Which Business is Profitable?

Which Business is Profitable?

WHICH BUSINESS IS PROFITABLE?

Some people venture into entrepreneurship, knowing exactly what kind of industry they want to conquer and what kind of company they want to launch. However, it can be challenging for many new entrepreneurs to find out how to start a company and what kind of business is the best option. It’s hard to find the right idea and get going with it.

That’s why we have put together a list of the most profitable small business ideas for budding entrepreneurs in 2020, going into 2021.

Each of these types of business ideas is rising fast, and we have taken into account the Covid situation to get you off to a good start and hopefully lead you onto a better career path working for yourself. This is an extremely useful source of information where you could get some real small business ideas and we’ll show you some great profitable small businesses to inspire you. If you’ve recently lost your job, had your hours cut at work or have realised that you really want to just work for yourself instead of having to rely on others to provide you with an income in exchange for hours worked.

None of the ideas for these small businesses are overly expensive to start up, and with the right mix of hard work, dedication and resourcefulness you’ll be up and running your small business in no time at all. You can get yourself going with a cool website design, some local SEO and minimal investment in yourself and your kit. Some do require qualifications, but many don’t. Take a look below.

Most Profitable Small Business Ideas 2020 During Covid Lockdowns

profitable businesses uk

With the growth of technology, many of these most profitable companies fall into the domain of online business ideas — but not all of them.

You can also find ideas that fall within the framework of childcare, some that relate more to B2B services, and others that suit entrepreneurs who are looking to be on the move with their companies.

That being said, there’s nothing to guarantee that any business idea you come up with isn’t going to be profitable, but if you’re looking for a good place to start, you’re going to want to check out this list of the most profitable small businesses that are pretty recession-proof:

Mobile Vehicle Repair Business

mobile mechanic

Used car prices have been rising recently, even with the pending EV revolution, this means that rather than buying new cars, people are sticking with their current cars for longer or buying used cars instead of new.

Growth in the number of used cars on the roads will surely mean more auto repairs and with current lockdowns, covid restrictions and members of the public being more cautious than usual, a mobile auto repair service makes perfect sense.

It can be a struggle to take a car to the shop for even basic repairs, especially if you have to work but mobile auto repair companies can fix a vehicle at a workplace, at home if the customer is working from home and some mechanics can extend their reach to compete with the mobile auto repair sector by offering a click, collect and drop off vehicle repair service.

After all, most of us use our vehicles to get from place to place — that means taking a car for maintenance sometimes entails a long wait at a repair shop, renting a car for a day, or arranging a lift with a friend or a partner. These solutions are both costly and inconvenient.

The good news is that while certain repair jobs require car shop equipment to be accomplished, there are plenty of maintenance and repair programmes that need only a few basic tools to complete. If you are a professional mechanic, you might consider a mobile auto repair service to be one of the most lucrative business ideas.

Ideas For Mobile Auto Repair/mechanic Services

  • Oil changes
  • Services
  • Fluid refills
  • Battery replacement
  • Light replacement
  • Tyre replacement/repair

You can do these things right in your customer’s driveway, work car park or open space.

You could also consider working for companies like the AA or the RAC or become a subcontractor for them in your own local area.

Food Vans & Market Stalls Are Profitable Small Businesses

food market

The street food market has become popular in the UK with more and more stalls and vendors popping up and creating spaces we know better as food markets.

These have proven to be extremely popular in London, especially in places like Camden and Southwark where food takes centre stage. Tourists and Millenials are extremely attracted to them as they are great places to try and sample new, fusion and traditional foods.

Property prices have become unaffordable for those just starting out in business, and as property rentals in major cities across the country continue to rise, it is becoming more and more difficult for up-and-coming food artisans to fund the brick-and-mortar position in the busy centres of the city — where their customers are most likely to be.

Food vans, stalls and markets are a perfect alternative.

In 2020, you can now start a food business by getting yourself a van, trailer or stall. Some people have opted to build their own bespoke conversion from old horseboxes and bike trailers to create beautiful mobile catering for the public.

Converting a van, hitting the open road and parking up at local festivals, farmers’ markets, local town squares or a licenced pitch — wherever you’re likely to attract a crowd is now one of the best ways to get into the food business.

The lower overheads and increased regional mobility of a food truck mean that you can sell your famous recipes in any location. From burgers to desserts and coffee to doughnuts – you can sell whatever you’re good at making! And, if you choose a mobile option, you’ll be able to up and move if the location doesn’t work as well for you as you had first hoped. You can’t do this with a bricks-and-mortar business as you’d be tied into a contract.

