BEST Small Business Ideas, Themes and Concepts (2024)

Small Business Ideas and Concepts

While it may seem daunting to compete with large companies, small businesses still make up a significant portion of the United States economy.

In fact, according to the US Chamber of Commerce, they’ve consistently accounted for about 40% of the nation’s gross domestic product (GDP) over the last two decades.

It may also be comforting to learn that an Intuit study found that 86% of small business owners say their business has helped them reach their personal financial goals.

However, if you hope to reach your financial goals, you’ll need to come up with a unique small business idea that differentiates you from the competition.

So, in this article, we’ll explore some different types of small business ideas to help you develop your own concept. At the end, we’ll take a look at some inspiring examples to help you get started.

Key Takeaways

• There’s no shortage of small business ideas to consider. From brick-and-mortar to online, and selling products to offering services, think about what the best fit for your personality and skill set is.

• Some of the most successful small business concepts combine multiple types of ideas. For example, Blue Bottle Coffee began by selling premium coffee beans, but eventually expanded into physical cafes. 

• Take inspiration from other successful small businesses, like Strand Bookstore’s iconic brand identity, Morgan Overholt’s freelancing services, and Gymshark’s rise from dropshipping supplements to a multinational company.

How To Develop Your Small Business Idea

As a small business, you likely don’t have the same type of financial resources as big name brands.

However, this doesn’t mean you can’t compete with them–it just means you need to be creative in how you differentiate yourself.

So, let’s take a look at how to develop your small business idea and stand out in the market.

Product and Service Selection

For small business retailers, one way to differentiate your small business idea is by offering a curated selection of products.

These items can cater to specific niches or target demographics, unlike larger retailers who typically have more generalized offerings.

Of course, the same is true for small businesses offering a service. For example, a freelancer might choose to specialize in pay-per-click advertising, offering a singular, but expert, service.

Meanwhile, a larger agency would likely offer an assortment of services, from web design and SEO to paid ads and email marketing.

However, by offering one dedicated niche service in their expertise, a freelancer can help their small business stand out.

High-quality products and services are a cornerstone of building brand equity and fostering loyal customers. They should not only meet, but exceed, customers’ expectations. This can lead to increased satisfaction, trust, and loyalty.

Ultimately, by prioritizing quality, you can command premium pricing and attract discerning customers who value excellence.

Customer Experience

To gain a competitive edge and foster brand loyalty, think about providing:

• Exceptional customer service

• Personalized interactions

• Memorable shopping experiences

From the moment a customer interacts with your brand to post-purchase support, every interaction should be seamless, personalized, and memorable. 

A positive customer experience not only delights shoppers, but also fosters brand advocacy, repeat purchases, and positive word-of-mouth recommendations.

In fact, research by Salesforce indicates that 89% of consumers are more likely to make repeated purchases after a positive customer service experience.

Brand Identity and Values

Finally, creating a strong brand identity is key for the success of all small business ideas. So, be sure to build your brand around:

• Your core values and mission

• A compelling story

• Unique selling propositions

Additionally, you may want to lean into your identity as a small business. Intuit conducted a survey finding that 57% of American consumers buy from small businesses to keep money in their local economy.

Likewise, 38% said they want to support their community and local creators.

Of course, as a small business, you have a great opportunity to tell an authentic story. 

For example, if you want to start an environmentally-friendly retail business, explain how you became passionate about sustainability, and describe any other activism you’ve participated in.

Ultimately, it’s key to communicate to customers why and how you started your business. This can help them feel more connected to you, developing trust and an emotional connection with your brand.

12 Different Types of Small Business Ideas

Coming up with small business ideas requires you to explore innovative concepts addressing specific customer desires and preferences.

With that in mind, here are some different concepts you may want to consider as you begin developing your idea.

Niche Market Specialization

As we mentioned earlier, starting a retail business selling a curated assortment of products can be a great way to differentiate your small business idea.

