What Small Business is the Most Profitable in 2024?
However, before we get started, a quick highlight. This article focuses on businesses that you’d find on main street in any city or town. There are certainly profits in other industries such as e-commerce, digital marketing, and subscription box services, for example, but those are not included in this overview.
It is also important to note that profitability can vary significantly based on location, market conditions, management quality, and other factors. Lastly, in order to be fair, we’ll also highlight some of the biggest challenges for operating businesses in these spaces, not just the positive elements.
Whether you’re looking to start fresh or buy an existing business, here are the top 10 most profitable main street businesses and why they stand out.
In 2024, What Small Business is the Most Profitable?
Auto Repair Shops
Why They’re Profitable:
- Essential Service: Everyone needs their car fixed eventually.
- Repeat Customers: Regular maintenance brings steady business.
- High Margins: Specialized services like transmission repairs and custom work can be very profitable.
Examples:
- General Auto Repair
- Transmission Specialists
- Tire and Alignment Shops
- Auto Body Repair
- Oil Change and Lube Shops
- Brake Repair Shops
- Muffler and Exhaust Repair
- Car Detailing Services
- Mobile Auto Repair
- Electric Vehicle (EV) Repair Services
Challenges:
- Competition: Many repair shops are competing for the same customers.
- Regulations: Must comply with environmental and safety regulations.
Hair and Beauty Salons
Why They’re Profitable:
- High Demand: Everyone needs a haircut, and many people want beauty treatments.
- Repeat Business: Regular appointments keep revenue steady.
- Add-On Services: High margins on products and additional services like facials and massages.
Examples:
- Hair Salons
- Nail Salons
- Barbershops
- Spas
- Skin Care Clinics
- Massage Therapy Centers
- Eyelash Extension Studios
- Waxing and Threading Salons
- Tanning Salons
- Makeup Studios
Challenges:
- Staff Turnover: High turnover rates can disrupt business continuity.
- Competition: Many salons in a single area can saturate the market.
Restaurants and Cafes
Why They’re Profitable:
- High Demand: People love to eat out and try new food.
- Loyal Customers: Good food and service can create a loyal customer base.
- High Margins on Drinks: Beverages often have higher profit margins than food.
Examples:
- Family Diners
- Coffee Shops
- Fast-Casual Restaurants
- Pizzerias
- Bakeries
- Food Trucks
- Ice Cream Parlors
- Ethnic Cuisine Restaurants
- Fine Dining Restaurants
- Brunch Cafes
Challenges:
- High Overhead: Rent, utilities, and food costs can be significant.
- Long Hours: This work typically takes you away on nights and weekends.
- Staffing Issues: High turnover and training new staff can be costly.
Childcare Services
Why They’re Profitable:
- High Demand: Many parents need reliable childcare.
- Recurring Revenue: Regular fees for ongoing services.
- Government Support: Subsidies and tax credits can make services more affordable for families.
Examples:
- Daycare Centers
- After-School Programs
- Preschool Facilities
- Nanny Services
- Montessori Schools
- Summer Camps
- Early Childhood Education Centers
- Childcare Cooperatives
- Babysitting Services
- Drop-In Childcare Services
Challenges:
- Regulations: Must comply with strict safety and health regulations.
- Liability: High responsibility for children’s safety and well-being.
Landscaping and Lawn Care
Why They’re Profitable:
- Seasonal Demand: Regular maintenance and seasonal clean-ups.
- Add-On Services: High margins on additional services like tree trimming and pest control.
- Residential and Commercial: Serve both homeowners and businesses.
Examples:
- Lawn Mowing Services
- Landscape Design
- Tree Trimming and Removal
- Garden Centers
- Irrigation System Installation and Maintenance
- Snow Removal Services
- Pest Control
- Hardscaping Services
- Outdoor Lighting Installation
- Pool Maintenance and Cleaning
Challenges:
- Seasonality: Business may slow down in winter months.
- Labor-Intensive: Requires a reliable and skilled workforce.
