50 small business ideas to try in 2025

Published Tuesday 16 September 2025

Table of contents

• Benefits of starting a small business
• How to choose the right business idea for you
• 7 questions to assess your small business idea
• 36 small business ideas
• 5 low-cost business ideas you can start today
• 9 side hustle ideas
• Start your small business journey with Xero
• FAQs on small business ideas

Key takeaways

• Validate your business idea systematically by assessing whether you have the necessary skills, passion, time, cash, and competitive advantage before investing significant resources.
• Choose a business concept that aligns with your existing expertise and interests while solving a real market problem that people are willing to pay for.
• Consider starting with low-cost service-based businesses or side hustles that require minimal capital investment, allowing you to test your idea while maintaining financial stability.
• Focus on businesses that offer clear paths to profitability and growth, ensuring you can increase sales while maintaining or improving profit margins over time.

Benefits of starting a small business

Starting a small business offers significant advantages:

• Complete autonomy: You control business decisions and direction
• Personal fulfillment: Build something meaningful from scratch
• Flexible schedule: Set your own hours and work-life balance
• Financial potential: Unlimited earning capacity compared to salary caps

Things to plan for:

• Time commitment: Often requires more hours than traditional employment
• Income uncertainty: Revenue can fluctuate, especially in early years
• Personal fit: Success depends on matching the right idea to your skills and financial situation

How to choose the right business idea for you

The best business idea matches your skills, interests, and a real need in the market. Think about what makes a business idea right for you before exploring your options.

• Start with your passion and skills. What do you enjoy doing? What are you already good at? Building a business around your existing expertise and interests can give you a strong foundation and the motivation to push through challenges.
• Look for problems to solve. Great businesses often start by solving a common problem. Think about the frustrations you or people you know face. Is there a service that could make life easier or a product that could fill a gap?
• Consider market demand. A passion project is great, but for a business to succeed, people must be willing to pay for your product or service. Research if there's a demand for your idea and who your potential customers might be.

7 questions to assess your small business idea

Business idea validation involves systematically testing your concept's viability before investing significant time or money. This critical analysis helps identify potential problems while you can still adjust your approach.

The validation process: Challenge your assumptions with these essential questions:

1. Do you have the skills?

Most startups begin with a small budget, so you may need to handle most tasks yourself or partner with someone who has complementary skills.

2. Do you have the passion?

Building a business takes effort and persistence, but it's easier when you enjoy what you do. Passion gives you energy.

3. Do you have the time right now?

Businesses require your focus and time. Can you commit now? If not, consider waiting until you can prioritize your idea.

4. Do you have the cash?

Find out what it will cost to set up and run your business over the first 12 months. Can you afford it? If not, perhaps you can cut costs by starting your business as a side hustle, launching online, or trying a pop-up store instead of a permanent location.

5. Will it make money?

Work out the direct costs of creating your product or service and check what your competitors typically charge. Is there a sustainable profit margin in there for you?

6. How will it grow?

Work out how you'll make the business even more profitable as it matures. Check that you can increase your sales while maintaining or preferably growing your margins.

7. Can you compete?

Take a look at who's competing for the same dollar. Make sure there's a realistic and sustainable way for you to take away their market share.

List of small business ideas

Popular business ideas fall into several categories based on startup costs, skill requirements, and market demand. Each option below includes realistic startup considerations and income potential to help you find the right match.

1. Inventor

Inventor businesses focus on creating and selling original products that solve everyday problems. You don't need groundbreaking technology – simple improvements to existing items often succeed.

How it works:

• Product development: Design solutions for common frustrations
• Manufacturing: Use contract manufacturers or 3D printing for small batches
• Marketing: Target specific customer groups through online retail and digital marketing channels
• Examples: Kitchen gadgets, organizational tools, hobby accessories

2. Franchisee

Franchise businesses let you operate under an established brand's proven system, a sector seeing steady growth and projected to be adding 20,000-plus units this year in the U.S. alone.