Bear in mind that larger, more hip cities like London, Manchester and Bristol already have a pretty saturated food truck/street food market — so this could be a more popular enterprise in a smaller heartland metropolis. Food vans, trucks and stalls also appear to have their own unique set of rules, business licences and safety enforcement requirements, so please check your local council’s website for more information on what is needed before you invest.

Ideas For Food Vans, Trucks & Stalls:

  • Vegan
  • Vegetarian
  • Barbequed (smokehouse style)
  • British Fusion
  • Gourmet Sandwiches
  • Italian – (cheese wheels, gourmet pizza, paninis)
  • Eastern European (perogies, goulash & pickles)
  • American
  • Desserts (waffles, pancakes, ice creams)
  • Superfoods (salads, smoothies, juices)

The best places to look for used, refurbished and new build catering trailers is eBay, gumtree and manufacturers like A & R Willis Catering Trailers.

Car Wash and Detailing Service Business

mobile car wash

It seems fair to assume that many people will pay a premium for a mobile car wash service to come to them, instead of having to travel around trying to find a car wash that is decent and isn’t too busy! This is particularly true of people with high-quality cars who want a more personalised service. As a mobile car wash and auto detail service, not only will you benefit from the unique advantage of being mobile, but you would also escape the substantial overhead and startup costs of providing a physical location.

There are a number of online wholesalers providing auto-detailing startup kits as well as training for those interested in starting their own company in this niche industry.

Professional Detailing Kits & Detailing Training Courses

Electronics Repair Business

computer repair

To say that Brits are fascinated with technology these days would be a little bit of an understatement. People spend most of their waking hours looking at some kind of screen. This pervasive software addiction means that people want help as soon as possible when something goes wrong.

There is also no question that mobile electronic repair services are common and could easily be one of the most profitable small businesses. With this service, you might be the solution for any broken iPhone screen, WiFi card, and laptop battery pack. Plus, if you’re happy to travel to your customer, you’ll be even more successful.

Apple stores and other tech outlets have recently been under fire for lengthy wait times for customers, which may work in favour of mobile providers.

That being said, while a mobile electronics repair company requires some overhead in the form of buying materials, keeping your business mobile saves you from the high overhead expense of a physical location — making it an even more lucrative service business concept.

If you’ve never been trained to fix electrical items or if you want a certificate to go along with your self taught skills, then here are some great places to look:

Electronics Repair Courses

IT Support Services Business

it support business

More than half of Brits who own technology don’t know how to use it properly. This means that the 50% who don’t know how to use their tech is going to have many problems and they’re most likely to need to help or support.

People who don’t yet have any tech may struggle in the future to adapt to the digitally changing world, and they too will need help. Some also make their computers or other gadgets susceptible to hackers and identity theft. Unfortunately, when things go wrong, the free customer phone service offered by the manufacturers sometimes doesn’t sound helpful or can’t fix the issue.

If technology is simple for you — and you’re a reasonably patient person — then the most lucrative business for you might be on the road, at least in your local area, offering locals with mobile IT support. You could also consider a call centre type operation whereby people can call you, or you can do a video consultation or distant self help repair assistance, all over the computer.

All you need is time, some transportation if you’re going to provide mobile services, a computer and a mobile phone if you’re going to do everything from home and your skills and know-how. This low-profile business model is almost pure profit once you’re set up and getting customers. The outlays are minimal, and there are training courses you and any future staff members can take, which can help you broaden your horizons when it comes to providing support and repair services.

Courses that can help you become an IT Support Entrepreneur:

Personal Trainers

it support business

With gyms closing up and down the country because of lockdown restrictions, this could be the best time for you to take to the great outdoors as a personal trainer. Personal trainers help people get in shape; they provide personal service and help people achieve their personal fitness goals.

To turn your love of fitness into a profession doesn’t have to mean working for a major corporate gym — nor do you need an overhead of getting your own place to train clients. We’d recommend getting yourself a van or car, some signwriting, throwing a few weights, bands, and yoga mats in the back, and taking your fitness programs on the road.

Personal trainers are extremely popular among the middle and upper classes in society so you can expect to get good, well-paying customers. Celebrities often have their own personal trainers, so approaching some celebrity PR companies could really get your fitness regimes out there.

