In this article, we look at the 5 most profitable small businesses to start in 2023. You can find our key tips about branding and promoting your new business by heading over to our article, the 20 Most Profitable Small Businesses to Start in 2023, where we have also discussed the criteria to be categorized as a small business.
5. Bookkeeping
Net Margin: 19.62%
Accounting or bookkeeping services are among the most profitable small businesses to start, with a net margin of close to 20%. As of September 2023, bookkeepers, on average, earn $50,000 per year, with great potential for growth if you acquire further qualifications and specializations. Moreover, setting your business as a limited liability company can further enhance the profile of your business.
4. Event Management
Net Margin: 20%
Next on our list is Event Management. Since coronavirus restrictions have been lifted across the world, this is an industry experiencing growing demand as people start to resume in-person gatherings. Several corporate conferences and meetings that were previously held virtually are also now taking place in-person. According to Allied Market Research, the global events industry had a value of $1.1 trillion in 2019 and by 2032 it is projected to cross $2.1 trillion at a CAGR of 6.34%. Event Management firms typically charge between 15-30% of the event budget as their service offering fee.
3. Home Cleaning Services
Net Margin: 28%
Businesses offering home cleaning services can expect to earn up to $100,000 in profits per annum. The business has a high net profit margin due to people prioritizing hygiene and cleanliness in their homes. Future prospects for this industry look encouraging as well as there are no indications that demand for home cleaning services would decline in the coming years. Between 2023 and 2033, the home cleaning services industry is forecast to grow at a CAGR of 6.5% to reach $14 billion in 2033.
2. Airbnb Hosting
Net Margin: 40%
Airbnb is widely considered as the most profitable home business idea, and ranks second in our list of most profitable businesses to start in 2023. Over the last decade, Airbnb has emerged as a preferred travel accommodation platform. It offers immense potential for you to earn income by offering your properties on rent for travelers at affordable rates.
1. Pet Services
Net Margin: 40%
The pet services industry is estimated to have a value of $25 billion, and is forecasted to grow to $50 billion by 2030 at a CAGR of 9.1%. It is a highly profitable business market as demand for pets continues to grow across the United States and much of the world. 66.9% of all households in the US own pets as of 2023, with 65 million homes owning a pet dog alone.
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