When it comes to starting your own business, you have to think about things like renting commercial real estate, commuting to an office, or managing employees.
But with the rise of home-based businesses, more and more people are discovering new ways to work remotely to run their businesses while keeping their headquarters right in their home.
In today's world, technology allows you to choose how and where you work, and home-based businesses come in a variety of forms.
You can run a business simply online, but sometimes you may need to convert a spare room into a mini-warehouse for your products. But overall, with the space and funds available, you can start any type of home-based business.
Remote Business: Pros and Cons
A home-based business is a business you can start and run using your home as an office, either full-time or as a side hustle. Some types of remote work, especially those that involve online sales and don't require buying and storing large quantities of inventory, can be done from anywhere in the world without being tied to a location.
Naturally, everything has its pros and cons that should be taken into account when choosing a remote business.
Pros:
- It is a low-cost business that involves fewer overhead costs (such as warehouse storage fees) and does not have high tax charges.
- The opportunity to sell products or services locally or internationally.
- Flexible working hours, which is ideal if you are, for example, a parent or a pensioner.
- You can create a family business in which your relatives or spouse can participate.
Cons:
- The need to convert a space in your home to suit your business needs (e.g. to store inventory and equipment, create a home office). The difficulty is that this may impact your normal life.
- You will still need to comply with all the standard regulations that apply to the business you want to start (for example, you may need to rent a commercial kitchen if you plan to sell food, or a license/permit to store supplies).
- Your business may begin to grow rapidly, which will require renting additional premises and hiring employees.
- Working from home gives you a lot of freedom, but you may feel lonely. If you like being surrounded by other people, then this can be seen as a potential risk to your psychological comfort.
25 profitable home business ideas
There are many ways to start a remote business. Below are the options available to anyone looking to create a successful business.
1. Buying wholesale goods and reselling them online
Many businesses are based on the simple concept of importing goods in bulk and selling them individually for a profit.
Perhaps you have recently traveled abroad and stumbled upon unique products that are not easily found in your market and you feel an interest in them. Or maybe you have identified a market niche and know the perfect way to become a leader in it.
Either way, if these items are relatively easy to store and ship, you may have some home business ideas.
In the beginning, you can use your home as a showroom for small sales, which will give you the opportunity to expand your business. Once you have established yourself in your niche and sales start to grow, you will be able to rent additional storage space and hire employees. This is how Artemis Design Co. got its start.
"I lived in the South Side of Boston and my living room was just full of merchandise. I would invite people over to come and look at things and try them on. That's how I made my first sale", says Millicent Armstrong of Artemis Design Co.
2. Sale of home-made goods
If you make your own items (or know someone who does), consider turning your hobby into a business. Even if you have to create your items elsewhere (in a studio, commercial kitchen, or workshop), you can store and sell them in your home.
When you have control over the process of creating products, you can make them cheaper, improve their quality, or make them more suitable for a specific audience based on market demand.
Josh Pigford already had experience working remotely in business analytics, but he wanted to develop his creative side as well. He started creating plants with his 3D printer, and a new business was born. Cedar & Sail now sells seedlings, stands, and other plant accessories.
No matter how you choose to start a business, whether it’s through a marketplace like Etsy or your own branded store, selling your creations is a great way to share your passion with others and make a nice income. Just remember to follow the guidelines for products that customers ingest or apply to their skin.
More information: Handicraft Business Guides:
- How to sell candles.
- How to Start a Jewelry Business.
- How to Sell Cosmetics Online.
- How to Sell Art Online.
- How to Sell Food Online.
- How to start your own clothing line.
- How to make decorative badges.
The best part is that producing your own products doesn't have to be complicated. When you're ready to scale up, you can always hire new employees to help with production.
3. Own dropshipping store
We've looked at business ideas that require storing goods at home. But there are a number of online business ideas that don't require worrying about inventory and delivery.
This type of business uses the dropshipping model, where a third party manufactures, stores, and ships the products on your behalf, leaving you to worry about marketing and customer service. Retail company Subtle Asian Treats is an example of a remote business that uses the dropshipping model.
Your dropshipping supplier may be local or overseas, but you need to make sure you find a supplier you can trust. This will ensure a consistently high level of customer service after the sale. Always do your due diligence, otherwise you could put your business’s reputation at risk.
