You want your time to be used wisely when you start your own business. That means you should know the most profitable businesses to start with the time, education, resources, and connections you currently have.
What’s considered “profitable” is always changing, of course, and that’s why we continually update our rankings. Every year the most profitable businesses will change slightly as our economy evolves, products become obsolete, and technology advances.
What follows is a freshly updated ranking of the most profitable small businesses, plus the info and resources you need to get started.
You’ll want to check out the following businesses. Click on any of the links below to jump to the one that interests you.
- Industries With the Most Profitable Business Ideas
- What Small Business is Good to Start?
- Least Profitable Industries
- Frequently Asked Questions (FAQs)
- So What Are the Most Profitable Businesses to Start?
Industries With the Most Profitable Business Ideas
First, some context. We took a look at financial reports from early 2024 to ensure relatively recent data. When you consider industries with the most profitable businesses in demand, you’ll find:
- Financials: The monetary sector leads the most profitable companies, with over 30% net income and gross profits for banks nearing 100%.
- Oil & Gas: The oil and gas energy still has high net profits with 28.26% and a gross profit of 58.75%
- Tobacco Companies: Selling addictive products pays off with a 27.52 net profit and 61.25% gross profit. If you could start growing and selling your own tobacco, you’d probably make a killing!
- Transportation Companies: Railroads aren’t making as much as previous years, but they still have a 23.52% average net profit. Ship makers also have been making a great living.
- Real Estate Investment Trusts (REITs): Real estate investment trusts are a big winner this year. They moved up from ninth place last year. Players in this industry can expect to earn 23.32% net profit and nearly 78% gross margins.
- Software: Entertainment and system applications software companies are doing well with 20% net margins. Entertainment software has gross margins of 63%, while systems and applications have around 72% gross margins.
- Investments and Asset Management: Managing other people’s money is an easy startup business. People with the right qualifications can tap into 19.82% net income and 67% gross margins.
- Water Utilities: Providing water to municipalities can earn a sweet 19.34% net margin and 56% gross margin.
- Semiconductors: Producing parts for electronic equipment can earn 17.94% net profits.
- Computers: Computer and peripherals companies have a slightly less profitable business than the semiconductor companies that provide much of their technology, but they still have 17.47% profits.
Many of the most profitable businesses aren’t practical for people who want successful small business ideas for business owners.
Most of us don’t have access to venture capitalists or the ability to run a business for 10 years before it starts making money. So, we’re constraining our list to the most profitable and best small businesses to start.
 | Check Out Our Courses & Small Business Ideas! |
| We know the first part of starting a small business is coming up with a business idea, so we’ve collected 500 business ideas and provided in-depth information on each to help you choose—all accessible in the UpFlip Academy, a comprehensive solution for launching your own business from the ground up. In addition to business ideas, it offers courses, workshops, access to business coaches, and more. | |
| See Our Business Idea Database + All the Courses We Offer! | |
What Small Business is Good to Start?
A good small business to start will normally have high growth opportunities and low barriers of entry, work well as a home-based business, and provide great profit margins. We’ve handpicked some of the most profitable small business ideas for you. Check out our picks for best profitable businesses 2024 below.
1. Cupcake Business
• Average Annual Revenue: $1.95M
• Average Profit Margins: 5.4%
• Startup Costs: $100-$3M
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.1%
• Best For: Cooks, chefs, bakers, or foodies with customer service, leadership, and marketing skills
Does your baking prowess receive rave reviews?
Consider exploring that talent! The cake industry is anticipated to see 3.3% growth, bringing it to $94.7 billion globally in 2028. Small specialty shops are poised to reap the majority of the profits.
A cupcake business emerges as a feasible option for individuals with limited resources. Launching this potential home-based venture requires only an oven and basic baking supplies.
As sales pick up, there’s room for expansion to larger formats. Initially, you might sell cupcakes in a display case at a local shop, progress to a food truck, and eventually establish a standalone brick-and-mortar store.
Before diving in, thoroughly research the laws in your state governing the licenses, permits, and standards applicable to your budding bakery business.
Find out how Mignon Francois started the Cupcake Collection with just $5 and built a $10 million cupcake empire.
2. Sports Memorabilia Shop
• Average Annual Revenue: $453,257
• Average Profit Margins: 6.7%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 1.5%
• Best For: Sports and pop culture experts, customer- and community-focused entrepreneurs, collectors
The current valuation of the sports memorabilia market is $26.1 billion—and it’s expected to grow to $227.2 billion by 2032 according to a report by Market Decipher.
This projection suggests significant annual profits for brick-and-mortar sports memorabilia shops. The essence of this small business concept lies in acquiring genuine or replica memorabilia and reselling it at a markup.
