Not all small business concepts, though, are adaptable and scalable. Numerous companies were required to close and rebuild themselves in 2020 in order to stay operational in the current standard.
How is a “Small” Business?
A small business, according to the SBA, is described as one with fewer than 500 employees or annual receipts below a certain threshold. In the United States, most small companies are much smaller — the average small business hires 1 to 19 employees.
In 2020, How Many Small Businesses Can There Be in the United States?
There are approximately 31.7 million small businesses operating in the United States as of June 2020, accounting for 99.9% of all businesses in the world. About half of the population is employed by small companies, which hire 60.6 million individuals. Applications for emerging small businesses hit an all-time peak in the third quarter of 2020.
14 Best Business Starting-Up Options In 2021
Before the COVID pandemic, this idea was introduced in 2018, before the COVID pandemic caused significant changes in the way people live, work, and shop. Numbers 1–8 are recommended by the US Chamber of Commerce as viable market prospects to launch, even though a pandemic, in order to be effective in 2021. The remaining small business suggestions come from Sageworks’ study on the most profitable small companies.
- Home Improvement Services
The housing sector is projected to rise at its fastest rate since 2005 in 2020. If more consumers purchase homes, there is an increase in demand for home maintenance facilities. New homeowners can lack the requisite skills or experience to complete their renovations, so they employ a specialist to assist them.
Interior architecture, carpentry, leasing, drainage, and landscaping are also examples of home maintenance facilities. The bulk of these fields necessitate preparation and access to equipment or supplies, so the initial costs are not minimal. This style of the company could also be more common in some places than in others (i.e. wherever people are buying homes most readily).
- Cleaning Services
Cleaning facilities are beneficial to both residential and commercial premises since they assist with the management of activities that certain individuals do not like or have time to complete. Cleaning services may be used as for one-time or weekly help in the home or as a regular resource for business operations. Cleaners make a lot of money for basic, but essential services, with average hourly rates varying from $18 to $35.
Because of the simplicity of cleaning service – no physical office is needed, equipment expenses are low and can be paid directly to the customer, and operating hours are versatile – enterprising businesses can have a lot of success in this sector. Since there is no need for qualifications or training to work as a residential or commercial cleaner, hiring expenses may be negligible, and salaries are often near minimum.
- Tutoring Services
School is still in discussion, and students of all ages face special difficulties as a result of remote schooling. Starting a tutoring program is a fantastic way to assist students who are grappling with fundamental principles or who want to further their knowledge of a particular field. Here’s an example of the types of subjects in which your tutoring company could specialize:
- SAT/ACT prep
- College essay prep
- Sciences (biology, chemistry, physics)
- Foreign languages
- Computer science
Since video software eliminates the need for in-person lessons, what you need is a phone, iPad, or computer, this form of company has very low startup costs. Your tutoring service could charge anywhere from $25 to $56 per hour, depending on your place and level of education.
- Personal Training and Fitness Instructors
The mandatory COVID-19 shutdowns have a significant effect on gyms and indoor workout centers, but the fitness industry has proved to be adaptable and robust. To remain safe and engaged, fitness teachers and consumers alike have turned to online and outdoor courses. The transition to remote jobs and quarantining has resulted in a greater demand for physical activity than ever before.
Though fitness trends come and go, the market for personal trainers and high-quality content remains constant. Personal trainers can approach consumers and create a following on digital channels like YouTube, TikTok, IGTV, and Instagram Live, according to the US Chamber of Commerce. Trainers may use social media to locate customers for which they can build personalized fitness plans at a reasonable price.
- Delivery Services
Because of the pandemic, more people are remaining at home to protect themselves. That indicates delivery services have exploded in popularity; by 2023, online food delivery services alone are estimated to be worth more than $104 billion.
To cash in on this trend, you might start your own local delivery business, delivering groceries, prescriptions, and other necessities. You could charge extra rates for longer delivery, rush orders, or shipping large or bulky products in addition to the regular cost.
- Digital Marketing Services
There is an increasing need for digital marketing services as more companies set up shop online. You can start your own digital marketing agency to help small companies develop their brand and online presence. One or more of the following programs are usually provided by a digital marketing agency:
- SEO writing
- Paying social media advertising support
- Web design
- Brand/creative consultation
- Content creation
- Organic social media management
Anyone, regardless of their educational background, may start a digital business. Since running an agency from a home office is easy, there are very low startup costs for this form of company. You may operate an enterprise as a solopreneur or employ professionals who specialize in places where you lack experience.