There are dedicated Shopify apps, like DSers, that can connect you with dropshipping suppliers to upload products to your own store and make order fulfillment easier.
At its core, dropshipping means that you become a distributor for a third-party manufacturer's product, taking on the costs (both financial and time) of marketing and getting paid a percentage every time you make a sale.
In many cases, this results in your product becoming a commodity with limited opportunities to brand it. Fortunately, there are a few different ways you can compete even if there is no shortage of such products in the market:
- Work with different dropshipping suppliers to create a good store that will satisfy all the needs in your chosen niche.
- Compete through quality content and customer service.
- Target a region with low service levels (but be sure to pay attention to shipping costs).
- Reach new audiences with your products (for example, LED shoes could be sold to music festival goers or athletes).
If you want to learn more about starting a dropshipping business, check out the Dropshipping Guide.
4. Print on demand
The print on demand business is similar to the dropshipping model. It does not require stock holding or shipping. Print on demand allows for greater flexibility in customizing your brand and using your own creative designs.
Rebecca Lee Funk started The Outrage, a clothing brand for women's rights activists that offers custom-designed T-shirts. The company donates a portion of its profits to Planned Parenthood. The charity has become a huge success, and The Outrage has grown into a thriving e-commerce business.
There are many other products that can be sold using print on demand: books, hats, backpacks, blankets, pillows, dishes, shoes, hoodies, phone cases, watches and much more. It all depends on the supplier you decide to work with.
Many print-on-demand companies focus on serving a specific niche or popular hobbies. What are people interested in and spend their time on? What do you enjoy? The answers to these questions will help you make the right choice.
From pet owners to vegans to gamers, there are plenty of interest groups to sell your products to. You can create your own designs if you already have the skills. But if not, you can always hire a professional.
To get a full understanding of how print on demand works and how to get started, you can take a video course on Shopify Academy.
5. Provision of online services
Selling your services from home is even easier than selling products, but the problem is managing your time. "Time is money" is the saying that best describes a service-based business.
Many professionals, such as designers or marketers, may work freelance or consult for other companies remotely from their own home office. Some travel to clients and work with different audiences. Others may work by appointment or booking only, offering their services to a limited number of people.
Popular areas of activity for remote service business:
- Freelance
- Virtual assistance
- Marketing
- Design
- SEO consultations
This type of business requires a lot of connections and referrals to find the right clients. But satisfied clients are more likely to stay with you for a long time.
For this reason, you don't need a lot of clients to be successful. Depending on the service you offer, even a few good clients may be enough to make a permanent home-based business.
6. Teaching online lessons
Chris Carey, one of the founders of MAPerformance, started his business selling auto parts and services from his home. He started by simply giving advice online on car service and repair forums. This is how he gained the trust of his audience, and people started coming to his e-commerce site to buy parts.
If you have professional knowledge, you can not only share it on forums to make a name for yourself, but also turn it into online courses. There is an audience for almost any in-demand skill, whether it is English lessons, advanced marketing, or everyday home care life hacks.
If I Made is a remote business run by Emily Newman, who teaches classes for creatives. When you teach classes online, not only do you have the option to do it from home, but you can also pre-record training videos or conduct live training. For example, you could offer live courses at premium rates and sell recorded classes to other clients at a discounted rate.
That's exactly what Yegi Saryan, founder of Yegi Beauty, does. By creating an online beauty brand, she turned her talents into passive income. Aspiring entrepreneurs can book eyelash extension lessons from her to gain additional skills and then use them as a service in their own business. Classes are available both online and in person.
You can also choose the size of the class and the length of the lessons. If you like small groups or one-on-one lessons, consider tutoring or mentoring. If you like larger groups, run general trainings and courses. You can run one lesson a day, an hour a week, or anything in between.
Not interested in interacting with people? Create a ready-made course. All you need is quality content (video training, templates, articles or instructions). To visually show the material to students, you can use, for example, a recording tool like ScreenFlow.
Teaching online is a lucrative home business idea because it requires virtually no expenses other than your time.
7. Sale of services on digital media
As we mentioned, one of the biggest downsides of a service-based business is that you only get paid for your time, skills, and effort. Emily Newman of If I Made, as we mentioned above, has turned her classes into digital courses. These are packages of ready-made online classes that she sells at a lower price.
