20 small business ideas

Key takeaways

  • Starting a small business has many advantages, like making your own schedule, turning your passion into a lucrative career and solving problems in your community

  • There are many funding sources if you need money to fund your small business, including term loans, microloans, grants and crowdfunding

  • Conducting market research and determining where your expertise lies can help you determine what small business idea is right for you

Starting a small business is a great way to gain freedom and make money on your own terms. If you’re ready to start a side hustle or become your own boss, consider some of the small business ideas below to get you started.

What is a small business?

The definition of a small business depends on the industry, business size and annual revenue.

In general, a small business typically has fewer than 1,000 employees, is privately owned and has less than $40 million in annual revenue. But, self-employed or freelancers can also qualify as small business owners.

For SBA loans, the Small Business Administration (SBA) requires a business to be for profit, independently operated and owned, with locations and operations occurring in the United States.

Why start a small business

If you have ideas for small business but aren’t sure if it’s right for you, consider these benefits:

  • Being a small business owner can provide flexibility, allowing you to work as much or as little as you want and make your own schedule.

  • You get to call the shots, including which clients you work with, the type of work you do and how much you get paid.

  • If your small business idea requires hiring employees or subcontractors, you’ll have the chance to build your team and create jobs to help the economy and the individuals you hire.

  • Since you’re taking on the risk, you directly receive the rewards for your hard work.

  • Many dream of creating a successful business from scratch. Entrepreneurship is the only way to turn your passion into reality, allowing you to reap the benefits and build an income while doing so.

  • Becoming a small business owner will challenge you in ways you may not realize. You get to become an expert in your field, honing your skills by attending classes, retreats and seminars while improving the industry, inspiring others and mentoring newcomers.

  • There’s a belief that there is more stability in being an employee, but you have all your eggs in one basket. A layoff or getting fired could turn your world upside down as you lose all your income. As an entrepreneur with multiple clients, you only take a partial hit to your income if you lose one.

  • The average small business salary ($99,979) also far surpasses the average American salary ($63,795).