In 2020 numerous small business owners found themselves struggling to make it through. The blow dealt with companies around the globe was unimaginable for so many. That said, what was considered profitable as far as business models went shifted, dramatically so. In 2021, we are seeing many smaller companies make comebacks and in large part, they are needing to pivot to do so. The results of these pivots have in some instances been impressive, particularly from a profitability standpoint. For those looking to start a business in 2021 or beyond, we've compiled a list of some of the most profitable small businesses that have emerged as a result of evolving technology and of course, the pandemic.
The Definition of a Small Business
According to the SBA, a small business that has fewer than 500 employees, is US-based and generally, it is also one that falls under a certain cap as far as annual revenue. As of last summer, there were nearly 32 million small businesses based in the US. All told, these businesses combine to employ more than 60 million workers. This, incidentally, comprises more than half of the current US workforce.
Best Small Business Ideas for 2021
Home Improvement
Despite the events of 2020, home sales were up in some areas of the country. This means that not only were people buying, but they were also invested in putting money into their homes. With a dearth of qualified contractors and tradesmen in this country, those who did have home services businesses found themselves in a pretty good position and will continue to do so into 2021. As far as what constitutes a home improvement business, this could be anything from a plumbing company to a landscaping business to interior design. If you do have training in any of these fields, 2021 may be a great time for you to start your own business.
Tutoring
With the new educational climate (many students learning remotely/), the demand for tutors is at an all-time high. And not only for pandemic-related purposes but also for those students who are seeking help as far as SAT and college prep. For those with degrees in education and/or relevant experience, starting an online tutoring business could indeed prove profitable in 2021. Because there has been so much innovation as far as video conferencing services and tech go, getting your tutoring company started could be a relatively easy endeavor. Depending on education/experience level, some tutors can make upwards of 65.00 plus per hour.
Personal Training Instructors
One of the hardest-hit industries during the COVID crisis was the health and fitness industry. Gyms closed left and right, with many still not having fully reopened. That said, the rise of online personal fitness instructors has been very notable during the latter half of 2020 and the early part of 2021. People still want exercise, they still need to stay fit, and so the demand for online personal training is stronger than ever right now. Whether via video chat, YouTube recorded sessions, TikTok even, you have several platforms at your disposal for interacting with clients. And through the pervasive sphere of social media, word spreads. So happy clients could very well equate to more clients as you solidify a strong customer base.
Delivery Services
Because of restrictions and also because of general anxiety, more people than ever before found themselves at home—for extended periods. And even as we start to emerge from the pandemic, many are still opting to stick close to home. This means that the need for delivery services, for everything from retail goods to food, is going to stay strong throughout 2021 and beyond. We've shifted in terms of our ways of thinking and in terms of how we behave. Delivery services are reaping the advantages of this shift. Many looking to get started as a courier or in the delivery services industry can do so quite easily. Doing your research on the local market and understanding where competitors stand is going to be key moving forward when it comes to launching your own company.
Digital Marketing
The shift to an online environment has many companies now scrambling to solidify their online presence. This is not an easy task for those who might not have sufficient digital marketing/writing experience. If you are skilled in this arena, now is the perfect time to launch a digital marketing/consulting business. Among the other tasks that a digital marketer is responsible for are copywriting, SEO, web development and design, social media management, and content creation. A digital marketing firm can offer one or more of these services and still manage to carve out a profitable niche. The startup costs for this type of business are very minimal; you might even consider starting such a company as a side hustle and then growing from there.
Online Accounting Services
With an increasing number of individuals starting businesses, there is a corresponding increased need for accounting services. Let's face it, not every entrepreneur is adept at accounting and bookkeeping. Being able to outsource this facet of their business becomes a huge lifesaver for many companies. If you are a CPA or have sufficient accounting/bookkeeping experience, starting an online accounting company could prove pretty lucrative. Most often, clients will look for an accounting firm that has a licensed CPA or some other relevant type of certification.
Real Estate Agent
One area that wasn't necessarily as hard hit as many anticipated was the housing industry. COVID fueled a housing shortage with more people looking to relocate to rural and suburban regions. That said, starting a real estate firm right now is not a bad move. REALTORS are busier than ever in some instances. Getting a real estate license is fairly inexpensive and can be done online in certain circumstances.
First Union Lending is here to help! We work with all sorts of small business owners, getting them the cash they need when they need it. Call today!