Fitness Centers and Gyms
Why They’re Profitable:
- Membership Models: Recurring revenue from memberships.
- Diverse Offerings: Classes, personal training, and merchandise sales.
- Health Trends: Increasing focus on health and wellness.
Examples:
- Full-Service Gyms
- Boutique Fitness Studios
- CrossFit Gyms
- Yoga Studios
- Pilates Studios
- Martial Arts Schools
- Spin and Cycling Studios
- Personal Training Studios
- Boxing Gyms
- Dance Studios
Challenges:
- Competition: Many gyms and fitness centers in urban areas.
- Member Retention: Keeping members engaged and renewing their memberships.
Home Improvement Services
Why They’re Profitable:
- Constant Demand: Homeowners always need repairs and upgrades.
- High Margins: Specialized services can be very profitable.
- Repeat Customers: Good service can lead to repeat business and referrals.
Examples:
- General Contracting
- Plumbing Services
- Electrical Services
- Roofing Contractors
- Painting Services
- HVAC Services
- Flooring Installation
- Window and Door Installation
- Handyman Services
- Kitchen and Bath Remodeling
Challenges:
- Regulations: Must comply with building codes and safety standards.
- Skill Requirements: Requires a skilled and reliable workforce.
Cleaning Services
Why They’re Profitable:
- High Demand: Both residential and commercial properties need regular cleaning.
- Low Overhead: Minimal initial investment required.
- Repeat Business: Regular cleaning contracts provide steady income.
Examples:
- Residential Cleaning
- Commercial Cleaning
- Carpet Cleaning
- Window Cleaning
- Pressure Washing
- Post-Construction Cleaning
- Move-In/Move-Out Cleaning
- Janitorial Services
- Green Cleaning Services
- Specialty Cleaning (e.g., crime scene cleanup)
Challenges:
- Labor-Intensive: Requires a reliable and efficient team.
- Competition: Many cleaning businesses vying for the same clients.
Pet Care Services
Why They’re Profitable:
- Pet Boom: Increasing pet ownership drives demand.
- High Margins: Premium prices for pet care services.
- Repeat Customers: Regular grooming and care appointments.
Examples:
- Pet Grooming
- Dog Walking Services
- Pet Boarding
- Pet Daycare
- Pet Training
- Veterinary Clinics
- Pet Sitting
- Mobile Pet Grooming
- Pet Nutrition Consulting
- Pet Photography
Challenges:
- Seasonality: Demand may fluctuate throughout the year.
- Specialized Skills: Requires knowledge and passion for animals.
Local Specialty Shops
Why They’re Profitable:
- Unique Products: Niche markets with loyal customers.
- Community Support: Local customers often prefer to shop small and local.
- High Margins: Unique and specialty items can command premium prices.
Examples:
- Organic Grocery Stores
- Artisan Bakeries
- Craft Breweries
- Handmade Craft Shops
- Bookstores
- Antique Shops
- Specialty Coffee Roasters
- Cheese and Wine Shops
- Toy Stores
- Health Food Stores
Challenges:
- Competition: Competing with big-box stores and online retailers.
- Marketing: Requires effective marketing to attract and retain customers.
Why Buying an Existing Business is Your Golden Ticket
Instead of starting from scratch, have you thought about buying a business that’s already thriving? Here’s why it’s a game-changer:
- Instant Revenue: Skip the start-up phase and begin earning immediately.
- Established Customer Base: You’re not starting from zero.
- Proven Business Model: The kinks have already been worked out.
At SMB.co, we specialize in connecting you with profitable businesses that match your interests and skills. We’ve got the tools and expertise to help you find the perfect business, ensuring a smooth transition and continued success.
Are You a Small Business Owner Looking to Maximize Profitability?
If you’re already running a small business in one of these lucrative industries and want to take it to the next level, the SMB.co Partner Network is here to help. We provide access to growth resources, expert advice, and strategic partnerships designed to boost your profitability and sustainability.