Procure memorabilia through various channels, including wholesalers, auctions, estate sales, advertisem*nts, and online platforms like eBay. Make sure to confirm the authenticity of any signed memorabilia by autograph authenticators.
As you become proficient in authenticating pieces, you can generate additional income by authenticating memorabilia brought to your shop by customers.
Find out how Jim Sears makes $750K a year selling sports cards.
3. Bridal Gowns and Accessories
• Average Annual Revenue: $114K+
• Average Profit Margins: 10.3%
• Startup Costs: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 2.0%
• Best For: Designers, artists, and fashion experts with strong marketing and customer service skills
The bridal industry is expected to grow to $79.8 billion by 2027, which is a compound annual growth rate of 4.4%. According to BusinessWire, nearly 85% of bridal shopping is still done in retail stores.
Pro Tip: Note that bridal shops may cost $250,000 or more to get started because of all the gowns, veils, and accessories you’ll have to stock for your customers.
4. Consignment Shop
• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best For: Fashion and style experts who are excellent negotiators and communicators
The projected growth of the secondhand market in the U.S. is astonishing. According to GlobalData and thredUP, the resale clothing market is expected to more than double its current value. With a growth rate that’s 16x faster than the overall retail clothing market, the resale clothing industry will reach a value of $82 billion by 2026.
A consignment shop is the ideal business model for entrepreneurs with limited funds. Entrepreneurs can participate in the profits without purchasing inventory by showcasing other people’s used products, including clothing, antiques, collectibles, and memorabilia.
Additionally, selling items on online marketplaces like Poshmark, Mercari, and eBay creates additional profitable opportunities by expanding to a national or even global market.
Primary consignment shop expenses are:
- Business formation as an LLC
- Storefront rental
- Licenses and insurance
- Inventory
- Point-of-sale (POS) system
- Hiring (if needed)
Overall, the growth in the secondhand market presents a promising opportunity for entrepreneurs interested in the consignment business model.
5. Food Truck
• Average Annual Revenue: $41K+
• Average Profit Margins: 6.4%
• Startup Cost: $1K-$100K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best For: Foodies, chefs, cooks, bakers, and other food service veterans
Many people start food trucks because they are more profitable than owning a restaurant. You can save money by:
- Holding off on hiring employees
- Avoiding the costs associated with a building
- Offering a more focused menu
Kyle Gourlie, the owner of Vet Chef, told us:
To get started, it cost me around $41,200. Today, I am making $417K a year and aim to keep my food costs under 35%.
Check out our interview with him below to learn how to start a profitable food truck business.
Keep reading for more of our top small business ideas that will make for the most profitable, best businesses in 2024.
6. Bed and Breakfast (B&B)
• Average Annual Revenue: $263K+
• Average Profit Margins: 10.1%
• Startup Cost: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.3%
• Best For: Property owners who are service industry pros with a passion for entertaining and hosting
If you happen to own a charming, rustic, or historically significant home, a bed and breakfast could serve as an excellent starter business.
According to the Bureau of Labor Statistics, the U.S. bed and breakfast (B&B) industry is presently valued at $2 billion. While it faced a slowdown during the COVID-19 pandemic, its typical growth rate stands at 3.8% annually.
One notable advantage is you’ll live in the business, which cuts down the costs of accommodations. Customers normally expect:
- Personalized customer service
- Unique travel experience
- Home-cooked meals
- Grocery stores nearby
- Personal advice about local attractions
Pro Tip: It’s important to invest in home insurance, a food handling permit, and potentially a license to sell alcohol, if applicable. Additionally, if you plan to convert a traditional home into a B&B business, collaborating with your local planning commission may be necessary.
7. Party Rental Business
• Average Annual Revenue: $444K+
• Average Profit Margins: 35-40%
• Startup Cost: $100-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -0.8%
• Best For: People who own rentable assets, collectors, great networkers
The party rental industry boasts a valuation of $5.9 billion and is experiencing a steady annual growth of 4.3% as indicated by Research and Markets.
A business in party rentals involves leasing various products for events, including tables, tents, caterers, sound equipment, and stages. The venture holds significant profit potential, and your business could cater to a range of events, from nonprofit fundraisers to upscale galas.
While the potential earnings are promising, it’s crucial to make a substantial upfront investment in equipment before expecting to see profits. The strategy involves recovering these costs through repeated equipment rentals.
When setting up your business’s inventory, you can consider the option of renting a storage facility to potentially save costs. Then maximize community awareness of your offerings by engaging in robust marketing efforts. Establish a physical location as early as possible to build brand credibility and reap long-term savings.
