15 Best Businesses to Invest in 2023

Investing in businesses is a great way to diversify your portfolio. It offers multiple benefits, which include generating income, making a community impact, and development. There are different kinds of businesses you can invest in, from small businesses, online businesses to a startup, with each offering its own pros and cons. Hence, to make a successful investment, you should be able to do proper research and make careful considerations.

If you are interested in making investments and are looking for suggestions on small businesses, online, or a startup you can invest in, then read on, and let’s discuss investment options.

Best Small Businesses to Invest In

Investing in small businesses can offer multiple benefits, which include the following:

Supporting local communities: Investing in small businesses contributes to the growth and vitality of local communities. Small businesses are essential to communities, providing unique products and services and creating a sense of local pride. They contribute to the local economy, create jobs, and support charities and organizations. Investing in small businesses can help strengthen and support your community.
Personal relationships and trust: Investing in small businesses allows for personal relationships with business owners, fostering a connection to the local community and a satisfying experience. This trust in the business’s capabilities and quality of goods or services enhances the investment experience and generates satisfaction from providing financial backing to local business owners.
Tax benefits and ownership: Investing in your company can offer tax advantages, such as deductible business expenses and early retirement. As the sole investor, you have complete ownership and are exempt from income splitting. However, it’s crucial to analyze your financial situation and seek expert guidance to make informed decisions.

Businesses to Invest In: Small and Online Businesses

#1. E-commerce Store

E-commerce is one of the fastest-growing business spheres. It’s estimated to reach $147.9 billion by 2027. To generate extra income, you can build an online store using platforms like Shopify, BigCommerce, or Volusion.

These platforms provide templates and tools to set up your online store and sell products directly to customers. If you don’t have your products, you can use drop shipping to sell products from other manufacturers and vendors.

#2. Online Coaching or Consulting

You can offer coaching or consulting services online if you have expertise in a specific field. This includes business consulting, life coaching, career coaching, fitness coaching, or language tutoring.

To work as an online coach, you can use platforms like Zoom or Skype for the sessions. You can also create online courses or webinars to reach a larger audience.

#3. Digital Marketing Agency

With the increasing demand for online marketing, starting a digital marketing agency can be profitable.

Your digital marketing agency can offer services like social media marketing, search engine optimization (SEO), content marketing, email marketing, and website design. To ensure you are successful in the venture, build a solid online presence and showcase your expertise, that way you can attract clients.

#4. Affiliate Marketing

Affiliate marketing involves promoting other companies products and earning a commission for each sale or lead generated through your referral.

You can invest in this online business, you can create a website or blog to share product reviews, comparisons, and recommendations. Also, join affiliate programs like Amazon Associates, ShareASale, or Commission Junction to find products to promote.

#5. Online Content Creation

Another good venture you invest in is online content creation. With a passion for writing, photography, videography, or graphic design, you can easily create and monetize online content.

Also, you can start a blog, YouTube channel, podcast, or social media account to showcase your work and attract an audience. Earning revenue through content creation is by advertising, sponsored content, brand partnerships, or selling digital products like e-books or online courses.

Furthermore, using Platforms like YouTube, Medium, and Patreon can help you reach a wider audience and generate income from your content.

#6. Software as a Service (SaaS)

If you have programming skills, you can develop and sell software products as a service. This can include productivity tools, project management software, customer relationship management (CRM) systems, or specialized industry software. You can offer subscription-based pricing models to generate recurring revenue.

#7. Online Marketplace

Creating an online marketplace where buyers and sellers can connect can be lucrative. You can focus on a specific niche or industry and provide a platform for people to buy and sell products or services. Examples include Etsy for handmade goods, Airbnb for accommodations, and Upwork for freelancers.

#8. Subscription Box Service

Subscription boxes have gained popularity in recent years. You can curate and sell themed boxes that are delivered to customers repeatedly. Examples include beauty, snack, book, and pet subscription boxes. You can source products from suppliers or partner with brands to include their products in your boxes.

#9. Print-on-Demand

Print-on-demand allows you to create and sell custom-designed products like t-shirts, mugs, or phone cases. You can use platforms like Printful or Teespring to handle the printing and shipping of products. Create unique designs, market them to your target audience, and profit from each sale.

If you know about social media, you can offer social media management services to businesses. This involves creating and managing social media accounts, posting content, engaging with followers, and running advertising campaigns. Tools like Hootsuite or Buffer can help you manage multiple social media accounts efficiently.

#11. Virtual Assistant

Virtual assistants remotely provide administrative, technical, or creative support to individuals or businesses. Tasks include managing emails, scheduling appointments, bookkeeping, and social media management. Platforms like Upwork or Freelancer can help you find clients and build your virtual assistant business.

#12. Dropshipping

An example of an online business you can invest in is dropshipping. It is a retail business model where sellers purchase products from a third party, usually a wholesaler or manufacturer, and have them shipped directly to the customer.

This business model allows sellers to operate an e-commerce store without handling physical inventory or fulfillment.

The manufacturer plays a crucial role in creating, carrying inventory, shipping, replacing, and restocking defective products. On the other hand, the retailer sells the manufacturer’s products under their brand, is responsible for choosing and marketing the products, and sets shipping costs. The customer buys the products directly from the retailer.

#13. Publish Ebooks

Publishing eBooks is a popular method for authors to reach a global audience and generate income. It involves creating a digital version of a book and making it available for purchase or download.

