Your Small Business Guide to Finding the Perfect Product to Sell

by Eric Lam - Published 10/22/2023

The variety of small business opportunities is large, making the choice of what business to start an important one. This decision is especially crucial if you want the flexibility of being your own boss and setting your own work hours. Picking the right business can set you on a path to success, giving you control over your income and work-life balance. On the flip side, a poor choice could lead to financial loss and stress. Therefore, it's critical to carefully evaluate different business ideas and opportunities before taking the plunge.

The pie chart in varying shades of yellow offers an engaging visualization of the landscape of small businesses in the U.S., categorized by employee numbers. Dominating the chart is a large slice representing businesses with no employees, which constitute a significant majority of the small business sector. Following this, a smaller portion signifies businesses that employ between 1 and 19 people. The tiniest slice of the pie denotes businesses with a staff ranging from 20 to 499 employees. Although the chart clearly shows that most small businesses operate without any employees, it also brings to attention the counterintuitive yet substantial contribution of this sector to U.S. employment.

Market Research for Business Ideas

If you're serious about starting a small business, conducting market research should be your first step. You need to know who your potential customers are, what they need, and how willing they are to pay for your solution. By doing this, you eliminate guesswork and base your business idea on data, not just gut feelings or assumptions.

You can also use useful tools like Gumroad to see what other entrepreneurs are selling, and GummySearch to get insights on customer grievances for mainstream products and services.

One useful tool for market research is search engine optimization (SEO). Through SEO tools, you can find out what people are searching for online related to your business idea. These tools can show you search volumes for specific keywords, the questions people are asking, and even the geographic regions where these searches are most common.

So, how exactly do you conduct market research using SEO?

Keyword Analysis: Begin by identifying relevant keywords that people might search for related to your business idea. For instance, if you're considering starting a dog walking business, keywords could include "dog walking," "pet care," and "dog walkers near me."
Trend Assessment: Use tools like Google Trends to see how the popularity of these keywords is changing over time. Are they becoming more popular, or is interest declining?
Competitor Analysis: Look at the websites that rank highly for your target keywords. What services are they offering? How do they engage with customers? What can you do better or differently?
Target Audience: SEO tools can also help you get a sense of the demographic that is most interested in your target keywords. This can help you tailor your business idea to better serve this group.
Local Searches: If your business will have a local component, use SEO tools to analyze search trends in your specific location.

By combining all of this data, you can form a much clearer picture of what your potential customers are looking for, allowing you to refine your business idea to better meet these needs. Doing your market research before launching your business can save you a lot of time, money, and heartache in the long run.

Buying vs. Building

Some people prefer to buy an existing small business rather than building one from scratch. Each approach has its advantages and disadvantages, and the best option depends on various factors such as skill set, risk tolerance, and business goals.

Buying an existing business offers several benefits. For one, it's generally considered less risky because the business already has a proven track record, existing customer base, and established operational processes. This can also make it easier to secure financing. Additionally, you can start generating revenue almost immediately, without going through the time-consuming and often challenging startup phase. You'll also inherit experienced staff, suppliers, and possibly even a well-known brand name, which can save a lot of time and effort in establishing these business elements.

However, purchasing a business also comes with its set of challenges. Due diligence is crucial to ensure that you're making a wise investment. You'll need to scrutinize the company's financial statements, contracts, and other legal documents. The asking price may be high, especially if the business is profitable and well-established. And while inheriting staff can be an advantage, it can also be a disadvantage if the existing team is not well-trained or if they resist new management.

Starting a business from scratch, on the other hand, gives you the freedom to build something that aligns perfectly with your vision and goals. You can establish your company culture, select your team, and choose your business location. However for most successful small businesses, the startup phase can be time-consuming, risky, and financially draining.

Optimizing Your Website

Creating a comprehensive SEO strategy begins with an in-depth understanding of your target audience and business goals. The first step is keyword research, where you identify the key phrases and terms that your potential customers are likely to use when searching for products or services similar to yours. Utilize tools like Google Keyword Planner or SEMrush for this purpose. After compiling a list of relevant keywords, you'll need to examine their search volumes and competitive landscape.

The next phase involves on-page optimization. This includes incorporating your target keywords into important elements like page titles, meta descriptions, headers, and content, without overstuffing. Always focus on delivering high-quality, valuable content that addresses the queries and needs of your audience. User experience factors like page speed, mobile-friendliness, and navigational ease also play a significant role in SEO.

