The 23 Most Profitable Businesses in 2021 - NerdWallet

7/9/2021 The 23 Most Profitable Businesses in 2021 - NerdWallet
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The 23 Most Profitable Businesses in

2021
Looking for a profitable business to start? Review our list of the most profitable
businesses for inspiration.
Meredith Wood Jan 7, 2021
Many or all of the products featured here are from our partners who compensate us. This may influence which
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Some people venture into entrepreneurship knowing what industry they want to
conquer and what type of business they want to start.
New However,
Survey Available for many new
Get 20
entrepreneurs, it can be difficult to figure out how to SB for this
start survey
a business and exactly
Get Started
what kind of business is the best choice. It’s tough to find that perfect idea.
We've
TOPcompiled
PICKS a list of the most
GUIDES profitable small businesses.
TOOLS Each of these business
MY NERDWALLET
https://www.nerdwallet.com/article/small-business/most-profitable-business 1/13
We ve compiled a list of the most profitable small businesses. Each of these business
types is growing quickly and can provide you with a good living. Even better, none of
them require a lot of capital to start out with. With the right combination of hard
work, determination, and resourcefulness, you can start one of these most profitable
businesses.
Most profitable small businesses

With the rise of technology, many of these most profitable businesses fall under the
realm of online business ideas—but not all of them. You'll also find ideas that fall
within the realm of childcare, others that correspond more to B2B services, and some
that suit entrepreneurs who are looking to be on the move with their businesses. This
being said, there's nothing to say that any business idea that you come up with won't
be profitable, but if you're looking for a good place to start, you'll want to check out
this list of the most profitable small businesses:
1. Auto repair
Taking a car to the shop for even simple repairs can be a challenge. After all, most of
us use our cars to get from place to place— that means taking a car in for repairs
often either involves a long wait at the repair shop, renting a vehicle for the day, or
coordinating a ride with a friend or spouse. These options are both expensive and
inconvenient.
The good news is that while some repair jobs do require the equipment of an auto
shop to complete, there are plenty of maintenance and repair services that need just
a few simple tools to complete. If you’re skilled as a mechanic, you might consider a
mobile auto repair service as one of the most profitable business ideas. You can offer
oil changes, fluid refills, battery swaps, headlight repair, and more right in your
customer’s driveway or office parking lot.
2. Food trucks
The food truck movement is slated to keep growing and growing. As rent in major
cities across the country increases, it’s becoming more difficult for up-and-coming
specialty food artisans to finance a brick-and-mortar location in the bustling centers
of town—where their customers are most likely to be.
Food trucks provide a great solution. You can start a food truck by hitting the road
and parking yourself at local events, farmers markets, the local town square—
wherever you’re likely to draw a crowd. The lower Newoverhead and increased geographic
Survey Available
versatility of a food truck mean you can turn yourGet grandma’s
20 SB for this famous
survey dumpling recipe
Get Started
or that off-the-wall dessert idea into its own thriving business.
KeepTOP
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mind that bigger, trendier
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already have a pretty saturated food truck market—so this might be a more
successful business in a smaller heartland metropolis. Food trucks also tend to have
their own special set of ordinances, business licenses, and safety compliance
standards, so contact your local health department to find out what will be required.
3. Car wash services

Next on our list of the most profitable businesses: mobile car wash services. It seems
safe to say that many people would pay a premium for a mobile car wash that came
to them, instead of having to drive across town to access a car wash. This is especially
true for people with upscale cars who prefer more personalized service. As a mobile
car wash and auto detailing service, you wouldn't only benefit from the unique value
proposition of being mobile, but you'd also avoid the significant overhead and startup
cost of having a physical location.
Not sure how to start your own mobile car wash service? There are a variety of online
wholesalers that offer auto detailing startup kits, as well as training for those
interested in starting their own business in this niche industry. You can also read more
about starting a car wash business.
4. Electronics repair
To say that Americans these days are obsessed with electronics would be a bit of an
understatement. People spend most of their waking hours staring at a screen of some
sort. This widespread tech addiction means that when something goes wrong, people
want help as soon as possible.
Therefore, there's no doubt that mobile electronic repair services are popular and
could easily be one of the most profitable small businesses. With this service, you
could be the solution for every broken iPhone screen, WiFi card, and laptop battery.
Plus, you'll be even more successful if you’re willing to travel to your customer. Apple
stores and other electronics retailers have come under fire recently for long customer
wait times, which could work in favor of mobile providers.
This being said, although a mobile electronics repair business involves some overhead
in the form of purchasing supplies, keeping your business mobile saves you from the
high overhead cost of a physical location—making it an even more profitable service
business idea.
5. IT support New Survey Available

