Discover These Small Profitable Business To Start In 2023

We have ranked the 20 most profitable small businesses to start in 2023 after analyzing our recent articles, 10 Most Profitable Small Businesses in 2023, 25 Profitable Home Business Ideas, and 30 Most Profitable Businesses You Could Start in 2023.

The most lucrative small businesses to start this year are listed in ascending order of high net profit margins.

Let’s now head over to the list of the most profitable small businesses to start in 2023.

1. Online Tutoring

Net Margin: 7.70%

Online tutoring is one of the most profitable small businesses to start. It is a rapidly growing industry, which is projected to grow at a CAGR of 14.9% over the next seven years to reach a size of $23.73 billion by 2030 according to Grand View Research. It is a lucrative opportunity where you can earn between $20-50 per hour. Delivering these lectures online can also help save fixed and overhead costs associated with renting a physical place. You can easily create a group on Meta Platforms, Inc. (NASDAQ:META)’s Facebook and begin tutoring your students against a fee.

1. Retail – Building Supply

Net Margin: 8.67%

The demand for building supplies continues to remain strong despite the contraction in the industry due to inflation. By venturing into this business, you can cater to the needs of a variety of customers, builders, and contractors.

1. Food Business

Net Margin: 9.28%

The restaurant food industry was among the hardest hit by the coronavirus pandemic. However, it is on the path of recovery and offers great potential for those willing to start a small business. While it may be difficult to compete with large restaurant chains, you can still expect to derive a decent net margin out of your business. Home-based food businesses have also emerged over the last few years, and have an annual median revenue of $50,000.

1. Home Improvement

Net Margin: 9.65%

The home improvement industry had an estimated size of $762 billion globally in 2020, and is expected to cross the $1 trillion mark by 2027. Selling home décor products or services can be one of the most profitable small businesses to start in 2023 due to the sheer demand among people to improve their living standards.

1. E-commerce

Net Margin: 10%

E-commerce is one of the most lucrative small businesses to start, due to its high net margin, flexible working hours, and low overhead costs. According to Shopify Inc. (NYSE:SHOP), the global e-commerce market is estimated to have a size of $6.3 trillion in 2023, and by 2024, it is projected that 21.2% of all global retail sales will take place online. Shopify Inc. (NYSE:SHOP) is one the largest players in the e-commerce industry, with a global market share of 11%.

1. Preloved Items

Net Margin: 11.15%

Preloved items are products that were loved by a user before being put up for sale. It is one of the most profitable small businesses to start in 2023 with the potential to earn you up to $100,000 a year. Once in this business, you can source unwanted items people want to sell and then help them in doing so.

1. Translation Services

Net Margin: 11.54%

Translators in the US earn between $65,000 per year on average. You might not even be required to have a physical space in the form of an office to sell translation services. This is a business you can start from home, build a portfolio, and attract clients. Moreover, you can also hire other translators online and expand your business. If interested, take a look at the 25 Most Difficult Languages to Learn.

1. Consultation Services

Net Margin: 12%

Consultation services is one of the most profitable small businesses to start. This is one of the fastest growing industries and by 2026, the global management consultation services market is projected to be worth $1.6 trillion. Having a consultancy firm can be a profitable business, and platforms such as Facebook and Instagram can help it grow further.

1. Real Estate

Net Margin: 12.67%

Real estate is one the largest industries in the world. It was valued at $3.69 trillion in 2022, and is projected to grow at a CAGR of 5.2% till 2030. You can venture into property management or real estate brokerage, and reap rewards of this highly lucrative industry.

1. Social Media Management

Net Margin: 13.34%

We discussed at the start of this article the significance of social media management for any business. You can also start a business that offers these services and cash your social media expertise by using tools such as Buffer, Sprout Social, or Hootsuite. The median income for a social media manager in the US is over $70,000.

1. Affiliate Marketing

Net Margin: 16%

Affiliate marketing involves publishers or content creators earning commissions by promoting products or services of the advertiser. This is a trendy and emerging field of marketing that already has more than seven million professional affiliate marketers worldwide. Globally, the affiliate marketing industry is forecasted to be worth more than $15 billion by 2024.

Meta Platforms, Inc. (NASDAQ:META)’s Instagram has its own affiliate program offering commissions to influencers.

1. Retail Distribution

Net Margin: 16.50%

It is one of the most profitable small businesses to start in 2023, having an average net margin of 16.5%. Businesses in this industry act as intermediaries by purchasing products in bulk from manufacturers and then selling them to retailers at a mark-up.

1. Content Writing Services

Net Margin: 16.62%

There is growing demand for content writers in the market. It is a multi-million dollar industry, where you can expect to make anywhere between $20-$400 per blog. You can look for clients on platforms such as Upwork, LinkedIn, and even Facebook.

1. Information Technology

Net Margin: 16.62%

Business ideas in information technology (IT) can include software development, data analytics, as well as digital marketing. This is an industry that offers high financial rewards. Having a small IT business can also prove beneficial in the sense that smaller teams can be more agile and quick in decision making as compared to larger ones. This is useful considering that trends and customer needs in the IT industry evolve faster than in other industries.

1. Website Designing

Net Margin: 18.90%

The web design services industry in the US is estimated to be worth $56 billion, according to IBIS World. The industry has grown 3.5% between 2021 and 2022, and is one of the most profitable markets for small business with an average net margin of 18.90%.