What you get:

• Proven business model: Tested systems and processes
• Brand recognition: Established customer trust and marketing
• Ongoing support: Training, advice, and sometimes financing
• Protected territory: Exclusive operating areas

What it costs:

• Initial franchise fee: Varies widely by brand and industry
• Ongoing royalties: Percentage of revenue paid to franchisor
• Operational requirements: Must follow brand standards and procedures

Popular franchise categories: Restaurants, retail, consulting, home services, fitness centers

Learn more about franchising.

3. Transcription

If you're a skilled typist and a good listener, transcription could be a great small business idea. You might write notes from recorded meetings, work for a local court, or provide closed captioning for television and movies.

4. Virtual assistant

As more entrepreneurs and consultants move into online working arrangements, there's a growing need for virtual assistants, a role within the personal services industry – the fastest-growing segment in franchising. You'd do all the usual things like managing schedules, setting up meetings, taking notes, reading and responding to emails – but you'd do it remotely. This is challenging work, but it can pay well, and it's very rewarding when you build a good relationship with your client.

5. Cleaning services

The cleaning sector is a growing opportunity for startups, especially as customers seek out environmentally sustainable providers—a focus that builds loyalty, as brands with strong ESG claims enjoy 32 to 34% repeat purchases. What's more, it can be relatively cheap to start a cleaning business. If you're a good planner, with high standards and you can maintain a good reputation, you're well on your way.

6. Coffee cart or food truck

Hospitality can be extremely competitive and challenging but also rewarding. You can serve great food and help build a sense of community in your neighbourhood. Starting off in a truck or cart will help keep your overheads lower.

7. Catering

Catering is a great small business idea for talented cooks or bakers. You don’t need a restaurant to start. A clean kitchen is enough. Advance orders let you plan your inventory and workflow. Plus you may be able to focus on certain niches, like house dinner parties, office events, pastry mornings, order-in sandwiches, and so on.

8. Online selling

You can set up an online store pretty simply these days. A Xero survey found online stores are cheaper to run than brick-and-mortar shops and can offer higher profit margins in the early years. You can sell your own stuff or stock known brands. Learn how to start an online business.

9. Dropshipping

Dropshipping is a form of online retail where you don’t have to handle the products you sell. You simply populate your online store with pictures and descriptions but the goods themselves stay in the warehouse. When an order comes through, you send it straight to the wholesaler or manufacturer, who packs and ships the products to your customer. You don’t need to invest heavily in inventory, store products, or manage shipping. This simplicity makes it a good small business idea for beginners. Keep in mind, you may need to coordinate with suppliers and help customers if issues arise.

10. Sell a digital product

Digital products include things like songs, jingles, images, videos, templates, ebooks, and anything else that you can send to a customer by email. As with dropshipping, a business that sells digital products is fairly light. You don’t need storage or logistics. You will, however, have to create worthwhile digital products, or buy licenses to existing digital products.

11. Affiliate marketing

Affiliate marketing is a popular form of income for bloggers. By referring your readers to shopping sites, you can get a small cut on any purchases they make. You first need to build up a sizable audience and it helps if your blog has a theme that naturally connects to certain types of products. Examples might be blogs about travel, woodwork, parenting, gardening, cooking, or crafts. Affiliate marketing takes time to build, but some sources suggest average annual income can reach $60,000 USD.

12. Personal trainer

Got a ton of energy, lots of willpower, and some motivational skills? Then you could help people pursue their fitness goals. It pays to know how the body works, so you don't injure or endanger your clients. With the right approach, you can help people improve their health, energy and confidence, which is a rewarding way to make a living. There are lots of different types of customers, young and old, with a wide range of fitness goals. There's bound to be a niche for you.