Get 20 SB for this survey
Although two-thirds of Americans think they are tech-savvy,
Get Started the truth is that they
often need to rely on tech support. Some even make their computers or other devices
vulnerable
TOP PICKSto hackers and identity
GUIDES theft. Unfortunately, when things go wrong,
TOOLS often
MY NERDWALLET
vu e ab e to ac e s a d de t ty t e t U o tu ate y, w e t gs go w o g, o te
the free customer phone support provided by manufacturers doesn’t feel supportive
or fails to solve the problem.
If technology comes easily to you—and you’re a relatively patient person—then the

most profitable business for you might be hitting the road, at least in your
neighborhood, with mobile IT support. All you need is time, transportation, and your
own know-how—so this low-overhead business model is almost pure profit.
6. Personal trainers
Turning your love of fitness into a career doesn’t have to mean working for a big
corporate gym—nor do you need the overhead of having your own location to train
clients. Throw a few weights, bands, and yoga mats into the trunk of your car, and
take your fitness show on the road.
You can become a personal trainer by offering one-on-one sessions in your clients’
homes or advertising group classes at a local park or community center. Making
fitness more available to your clients might just be the ticket to helping both of you
achieve your goals. As Americans start to eat healthier and exercise more, fitness and
wellness businesses are increasing in popularity and becoming some of the most
profitable businesses as well.
7. Newborn and post-pregnancy services

Although millennials are deferring parenthood for longer than previous generations,
they eventually want to have kids—in fact, in 2016, 1.2 million millennials became first-
time mothers. Therefore, the need for child-oriented businesses is growing, starting
with post-pregnancy and newborn-related services.
Demand for doulas and lactation consultants, in particular, has risen among new
mothers, and both business options have relatively low overhead requirements
beyond education and certification—meaning these professions could easily become
one of the most profitable businesses for you to start.
8. Enrichment activities for children

While the number of children in the United States grows, shrinking budgets for
education mean that both traditional academics and enrichment subjects like music,
New Survey Available
art, and athletics have taken a significant hit.
Get Started
As a result, more parents are turning to private businesses for enrichment activities
outside of school. This being said then, one of the most successful businesses for you
TOP PICKS GUIDES TOOLS MY NERDWALLET
i h b i i h l
https://www.nerdwallet.com/article/small-business/most-profitable-business i i i kid ’ h 4/13
might be a gymnastics center, music school, swimming instructor, kids’ yoga teacher,
or other child-centered activity. If you have a skill that could be easily taught to
young students, you might already have a profitable business in the making.
9. Mobile apps and entertainment for children
On the other hand, if your interests lie closer to tech or entertainment, consider
gearing your technology toward the youngest of consumers. Research shows that
regardless of expert recommendations, demand for tablets, apps, and mobile
entertainment for children is on the rise.
Do you have an idea for an educational app for children or parents? If so, now's the
time to move forward on your bright idea for the next generation and make this
potentially profitable business a reality.
10. Shared accessories and attire

Sites like Rent the Runway and Gwynnie Bee have banked on the idea of the sharing
economy—where we want and need to own less stuff, so instead, we share resources.
This trend has led to small business opportunities for these companies, which offer
borrowed or rented clothing and accessories at a fraction of their purchase prices.
And because the same piece of inventory can generate revenue multiple times, the
profitability of these ventures is pretty significant.
Do you have an eye for fashion and a sense of style not currently offered by other
rental services? Maybe you’re ready to be the next big thing.
But even if you’re not prepared to launch a multi-million dollar fashion startup, you
can just as easily profit from shared fashion at the local level. Gather some favorite
accessories or clothing picks and host a borrowing party for high school students
before the next formal dance. If you’re in a college town, Greek life formals are
another great opportunity to profit from shared economy fashion. And because
you’re taking shipping costs out of the equation, you have the potential to be even
more profitable than the larger startups.
11. Shared home improvement equipment