Creating your service comes down to creating electronic or digital products that contain your knowledge and experience.
Gabriella and Andrew Morrison started their remote business selling their knowledge of tiny house living . They sell courses and plans on Tiny House Build and StrawBale.com, all from the comfort of their cozy and quirky home.
Here are some ideas for your own online business:
- Courses
- Design
- Licensed assets (stock footage, photos, music, etc.)
- Downloadable documents
- Digital templates
- Commercial literature
- Electronic books
As you can see, most of these ideas are digital, eliminating the need to store inventory at home. If you run your remote business on Shopify, you can easily sell your digital products using the Digital Downloads app or SendOwl.
The Bullet Journal Company took this method more seriously. Ryder Carroll created a unique journaling technique that grew into a remote business idea. He now sells e-zines on his website.
8. Monetization by attracting an audience
If you create quality content, you will have your own audience on the Internet. This also applies to creating your own blog, YouTube channel, Instagram account or podcast. Using any of the suggested remote business ideas, you can increase the number of subscribers and monetize your channel.
Andrew Finn created the Wait But Why blog, which turned into a real business. With over 371,000 subscribers and millions of visits, the brand created digital content products for its loyal audience. Today, Wait Buy Why is a full-fledged e-commerce site that sells digital and electronic products.
Jordan Fernie, owner of Oh Happy Day Shop!, also built an audience through blogging before creating a full-time remote business. She tailored the business to fit her lifestyle so she could spend more time with her family. Jordan now sells products on her e-commerce site.
Karen Kilgariff and Georgia Hardstark used Facebook groups to grow their podcast My Favorite Murder. It was a community for true crime fans who loved investigations. It had over 200,000 members, but the podcast went dark in 2018.
They then created their own paid community, "Fan Cult", with an annual fee for access. The fan base grew even larger, and the "My Favorite Udiystvo" project was relaunched as an e-commerce site with branded paraphernalia (tickets to events were also sold there).
You too can offer non-standard products or services for a fee, accept payment for sponsored posts. You will receive additional income, and brands will be able to establish a connection with your audience.
Building a loyal audience takes patience, consistency, and focus. It’s not the easiest way to start a remote business, especially in the short term. But if you can build an audience around something you love, it can be one of the most rewarding things you can do. It’s a great way to look forward to the future and have the opportunity to work on multiple income streams at once.
The ability to monetize through your audience often depends on the niche you choose. If you're starting from scratch or in the process of finding your own audience, be sure to check out the following guides to learn how to best grow and monetize your most popular channels:
- How to make money on Instagram
- How to make money on YouTube
- How to start a podcast
- How to start a blog
- How to Make Money as a Freelance Writer
9. Investing in a ready-made e-commerce business
If you are more interested in investing in a source of income, consider purchasing an existing e-commerce business.
Prices vary widely depending on a variety of factors, including total revenue, profit potential, existing assets (such as an email or social media list), inventory, and more. Some retailers will even hire you and teach you how to run the store.
Exchange is Shopify's marketplace for buying and selling e-commerce stores. You can filter listings to find a business that fits your budget, experience level, and needs.
Perhaps you are willing to spend more money and buy a proven business. Or perhaps you are interested in an inexpensive business with untapped potential that you want to develop.
Be sure to check each offer and account for everything that goes into the sale price. Revenue and other data can be verified through Shopify, so you can be confident that these numbers are accurate. If you want more advice on buying a Shopify store, check out our Buying a Shopify Store: Trade-In Guide.
10. Selling products by subscription
The online subscription industry is projected to grow 20% annually between 2021 and 2026. This growth momentum has led to the emergence of new direct-to-consumer brands, as well as an influx of major brands like Sephora and Walmart into the space.
You can start a subscription business from the comfort of your home. For example, Ashley Reynolds collects excess inventory and sells it by subscription through her e-commerce site , Cloth & Paper. If you're already an e-commerce business remotely, you can do the same to try and sell items that would otherwise sit idle.
Subscriptions don't have to be about sales. Haverdash is a clothing subscription company. When customers stop using the items, they send them back and Haverdash rents them out to another customer, creating repeat business.