- App Development
Companies are attempting to go digital, and others are considering creating their own applications to reach out to consumers. By creating a personalized iPhone or Android software, app creators may assist companies in realizing their dreams.
While software creation does not require a formal degree, it does require prior preparation and experience designing applications if you choose to break into the industry. Coding bootcamps and free training classes are available to help you learn the basics and get started.
- Accounting Services
Per year, accounting firms help individuals and companies prepare tax returns, as well as assist in bookkeeping and financial preparation. If you’re planning to pursue a company, this consistent, stable demand for services is a huge plus. Accounting has relatively low start-up expenses, and it’s a work that can actually be done from home.
Accounting, on the other hand, has high entry barriers. Accountants usually hold a bachelor’s degree and, in some cases, a CPA certificate or IRS Enrolled Agent credential. Accounting practitioners with advanced degrees will demand higher premiums and make more money as a result.
- Law Firms
The legal profession is important in a variety of personal and professional situations. Law firms, including accounting firms, may provide a variety of services, including:
- Criminal law
- Business law
- Family law
- Trusts and estates
- Constitutional law
- Intellectual property law
- Personal injury law
- Employment law
Even though the law, like accounting, can be lucrative, the entry barrier to the law is incredibly high. Attorneys must first complete a four-year undergraduate degree before enrolling in law school and passing the state bar exam. Furthermore, some lawyers only work in specialist fields, meaning a firm with many areas of focus can need to recruit more people.
- Real Estate Agencies
Over the COVID-19 pandemic, demand for larger, more spread-out spaces generated a housing crisis, with prices forecast to spike. More residents are fleeing towns and looking for homes in the suburbs as a result of remote jobs.
The real estate market has a lot to bring, even though these developments are just temporary. It’s simpler than ever to become a licensed agent based on online courses, and no special qualifications or backgrounds are needed. Since agents can operate from about anywhere, overhead costs are usually minimal as well.
- Outpatient Care Centers
The outpatient emergency treatment provides patients with the needed care without the demand for permanent beds, round-the-clock staff, or the approvals and permits needed to accommodate patients overnight. Patients instead undergo medical or surgical treatment and are sent off the next day.
Outpatient hospitals necessitate the hiring of qualified physicians and nurses, which is a significant cost. Starting a company of outpatient treatment can be costly, as it necessitates a large investment in medical supplies. Nevertheless, since treatments and medical reimbursements are expensive, the net margins are still good. Intensive outpatient care will cost up to $10,000, guaranteeing a steady stream of profits for these companies.
- Dental Offices
Preventative dental visits are prescribed twice a year for the average American, making dental wellbeing an integral aspect of general safety and self-care.
For those with the required credentials, the dental industry provides opportunities for advancement. Dentists may have a bachelor’s degree in dentistry as well as a doctorate of dentistry, and most dental hygienist positions need at least two years of education. Dental equipment is also costly, with dental chairs alone averaging $2,000 or more. Dental treatments, on the other hand, are often costly, with the typical cleaning costing $288 and additional fees for fillings, x-rays, extractions, and root canals. Popular treatments could help your dental practice make a lot of money.
- Warehouse and Storage
By 2025, the United States will need another 1 billion square feet of warehouse capacity as e-commerce grows. This ensures that finding plenty of room to store merchandise and belongings opens up a lot of business opportunities.
The cost of constructing a warehouse will range from $24,000 to more than $800,000, based on the scale, but this can be covered by leasing income until the company is up and running. Renting storage space can be fairly hands-off in many cases; clients pay rent and are then free to store their belongings. This means that in a warehouse company, the time investment is small.
- Doctor Offices
Healthcare staff are important to the wellbeing and well-being of our families. Not only has the COVID-19 pandemic increased demand for specialist medical personnel, but searches for advanced medical services have increased by 78% in the last year.
Although doctors must complete four years of undergraduate education, four years of medical school, a minimum of three years of residency, and pass all licensing tests, the quality of service will compensate for high labor costs. Insurance reimbursements can run into the thousands of dollars, but you might benefit handsomely in return for on-demand services.
Putting Your Company in the Best Position for Success
A clear strategy, effective resources, market savvy, experience, and other factors all go into beginning a successful business. Although no industry is sure to succeed, those that are adaptable, resilient, in high demand, and have healthy profit margins are a safe bet. This page of small business plans is a good place to start if you’re looking for something new to do this year.