Are you the go-to guy or gal in your neighborhood for every lawn, garden, and home-
repair tool under the sun? Why not turn those favors into a profitable business by
advertising your available equipment beyond your immediate
Get 20 friend group?
SB for this survey
Get Started
You might even decide to invest in more specific and higher-cost equipment that
would be useful to those around
TOP PICKS
you. And if a customer
GUIDES
doesn’t know how
TOOLS
to use a
MY NERDWALLET
specific tool, combine your equipment rental with a mobile handyman service for
even more cash in the bank. This could be a big opportunity as one of the most
profitable business ideas as more people invest in fixer-upper houses and are in need
of tools and advice.
12. Vacation rentals

Sites like Airbnb or VRBO have made it easier than ever to profit from your unused
vacation property—or even your extra bedroom. Plus, it's not too difficult to become
an Airbnb host and the demand for these types of rentals has only grown in recent
years. Therefore, if you live in a highly desirable tourist destination, you can easily
make a profit renting space in your home to travelers.
13. Academics courses

Again, with the growth of technology, online business owners are making some of the
most profitable businesses by offering courses through educational platforms or
independently through their own websites. Therefore, you might start with traditional
academics, offering supplemental online instruction in grade-level reading math,
science, or history, or even standardized test preparation.
You could even create a review course for parents helping teens with their algebra
homework. If you’re creative, the possibilities are truly endless. And, academic
courses don’t have to end at the high school or even college level. You can create an
online course to share your love of political history, Buddhist theology, or rocket
science. If you’re interested in a particular subject, chances are high that someone
else is, too.
14. Language courses

Additionally, as communication improves and borders blur, consumers all over the
world are looking to learn languages. Whether you take to the online education with
expertise in the English language, or you harness your mastery of Swahili, there’s
likely someone out there that wants to learn a language from you. And they’re
probably willing to pay for it. You might have a successful business on your hands
especially if you speak the most in-demand languages—such as Arabic, Spanish, and
Mandarin.
If you’re skilled in an obscure language, or you’re especially adept at teaching a more

widely-known language, then an online language-based
New Survey educational
Available session could be
one of your most profitable business ideas. Get 20 SB for this survey
Get Started
15. Business or marketing courses

The sad reality is that while liberal arts degrees might develop critical thinkers, many
college graduates don’t come away with marketable skills that make them successful
in business. Your ability to fill in those gaps with your own expertise could be one of
the best small business ideas that you can start with very little initial cost.
What skills and lessons have you learned the hard way in your own business or
career? Share your expertise with fellow entrepreneurs through a B2B-oriented online
course. Popular course topics include bookkeeping, QuickBooks accounting software,
WordPress web development, graphic design, how to develop a great client proposal,
or even how to write a great cover letter or resume.
16. Personal wellness

Are you a therapist or counselor, a yoga instructor, a life coach, or a long-time
meditator? If you have a deep passion for personal wellness, you might be able to
help others find their own zen—while also earning a significant income. All you have
to do is share what you know.
If you’re skeptical about the combination of personal wellness and online courses,
look no further than Oprah. She’s the personal wellness queen and has been an early
advocate of online courses—including author Brene Brown on the power of
vulnerability.
Every person has a desire to better themselves, and that’s exactly what online
courses are all about. If you have this expertise to share, you could easily turn your
knowledge into one of the most profitable businesses.
17. Courses in other hobbies