11. Advertisements featuring pets
On social media, you can often find animal rights activists who promote brands like "BarkBox" and get thousands of likes. If you have a pet, you can use its photos and videos on social media, as well as collaborate with brands to promote their products online.
"Bodhi the Menswear Dog" - aka the world's most stylish dog - has made a name for himself on Instagram. Scroll through his feed and you'll see collaborations with several brands, including Booking.com, Spotify, and Poly & Bark.
Don't have pets? Take care of other people's pets. Apps like Rover have made it possible to share walks with dogs and other pets. In 2020, the pet-sitting industry was valued at $232 billion. If you want to make money from home, offer pet owners a place to leave their pets when they're out of town or need pet-sitting.
12. Selling unnecessary things
Consumers are becoming increasingly environmentally conscious, and they are actively looking for ways to change their shopping habits to support this trend. In the US alone, clothing resale is a $4 billion industry.
"COAL N TERRY" is a successful remote business selling vintage items. And although the business didn't exactly start at home - it was a college dorm room - it has since grown into a popular brand with a loyal following.
You can start your remote business small. Poshmark and Mercari are great places to sell unwanted clothes. You can also use Craigslist or Facebook Marketplace.
Excess items are not limited to just clothing. Other unwanted goods can also represent a lucrative remote business opportunity.
13. Playing popular video games
Although many people consider video games a waste of time, this hobby can be profitable. And there is nothing more comfortable than sitting on the couch in front of the TV and playing.
Esports and video game streaming platforms like Twitch have opened up the possibility for gamers to gain exposure and, of course, money for their accomplishments. The esports industry alone is worth over $1.5 billion, and a single Twitch streamer can attract nearly 100,000 viewers at once.
So how do you monetize it? Sponsorships are one of the best ways to start a gaming business. Companies will pay you to play their games and broadcast them to their audience.
Professional gamers can even improve the quality of their resume.
Please note that all of the above requires a certain level of gaming skills.
By the way, Twitch is no longer limited to just games. For example, Maxx Burman and Banks Boutté used the platform to launch an online event where they showcased 12 of the best video game art directors.
They also published this content on other social platforms such as Instagram and YouTube. After attracting a large audience, they launched KitBash3D, where they sell 3D assets for video games and movies.
14. Sale of NFT tokens
Non-fungible tokens (unique digital certificates stored on the blockchain) or NFTs have been gaining a lot of attention lately as a profitable business to run from home. If you have artistic skills, creating and selling NFTs can be a great way to earn income.
Artists like Futures have managed to make millions selling their art as NFTs. While this success story may be an exception to the rule, there are plenty of other artists selling their NFTs. Take the story of Blake Jamison, a Brooklyn-based artist who made $46,000 selling his own work.
To get started, first familiarize yourself with the technical details. You need to know how cryptocurrency and blockchain technology work. Only then can you confidently create NFTs to sell on marketplaces like OpenSea, SuperRare, HEN, and Foundation.
To make money selling NFTs, it’s important to be active in NFT communities. Connecting with like-minded people, including sellers and collectors, is key to ongoing success.
15. Organizing virtual events
The pandemic has increased the demand for virtual events. The need for virtual event planning skills has increased, with companies like 6Connex seeing a 1000% increase in demand.
The best part is that to start such a business, all you need is a smartphone or laptop and an internet connection. At the same time, you will have relatively low costs, since you work from home and are in your niche.
Virtual event planning covers a variety of different needs, including planning for:
- Corporate conferences.
- Working meetings.
- Virtual parties.
- Fundraising.
- Trade exhibitions.
- Webinars.
- Educational seminars.
Maybe you're good at organizing events. Or maybe you have a natural ability to negotiate and bring people together. If so, those skills are invaluable to this market segment.
Getting familiar with virtual event platforms like Hopin, Cvent, or Whova can help you find information to successfully attract your first clients. And companies like Virtual Events Creator use Instagram to advertise their services.
As your business in this area grows, and with it your experience, offering your skills as a package deal can become a source of steady income.
16. Selling stock photos
Consider selling stock photos in your own store or on reputable stock photo sites like Adobe Stock, iStock, or Shutterstock.
Building a good business requires more than just being a good photographer. You also need to know how to market yourself, how to develop your own brand, and how to choose a photography niche.