The process also involves writing and editing a book, choosing a publishing platform, publishing the eBook, and marketing it through social media promotion and email marketing. While platforms can help, they typically take a small percentage of profits.

Also, independent authors can sell PDFs or EPUB files directly from their websites or blogs, allowing them to maintain complete control and profits.

#14. Home-based Catering

To start a home-based catering business you’ll need to understand local regulations, and register a local authority to inspect your kitchen to ensure you meet food safety standards. crafting a menu, assessing equipment, and marketing.

Also, to make the business successful, you should craft a superb menu and don’t forget to create a separate kitchen or structure for your catering business. Furthermore, assess your equipment needs, such as additional kitchen appliances, storage spaces, and a separate refrigerator.

For promotion, you can utilize traditional methods like local publications or online platforms like social media and a website. Overall, you can run a successful catering business from home with the proper preparation.

#15. Personal shopping

Starting a personal shopping business can be rewarding for those passionate about shopping, product knowledge, and a keen understanding of people’s needs and tastes.

To start a business as a personal shopper, you’ll need to understand the business, evaluate costs and form a legal entity, use technology like Dumpling, earn potential, build a clientele, and develop skills.

Personal shoppers assist clients with various items, ranging from elderly individuals to busy individuals. Also, establishing credentials and establishing a solid clientele is crucial for success. Developing skills through experience in department stores, boutiques, or designer houses can also help you develop your skills and become a successful personal shopper.

Investing in Startup Businesses

To invest in startup businesses is one of the riskiest investment decisions one can make. Why is that? It is because, according to studies, 90% of business startups fail. That means when you invest in a startup, you have a higher chance of losing your money than making a profit. So why invest in this risky venture? There are three reasons why you should consider investing in startup businesses despite their high risks, they are:

There’s a chance of a high return if you do proper research and invest in the right startup.
Investing in a startup gives you a chance to contribute its products and services.
Lastly, it provides the opportunity to build relationships with industry insiders and other investors.

Startup Businesses to Invest In

To find startup businesses to invest in, you can check the following platforms:

What Are the 10 Types of Business Ideas?

When it comes to business ideas, they can be categorized into various types based on their nature, innovation level, and target market. Here are ten types of business ideas:

Innovative Business Ideas: These are new, unique ideas that create markets with potential for rapid growth but carry risk due to uncertain demand.
Hybrid Business Ideas: These ideas borrow from both innovative and commoditized ideas. An example could be a restaurant that serves fusion cuisine or websites that make finding local services like tutors easier.
Revolutionary Business Ideas: These ideas are new to the market and often create new customer needs. The iPod from Apple is an example of a revolutionary business idea.
Evolutionary Business Ideas: These ideas improve upon existing products or services in the market by addressing their shortcomings or creating a new experience. The iPhone is an example of an evolutionary business idea.
Me Too Business Ideas: These ideas are copied from successful existing products or services. While the probability of success for these types of businesses is generally lower, they can still achieve success in some cases.
Home Tutoring: This business idea can be executed virtually, online, or physically. You can teach just about anything, from academic subjects to musical instruments.
Virtual Assistance: Offering virtual assistant services is a successful business model where you provide administrative support to businesses or individuals. This can include answering emails, scheduling meetings, and other administrative duties.
Online Business Ideas: These are businesses that operate primarily on the Internet. Examples include e-commerce stores, blogging, affiliate marketing, and more.
Local Business Ideas: These businesses operate within a specific geographical location. Examples include local retail stores, restaurants, and service businesses.
Global Business Ideas: These are businesses that operate globally, often online. Geographical boundaries do not restrict them; they can cater to a worldwide audience.

Which Business Can I Start With $50?

Starting a business with a $50 budget is demanding, challenging, and limiting; however, it is achievable. To make it work, you’ll need a lot of careful planning, the right approach, and an idea.

The business options open to you with $50 include businesses such as dropshipping, direct sales, online teaching or tutoring, social media agencies, writing services, and errand services. Nevertheless, there’s a high possibility of success from starting this small and building up.

What Is the Fastest Growing Business?

The fastest-growing business can vary depending on the industry, market conditions, location, and industry trends. However, here are some industries and sectors that are experiencing significant growth:

Construction: According to the Bureau of Labor Statistics (BLS), the construction industry is experiencing growth.
Healthcare services: The healthcare industry is growing due to increasing demand for medical services, technological advancements, and an aging population.
Personal services: Personal services, such as home care, personal care, and wellness services, are in high demand, leading to growth in the industry.
Information technology (IT): Due to technological advancements and increasing reliance on digital solutions, the IT industry has experienced massive growth
Peer-to-Peer Lending Platforms: By offering loans to consumers and small businesses from individual investors, peer-to-peer lending platforms are experiencing rapid growth in the industry
Food trucks: With the estimation that they will reach $200 billion in annual sales in 2025, food trucks and food delivery services are among the fastest-growing small businesses.
Renewable energy: Renewable energy industries like solar and hydropower are rapidly growing with the increasing acceptance of sustainable practices.
Outpatient care: Outpatient care centers emerge as a rapidly growing business opportunity due to technological advancements, insurance access, and cost-cutting strategies.
Digital marketing: Digital marketing is one of the fastest-growing industries in the US due to increased demand for websites, e-commerce, and social media.