You could also specialise in training for marathons, and mud runs, postpartum and post-injury exercising and if you up your qualifications to include physiotherapy you could combine both sets of skills and become a professional trainer and physiotherapist in one.

You could provide one-on-one sessions at your clients ‘ homes or advertise group sessions at nearby parks or community centres on evenings and weekends.

Making fitness more accessible to your clients might just be a ticket to helping you both achieve your goals. As Brits start eating healthy and exercising more, fitness and wellness businesses are on the rise, especially with those who are in the obese category being urged to lose weight and shape up to better help fight off viruses like covid-19.

If you are really into fitness and physiotherapy but don’t have any official certificates, diploma’s or qualifications, then there are some online courses that could help.

Personal Training & Physiotherapy Courses

Newborn and Post-Pregnancy Services Company

baby services

While millennials have been deferring parenthood for longer than previous generations, they ultimately want to have children — in reality, in 2016, 1.2 million millennials became first-time mothers. Accordingly, the need for child-oriented businesses is increasing, beginning with post-pregnancy and newborn services.

High demand for doulas and lactation consultants, in particular, has increased among new mothers, and both business choices have relatively low overhead requirements beyond education and certification — meaning that these careers could easily become one of the most lucrative businesses for you to start up.

To find out more about becoming a lactation consultant in Great Britain take a look at LCBG.org.

Extra Educational Activities Provider for Children

While the number of children in the UK is increasing, a decline in education budgets means that both conventional academics and enrichment subjects such as music, art and athletics have made a substantial difference.

As a result of this, more and more parents are turning to private companies for enrichment opportunities outside the classroom. That being said, one of the most popular businesses, keeping covid conditions in mind might be a personal trainer for kids, outdoor activities, online music school or some other child-centred schooling or activities teaching or engaging kids online might be a good idea.

If lockdown restrictions ease then entertainment providers, gymnastics centres, a music school, a swim instructor, a kids’ yoga teacher, or some other child-centred place will also work.

If you have a talent that could easily be taught to young students, you could already have a profitable business in the making.

Mobile Apps and Entertainment for Children

On the other hand, if your preferences are closer to technology or entertainment, consider aiming your technology to the youngest customer. Research shows that, regardless of expert advice, demand for smartphones, software, and mobile entertainment for children is on the rise.

Do you have an idea for a child or parent education app? If so, now is the time to step ahead with your brilliant idea for the next generation and make this potentially lucrative business a reality.

Clothing & Accessory Rental Business

Sites like Hurr Collective and Hire Street UK have been relying on the concept of sharing the economy — where we want and need to own less, so instead, we share resources. This trend has contributed to small business opportunities for certain businesses selling borrowed or rented garments and accessories at a fraction of their retail costs. And since the same inventory can produce revenue several times, the profitability of these projects is significant.

If you have a good eye for fashion and a sense of style that is not currently provided by other rental services, then you might be ready to be the next big thing.

But even if you’re not ready to launch a multi-million dollar fashion startup, you can make the most of shared fashion at the local level.

Gather some favourite accessories or clothes and host a local rental event or advertise your local rental company online, get listed on Google My Business and other local directories and see if you can provide a better value service on a local level.

Some great rental items you could rent on a local level include:

  • Prom dresses
  • Wedding dresses
  • Formal outfits
  • Designer handbags
  • Hats
  • Wigs
  • Costumes/Fancy Dress

And when you’re taking shipping costs out of the equation, you have the potential to be far more efficient than larger startups. You could also provide a mobile rental service, take your garments on the road, let customers try on before they hire and provide a bespoke fashion hire service in your local community, sharing the finer things in life.

Shared DIY Equipment

Are you a go-to guy or a gal in your neighbourhood for every lawn, patio, and home maintenance tool under the sun? Why don’t you turn those favours into a profitable company by advertising your equipment outside your immediate friend group?

You may also decide to invest in more specialised and higher-cost equipment that would be of benefit to those around you. And if the customer does not know how to use a particular product, combine the rental of your equipment with a mobile handyman service for even more cash in the bank. This could be a huge opportunity as one of the most profitable business ideas, as more people are investing in high-rise housing and need tools and advice.

Holiday Rentals

Websites like Airbnb and holiday cottage sites have made it easier than ever to make the most of your unused holiday homes or empty properties — you can even list your spare room.

It’s not too difficult to list your place on Airbnb, and the demand for rentals via this site and others that are similar has only increased over the years.

With restricted air travel due to covid, there is plenty of scopes for people to stay in the UK and holiday at home instead of abroad.