Off-page optimization, mainly backlinking, is the subsequent stage. Aim for high-quality backlinks from authoritative websites in your industry or niche. Guest blogging, digital PR, and networking can be effective tactics to earn these backlinks. Social signals, like shares and likes from social media platforms, can also improve your site's SEO, although they're not a primary ranking factor.

Technical SEO should not be overlooked. Ensure that your site's architecture is SEO-friendly, employ canonical tags to avoid duplicate content issues, and keep an eye on crawl errors in Google Search Console. An XML sitemap can help search engines better understand the structure of your website.

Last but not least, continuously monitor and analyze your SEO performance through analytics tools like Google Analytics. Pay attention to metrics like organic traffic, bounce rate, and conversion rate to understand the efficacy of your SEO strategy. Based on these insights, iterate and tweak your strategy for continuous improvement.

Types of Small Business Ideas

When you're considering starting a small business, the options can be broadly categorized into two main types: online and offline business opportunities. Both have their own sets of pros and cons, and the best choice for you will depend on your skills, interests, and lifestyle needs.

Online Business Opportunities

Digital Marketing Services: With the growing importance of an online presence, digital marketing is in high demand. You could offer services like SEO, social media management, or web development.
Online Courses: If you're an expert in a certain field, you can create and sell online courses. This can be an extremely profitable business if there is high demand for your area of expertise.
Ecommerce Business: Selling products online through platforms like Shopify or Amazon can be a lucrative venture.
Consulting: Use your expertise in a particular field to offer consulting services.
Graphic Design: If you have a talent for visual design, you could offer your services to businesses or individuals.

Offline Business Opportunities

Dog Walking Business: This is a great option if you love animals and have good organizational skills.
Coffee Shop: If you’re passionate about coffee and love interacting with people, this could be a good business for you.
Cleaning Services: With low overhead costs, starting a cleaning service can be profitable.
Food Truck: If you love cooking, a food truck business can offer lower startup costs compared to a traditional restaurant.
Personal Training: With a growing focus on health and fitness, there’s a steady demand for personal trainers.

Whether you're looking to start an online business that allows you to work from anywhere, or a more traditional offline business that serves your local community, the most important thing is to choose something that aligns with your interests and skills.

High-margin Small Business Ideas

If you're focused on profitability, there are certain business ideas that have the potential for high margins. High-margin businesses often require specialized skills or knowledge, allowing you to charge premium prices for your services.

Consulting Business

Expertise Required: To start a consulting business, you need to be an expert in a specific field. This could be anything from human resources to business strategy or IT.
Business Model: You would typically charge for your time, either on a project basis or by the hour. This minimizes overhead, making it a high-margin business.
Attract Customers: To gain clients, you'll need to network extensively and may also need marketing materials like a strong online presence or even a business website.

Digital Marketing Services

High Demand: In today's digital age, companies are increasingly seeking to boost their online visibility. This has led to a high demand for digital marketing services.
Various Services: You can offer a range of services from SEO and social media management to pay-per-click advertising and content creation.
Business Finances: While you may need some initial investment for tools and software, the recurring revenue from long-term clients can make digital marketing a very profitable business.

Both of these business ideas allow you to use specialized skills to meet a demand in the market. The key to their high profitability is the combination of low overhead costs and the ability to charge premium rates for expert services.

Low-cost Small Business Ideas

For those new to the entrepreneurial world, starting a business with low upfront costs might be an attractive option. Such low-cost small businesses often require less financial risk, making them an excellent starting point for beginners.

Bootstrapping a business refers to the process of starting and growing a company without external investment or funding. In this approach, entrepreneurs rely on personal savings, reinvested profits, and the initial revenue generated by the business to finance operations and growth. This method allows business owners to maintain complete control over their venture, as they are not answerable to external investors or stakeholders.

While bootstrapping provides a high level of independence, it also comes with its set of challenges. Growth is typically slower since there's less capital to invest in marketing, hiring, and product development. Business owners may also find themselves wearing many hats, taking on multiple roles to keep operating costs low. Furthermore, bootstrapping can be stressful, as the financial burden falls solely on the owner and there may be limited cash reserves for emergencies or unexpected expenses.

However, it has its rewards. Operating without external funding can encourage a disciplined approach to business management. Because every dollar spent comes directly from the company's own revenue or the owner's pocket, there is a natural inclination to scrutinize expenses carefully. Many successful companies have started this way, carefully managing their resources until they reached a point where external investment became either feasible or unnecessary.