By offering unique products or catering to customers with a specific lifestyle, you can get them invested in your brand.

For example, you might consider starting a specialty bookstore focusing exclusively on vintage science fiction novels. This would cater to enthusiasts seeking rare and collectible editions. 

By honing in on a specific genre or niche within the book market, your store could attract dedicated fans and collectors looking for unique finds not readily available elsewhere.

Sustainable and Eco-Friendly Products

Another small business idea in the retail sector is selling sustainable and eco-friendly products. Like niche market small businesses, this idea caters to a specific type of customer by offering a special assortment of products.

By focusing on eco-friendly products, you can also develop your brand as a leader in the sustainability movement. To contribute to this brand image, you might consider:

• Hosting events, like talks by environmental activists

• Donating a portion of your profits to nonprofits focused on sustainability

• Incorporating reusable and sustainable materials in your retail store design

One example of this type of small business idea is a zero-waste grocery store offering package-free goods, locally-sourced produce, and eco-friendly household essentials. 

Ultimately, by prioritizing sustainability and ethical sourcing, your store can appeal to customers who are passionate about reducing their environmental footprint and supporting local eco-friendly businesses.

Personalized Subscription Services

Subscription-based retail is a growing market, making it one of the most trendy small business ideas. 

In fact, according to a report by Sticky.io, the combined annual growth rate (CAGR) for subscriptions has grown at 60% over the last few years. Meanwhile, the average industry has grown at just 10%.

Fortunately, there are tools that make it easy to offer your own online subscription business, whether you want to offer physical products or online services. For example, you can use sites like Shopify or Crate Joy to simply manage your business.

One example of a monthly subscription box service could be delivering customized self-care packages tailored to individual preferences, including: 

• Skincare products

• Wellness items

• Artisanal treats

By providing personalized recommendations and curated selections, your service can offer a convenient shopping experience for subscribers.

Socially-Responsible Brands

In the same vein as eco-friendly retail businesses, socially-responsible brands can encompass several different types of values or ethics.

For example, you could start a clothing boutique committed to fair trade practices and ethical sourcing. To accomplish this, you could partner with artisan cooperatives in developing countries to support sustainable livelihoods and community empowerment. 

Other examples of values and ethics you can incorporate in your branding include:

• Animal rights (for example, vegan food brands or beauty products that don’t test on animals)

• Workers’ rights (for example, worker cooperatives or brands with a profit sharing model)

Ultimately, successful brands focused on social responsibility transparently communicate their ethical values and mission. 

This can attract socially-conscious consumers who prioritize ethical and responsible consumption.

Technology-Driven Solutions

If you’re tech-savvy, technology-driven solutions can be super profitable small business ventures.

While big companies like Microsoft and Google dominate the Software-as-a-Service (SaaS) industry, there may be opportunities for small businesses who can deliver niche solutions.

For example, Buffer, a social media management tool, began with just a few people in 2010. Today, however, the company employs about 80 people in 20 different countries, driving over $18 million in revenue per year.

Of course, software development isn’t the only type of tech-driven small business you can start.

For instance, you might consider launching a mobile app offering virtual interior design consultations and augmented reality visualization tools. This could help homeowners envision and execute their renovation projects. 

By leveraging technology to streamline the design process and enhance customer experience, the app could provide a valuable and innovative solution for homeowners.

Experiential Retail

Experiential retail businesses go beyond traditional retail stores, providing an immersive and interactive environment for customers.

By providing one-of-a-kind experiences, you can help customers connect with your brand on a deeper level, encouraging brand loyalty and retention.

One experiential retail business idea is a themed escape room café, combining immersive escape room challenges with gourmet dining experiences. This would provide a unique and interactive entertainment venue for groups and events. 

Better yet, this small business idea can drive revenue from multiple sources. In this case, you could make money from selling tickets to the escape room, while also earning money from the sale of coffee and food.

