the most profitable business in 2023

Some people enter the world of entrepreneurship with a clear goal in mind; they are aware of the market they want to dominate and the strategy they will use to get there. But for many aspiring business owners, it can be challenging to find out how to launch a company and to decide precisely which industry to invest in.

We've put together a list of the most profitable companies to get you started, taking into account things like industry growth and competitiveness, startup costs and entry barriers, as well as profitability potential.

most prosperous small companies

Any good company idea has the potential to succeed and be lucrative with a sound business strategy, effort, and drive.

But businesses in low-startup-cost, high-growth sectors might have a higher chance of making money. For example, with the development of technology, launching a virtual assistant firm is more likely to be successful than founding a grocery store.

Even while some of the most lucrative businesses are run online, others offer in-person services, and some are ideal for entrepreneurs who are constantly on the road. Here is our ranking of the profitable small companies:

1. Food carts

According to a 2021 research by Grand View Research, the market for food trucks is likely to increase to $6.6 billion by 2028, continuing the movement's steady rise over the previous five years. A food truck business may be launched for less than one-third of the price of a traditional restaurant, and it also offers geographic flexibility, the possibility of significant income returns, and the freedom to design a menu that is uniquely your own.

Keep in mind that larger, trendier cities like San Francisco, Boston, and Washington, D.C., already have a rather saturated food truck industry (along with more difficult rules to start with), so this might be a more profitable business in such areas.

2. Services for car washes

According to a 2020 Consumer Reports study, new car owners are keeping their vehicles longer due to the growing cost and expanding amenities of new models. Additionally, services like car washes that help customers maintain the value of their automobile investment are anticipated to grow as more drivers keep their automobiles for longer periods of time.

Providing mobile services could increase the profitability of a car wash firm. Customers who desire a more individualised service and drive a premium vehicle may be willing to pay more for a car wash that comes to them. Additionally, you would save money by operating a mobile car wash and auto cleaning business rather of opening a physical storefront.

3. Vehicle repair

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According to IHS Markit, the average age of vehicles and light trucks in the United States increased to 12.1 years in 2021 from 9.6 years in 2002. (now part of S&P Global). People are keeping their automobiles longer than ever, which suggests the maintenance and repair industry has a lot of room for growth.

Additionally, automobile owners are more inclined to go to a small business for repairs; the Auto Care Association reports that independent repair shops account for more than 70% of the market compared to dealerships or manufacturer-authorized shops.

4. Individual trainers

According to the U.S. Bureau of Labor Statistics, employment of fitness trainers and instructors is expected to expand 39% between 2020 and 2030, which is substantially faster than the average for all occupations. However, making a career out of your passion for fitness doesn't have to entail working for a large corporate gym or incurring the expense of having your own facility where you can coach people. Take your fitness show on the road by packing a few weights, bands, and yoga mats in your trunk.

5. Post-pregnancy and newborn services

Despite delaying childbearing longer than previous generations, many millennials do eventually wish to start a family. In fact, as of 2018, more over half of millennial women have given birth, according to a Pew Research Center examination of official data.

Now that millennials and members of Generation Z are thinking about starting families, there is an increased need for child-focused businesses, starting with those that provide post-pregnancy and newborn-related services. And as a result, according to a 2018 Research and Markets analysis, the North American market for maternity care is predicted to surpass $3 billion by 2023.

Check out these short company startup tips.

Compare the top small business loan alternatives right now to find the funding you need to launch.

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Start monitoring your earnings:

Select and instal basic accounting software.

6. Children's enrichment activities

While Americans continue to have children, decreasing educational funds mean that both traditional academics and extracurricular activities like music, art, and sports frequently suffer.

Starting a company that instructs kids in enrichment activities might be a profitable venture. Kids are equally as involved in extracurricular activities today as they were 15 years ago, according to a 2018 U.S. Census Bureau survey. Furthermore, according to some studies, more than half of American parents spend over $1,000 a year on their kids' extracurricular activities.

7. Children's amusement on mobile devices

If development and engineering are your areas of interest, you can think about designing your technology with the youngest users in mind. According to research, there is a growing market for kids' tablets, apps, and mobile entertainment, particularly when those items are geared at promoting learning.

More than 60% of parents surveyed feel that mobile devices and applications may help kids learn reading, arithmetic, science, and other subjects, according to a Learning First Alliance report on mobile devices and early childhood education published by the research company Grunwald Associates.

8. shared clothing and accessories

We want and need to possess fewer goods, so we share resources instead, according to the sharing economy, which is the theory behind websites like Rent the Runway and Gwynnie Bee.

Due to the fact that the same item of inventory can produce money numerous times, some businesses provide borrowed or rented clothing and accessories at a fraction of their purchase prices. In a 2021 study, the reselling website Mercari predicted that the market for used apparel will more than triple by 2030.

courses in marketing or business

Participation in career-focused online courses has increased dramatically since the start of the COVID-19 pandemic, particularly as more workers desire to switch employment or work from home. For instance, from 2020 to 2021, learning hours worldwide increased by 53% according to LinkedIn.

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Companies have recently increased or introduced new tuition reimbursement programmes, giving employees more money to spend on these kinds of seminars. A 2022 Harris Poll conducted for Fortune found that 14% of employees said their employers provide some kind of coverage or reimbursement for online training courses, and 10% said their employers have increased or introduced new coverage for these training possibilities in the last six months.