Looking for a side business that lets you work from home? This might sound far-fetched a decade ago, but running a profitable home-based business is pretty common in this day and age.
Before you jump into the very first business idea you have, you’ll want to research which businesses are worth going into. That’s why we’ve compiled a list of the most profitable home-based businesses you should consider starting.
Read on to find out more.
The pros and cons of starting a home business
It’s important to know what to expect when you’re starting a business. And that applies to small-scale operations you run from home as well. Here are a few upsides and downsides you should keep in mind before you make the decision to start your business.
Pros
- You get to spend more time with your family
- There’s more flexibility and you get to manage your time
- Low overheads in starting a business from home
Cons
- You may need to make adjustments in your space to accommodate your business
- You may need to set up new boundaries to ensure work-life balance
- You will need to be aware of any government regulations related to home business
The policies and costs of running a business at home differ from country to country. Make sure you are aware of your startup costs and the necessary procedures you need to follow before you take the plunge to set up your business!
What is the best home business to start?
There are many great home business ideas you can start. From freelance services to dropshipping or even selling print-on-demand products, each has its own unique business model.
To nail down which home business idea is perfect for you, you’ll need to consider these factors:
- How much capital are you willing to invest in your business?
- How much storage space do you have at home?
- What products or services pique your interest most?
Beyond just looking at what’s profitable in the market, you’ll need to be aware of your current circumstances. If you have plenty of storage space, getting products from wholesalers wouldn’t be a problem for you.
However, if you have limited space in your home and have low startup capital, you might want to consider selling a service, or print-on-demand products. The “best” home business ideas are those that fit your current needs.
Profitable home-based business ideas to consider
1. Dropshipping beauty and skincare products
The skincare and beauty industry is huge. In fact, it’s reported that the beauty industry saw an annual compounded growth rate of 4.75% worldwide. With rising demand, getting into this market is a great opportunity to create a new income stream.
Instead of selling any kind of skincare product, you can find in the market, you’ll want to niche down and create a more targeted approach to your business. Here are some skincare niches to consider:
- Cruelty-free skincare
- Skincare for sensitive skin
- K-beauty skincare products
- 100% organic ingredient products
- Handmade soaps
Niching down can help you create a more consistent brand image and appeal to customers who hold strong values. For instance, customers who are fans of Korean pop culture would be more inclined to pay for K-beauty products than the average consumer.
Going into a niche will help you stand out from the competition, especially in a market as competitive as skincare and beauty.
2. Home-baked goods
Love baking? Why not turn your hobby into a side business? With so many mass-produced treats on the market, home-baked goodies have a unique appeal to consumers these days.
In 2021, it’s reported that home-baking sales went up by 24% to $26 billion. The report claims that home-baked goods give consumers a sense of comfort in the pandemic and times of uncertainty.
If baking is right up your alley and you love to bring more joy to others through their tummies, starting a home-baked business could be perfect for you! You’ll get to monetize your hobby and perhaps even master your skill as you get more feedback from your customers.
3. Handmade crafts
Can you really earn from selling handmade crafts? We think there’s definitely a huge potential in this market.
Etsy, one of the most popular ecommerce platforms for independent crafters, has seen a surge in revenue in recent years. In 2021, Etsy generated revenue worth USD 2.3 billion—up by 35% from the previous year.
If we can gather anything from these numbers, it’s that people are willing to pay for handmade items! Don’t be afraid to turn your passion for crafts into a side business because there’s growing interest for handicrafts.
4. Print-on-demand (POD) business
Don’t have much storage space and startup capital? That doesn’t mean you can’t start a home business. All you need is to have the right business model and starting a POD business could be perfect for you.
In a POD business, sellers create mockups of their designs. These could be designs on any product like t-shirts, tote bags, custom journals,etc. With these mockups, you can market them online and only print these items when a customer makes an order.
This way, you won’t need to come up with capital upfront or store any inventory. It’s a low-risk business model for anyone who wants to test out product ideas. Read the complete guide on starting a POD business here.
5. Digital products
Similar to POD businesses, you won’t need large amounts of capital or physical storage space to sell digital products! Here are some great digital products to sell online:
- Design typefaces
- Printable wall art
- Digital planner templates
- Worksheets or digital guides
If you happen to have graphic design skills, you can design digital art and typefaces and sell them online. Since the pandemic, there has been a greater emphasis on digital marketing and branding. Other designers or businesses looking to work on branding projects are always on the lookout for digital artworks and new typefaces.
Don’t feel like you have a creative streak? Not to worry. You can still share your knowledge and monetize them through selling ebooks, printable worksheets, or digital guides online.
The great thing about digital products is that you only need to design your product once and sell them to lots of customers. There’re plenty of opportunities in this space and you’re bound to have skillsets that others can benefit from!
You might like: How to Sell Digital Products Online
6. Teach lessons online
Online lessons have surged in popularity ever since the start of the pandemic. Similar to digital products, you only need to record your online lessons once before selling your courses to customers.
If you don’t have video editing skills, fret not! You can still teach lessons online through Zoom. All you’ll need is a website that helps you book your available time slots so you can focus on giving classes and not worry about the administrative side of things.
Cococart’s Time Slots feature is perfect for anyone who wants to teach lessons in real-time, online. The best part? This feature is totally free! Sign up for a free account and start booking customers for your workshops or online classes instantly.
See also: How to Start a Business with $0 Capital
7. Pet grooming services
Pet owners are more than willing to spend on their beloved pets. And that’s reflected in consumer spending patterns in the past 5 years. In 2017, the global pet grooming products market was valued at $3872 million and projected to reach $5 488 million by 2025.
Most pet owners are happy to pay a premium for grooming services especially if they’re too busy to do it themselves. Grooming for large dog breeds with long fur are especially difficult to maintain on a regular basis. If you’re comfortable with animals and have some experience in pet grooming, this could be a niche to consider!
Start your home business with a professional website
Starting a home business isn’t easy and there’s going to be a learning curve. That’s why we’ve designed Cococart to be simple and easy to use so that you can set up your website in just 60 seconds—that’s one thing off your plate!
Cococart is proud to be a company that puts local businesses first. After all, you’re the reason we’re here. We're on a mission to transform independent businesses to accept online orders. If you are ready to sign up for a free trial simply register your store here, it only takes a couple of minutes.
FAQ
How do I start my home-based business?
You'll first need to ensure that the business you have in mind meets governmental requirements. If you're based in Singapore, you should register your business with ACRA and check out the Home Office (HO) Scheme.
Should I start selling on my own website or ecommerce marketplace platforms?
Both have their benefits and disadvantages. With your own website, you get to build your brand. On the other hand, marketplaces (Shopee, Lazada, Amazon, etc.) offer a pool of consumers who are interested to shop online. If you're unsure of which is best for your business, read this guide to find out more.