13. Life coach

A life coach (or wellbeing coach) helps people find balance and fulfillment in their lives. Oftentimes, clients feel stretched between the demands of family and career. Or they sense they're so task-oriented that they're missing the bigger picture in life. A life coach can lead them through exercises and discussions to develop new perspectives and hopefully improve their sense of contentment. The journey can inspire clients to make positive changes in their lives, so it's important to approach this career with care and commitment. You can take courses to start building up your skills.

14. Handyman/contractor

For those who are good with tools and who enjoy fixing things, working as a handyman or a contractor is an excellent small business idea. Handyman skills are always in demand, no matter where you're located.

15. Landscaping and lawn care service

People love their green spaces so why not be the person that cares for them? Most landscaping gigs comprise mowing, pruning and weeding so you probably won't need a ton of skills to get started with this small business idea. However, clients may eventually ask for your advice on trees, soils, watering systems, fertilizers and so on. You'll need to get some training if you want to grow your business by offering that sort of advice. There are lots of niches you could target. You could be the gardening contact for private residents, landlords, summer homes, commercial spaces or even public spaces.

16. Construction

Do you know a trade like carpentry, joinery, plumbing or electrical? There's regular demand for new housing and, even when there's not, people will want to renovate their old home. Either way, someone has to do the work. Construction has lots of niches. You could be the door-hanging contractor, the staircase maker, or the patio person just to name a few.

17. Manufacturing, engineering and fabrication

Skilled engineers, builders and welders can grow boutique manufacturing businesses. Equipment and materials can be costly so try to identify a local niche that allows you to focus on a few core products or tasks. You might pick up contracts building components for other businesses in the area. To make this business idea work, you'll need to be a good communicator in order to understand customer requirements. Some design or drawing skills will also be handy.

18. Consulting

Households and businesses both seek advice from independent experts. Maybe you can offer (or acquire) some valuable skills that they'd pay for. There are many options. For example you could become a residential interior designer or home-budgeting guru. Or you could find work serving local businesses as a project manager, a researcher, or an editor. Explore what's needed in your community then develop and market your skills to meet that need.

19. Business advisor or troubleshooter

If you've been working in an industry for a long time then you can become an expert advisor. In this role, you'd help up-and-coming businesses identify new opportunities, overcome hurdles and unlock growth. You'll do well if you're experienced, analytical and a good communicator.

20. Webmaster

An increasing number of small businesses feel they need a website but they don't know how to set it up or manage it. You could take that off their hands for a small monthly fee – promising to keep their site secure, implement content updates, and provide some SEO (search engine optimization) services. You could expand on this small business idea by adding ecommerce and digital marketing services.

21. Digital marketer

Digital marketing can be a super affordable way for small businesses to reach niche target audiences. However, very few business owners understand how it works. This is where you can help. As a digital marketer you could step in to run small social advertising or search engine marketing campaigns.

22. Freelance copywriter

A good writer can pick up a variety of gigs writing for businesses. Common jobs include writing websites, corporate blog posts, emails, articles, social posts and ads. You might even get to work on taglines, product names, or whole advertising campaigns. While there's a good mix of things to do, it's not a bad idea to specialize a bit. The faster you get at certain types of work, the higher your hourly earning potential.

23. Freelance designer

Designers can pick up all sorts of work, depending on their specialty. You might help lay out newsletters for local government, design awards and certificates for schools and sports clubs, help small businesses with websites, flyers and business cards, or pick up overflow work from agencies. Build up the right sort of online portfolio and your good work will win you plenty of new opportunities. But you need to get good at time and cost budgeting so sharpen up those skills now.

24. Photographer

Photography can be a good small business idea for visually-minded creatives. Photography lets you capture important moments like weddings and award ceremonies. You'll need the right temperament to succeed. Equipment can be expensive but if you're a keen hobbyist, you may already have made those purchases anyway.

25. Clothing boutique

Opening a clothing boutique can be a fun way to enter the fashion industry. You might recycle clothing, resell second-hand clothing, or import certain types of hard-to-find garments and labels. In particular, the second-hand market continues to grow thanks to eco- and cost-conscious consumers. This could be an online business idea, a physical store, or a little of both.