8. Sewing and Alterations Shop
• Average Annual Revenue: $27K+
• Average Profit Margins: 8.3%
• Startup Cost: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.6%
• Best For: Detail-focused entrepreneurs, fashion and clothing experts who excel at listening and communication
Tailoring and alterations earn $9.4 billion, and the industry is anticipated to experience 4.7% year-over-year growth according to a report by Polaris Market Research.
The beauty of venturing into this type of business lies in its scalability, plus it will help you expand your skill set. Tasks like sewing simple hems and replacing buttons might evolve into dressmaking and design as your knowledge and experience grow.
I actually have an acquaintance who designed costumes for Cirque de Soleil before opening her own small business. With that experience in altering and customizing high-end garments, she opened a brick-and-mortar shop and gets asked to design work for businesses and live performances throughout the country.
During the initial stages, it is entirely respectable to launch your operation in a clean, smoke- and pet-free space within your home.
Pro Tip: Begin by making gradual investments in a commercial-grade sewing machine, a variety of fabrics, backup equipment, and a point-of-sale (POS) system. The costs can range from $150 for an entry-level sewing machine to $10,000 or more for a top-of-the-line model.
9. Gently Used Maternity Clothing Shop
• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best For: Fashion and style experts who are excellent negotiators and communicators
In 2021, the maternity wear industry held a valuation of $12.2 billion, and projections from Research and Markets indicate a growth to $16.5 billion by 2028, featuring a 4.4% year-over-year increase.
The demand for formal business women’s maternity attire is notably driven by the nearly 57% female composition of the U.S. workforce, as per the Bureau of Labor Statistics.
Following their pregnancies, many women opt to pass their maternity clothing on to others in need. You can play a role in facilitating this by establishing a shop specializing in gently used maternity attire and other pregnancy supplies.
Start your used maternity clothing venture by selecting and legally formalizing your business structure.
Then, get a seller’s permit and source inventory from social media, consignment shops, and thrift stores. Promote your business within the community, expressing your interest in purchasing used maternity clothing. Finally, ensure profitability by selling the clothing at prices that exceed your purchase cost.
10. Cleaning Service
• Average Annual Revenue: $74K+
• Average Profit Margins: 6.7%
• Startup Costs: $1K-$30K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.2%
• Best For: Self-motivated, independent, and detail-oriented entrepreneurs
Cleaning businesses are virtually gold mines. They’re easy to start, and they have high success rates. Our friend Chris Mondragon pulls in over $125K monthly with his company, Queen Bee Cleaning! In his words:
As you start out, your margins are 40-50%.
Forty to fifty percent! Seasoned business owners and aspiring entrepreneurs know how significant that is! With only 13 weekly cleaning contracts, you can rake in $7,800—not in revenue, but pure profit! Now imagine signing 20 or 30 of these high-paying contracts.
Cleaning is a business built to scale. But be careful: You can’t scale to millions of dollars just anywhere. There’s a tried-and-true calculation that reveals the earning potential in your area. If the numbers line up, you can scale to seven figures.
If you’re curious about how to use the calculation and want to know how to start your cleaning business from scratch—no franchise required—check out this free masterclass with Chris Mondragon.
You can read Chris’s incredible story here or watch our exclusive interview below.
11. Virtual Assistant
• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best For: People with strong organization and communication skills, those who want to work from home and set their own hours
Becoming a virtual assistant for clients you choose is a profitable business to start. Some of the top virtual assistants on Upwork make $85 an hour. That’s up to $152K per year for doing things like scheduling appointments, sending emails, completing research, and other jobs you can do remotely.
Like other jobs that use a knowledge-based business model, the main startup costs are licensing and software. If you want to make more than that, you can start a VA agency and hire other people to help with this small business idea.
12. Social Media Management
• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $100-$10K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best For: Social media experts, writers and content creators, people with search engine optimization (SEO) expertise
Social media marketing is a vast industry. According to Statista, it is a $153.7 billion industry. And all you need is a computer, some software, and to find some clients.
Jason Yormark of Socialistics told us:
You can expect each client to be around $2,000-5,000 per month and require 20-40 man-hours to give them proper service.
That means a single person can make up to $40K monthly from home without investing in inventory. Find out how Jason turned his company into a $500K-a-year social media marketing agency:
Pro Tip: You can also learn from our blog on how to start a marketing agency.
13. Accounting and Bookkeeping
• Average Annual Revenue: $244K per employee
• Average Profit Margins: 18%
• Startup Cost: $500-$2.5K
• Time To Revenue: 3-12 months (plus accounting degree)
• Annual Market Growth Rate: 1%
• Best For: Certified accountants, entrepreneurs with strong math and financial skills
To become a certified public accountant, you will need 150 hours of education in accounting. That’s a bachelor’s degree and passing the CPA exam, which is a test for proficiency created by the American Institute for Certified Public Accountants (AICPA).