However, experiential retail doesn’t necessarily need to go to this extreme. In fact, something as simple as in-store demos or the ability to test out products can be just as effective. Even hosting the occasional event at your retail store could do wonders for your bottom line.

After all, Finances Online reports that 91% of customers report a positive brand association after attending an experiential event. Furthermore, 74% say they’re more likely to buy a promoted product after an experience.

Local Artisan Markets

Local markets can be a good opportunity for small businesses to start selling their products. After all, you’ll typically get a lot of foot traffic and exposure by simply setting up shop.

However, if you’re really ambitious, you might even consider setting up a market for other local artisans.

For example, you could put together a curated marketplace with independent makers and small-scale producers showcasing:

• Handmade crafts

• Artisanal goods

• Locally-produced foods 

To make money from this small business idea, you could charge the artisans a fee to be a part of the event. Alternatively, you could take a small percentage of their profits from the day, or even charge an admission fee to patrons.

Ultimately, providing a platform for artisans to showcase their work and connect with customers can create a vibrant and inclusive community hub.

Health and Wellness Studios

If you’re passionate about improving the health of others, you might consider starting a gym or health and wellness studio.

Just keep in mind that the competition in this niche can be fierce, so be sure to think about how to differentiate yourself.

For example, you could launch a boutique fitness studio specializing in aerial yoga classes. This small business idea could provide a serene and uplifting environment for practitioners to improve strength, flexibility, and mindfulness. 

On the other hand, you might consider starting a strength and conditioning gym geared towards athletes.

Overall, by focusing on a niche fitness activity and creating a welcoming and supportive atmosphere, your studio can attract clients seeking unique and holistic wellness experiences.

E-commerce Brand

While brick-and-mortar stores still command the largest share of retail sales, ecommerce has been steadily growing in recent years. In fact, Statista data indicates that global ecommerce sales reached a staggering $5.8 trillion in 2023.

Better yet, the market is expected to grow a further 39% by 2027, with global ecommerce sales surpassing $8 trillion.

Now, there are tons of ecommerce small business ideas you might consider.

For instance, you might think about starting an online dropshipping store. This model doesn’t require you to actually hold any inventory, and your supplier ships your products directly to your customers.

Printify and Printful are two popular dropshipping platforms, and they allow you to sell print-on-demand products, like custom t-shirts and mugs.

Another ecommerce business example might be a brand specializing in personalized skincare products, offering customized formulations based on customers' skin type, concerns, and preferences. 

By leveraging data-driven algorithms and expert consultations, your brand could deliver tailored solutions meeting individual skincare needs and preferences.

As we mentioned earlier, this kind of personalization can be a great way to help your small business stand out from the competition.

Educational Workshops and Classes

If you’ve got expertise in a certain skill, educational workshops and classes can be an amazing small business venture.

For instance, you could start a DIY workshop studio hosting hands-on classes in woodworking, pottery, and other crafts. This would empower participants to unleash their creativity and learn new skills in a supportive and inspiring environment. 

To really take this idea to the next level, you might think about hiring other teachers and expanding your workshops to teach additional skills.

Overall, by providing opportunities for hands-on learning and creative expression, your studio can attract people seeking enriching educational experiences.

In-Person Services

There are tons of in-person services you can provide to launch a healthy small business. For instance, you might offer services in:

• Home Repair: This could include handyman services, plumbing, electrical work, painting, carpentry, and more

• Home Organization: This could include regular cleaning services, moving services, organizing/decluttering services, and more

• Landscaping and Lawn Care: This might include lawnmowing, garden design/planting/weeding, tree and shrub care, and more

• Pet Services: This could include pet sitting, dog walking, pet grooming, or pet training

• Personal Wellness: This might include personal training, yoga instruction, or nutrition counseling

• Childcare Services: This may include babysitting, nanny services, tutoring, or youth sports coaching

Of course, there are tons of other in-person services you might think about as well. However, hopefully the list above can help you brainstorm some small business ideas based on your own skills.

