If you’re planning to own and operate a business, you might start thinking about things like renting commercial real estate, commuting to an office, or managing employees.
But with the rise of home businesses, more and more people are discovering ways to use remote work to pursue entrepreneurship, with their business headquartered at home.
In today’s connected world, where technology affords us more flexibility in how and where we work, home-based businesses come in a variety of forms.
Some require you to convert a spare room into a mini-warehouse for products, while others can be run completely online. But generally, you can start these types of businesses using your existing space and means.
- Shortcuts
- What makes a “home-based” business: the pros and cons
2. 25 profitable home business ideas you can start today
3. Find a home business idea that works for you
4. Home business ideas FAQ
What makes a “home-based” business: the pros and cons
A home-based business is a venture—whether full time or run as a side hustle — that you can start and operate using your own home as your base of operations. A few home-based businesses, especially those that sell online and don’t buy and hold lots of inventory, can even be run on the go, without the need to be bound to your home.
Naturally, there are pros and cons to consider when deciding whether a home-based business is right for you.
- Pros:
- A low-cost business has fewer overhead costs (such as warehousing fees), plus potential tax deductions you can claim.
2. The option to sell products or services locally or internationally.
3. Flexible work-life balance, which is ideal if, for example, you’re a stay-at-home parent or a retiree.
4. You can create a family business where your relations or your spouse can chip in as needed.
- Cons
You may need to convert space in your home to support the needs of your business (e.g., holding inventory, creating a home office, or storing equipment). The challenge can be doing this without disrupting your life at home.
You still have to comply with any regulations that pertain to the business you want to start (e.g., you may need to rent a commercial kitchen if you plan to sell food products, or a license/permit to hold inventory).
Your business may outgrow your home and require you to rent additional space and hire employees.
Working from home offers you a lot of freedom, but it can also be lonely. This might be difficult if you enjoy being around other people.
25 profitable home business ideas you can start today
While there are plenty of ways to go about starting a home-based business, the following are some of the most approachable paths to creating a profitable business for yourself:
- Buy products in bulk and sell them online
- Sell homemade products
- Start a dropshipping store
- Start a print-on-demand business
- Offer online services
- Teach online classes
- Productize your service or expertise
- Grow an audience you can monetize
- Start a subscription-box business
- Turn your pet into an influencer
- Sell unwanted items
- Play video games
- Sell NFTs
- Become a virtual event planner
- Launch a photography business
- Start a beauty business
- Start an affiliate marketing business
- Start a day care
- Sell stuff on marketplaces
- Become a social media manager
- Become a virtual personal trainer
- Offer bookkeeping services
- Design websites
- Start a dog grooming business
Find a small business idea that works best for you
The best home business really depends on your goals. Do you want a part-time gig as a stay-at-home mom or do you want to become a full-time business owner? How much capital do you have to start up? What skills are already in your arsenal that you can tap into?
A home-based business in today’s world is simply a remote-friendly business where technology can close the gap between you, your suppliers, your employees, and your customers. Altogether, this is a home business opportunity to start small, grow nimbly, and invest conservatively—especially when you can cut out the costs of renting an office.
As you would when starting any type of business, think carefully about your goals and what you enjoy working on to create a new business that works for you.
Home business ideas FAQ
What are the most successful small businesses?
According to our research, the most successful businesses that survived the pandemic are: (1) health and beauty businesses, (2) subscription businesses, and (3) businesses that sell B2B and B2C.
What businesses can I start at home?
Sell homemade products
Offer online services
Start a subscription box business
Sell NFTs
Grow an audience to monetize
Start a dropshipping store
Start a print-on-demand business
Become a freelance writer
How business is good for beginners?
Dropshipping
Print on demand
Selling unwanted items
Homemade products
Offering services