For more information on how to turn selling photos into a remote business, check out some stories from successful sellers. And this guide will give you the lowdown on how to sell photos online, no matter your skill level.
17. Beauty business
The pandemic has taken a toll on many industries, but the beauty and health industry has not been one of them. As a remote business, you can start selling beauty and health products to customers through dropshipping or white label concept.
For an e-commerce business, it is important to have multiple shipping options as well as a wide variety of products to meet customer demand. Recently, beauty products such as:
- Home spa treatments.
- Personal hygiene items.
- Innovative beauty products (e.g. massage guns and smart mirrors).
As you dive in and think about what products are best to feature in your storefront, don’t forget to consider customer convenience. Independent consumer research shows that customers are more likely to buy from companies that offer convenience in the form of multiple purchase and delivery options or additional services like subscriptions.
What (other than your products) can keep your customers coming back? Remember that customer loyalty and a regular audience are key components of a stable income.
18. Affiliate Marketing Business
Affiliate marketing is a profitable and unique business idea if you have digital marketing skills. Affiliates can make money from all sorts of platforms that allow affiliate links. Affiliate portals like ShareASale, RewardsStyle, or LikeToKnowIt are just a few of the many places where you can find products to affiliate with.
When choosing an affiliate strategy, you will have to be creative. For example, some companies prefer to feature their partners through Instagram Stories, while others choose to create a website with valuable content that includes affiliate links.
Your Social Team has an Instagram video where they share their best partner companies with their clients. This is a great way to earn passive income if your target audience regularly visits your profile.
Paid Pinterest advertising is another option. The more people share your affiliate links after you create and post them on your boards, the higher the chances are that you can increase your revenue.
The affiliate industry has its own rules. So if you want to make money with affiliate links, it is important to openly notify your customers that you are an affiliate of this brand. FTC rules are mandatory. So, do not forget about them when you start creating an affiliate network on the Internet.
19. Home kindergarten
A good daycare will always be in demand. If you are good with children, consider opening a childcare business. This industry is currently valued at $50 billion and demand will only increase in the coming years.
Starting a daycare requires an initial investment, even if you're starting it from home. You need to think about equipment and paperwork. Still, think about how profitable childcare can be. If you offer local parents a more affordable, high-quality alternative, it could be a steady source of income.
It's important to ask yourself: How do you open a daycare that meets local regulations? You'll need to familiarize yourself with childcare licensing requirements, as well as mandatory background checks and health and safety regulations.
A quick Google search can help you learn about your area’s requirements for operating a daycare so you can avoid running afoul of the law and operate in compliance. FreshBooks offers a helpful guide on how to start a home daycare, including legal considerations.
20. Selling goods on specialized platforms
Amazon, eBay, Etsy, OfferUp, Facebook Marketplace, and Bonanza are trading platforms that allow you to make a profit from selling products. They have everything that is in demand among buyers.
Selling products on online marketplaces is one of the easiest businesses to start remotely. Once you open an account and figure out how to set prices and upload images, you can start selling your first product. There is no need for inventory or expensive overhead.
As an example, consider the story of Dallas Wolford, a medical student who started making money online using the Mercari platform. She listed small items she didn’t use. Items ranging from shoes to jewelry helped her earn her first couple thousand dollars within the first four months.
When you get started, read the seller policies on each platform to ensure your seller account has a good rating. As your business grows, you can hire employees and send them to yard sales and thrift stores to find cool items to list for sale.
21. Social Media Manager
The popularity of social media has given rise to a new job title: social media manager. The good news is that you don’t have to work for an agency to understand this field.
You can start your own social media management business with a laptop, social media management tools like Sprout Social, Hootsuite, or Buffer, an internet connection, and your own social media presence.
Listen to Rachel Pedersen. With a TikTok following of millions and activity on Instagram and YouTube, she was able to quit her job as a hairdresser and start her own remote social media business.
The hardest step in this type of business is getting your first client. Use your account to let your audience know that you offer social media services. Use social platforms like YouTube and Instagram to showcase your expertise and attract clients.
The average manager salary hovers around the $70,000 mark, but the earning potential can exceed that figure.