Online Services

Like in-person services, there are lots of online service business ideas you may want to consider. For example, you could offer online services in:

• Writing and Editing: This might involve writing blog posts, editing book drafts, creating technical manuals and guides, and more

• Graphic Design: This could involve creating logos, illustrating books, designing websites, and more

• Digital Marketing: This may include SEO services, social media management, email marketing, or pay-per-click advertising

• Web Development: This could involve developing websites, creating apps, or programming custom software

• Consulting Services: You might provide consulting services in a range of industries, including business strategy, financial planning, technology solutions, and more

• Creative Services: This might include photography, videography, video editing, music production, voiceover services, and more

• Online Education: You might consider creating courses with platforms like Teachable, providing one-on-one or group tutoring, life coaching, test preparation, or language instruction

Again, there’s no shortage of online small business opportunities. So, be sure to think about what skills you already have, and see if you may be able to offer them professionally.

7 Examples of Successful Small Business Ideas

Now that we’ve explored some small business ideas, let’s take a look at some successful examples.

This will help give you some inspiration as you decide what type of business you’d like to launch.

4 Examples of Brick-and-Mortar Small Business Ideas

First, we’ll look at some examples of successful brick-and-mortar small businesses. These are businesses with a physical location, as opposed to boasting only an online presence.

While some of the examples below, like Blue Bottle Coffee, have grown into huge companies, many others have kept their identities as small businesses.

Blue Bottle Coffee

Blue Bottle Coffee may have more than 75 locations today, but the company started from humble beginnings. In fact, James Freeman began roasting his coffee beans by renting a 186 square foot potting shed back in 2001.

Freeman was a self-proclaimed coffee snob, and decided to turn his passion into a business. 

Importantly, he noticed a gap in the coffee shop market:

“At the time, there literally was not a place in San Francisco one could go to get a bag of coffee with a roast date stamped on the back.”

Soon after, he launched his small business idea, roasting just seven pounds of coffee beans at a time. He would sell his coffee beans at a local farmers’ market before expanding his business to a single coffee cart in 2004.

Then, just one year after that, Blue Bottle Coffee opened their first full-time brick-and-mortar location.

As of 2019, the company was set to roast over 2.6 million pounds of coffee beans, and it was valued at over $700 million.

Freeman’s original small business idea is a great example for several reasons. First, he noticed a need in the local coffee market and set out to fill that need with a unique product. 

Second, he developed his brand identity as a premium option, providing customers with a high-quality item they were willing to spend more money on.

Indy Hall Clubhouse

Of course, not all small businesses need to grow into behemoths like Blue Bottle Coffee. For example, take a look at Indy Hall Clubhouse, a coworking space in Philadelphia, PA.

If there’s one thing this brand knows how to do, it’s create a community around their business. In fact, the homepage of their website even uses the phrase “community comes first.”

This small business makes money from recurring memberships, giving members access to their clubhouse workspace. However, they also provide online member options, providing access to their private Discord channel and exclusive events.

So, while Indy Hall Clubhouse is a brick-and-mortar business in many respects, what they’re really selling is access to a community.

When developing your own small business ideas, be sure to consider how you can create a sense of community, whether you’re selling clothing, running a fitness studio, or anything in between.

Strand Bookstore

The Strand Bookstore is an iconic small business in New York City. The bookstore has an impressive brand image, boasting their “18 miles of books,” offering new, used, and rare books across multiple genres.

Not only does this store’s unique assortment of products help it stand out, but so does its brand story. For instance, music icons like Patti Smith used to work there in the 1970’s.