While many courses are designed to further an education or career prospects or to
promote major life changes, you can just as easily design an online course around any
hobby or interest. Do you have a passion for calligraphy or craft brewing? Have you
mastered a certain video game? You'd be surprised at the number of people willing
to pay to learn about topics they're interested in.
Not sure how to start designing your own online course? Well, there are even online
courses for business owners. You can use one of these courses to propel your own
online course business or any of the other ideas on our list of the most profitable
small businesses. Get 20 SB for this survey
Get Started
18. Bookkeeping and accounting
A i d b kk i id
https://www.nerdwallet.com/article/small-business/most-profitable-business bl li i fb i hi B f 7/13
Accounting and bookkeeping are unavoidable realities of business ownership. But for
many entrepreneurs, money management is the very worst part of owning a business.
Whether you’re a licensed CPA or just a QuickBooks wizard, you might be the perfect
candidate to launch your own business by keeping your fellow entrepreneurs’
personal and small business finances in order. With a net profit margin of 19.8%,
bookkeeping, accounting, tax preparation, and payroll services have long been some
of the most profitable businesses for entrepreneurs.
As a bookkeeper, you can process invoices and payroll, compile expense reports, and
more. If you have a CPA license, you can help business owners file taxes, generate
balance sheets and other accounting documents, and make professional
recommendations about your client’s bottom line.
19. Consulting
If you’ve been in the business world for a long time, folks may be clamoring for your
knowledge and expertise within your industry. Why not turn all that know-how into a
new career as an independent consultant?
You can be paid to speak at industry conferences or events, serve on a board of

advisors for a fledgling business, or lend your expertise to shape the strategy of an
existing business on a contract basis. Whatever your skillset, starting a consulting
business is a great way to make the income of your dreams while working on your
own terms.
20. Graphic design

As the number of brands vying for consumers’ attention grows, a slick and polished
image has become more important than ever for small businesses. Regardless of
whether they can afford a large-scale advertising or marketing agency, almost every
small business will need some amount of graphic design work now and again.
Do you know your way around Photoshop, Illustrator, and InDesign? Have you taken a
few design classes, and do you have an eye for good branding? Turn your skills into a
business as a freelance graphic designer. You’ll have almost no overhead and can
charge significant hourly rates to do what small business owners can’t do for
themselves—create awesome marketing graphics.

21. Social media management Get 20 SB for this survey
Get Started
Most millennials were born and raised on social media. As customers, they expect a
business to have a strong social media presence and to be responsive in social
i
customer service.
However, although most fellow small business owners know that they need to engage
in social media marketing, few have the necessary time or expertise to “do social
media” well, let alone manage all of their social media accounts.
If you’re fluent in Twitter, live your life on Facebook, and have gotten every job you’ve
ever had through LinkedIn, you might consider turning your social media expertise
into your own solopreneur business venture, offering support to business owners who
need help managing their brand’s social media platforms. There's no doubt that in
this day and age, starting a social media consulting agency can easily become one of
the most profitable small businesses.
22. Marketing copywriter

Similarly, if you’re particularly adept with words, you can use your talents to write
copy for various companies’ marketing efforts. The content marketing industry is
slated to be worth a whopping $412 billion by 2021.
Whether you’re coining a catchy slogan or writing an in-depth description of a

company’s offerings, if you’re doing it as an independent contractor, then you know
you’ll be earning a profit for your services, no matter what.
23. Virtual assistant services

Finally, last on our list of the most profitable small businesses: virtual assistant
services. When the pre-Recession economy was at its peak, every entrepreneur,
manager, or executive had a personal or executive assistant. Years later, many still
have the workload and full schedules that make having an assistant useful (if not
necessary), but many still can’t or don’t want to pay for a full-time helping hand.
To fill the gap, virtual assistants have become the quintessential hybrid of freelance
gigs and side hustles. As a virtual assistant, you can choose your clients and create
your own schedule managing emails, scheduling meetings, booking travel, and
completing other basic tasks to make your customers’ lives run more smoothly. All
you need is a laptop and an internet connection to start this profitable business.
3 Steps to start a profitable business

As you can see, the most profitable businesses span different industries, time
commitments, and startup costs. This being said,Getregardless
Started of which most profitable
business idea you're leaning towards, there are a few things you'll need to get your
business started.
Therefore, if you're still in the initial planning stages, you can consult these three steps
to get the ball rolling:
Step 1: Find the perfect idea and do your research.
A business starts with a good idea. But in order to make that idea a reality, you need
to do your research to make sure the concept will succeed. Go through an idea
validation process—including market and competitor research, and financial feasibility
analysis—before you’re too far in. Consulting this list of the most profitable businesses
will be your first step in this process.
Step 2: Get organized and make it official.