You don’t have to live in a highly desirable tourist destination, though it can help, but try to be unique, creative in your styling and a little different. Unique stands out, and the Millenials, YouTubers and full-time adventurers travelling the UK will choose quirky accommodation over its locality just for the experience so keep this in mind.

Another great feature of the Airbnb website is that it allows people to advertise their services and attractions – this section is better known as the experience section.

Offering experiences like kayaking, hiking tours, bike riding tours, afternoon tea, food tours in the local area etc. can increase your properties revenue or act as a way for you to earn that money needed to build that shepherd’s hut in your back garden to rent it out on Airbnb yourself!

Academic Courses

Again, as technology expands, online business owners make some of the most lucrative businesses by providing courses through educational channels or independently through their own websites. Therefore, you can start with traditional academics, provide additional online instruction in grade-level math, science or history reading, or even standard test preparation.

You might also set up a parent review course to support teens with their algebra homework. If you’re imaginative, the possibilities are infinite. And academic courses don’t have to finish at high school or college level, either. You can set up an online course to share your love of political history, Buddhist theology, or rocket science. If you’re interested in a specific topic, there’s a high chance that someone else is too.

Great places to sell the courses you create:

Language Courses

In addition, as connectivity increases and boundaries blur, customers around the world are looking to learn languages. There’s definitely someone out there who wants to learn a language from you, whether you’re having an online education with English language expertise or using your Swahili mastery. And they’re probably able to pay for that. You will have a successful business in your hands, particularly if you speak the most common languages in 2020 and beyond — such as Arabic, Spanish, and Mandarin[7].

If you’re expert in an obscure language, or if you’re extremely adept at teaching a more widely-known language, an online language-based learning session might be one of your most lucrative business ideas.

Business or Marketing Coaching

The reality is that while liberal arts degrees can develop critical thinkers, many college graduates do not have marketable skills that make them competitive in business. Your ability to fill those holes with your own experience may be one of the best small business ideas you can start with at a very low initial cost.

What skills and lessons have you learned in your own business or career? Share your experience with fellow entrepreneurs via an online B2B-oriented course. Popular subjects include bookkeeping, QuickBooks accounting, WordPress web creation, graphic design, how to create a good client proposal, or how to write a great cover letter or CV for LinkedIn.

Personal Wellness

Are you a therapist or psychologist, a yoga teacher, a life coach, or a meditator for a long time? If you have a strong passion for personal health, you might be able to help others find their own zen — while still receiving a considerable income. All you’ve got to do is share what you know.

If you are doubtful about the combination of personal health and online classes, look no further than Oprah. She is a personal wellness queen and has been an early supporter of online courses — including author Brene Brown’s CourageWorks on the power of vulnerability.

Everyone has the drive to develop themselves, and that’s just what the online courses are all about. If you have this experience to share, you can quickly turn your information into one of the most profitable businesses.

Courses in Other Hobbies

While many courses are designed to further education or to create job opportunities or to encourage significant changes in life, online courses can be designed just as easily for any hobby or interest. Maybe you have a passion for calligraphy or for craft brewing? Have you ever mastered a certain video game? You’d be shocked by the number of people willing to pay to learn about the subjects they’re interested in.

Not sure how to start developing an online course of your own? Well, there are also company owners’ online courses. You could use one of these courses to improve your own online course company or to gain skills for some of the other ideas on our list of the most profitable, easy to set up small businesses.

Bookkeeping and Accounting

Bookkeeping and accounting are an inherent fact of company ownership. Sadly, for many entrepreneurs, money management is the hardest part of the business. If you’re a licenced CPA or just a QuickBooks wizard, you could be the ideal candidate to start your own company by helping to keep your fellow entrepreneurs’ personal and small business finances in check. With a profit margin of 19.8 percent, some of the most profitable industries for entrepreneurs have long been bookkeeping, accounting, tax preparation and payroll services.

As an accountant, you can handle invoices and payrolls, prepare expense reports, and more. If you have a CPA licence, you can help company owners file taxes, produce balance sheets and other accounting documents, and make a professional recommendation on the bottom line for your client.

Consulting Other Businesses

If you have been in the business world for a while, people might be crying out for your experience and skills within your industry. Why not turn all this know-how into a new career as an independent consultant?

You may be paid to talk at industry conferences or meetings, serve on a board of consultants for a fledgeling company, or lend your experience to shape the strategy of an established business on a contractual basis. Whatever your skills, starting a consulting company is a perfect way to make a living out of your dreams while operating on your own terms.