Once you have a CPA license, you can start a company and make a great living. There are only 40,000 AICPA members and over 80 million tax returns filed annually by tax professionals, so there’s plenty of work.
Granted, tax prep services do some of those, but CPAs do the big ones. Even at the low end of $100 per tax return, that’s still $8 billion in revenue, and that’s just part of what CPAs do.
Add in payroll, quarterly minimum filing, certifying businesses for SOC 2 compliance, managing business sales tax payments, and other business finances, and it’s obvious why working as a CPA is one of the most lucrative business ideas in 2022.
14. Consulting
• Average Annual Revenue: $364K
• Average Profit Margins: 6.4%
• Startup Costs: $1K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.2%
• Best For: Executives and business leaders, entrepreneurs with management or business expertise, people with strong analytic, problem-solving, and communication skills
A consulting business is focused on helping other business owners solve their problems. You can choose a niche if you have a specific area in which you are an expert, or you can be an all-in-one solution.
When I initially started my consulting business, I was consulting on everything. One day I’d analyze payment processors, and the next, I would look for good influencers for a brand. I eventually gravitated to writing about business and technology because it makes it easier to pass knowledge on to thousands of people per month.
Business consultants can make anywhere from several hundred per day to billions per year. Consultants who specialize in mergers and acquisitions can earn huge commissions.
Check out this interview with Ryan Gromfin, who makes $35K a month with his consulting business:
Least Profitable Industries
There are some industries that are really struggling right now. You might want to avoid these industries if you want to make a profit fast.
| Industry | Net Income |
| Entertainment | -0.23% |
| Telecom Services | -0.28% |
| Chemical (Diversified) | -1.01% |
| Broadcasting | -1.41% |
| Furniture & Home Furnishings | -2.24% |
| Rubber & Tires | -2.53% |
| Electronics (Consumer & Office) | -3.05% |
| Real Estate (Operations & Services) | -3.14% |
| Precious Metals | -4.26% |
| Drugs (Biotechnology) | -11.88% |
| Software (Internet) | -14.32% |
| Real Estate (Development) | -16.35% |
Most of these industries are tied to big purchases. You’re seeing losses tied to inflation of expenses like materials and wages, combined with people cutting back on making new purchases. This is expected when discretionary income decreases.
Pro Tip: Assuming wage growth continues and outpaces inflation, we should see these return to profitability in a few years. Until then, our blog on recession-proof businesses can provide even more inspiration for getting started in a bad (or questionable) economy.
Frequently Asked Questions (FAQs)
What are the top five most profitable businesses in the world?
According to CompaniesMarketCap.com on December 11, 2023, the five most profitable businesses were
- Apple (valued at $2.99 trillion)
- Microsoft (valued at $2.741 trillion)
- Saudi Aramco (valued at $2.139 trillion)
- Alphabet (Google, valued at $1.665 trillion)
- Amazon (valued at $1.503 trillion).
Note that the values of these companies fluctuate daily.
What are the easiest businesses to start?
Dog walking, house cleaning, and sewing businesses are the easiest to start because they have low startup costs and low barriers when it comes to getting licenses and permits.
What businesses are in high demand?
IBISWorld states that fruit and nut farming, solar power, online gambling services, hybrid and electric vehicle manufacturing, and 3D printing and prototyping are the fastest-growing businesses in 2024.
| Explore Our Courses & Exclusive Database! |
| Discovering the right business idea is the first step to starting your own venture. At UpFlip Academy, we’ve gathered 500 unique business ideas, each with detailed insights to guide your decision-making. Our platform is your all-in-one resource for launching a successful business, featuring not only a vast idea database but also expert-led courses, interactive workshops, personal business coaching, and much more. | |
| Check Out Our Extensive Business Idea Database and Full Range of Courses! | |
So What Are the Most Profitable Businesses to Start?
We’ve discussed the most profitable business ideas from multiple vantage points. Some are easy businesses to start from home, and some are not as easy to get into because of education requirements or other barriers to entry.
When it comes down to it, the most profitable business for you to start is one you have knowledge in, you know how to find customers for, and you want to spend the rest of your life exploring and working with.
You can make any of your favorite 2024 business ideas one of the most profitable and successful business ideas if you:
- Create a business plan: Read our guide if you’ve never created one.
- Provide excellent customer service: Check out HelpScout’s blog on what makes great customer service.
- Educate yourself on the industry: Follow our blogs and YouTube.
- Don’t give up: Many business owners give up right before they hit exponential growth. Learn how to run a business.
What other profitable and successful small business ideas are you thinking about starting?
