The Most Profitable Small Businesses to Start in 2023

Read Time: 4 minutes

Have you always dreamed of starting your own small business? Maybe your goal is to grow a small operation into a thriving enterprise. Perhaps the idea of being your own boss appeals to you. Or, maybe, you simply want to earn a little extra money on the side.

Many can relate to this entrepreneurial impulse. However, many also never act on it.

There are plenty of reasons people who dream of starting small businesses don’t actually get around to doing so. For instance, perhaps you simply don’t know what type of business you should start. You don’t want to risk investing time and money into a business idea that doesn’t succeed.

Keep reading if so. The following list of the most profitable small businesses to start in 2023 will help you better determine what type of business you can confidently launch:

eCommerce

Online shopping has been steadily competing with traditional brick-and-mortar shopping for decades now. According to some analysts, the Covid-19 pandemic has given eCommerce an additional boost in popularity. Because many were essentially forced to do all their shopping online during the height of the pandemic, they may now prefer it.

Whether you’re selling items of your own creation or reselling items you’ve purchased yourself (such as clothing, home furnishings, etc.), you’re likely better off doing so through an online shop instead of investing in your own physical store.

Creating an eCommerce shop costs much less money than renting or buying a brick-and-mortar location. Thus, eCommerce is often much more profitable than traditional retail!

Online Education

Online learning is on the rise. The Covid-19 pandemic hastened this trend. During lockdowns, online learning was a necessity for students. Now, there appears to be an increased demand for opportunities to take classes from the comfort of one’s own home.

Do you have expertise in a certain subject area? If so, you could take advantage of the online learning trend by:

Offering tutoring services over video chat
Creating and selling an online course
Getting a side job as a teacher with an online university or other such institution

If you choose to create an online course, be aware that keeping students engaged is easier when your course incorporates multimedia elements. For instance, research shows that animation can be helpful in a classroom setting (whether that be a virtual classroom or a physical one) by clearly explaining complex ideas in a visually-engaging manner.

Copywriting

When considering what may be the most profitable small businesses to start in 2023, account for the upfront investment you’ll need to make. Generating a strong profit is easier when you don’t have to spend much money to get your business up and running.

This is one of the many reasons freelance copywriting businesses are often profitable. If you have a way with words, plenty of businesses and organizations may pay you to craft everything from ad copy to blogs.

All you need to start this type of business is a computer. If you’re reading this blog, odds are good you already have the tools necessary to launch your copywriting business. Tips for finding clients include:

Create accounts on popular freelancing platforms like Upwork and Fiverr
Pitch your services to local business owners and friends and family who own businesses to start building a portfolio
Create a website to show off your work to prospective clients

App Development

App development is a specialized skill. If you don’t currently know how to create an app, although you could learn to do so, right now, you might not be ready to start an app development business just yet.

That said, if you are familiar with app development and have the tools necessary to offer these services, creating custom apps for businesses and individual clients could be one of the most profitable small businesses to start in 2023.

The general app market (of which app development is a significant component) is currently worth approximately $540.81 billion. By 2027, it’s expected to reach a value of $752.58. Clearly, this niche is still going strong. This means creating an app development business is a relatively safe bet if you want to be confident your business will offer the types of products and services for which there is demand.

Affiliate Marketing

Affiliate marketing involves promoting someone else’s products or services through a blog, podcast, vlog, or other such platform. When your content results in a sale, you receive a commission payment. This is another low-cost business idea that could theoretically earn you a substantial profit.

Tips for getting started with affiliate marketing include:

Consider your interests to determine what types of products and services you could promote
Investigate popular affiliate networks, such as Amazon Associates, eBay Partner Network, and Shopify’s affiliate program
Choose a program and create a platform through which you will promote your partner’s goods or services

For your content to generate sales, it needs to offer value to your audience. It also needs to be engaging enough to capture your audience’s attention in the first place.

Thus, you might not want to limit yourself strictly to blog content. With live-action or animated videos, you could tell a story, making a stronger impression on potential customers.

Achieve Your Entrepreneurial Dreams in 2023

This is by no means a complete list of all the most profitable small businesses to start in 2023. However, if you’re a new entrepreneur who’s never launched a business before, one of these relatively safe and low-cost ideas might be perfect for you. Although you might not see huge profits right away, if you remain focused, you could potentially turn a side gig into a full-time career!

Create Impressive Small Business Video Content With Powtoon

Whether you’re creating a video to promote an affiliate partner’s products, creating a video for an online course, or creating a marketing video to promote your own services, generating video content for your small business may be a wise tactic. Luckily, thanks to Powtoon, creating live-action videos, animated videos, and dynamic slideshows is easy, even if you have next-to-no video production experience. Sign up today to learn more!

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Hanna Abitbul

Hanna is Powtoon's Content Marketing Strategist. She joined Powtoon as a copywriter in 2019, after graduating from university with a specialized degree in marketing and business. She continues to inspire people to create incredible video content with blog posts, videos, guides, and more. Hanna's passions include reading, singing, and caring for animals (#proudvegan). Nothing makes her happier than waking up to her two black kitties who, contrary to popular belief, are good luck!