Starting a business is now more accessible than ever—thanks to the latest technology advancements.
Statistics show that 26% of entrepreneurs found the motivation they needed to start their own business from their desire to be their own boss. This freedom, however, comes with considerable risk. Around 20% of small businesses fail during the first year due to a lack of funds, erroneous research, and owners venturing into the wrong market.
Motivation is a huge factor, but you also need to find the best niches for starting a business.
Fortunately, you will not have to come up with a completely new product or service. Instead, you can choose profitable niches already working well for others, and where the demand is high for certain products or services.
Most profitable niches for starting a business
Regardless of whether you’re planning to run an online or offline business, you should evaluate if a niche is right for you by considering these three factors:
What are you good at?
Will you have long-term interest?
Is the product or service in demand?
While you also need to consider the start-up costs, the above factors can help you narrow down your choices.
Below are six niches with a thriving market and low entry barriers to give you a good head start. These niches can help you start small and easily expand by adding more products or hiring staff to perform the actual services.
1. Online teaching
Even before the pandemic, there was already a growing demand for online education. More than 30% of American students enroll in online courses, with about 99% residing in the United States. Some of the benefits of online learning include better time management, convenience in location, and better communication with the teachers.
You can establish a business in this niche without too much investment. As long as you hire qualified employees with a computer and stable internet connection, you’re good to go. Here are three ways you can provide service to your clients:
Online course creator: Using a webcam and capture software, you can create courses about various subjects and upload your classes to a marketplace like Udemy. Students will then pay to access your training materials.
Language teacher: Skype, Zoom, and other video conferencing software allow you to teach English to students overseas.
Video content teacher: YouTube offers a platform where you can upload your training videos. Your income will be coming from ads once you become part of the YouTube Partner Program.
2. Translation services
Thanks to the internet, businesses can reach customers in other countries. If you’re a multilingual speaker, you can provide services to companies seeking to go global. While the pandemic caused the translation industry to slump in 2020, research shows it’s about to make a remarkable comeback in 2021.
Free platforms such as Google Translator exist, but it does not measure up to an actual translator with a better command of the languages. You can initially approach this niche as a freelancer but creating a translation agency can yield better results if you have the funds and resources.
3. Online bookkeeping
Are you an accountant or bookkeeper? You can use technology to provide bookkeeping services without leaving your home. Due to the current financial crisis, demands are increasing because companies want to examine their financial records closely.
Even high school graduates have a shot in providing bookkeeping services as independent contractors. It’s better to go through a bookkeeper certification, though, so you can market your services better and get higher rates. The Bureau of Labor Statistics will require you to pass an examination issued by the American Institute of Bookkeepers to become a Certified Public Bookkeeper (CPB).
As with most niches on this list, you can start small with just a handful of bookkeepers. When more clients come in later, you can expand by hiring more people.
4. Medical transcription services
Even with the advancement of voice recognition technology in the healthcare industry, transcription service is still an excellent opportunity these days. Medical transcription services can now add proofreading and editing packages since system errors in translating medical vernacular can still occur. Some of the things that clients will be expecting you to transcribe are:
Medical chart reviews
Diagnostic imaging studies
Documents produced from transcription services help with insurance claims and faster diagnosis.
You can typically charge clients between six to 14 cents per line of transcription. If you have several transcriptionists working for you, the earnings can quickly add up. You can boost it even further by getting certifications for your team so that they can provide high-quality services to specialists.
5. Medical courier
Medical couriers are responsible for transporting medical items—with specific handling requirements such as stability and temperature—between labs and hospitals.
Aside from getting a HIPAA certification, you only need a reliable vehicle and excellent time management skills. Clients require that you transport lab specimens, prescription drugs, and medical equipment fast, so you need to plan your route. You can either make the deliveries yourself or hire drivers to work for you.
6. Dropshipping business
Dropshipping remains to be one of the best businesses you can operate at home. A recent study shows that the industry’s market valuation will reach $557.9 billion before 2025, translating to a CAGR (compound annual growth rate) of 28.8%. In a nutshell, this fulfillment model is about buying a product directly from manufacturers and suppliers, then shipping them to customers.
This business has a low barrier to entry since you will not have to keep inventory by buying the product in bulk. The supplier takes care of the order shipment for you as well. With 33.6% of customers comparing item prices between an online and physical store, dropshipping is a better option. Your overhead is lower because you don’t need to have the physical products on display.
Since you don’t need to buy the items beforehand, you can market numerous products and expand your business faster
Improve your life with these business opportunities
Starting a business in a profitable and thriving niche can help lessen the possibility of failure. However, before getting your feet wet, you must have startup funding ready to establish your business and keep it running before it starts to pay for itself.