26. Clothing label

Have you thought about creating your own label? There are lots of specialist categories to target, like sportswear, maternity gear, fair trade, baby wear, sustainable clothing and more. You can make them yourself or get contractors to follow your designs. Start out with one or two lines while you test the market's appetite for your products.

27. Beauty business

People like to feel good about themselves so there's always a market for beauty products. There are some big players in this field already, and lots of celebrities now have their own lines, but there are still niche opportunities. Not everyone wants mainstream products. Consider developing a grooming or beauty philosophy of your own then curate a list of products that fits. You could make some products from scratch or source them from craft suppliers.

28. Pet care

There are already over 1 billion pets worldwide, with ownership growing among millennials. Some pets need more attention than others, so there could be pet-care opportunities in your area. Dog walking or grooming are popular but there are other opportunities, such as caring for pets in their home when owners are away on holiday. You could also retail pet accessories as part of your business.

29. Podcasting

Podcasting can be a lot of fun and may even generate income. Just be aware that there are already thousands of great podcasts out there and many are done by media pros. Your best bet may be to find a niche topic where you can offer really valuable insights, then use your podcast to sell extra training or educational resources. In this respect, podcasting may end up being more of a marketing platform than a business.

30. Print-on-demand

Print-on-demand is a low-risk way to create and sell merchandise. You can market your designs on mugs, cushions and calendars, and a third-party printer handles the orders. You don't need to buy any of the gear, which makes it a fairly inexpensive small business idea.

31. Printer

The other side of print-on-demand is to buy your own kit and offer printing services. You could then take orders to print custom Christmas cards, wedding invitations, flyers, or t-shirts. This business will work even better if you can offer design services too.

32. Teaching online courses

If you have an area of expertise and you're an excellent communicator, online teaching could be a great option. Websites such as Udemy have made it simple to teach your own course online about any number of topics. The demand for these services is high, and many people enjoy learning at their own pace.

33. Tutor

In-person tutoring is a great way to make some extra money while helping people. Tutors can work with learners from early school entrants right up through university students, so there is always a wide customer base to work with.

34. Teach languages

People learn new languages all the time, and you can teach them. You don't even need to know any languages other than your own (although it helps!). You'll need to be patient and encouraging as some of your students will naturally struggle at times. There are dozens of training and certification programs to give you the skills you need. Helping people to communicate in a new country can be incredibly rewarding and important work.

35. Childcare

You can work as a nanny or au pair with one family at a time, or find a space where you can support multiple families at once, such as by providing neighbourhood after-school care. Do your homework on health and safety or licensing requirements if you decide to care for kids outside of their family home.

36. App developer

With the right coding and UX skills, you could work as a freelance app developer. You can pitch for work from businesses that need apps developed, or you could pick up overflow work from app development agencies. You can even work on your own tech business idea on the side.

5 low-cost business ideas you can start today

You don't need a lot of capital to get started. Many successful businesses begin with minimal investment, relying on the founder's skills and time. If you're looking for an idea that's light on startup costs, consider service-based businesses where your expertise is the main product. Some ideas include:

1. Freelance services: Offer your skills in writing, design, or marketing. Your main investment is your time and a computer.
2. Consulting: If you have deep experience in a specific field, you can advise other businesses for a fee.
3. Dropshipping: Start an online store without holding any inventory. You purchase products only after customers place orders.
4. Handmade crafts: Sell your creations on platforms like Etsy. Initial costs are for materials, which you can buy in small batches.
5. Online tutoring or teaching: Share your knowledge in a subject you excel at through virtual lessons or courses. You just need a computer, internet connection, and your expertise to get started.

9 Side hustle ideas

Side hustle businesses are part-time ventures you run alongside your main job to generate extra income. Research shows these lower-risk startups can have a major economic impact. For example, startups created 26 percent of new jobs in the last business cycle, as they let you test and refine your idea gradually.

