. If you have built anything, there is no limit to the number of possible outcomes. In addition, completion of high school or even college does not mark the end of one's educational pursuits. You may create an online course to share your enthusiasm with others for topics such as political history, Buddhist theology, or rocket science. There is a good chance that somebody else is interested in the same subject as you are in the current discussion.

Language Courses

As national boundaries and modes of communication become less rigid, consumers all over the world are developing an interest in language study. Whether you enter the world of online education with a command of the English language or you use your command of Swahili, there is certainly someone out there who wants to learn a language from you. This is true whether you use your command of English or your command of Swahili. They most likely possess the financial means necessary to pay for it as well. If you are fluent in one of the languages that is expected to be the most in-demand well into the future, such as Arabic, Spanish, or Mandarin, you may have a rich business opportunity on your hands.

Suppose you are fluent in a language that is not widely spoken or that you are an excellent teacher of a language that is widely spoken. If this is the case, an online educational course that focuses on languages could be one of the most fruitful business ideas for you to pursue.

Courses in business or marketing

Unfortunately, while liberal arts degrees may foster critical thinking, many college grads lack the transferable skills necessary for professional success. One of the best small business ideas that you can launch with very little initial investment is the capacity to fill those holes with your own knowledge.

In your own business or career, what abilities and lessons have you had to learn the hard way? A B2B-focused online course will allow you to impart your knowledge to other business owners. Some of the most sought-after education is in the fields of bookkeeping, QuickBooks accounting, WordPress web development, graphic design, client proposal preparation, and resume/cover letter writing.

Personal Wellness

What kind of a therapist, counsellor, or life coach are you? Do you teach yoga? Do you practise meditation on a regular basis? If you have a deep passion for people's well-being and the ability to do something about it while also generating a sizeable income, you could be able to help other people discover their own zen. You only need to teach other people what you already know.

If you need further evidence to support the idea that personal wellness and online courses may work together, look no farther than Oprah. She is the queen of personal health and was an early advocate of online education, particularly the CourageWorks course on the significance of being vulnerable taught by author Brene Brown.

Everyone has the intention of bettering themselves, which is the primary focus of most online classes. If you have this expertise that you can pass on to others, you may very well use it to launch one of the most profitable enterprises.

Event Services

As a result of the fact that there is never a poor time for a party, the market for party services presents a tremendous opportunity for anyone looking for stability and success. Even when the economy is in a slump, significant social events such as weddings, birthday parties, and corporate holiday parties continue to be solid sources of money for those who host them. Party services can take care of a variety of tasks, including but not limited to preparing the event, catering it, tending the bar, and serving guests.

Businesses that cater to parties have a great potential for making a profit since they have cheap overhead costs, the ability to bill clients for practically all additional expenses (such alcohol), and a broad choice of services to offer. As a result, employment opportunities are made available for a wide variety of settings. Because many of the services supplied by party providers, such as serving alcohol or providing food service, require certain licences and certificates, the majority of people who hold parties are unable to do this work on their own. Despite this, labour costs are typically rather low because bartending, serving, and organising do not require any kind of professional education.

Accounting and Bookkeeping

Being a business owner inevitably involves accounting and bookkeeping. However, for many business owners, managing money is the worst aspect of running a company. You might be the ideal candidate to start your own business by managing the personal and small business finances of your fellow entrepreneurs, regardless of whether you have a CPA license or are just a QuickBooks whiz. Bookkeeping, accounting, tax preparation, and payroll services have traditionally been among the most lucrative ventures for business owners, with a net profit margin of 19.8%.

As a bookkeeper, you'll be responsible for creating expense reports, processing payroll, and handling invoicing. You will be able to assist business owners with tax filing, compile balance sheets and other accounting records, and provide expert advice regarding your client's financial status once you have earned your CPA certification.

Companies that Consult on IT & Telecommuting

All businesses were operating remotely at the height of the epidemic (except for those the government considered critical). For some businesses, the changeover went smoothly. It was a little chaotic for those who were less well-prepared.

Many businesses have returned to the office now that things have stabilized, while some are staying at home for the foreseeable future or permanently. Even those who have already gone back to work are speculating on the possible effects a second wave—and a second work-from-home order—might have on productivity.

IT and telecommuting consulting firms can facilitate this change by:

  • Advising and taking action to implement the necessary technology to enable people to work conveniently from home;
  • Local networks can be moved to the cloud, enabling employees to access files typically kept on local servers from their homes;
  • Enhancing cybersecurity to protect corporate and customer data.

By starting a firm that aids in this smooth transition, you can seize this lucrative small business opportunity. People will take action to make this a stress-free process now that they are aware of the dangers of not being ready to work from home.

Graphic Design

A polished and professional image has become more crucial than ever for small businesses due to the increase in the number of brands competing for consumers' attention. Almost every small business may occasionally require some graphic design work, regardless of whether they have the budget for a huge advertising or marketing agency.

Do you have a working knowledge of InDesign, Illustrator, and Photoshop? Do you have a knack for branding? Have you taken any design classes? As a freelance graphic designer, you can turn your talents into a business. You'll have absolutely no expense and be able to charge high hourly rates to design amazing marketing visuals, which is something that small business owners can't achieve on their own.

In the end, even if sectors like healthcare technology, finance, and product manufacturing may dominate the stock market and the Fortune 500-level economy, they may not always be the most lucrative or readily available choices for small business owners.

Instead, a lot of the most lucrative firms for first-time business owners will be those that are simple to launch, have cheap startup costs, and can take advantage of market demand or trends. There are numerous business concepts that may accommodate the complete spectrum of business ownership expertise and preferences, as you can see from our list of the most lucrative small enterprises.

In the end, all you need to do is choose the best idea for you, get things organized, and started. Before you know it, you'll be enjoying the rewards of a highly profitable company enterprise in 2020.

Scroll to Top