22. Virtual personal trainer
The personal training market is valued at $12.9 billion, with demand growing due to rising weight concerns. It's a lucrative income stream, so seriously consider starting a remote personal training business.
Once you have the knowledge or certification in this industry, you can offer virtual personal training classes. There are many ways to become certified as a personal trainer, such as courses offered by reputable providers. Once you have the certification to back up your services, all you have to do is offer your package to an audience interested in getting in shape.
Take a cue from companies like Loisa Kurang on Instagram or Triumph With Vin to learn how to market yourself on social media. You can also check out 25 Alternatives to Paid Advertising to help you develop a marketing strategy and promote your services.
23. Accounting services
If you are good with numbers, this business can be a great option. There are many free resources, such as this YouTube guide from an accountant who successfully started her own home business. It will teach you a lot of new things, including how to get your first client.
Setting up a remote accounting business can be broken down into three main steps:
- Registering your business.
- Marketing your services.
- Creating a base of regular customers.
The average salary for an accountant in the United States is around $45,000. But as a freelance accountant, you can earn more if you raise your rates and build your client base. However, to do this, you'll first need to file paperwork to form a limited liability company.
Check out this comprehensive guide to starting an LLC to make sure you don't miss any steps in the process. And this small business accounting guide can shed some light on setting up and maintaining your books, especially if you're just learning about the world of accounting.
When it comes to marketing your services, social media can be a great place to start. Companies like Zeal Bookkeeping andGood Cents Bookkeeping are great examples of how to use Instagram to attract customers.
As you attract customers, it is important not to get too hung up on creating a brand or an overly complex website. In the early stages of any business, it is important to consider how much revenue you can generate to ensure that the business grows.
24. Website development
It’s very easy to create a website these days if you like graphic design or development. The problem is that many people don’t want to spend the time learning website builders like WordPress to do it themselves. If you’re tech-savvy, consider setting up a web design service.
Platforms like Upwork, Fiverr, and Dribbble are solid starting points for getting started and attracting clients to showcase your skills. Once you start gaining traction through reviews and completed projects, it will be easier to attract a steady stream of clients.
Courses like “How to Build Your Own Online Store (With Zero Design Experience)” from Shopify can be a good place to start to hone your skills. But Shopify isn’t the only platform that can help you succeed. There’s also demand for building websites using WordPress or Squarespace.
Shopify Experts, a digital services marketplace for Shopify stores, is also a place where you can offer your skills.
25. Dog grooming business
Consider offering dog grooming services if you have the space in your home. It's a hot service with a market size of over $10 billion that busy pet owners will always need.
There are two ways: sell dog grooming products in a store or provide dog grooming services yourself. For example, "Paw La La" offers a variety of pet services. And "Pupper Club" offers a variety of spa services that are in demand.
The beauty of this type of business is that it is very easy to start. You can use your connections to find your first clients. Perhaps you know one or two pet owners who could benefit from the services you offer.
To attract your first clients, offer your services at a lower price in exchange for reviews and advertising.
Be sure to check out our pet resources to learn more, such as:
Finding the Right Idea for Your Remote Business
Any business depends on your goals. Do you want to work part-time as a stay-at-home mom or become a full-time business owner? How much start-up capital do you have to launch the business? What skills do you already have?
A home business in today's world is simply a remote business where technology allows you to bridge the gap between you, your suppliers, your employees, and your customers. Overall, it's an opportunity to start a business with little investment, grow quickly, and reduce costs (especially when you can eliminate office rental costs).
As with any business, think carefully about your goals and what you enjoy doing. This is the only way you can create a successful business that works for you.
Frequently Asked Questions About Home Based Business
Which business is the most successful?
What type of business can you start at home?
2. Offering online services.
3. Subscription business.
4. Sale of NFT tokens.
5. Monetization by attracting an audience.
6. Launching a dropshipping store.
7. Print on demand.
8. Become a freelancer.
What remote business is suitable for beginners?
2. Print on demand.
3. Selling unnecessary goods.
4. Homemade products.
5. Provision of various services.
How to start a home business?
- Come up with a business idea.
- Write a business plan.
- Develop an offer for your service or product.
- Find funding.
- Choose the structure of your business.
- Apply for licenses and permits.
- Open a business bank account.
- Promote your business.