Dog Walking Business

Low Overhead Costs: The primary expense would be your time, and maybe some basic supplies like leashes and waste bags.
Scalability: You can start off small, even just walking dogs in your neighborhood, and then scale up as your business grows. Online platforms can help you expand your client base.
High Demand: With many pet owners leading busy lives, there's a continuous need for dog walking services.

Food Truck Business

Lower Initial Investment: Starting a food truck requires significantly less capital than opening a full-fledged restaurant.
Flexibility: You have the freedom to change locations and thereby tap into various target markets.
Business Model: Unlike a traditional restaurant, a food truck can be operated on a smaller scale, initially requiring fewer staff members and offering a limited menu.

Both these low-cost business options offer a way to test the waters of business ownership without making a large financial commitment. Additionally, they provide the flexibility to adapt and grow your business over time.

Trendy Small Business Ideas

If you're looking to tap into what's currently popular, consider diving into trendy small business ideas. These types of businesses often cater to evolving consumer behaviors and technological advances, which can provide a significant competitive edge.

Ecommerce Business

On the Rise: Online shopping is continuously growing, thanks in part to the convenience it offers to consumers.
Business Model: You can choose from various ecommerce models like dropshipping, warehousing, or even subscription boxes.
High Demand: With a global market at your fingertips, the potential for reaching a large audience is substantial.

Social Media Management

Business Necessity: In today's digital landscape, having a strong social media presence is crucial for businesses of all sizes.
Wide Range of Services: You can offer everything from content creation and posting to analytics and customer engagement.
Low Overhead: This type of business usually requires just a computer and some specialized software, making it relatively low-cost to start.

These trendy business ideas are not just fashionable but offer substantial opportunities for growth and profitability. What sets them apart is their alignment with current consumer behaviors and technological advancements.

Niche Small Business Ideas

Targeting a niche market can be a clever way to avoid excessive competition and establish yourself as an expert in a specific area. Here are a couple of niche small business ideas that serve specialized needs:

Transcription Services

Focused Sector: You can specialize in sectors like law or medicine that require meticulous transcription services.
Business Opportunities: Because you're targeting a specific market, your expertise can become your unique selling proposition (USP).
High Demand: Legal and medical sectors often require transcriptions for record-keeping, making this a service in consistent demand.

Personal Shopper

High-end Clientele: Aim to attract customers willing to pay a premium for bespoke shopping experiences.
Lucrative Business: By offering a specialized service, you can charge more for your expertise and personalized service.
Limited Competition: As this is a more specialized field, you're less likely to encounter an oversaturated market.

By focusing on a niche, you can develop specialized skills and services that more generalized businesses can't provide, giving you a competitive advantage.

Seasonal Business Ideas

Not all businesses need to operate year-round to be successful. Seasonal businesses can provide a healthy income if managed correctly. Let's explore some ideas:

Landscaping Business

Peak Seasons: Demand for landscaping services usually skyrockets in the spring and summer months.
Profitable Business: High demand during peak seasons can lead to increased rates and profitability.
Business Finances: Budgeting is key, as you'll need to sustain your business during off-peak seasons.

Coffee Shop

Cold-Weather Boost: Hot drinks like coffee and cocoa are especially popular during colder months, giving you a sales spike.
Business Model: Consider offering seasonal specialties to keep customers engaged and coming back.
Overhead Costs: Unlike a landscaping business, a coffee shop has year-round overhead costs but can capitalize on high sales during the colder seasons.

With the right planning and marketing, seasonal businesses can be highly lucrative. The key is to maximize profits during your high season and budget carefully for the rest of the year.

Product Sourcing

Choosing the right sourcing strategy can make or break your business, especially in areas like food delivery or dropshipping.

Business Delivering Food

Local Businesses: Partner with local food producers or restaurants to source quality products.
High Demand: Food delivery is a service always in demand, but the sourcing strategy significantly impacts profitability.
Business Model: Will you stock items or follow a just-in-time inventory system? Each has its pros and cons.

Dropshipping Business

Online Business Opportunities: Many platforms offer dropshipping services; choose one that aligns with your target market.
Profitable Business: Your profitability largely depends on your suppliers' reliability and product quality.
Business Skills: Mastery in digital marketing can help you stand out in a competitive online market.

Business Marketing and Branding

Your brand's visibility is almost as important as the product or service you're offering.

Social Media Strategy

Attract Customers: Utilize platforms like Instagram, Twitter, and Facebook to attract a broad customer base.
Engage: Keep potential customers engaged through regular posts, updates, and interactive content.