Graphic Design

As the number of brands competing for customer attention rises, a slick and polished appearance has become more critical than ever for small businesses. Regardless of whether they can afford a large advertisement or marketing firm, nearly any small company would require a certain amount of graphic design work now and then.

Do you know the way around Photoshop, Illustrator, and InDesign? Have you taken a couple of design lessons, and do you have an eye for strong branding? Turn your talents to a company as a freelance graphic designer. You’ll have virtually no overhead, and you can charge significant hourly rates to do what small business owners can’t do for themselves — create amazing marketing graphics.

Social Media Management

Most millennials have been born and raised on social media. As clients, they expect an organisation to have a good social media presence and to be attentive to social customer support.

However, while most of the small business owners know that they need to participate in social media marketing, few have the time or skills to “do social media” well, let alone handle all of their social media accounts themselves.

If you’re fluent in the world of Twitter, live your life on Facebook, and get every job you’ve ever had via LinkedIn, you might consider turning your social media experience into your own business venture, offering support to business owners who need help managing their brand’s social media channels. There is no question that, at this time and era, starting a social media consulting agency can quickly become one of the most lucrative small businesses.

Content Marketing Copywriter

In the same way, if you are especially adept at words, you can use your skills to write a copy for the marketing campaigns of different firms. The content marketing industry is expected to be worth a total of 412 billion by 2021.

If you coin a catchy slogan or write an in-depth summary of the company’s products, if you do so as an independent contractor, then you know you’re going to make a profit for your services, no matter what.

Virtual Assistant Services

Last but not least, on our list of the most profitable small businesses: virtual assistant services. Any entrepreneur, boss, or executive had a personal or executive assistant when the pre-Recession economy was at its height. Years later, many still have workloads and busy schedules that make it helpful (if not necessary) to have an assistant, but many still can’t or don’t want to pay for a full-time helping hand.

Digital assistants have become the quintessential mix of freelance work and side hustles to fill the void. As a virtual assistant, you can select your clients and create your own schedule for handling emails, arranging meetings, booking travel, and completing other simple tasks to make your clients’ lives run smoother. All you need is a laptop and internet access to start a successful company.

3 Key Steps to Start a Profitable Business

successful businesses

As you can see, the most profitable companies represent various markets, time commitments and startup costs. That being said, whatever the most lucrative business idea you’re leaning towards, there are a few things you’re going to need to get your business started.

Therefore, if you are already in the initial planning process, you can consult these three measures to get the ball rolling:

Find Your Perfect Business Idea Then Do Your Research

All companies are born from good ideas. To make your good idea a reality, you need to do market research to make sure the concept is successful. Go through the concept validation process — including consumer and competitor study, and financial feasibility analysis — before you’re too far ahead.

Get Organised and Make Your Company Official

When you’re confident you have a good idea to work with, it’s time to prepare your business logistics with a well-formulated business plan. If you’re sure you’ve got it all down in writing, you’re going to want to take action to make it official. This involves selecting a business structure, applying for an EIN, registering your “Doing Business As” name (if necessary), and obtaining business licences and registrations that your particular business requires to open its doors or for you to operate in the area you need to. A new website or website redesign would also be beneficial.

You can also register your new company as a Ltd entity online.

Find The Right Financing

For new businesses with minimal overheads, startup costs are very small and can often be subsidised with current wages or other incomes to get it off the ground. Every company is different, and those with higher startup costs and overheads may want to opt for a startup loan or other type of financing. As a new startup owner, you might be struggling to apply for conventional business loans right off the bat, that’s because you won’t have any previous evidence you stay true to your word. In this instance, lenders will more than likely want to run a credit check on you, the owner of the company and the business.

Applying for a business credit card is also a great way of better managing your finances rather than getting a loan. Not only would you have an easier time applying for a credit card than with your typical business loan providers, but you’ll also kick-start your business credit history, receive perks and incentives while you spend, and take advantage of interest-free 0 percent promotional APR periods (that’s like a free loan).

If we’ve missed something or if you have a particular skill and you aren’t sure what the future holds for you just leave us a comment, we can write a blog specifically to help you and your needs.

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WHICH BUSINESS IS PROFITABLE?

Which Business is Profitable?

Some people venture into entrepreneurship, knowing exactly what kind of industry they want to conquer and what kind of company they want to launch. However,