Of course, Strand Bookstore also incorporates many of the small business ideas we talked about above, including:

• The Rare Book Room, which people can rent out for weddings and other events

• Hosting author events, which helps to develop a sense of community around the business

• Sponsoring local events and festivals, which helps the store build a connection with the local community

Additionally, although the store has been around for decades, they’ve stayed current with the times and adapted to changing reading habits. For example, they have an online store, and offer products beyond books, such as apparel, gifts, and book subscriptions.

The business even promotes workers’ rights by allowing their employees to unionize, making them a socially-responsible brand.

Overall, by incorporating many of the best small business ideas into one store, Strand Bookstore has become a cultural landmark in New York.

The Red Door

The Red Door is an Italian restaurant located in San Diego, CA. Like many of the other brands we’ve looked at, they incorporate several small business best practices.

For example, they build their brand identity through their owner’s story. One of the first things you see on their website is a picture of the owner-chef detailing his background of perfecting his family’s traditional Italian cooking techniques.

Additionally, they boast the use of local, sustainable, and responsibly-sourced ingredients. In fact, they make a point to note that they source almost all of their products from local farmers, producers, brewers, and distillers.

By connecting with customers on an emotional, community, and ethical level, this restaurant is able to better connect with its patrons.

3 Examples of Online Small Business Ideas

Now let’s explore some online small business ideas. If you’re not looking to open a physical location for your business, you can find some inspiration below.

Morgan Overholt

Morgan Overholt is a graphic design freelancer with 20 years of experience, and a self-described “small business evangelist.” She offers a concierge-level service, meaning the work she does is premium.

After developing her graphic design skills for 15 years in corporate settings, she decided to start her own business as a freelancer.

This is a great example of an online small business, because Overholt was able to leverage her skills to provide services directly to clients.

After finding success with her graphic design freelancing, she also used other small business ideas to diversify her streams of revenue. 

For example, she started her blog, which provides advice to fellow freelancers trying to find success on Upwork. Then, she leveraged her blog traffic to offer coaching services for freelancers, as well as freelancing courses and educational consulting.

By combining multiple small business ideas, including online services, selling courses, and offering consultations, she’s developed a super successful brand.

Gymshark

While today Gymshark is an ultra-successful multinational company, they certainly didn’t start out that way. 

In fact, this athletic apparel business launched in 2012 by dropshipping bodybuilding supplements. Though it took over six weeks for the company to make its first sale, one year later Gymshark was designing and manufacturing its own fitness apparel.

However, they still weren’t the big business they are today. In fact, one of the owners made the products in his parents’ garage using a sewing machine and screen printer.

Eventually, after going viral on Facebook, the founders left university and focused on the company full-time. 

In 2023, this one-time small business reached a staggering $703 million in revenue.

Overall, this is one of the most inspiring examples of a small ecommerce business using their skills and putting in the hard work to create an incredibly valuable brand.

Succulents Box

The last example of an online small business we’ll look at is Succulents Box. The company sells over 300 varieties of succulents, as well as various gardening accessories.

However, one of the best aspects of this unique small business idea is their monthly subscriptions. They have multiple subscriptions to choose from, and you can customize each one.

Of course, this business also does a great job of building their brand identity. Their website states that succulents, which thrive in poor soils and low-water conditions, symbolize “perseverance, unconditional love, and growth, which are what Succulents Box is all about.”

While the company started in a one-bedroom apartment, they now boast over 30 employees, and have delivered over 1.5 million succulents to over 210,000 customers.

They also developed their brand image by donating tens of thousands of dollars to charities like One Tree Planted.

Finally, even though this is an online small business, they do offer in-person experiences. Their two greenhouses, both located in California, are open to the public.

Why Toast Retail is Perfect for Small Businesses

In today's competitive small business landscape, selecting the right technology is essential for both new ventures and established businesses aiming for success. Solutions like Toast retail not only streamline operations, making them more efficient, but also provide invaluable insights to optimize the financial health of the business. 