Marketing Materials

Target Market: Know who your ideal customers are and tailor your marketing materials accordingly.
Web Development: A well-designed business website can serve as a powerful marketing tool.

By meticulously planning your sourcing strategy and branding, you set a strong foundation for business success.

Today's consumers are increasingly concerned about social impact and environmental sustainability. Therefore, a small business that addresses these concerns can stand out in a crowded marketplace. Whether it’s a coffee shop that only sources fair-trade, organic beans, or a clothing boutique selling sustainable fabrics, taking a stand on social issues can attract a specific demographic committed to similar ideals.

Business Model: Incorporate sustainable practices into your sourcing, production, and delivery. Offer recycled or reusable packaging to lower your environmental footprint.

Customer Engagement: Use your business as a platform to educate customers about important social issues. Not only does this deepen your brand's story, but it also engages your audience on a meaningful level.

Community Involvement: Partnering with local organizations for community service or donating a part of your profits to a cause can elevate your brand image and attract like-minded customers.

Franchising Opportunities

If you have a successful business model, franchising can be a way to expand without taking on the financial risk and management responsibility of multiple locations yourself. This model allows other entrepreneurs to open their own branches of your business, using your established name, business practices, and branding.

Franchise Model: Draft a comprehensive franchise agreement outlining the terms and conditions. This usually includes the initial franchise fee, ongoing royalties, and support you will offer.

Quality Control: To maintain brand consistency, set clear guidelines and quality control mechanisms that franchisees must adhere to.

Training and Support: Offer robust training programs and ongoing operational support to help franchisees succeed. This could include marketing assistance, management training, or even specialized software to maintain service standards.

Legal and HR Considerations

Legalities and human resources management are pillars of any successful small business. Acquiring the necessary business licenses legitimizes your operation and keeps you in compliance with local, state, and federal laws. On the HR front, efficient management of your workforce ensures that tasks are completed on time and that staff members are content, which in turn, contributes to the overall success of your enterprise. Don't overlook these aspects; they can safeguard your small business opportunity from potential legal disputes and workforce issues.

Managing Business Finances

Financial management is a cornerstone of a profitable business. A well-thought-out business plan serves as a financial blueprint, helping you allocate resources efficiently and make informed decisions. Monitoring overhead costs is equally crucial, as unchecked expenses can eat into your profits and jeopardize the business. Budgeting, regular financial reviews, and cost-benefit analyses are just some of the tools you can use to keep your business on a financially healthy track.

Scaling Your Small Business

Growing your small business isn't just about expanding your offerings or hiring more people. The key to sustainable growth lies in understanding your target market and focusing on repeat business. Knowing who your ideal customers are enables you to tailor your products, services, and marketing efforts to attract and retain this demographic. The data you gather can be a goldmine, helping you refine your business model and strategy.

Repeat business, on the other hand, is the linchpin for consistent revenue. Satisfied customers come back, and they bring others with them. Implement loyalty programs, offer exclusive discounts, or create value-added services to encourage repeat transactions. This not only stabilizes your revenue stream but also builds a community around your brand. Strong customer relationships can be your competitive edge, serving as both a barrier to entry for competitors and a platform for word-of-mouth marketing, which remains one of the most effective promotional tools.

Therefore, to scale successfully, hone in on your target market and work diligently to turn first-time buyers into loyal, repeat customers.

Conclusion: Great Small Business Ideas and Next Steps

The world is brimming with small business opportunities, but the onus is on you to choose a profitable business idea that resonates with you. Don't forget, you can be your own boss and run your own business. All it takes is the right small business idea and a well-thought-out business plan.

What to Sell to Start a Small Business: FAQ

Q1: How do I decide what type of business is right for me?

A: Consider your skill set, interests, and the market demand. If you have expertise in a particular area and there's a market for it, that's a good place to start. Remember to also consider the scalability and overhead costs.

Q2: Where can I find reliable market research data?

A: Utilize tools like Google Keyword Planner, SEMrush, or even social media platforms to gather information on what potential customers are looking for. Conduct surveys or focus groups for more in-depth insights.

Q3: How important is SEO in my market research?

A: SEO is crucial for understanding what potential customers are searching for online. It helps in identifying high-volume keywords related to your business, providing a snapshot of demand and competition.

Q4: What are the pros and cons of starting an online business?

A: Pros include a broader market reach and lower overhead. Cons might include high competition and customer acquisition costs.

Q5: What are the key benefits of buying an existing business?

A: Lower risk due to proven track record, immediate revenue generation, and inheriting operational elements like staff and suppliers.