When you’re sure that you have a good idea to work with, it’s time to plan out the
logistics of the business with a well-formulated business plan. When you’re confident
that you’ve got it all down in writing, you'll want to take steps to make it official. This
includes choosing a business structure, applying for an EIN, registering your “Doing
Business As” name (if necessary), and getting the business licenses and registrations
your specific business needs to open its doors.
Step 3: Find the right financing.

Every business needs capital to grow, and startups are certainly no exception. But as
a new startup owner, you might struggle to qualify for traditional business loans right
off the bat.
That’s why we recommend you start funding your initial growth with a business credit
card. Not only will you have an easier time qualifying for a credit card than you would
a traditional business loan, but you’ll also kick-start your business credit history, earn
perks and rewards as you spend, and take advantage of interest-free 0% introductory
APR periods (that’s like a free loan).
The bottom line

At the end of the day, although industries like healthcare technology, finance, and
product manufacturing might dominate the stock market and the Fortune 500-level
economy, those same industries aren’t necessarily the most profitable or accessible
options for small business entrepreneurs. New Survey Available
Instead, many of the most profitable businessesGetforStarted
first-time entrepreneurs are going
to be those that are easy to get started, have low initial costs, and can capitalize on a
market need or trend. As you've
TOP PICKS seen through our listTOOLS
GUIDES of the most profitable small
MY NERDWALLET
businesses, there are plenty of ideas that will suit the full range of business ownership
experience and preferences.
Ultimately, all you have to do is pick the winning idea for you, start planning, and get
things up and running—and before you know it, you'll quickly reap the benefits of a
most successful business venture.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
About the author: Meredith Wood is a member of the small-business team at NerdWallet. Read more
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7/9/2021 The 23 Most Profitable Businesses in 2021 - NerdWallet

The 23 Most Profitable Businesses in

Meredith Wood Jan 7, 2021

Most profitable small businesses

3. Car wash services

5. IT support New Survey Available

If technology comes easily to you—and you’re a relatively patient person—then the

7. Newborn and post-pregnancy services

8. Enrichment activities for children

9. Mobile apps and entertainment for children

10. Shared accessories and attire

11. Shared home improvement equipment

12. Vacation rentals

13. Academics courses

14. Language courses

If you’re skilled in an obscure language, or you’re especially adept at teaching a more

15. Business or marketing courses

16. Personal wellness

17. Courses in other hobbies

You can be paid to speak at industry conferences or events, serve on a board of

20. Graphic design

New Survey Available

22. Marketing copywriter

Whether you’re coining a catchy slogan or writing an in-depth description of a

23. Virtual assistant services

3 Steps to start a profitable business

Step 1: Find the perfect idea and do your research.

Step 2: Get organized and make it official.

Step 3: Find the right financing.

The bottom line

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

DIVE EVEN DEEPER IN SMALL BUSINESS

Compare Small Business Loans

Compare estimated rates from multiple online small-business lenders.

6 Startup Business Loan Options forGet

Small-Business Grants: Where to Find Free Money

EXPLORE SMALL BUSINESS

Make all the right money moves

DOWNLOAD THE APP

ABOUT HELP LEGAL

Company Help center Terms of use

Leadership Support team Privacy policy

Careers Community California privacy policy

News Do not sell my personal

Property and Casualty insurance services

NerdWallet Compare, Inc. NMLS ID# 1617539

NMLS Consumer Access

Licenses and Disclosures

NerdWallet USA | NerdWallet UK

© 2021 NerdWallet, Inc.

TOP PICKS GUIDES TOOLS MY NERDWALLET

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