By harnessing the power of point of sale technology, retailers can gain a competitive edge, improve customer satisfaction, and drive sustainable growth. Choosing the right technology sets the foundation for long-term success, empowering businesses to adapt to evolving market demands and thrive in an increasingly digital world.

The tech that redefined restaurants is now here to transform retail. Supercharge your store with the POS built for high volumes and complexity, offering everything you need to run your business on one platform. Toast's retail offering is a game-changer for businesses like convenience stores, liquor stores, and retail stores, revolutionizing how they operate and interact with customers. Here's why Toast is the perfect fit for these retail environments.

1. Helps Modernize How You Sell

Toast's intuitive, cloud-based system simplifies daily operations. Its user-friendly interface makes staff training a breeze, ensuring seamless adoption across your team. Whether it's processing payments in-store or integrating with online sales channels, Toast ensures a smooth and consistent experience for your customers regardless of how they shop.

• Intuitive Cloud-Based System: Our intuitive, cloud-based system is easy to learn and easy to use. Say goodbye to complicated interfaces and hello to streamlined processes. Toast is designed to simplify your day-to-day operations, from staff training to consolidated operations, ensuring maximum efficiency and productivity.

• Seamless Payment Processing: Toast’s seamless payment processing easily integrates with online payments for smoother sales every time, no matter how your customers are shopping. This integration ensures a hassle-free experience for both customers and staff, leading to increased satisfaction and faster transactions.

• Flexible Order and Checkout Options: Offer flexible and efficient order and checkout options with reliable hardware including handhelds, kiosks, and guest-facing terminals. Adapt to the diverse needs of your customers and reduce wait times at checkout with Toast's versatile hardware solutions, enhancing the overall shopping experience.

2. Streamline Retail Management

Efficiency is key in retail, and Toast delivers with automated, mobile-first inventory management. Say goodbye to manual inventory tracking and hello to SmartScan, a feature that enables quick product scanning and shelf placement. Managing thousands of SKUs becomes effortless with Toast's intuitive product database and bulk update capabilities.

• Automated, Mobile-First Inventory: Experience the freedom of automated, mobile-first inventory management with Toast. Create and print barcodes in bulk, and take new products from scan to shelf in seconds with our SmartScan feature. Say goodbye to tedious manual inventory tasks and hello to streamlined operations.

• Efficient SKU Management: Easily manage thousands of SKUs with our intuitive product database and bulk updates feature. Modify, reprice, and import multiple products at once, saving valuable time and resources. With Toast, keeping track of your inventory has never been easier.

• Retail-Enhanced Dashboards: Stay on top of your business with retail-specific dashboards and cost-tracking reports. Monitor trends, maximize margins, and ensure your top-selling products are always stocked, empowering you to make data-driven decisions that drive profitability.

3. Tailor Your Customer Experience

Toast empowers you to tailor the customer experience to fit your unique retail concept. Whether you're considering adding food service or expanding your offerings, Toast's flexible platform accommodates creative expansion.

• Creative Expansion Opportunities: Thinking of adding food service to your retail concept? Including Kitchen Display Systems and Order Ready Boards, our flexible platform allows for creative expansion. Explore new revenue streams and enhance the overall customer experience with Toast's versatile features.

• Online Ordering and Delivery Integrations: Give your guests the option to order from home with Toast’s Online Ordering and our third-party delivery integrations. Meet your customers where they are and provide convenience that keeps them coming back, increasing customer loyalty and satisfaction.

• Loyalty Rewards and Personalized Offers: Be your neighborhood's favorite shop (and incentivize repeat visits) with loyalty rewards and personalized offers. Transform one-time shoppers into loyal patrons by engaging with your community and offering enticing rewards, making your store the go-to destination for your customers.

In conclusion, Toast's retail solution is more than just a point of sale system; it's a comprehensive toolkit designed to elevate your retail store to new heights. From modernizing sales processes to streamlining management and enhancing the customer experience, Toast empowers retail businesses to thrive in today's competitive market.

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