1. Join a focus group or take surveys

Marketing companies often recruit people to sample new products or answer questions about their buying habits. You might get to try new food for a restaurant or watch a TV show before it airs. So long as you can give constructive feedback, they'll likely recruit you again in the future. Sign up with research companies to earn extra income regularly.

2. Mystery shopping

Mystery shopping is another side-hustle idea for people who like working in market research. In this case, you're hired to go shopping in certain stores then report on the experience. The demand for mystery shoppers varies a lot by location. But it can be a fun way to earn money while seeing retail in action and learning how big brands build a good experience.

3. Rent your spare room

If you're the welcoming type and comfortable sharing spaces with new people then this one could be for you. You'll need to own your home and have a spare room, of course. But if you tick those boxes, then opening your home to boarders can be a profitable and socially stimulating side-hustle idea.

4. Rent out your car

If you have a vehicle you rarely use, you can earn extra income by renting it out. You'll probably need to bump up your insurance, as your current policy may only apply if you're the driver. It needs to allow for guest drivers. Do some due diligence on the people who want to hire your vehicle and make sure they're fully licensed.

5. Gig work

Gig work is a popular side-hustle for people who need a flexible schedule. Gigs can include rideshare driving, food delivery, or running errands for people. You can use apps like TaskRabbit to find and accept gigs but be aware that not all the money you make goes into your pocket. Providing those services will cost you money if you need to drive places, catch buses, or use your own vehicle and tools, so budget accordingly.

6. Deliver groceries or food

Delivering groceries or food is a relatively easy way to bring in a few extra dollars. However, you'll need to run your own vehicle so factor fuel and maintenance costs into your budget. It's also quite tricky to spin this sort of side hustle idea into a sustainable full-time business so you're better off to think of it as pocket money.

7. Flipping items for profit

Reselling things for a higher price is not a new idea. In fact it's the very basis of retail. The internet makes it easier to find deals on one website and resell products for a higher price on another. You need an eye for a bargain, good research skills, and patience. Some deals may not work out, but with research and patience, you can increase your chances of success.

8. Handmade crafts

If you're naturally crafty, you can sell your handiwork online or at markets and fairs. You may already know people who sell homemade jewellery, screen-printed shirts, scented candles, soaps or wood crafts. There are plenty of other side-hustle ideas in this space, such as metalwork, pottery, paintings, organisers, furniture and the like. You might also partner with other artisans to sell related products.

9. Blogging

Skilled writers can work their way up to a full-time income from blogging. You can monetize your talent by posting on third-party platforms like Medium, where you get paid a small amount per read. Or you could build your blog on a platform like Substack, where you can sell subscriptions to fans. Another option is to charge for including links to other sites in your content. Blogging is a momentum game. Good writers can toil away for a long time without getting a huge audience. But a few breakthrough pieces can set you on your way.

Start your small business journey with Xero

Turn your idea into reality and manage your business with confidence. Try Xero for free today to track finances, plan growth, and stay on top of your business operations.

FAQs on small business ideas

Have questions about starting a small business? Here are answers to some of the most common questions about choosing, validating, and launching a business idea.

What are some low-cost business ideas for beginners?

Service-based businesses like freelancing, consulting, tutoring, or online selling can be started with minimal investment. Many rely mainly on your skills and time rather than upfront capital.

How do I know if my business idea will be profitable?

Evaluate the market demand, research competitors, and calculate your costs versus potential revenue. A profitable business has a clear path to sustainable income and growth.

Can I start a small business while working a full-time job?

Yes, many entrepreneurs start as side hustles. This allows you to test your idea and build a customer base while maintaining financial stability.

What skills do I need to start a small business?

It depends on the business, but generally you need a mix of industry-specific expertise, business management skills, and problem-solving abilities. Partnering with someone who has complementary skills can help.

How can Xero help with starting my small business?

Xero simplifies accounting, tracks income and expenses, manages cash flow, and helps you make data-driven decisions so you can focus on growing your business.