10 most successful home-based businesses to start in 2025

Home-based businesses offer both profitability and convenience in today’s digital world. We’ve listed the best home-based business ideas for 2025 alongside valuable advice to ensure your new small business thrives from the get-go.

Is the 9 to 5 life not cutting it for you?

Becoming an entrepreneur could be the perfect alternative to this rat race, especially if you want to manage your business from home. With the pandemic reshaping our work environments and the rising costs of renting commercial spaces in numerous states in the USA, more and more Americans are exploring the idea of home-based businesses.

While the pandemic initially had a negative impact on many small businesses, causing revenue losses and labor shortages in 2020 and 2021, it provided a unique opportunity for many aspiring entrepreneurs to learn about starting and running a business.

During this period, 60% of new entrepreneurs spent time acquiring the necessary knowledge and skills to launch their ventures from home.

Moreover, Americans saved more money during the lockdowns and were still reporting higher savings in 2022, which gave them the financial flexibility to invest in home-based businesses. A survey reveals that 65% of small businesses report being better off now^[1]than they were just a year ago.

Though the beauty of these home-based businesses lies in their accessibility—many can be initiated with minimal investment and seamlessly adapted to fit your home environment—how do you decide which home-based business is right for you with so many options?

In this blog, we will explore 10 of the most successful home-based businesses of 2025. Whether you have a spare room to transform into an office or are working from your kitchen table, the world is your oyster!

1. Start a dropshipping store

Dropshipping offers a fantastic opportunity for aspiring entrepreneurs to start a business without investing in inventory. In this business model, you act as the marketer and sales representative, while a wholesale distributor handles the packaging and shipping of products directly to your customers. This means you can sell a wide range of items without the financial burden of stocking them yourself.

One of the biggest advantages of dropshipping is its low startup cost. Owing to the plethora of dropshipping tools and resources^[2] available online, starting a successful dropshipping business doesn’t necessarily require a large investment^[3]. In some cases, you can begin with just a few hundred dollars and build your store and following organically. Investing around $50 to $100 can give you a significant advantage, allowing you to effectively launch your store and reach your target market more quickly.

To succeed in dropshipping, consider targeting a specific niche. By curating a collection of related products from various suppliers, you can attract a dedicated customer base. For example, if you focus on eco-friendly products, you can create a store that appeals to environmentally-conscious consumers.

2. Become an online tutor

If you have a passion for teaching, becoming an online tutor is a rewarding and flexible home-based business opportunity. Many people are eager to learn skills that you might take for granted, such as music, yoga, sewing, DIY projects, or even a second language.

As an online tutor, you have complete control over the size and format of your classes. Whether you prefer one-on-one sessions or small group classes, you can tailor the experience to fit your teaching style and the needs of your students. Additionally, you can decide the duration and frequency of your classes, such as short weekly sessions or full-day workshops.

Several platforms can help you market and sell your courses effectively:

• Udemy^[4]: A well-known marketplace for online learning, Udemy provides the tools you need to create, market, and sell your courses to a global audience. It offers extensive support for instructors, including course creation tools, promotional opportunities, and revenue-sharing options.

• LinkedIn Learning^[5]: Known for professional development courses, LinkedIn Learning (formerly Lynda.com) allows you to reach professionals looking to enhance their skills. The platform provides the necessary infrastructure and access to LinkedIn’s vast network of users.

• Teachable^[6]: An American platform that allows you to create and sell courses with full control over pricing and student data. Teachable offers a user-friendly interface, marketing tools, and integrations with various payment gateways.

• Coursera^[7]: Partnering with universities and organizations, Coursera enables you to offer courses that can lead to certifications or degrees. This platform is ideal for more academic or structured courses.

• Thinkific^[8]: Another American platform, Thinkific, offers robust tools for creating, marketing, and selling courses. It provides a high level of customization, allowing you to build a branded learning experience for your students.

Alternatively, you could create your own website to host your courses, which would give you full control over the revenue but might require a bit more upfront investment and effort in marketing.

3. Sell homemade products

If you’re a maker at heart, turning your hobby into a business by selling homemade products can be both exciting and rewarding. Whether you create homemade soaps, candles, handcrafted jewelry, or unique artwork, there are endless possibilities to explore.

Selling your creations allows you to have full control over production and pricing, making it a cost-effective venture. With the right branding and marketing, your handmade items can become sought-after products in no time.

Of course, starting a business involves some initial costs, especially for materials and inventory. However, these costs can be managed based on the scale of your operation. Building a website to showcase and sell your products can help you reach a wider audience and give your business a professional touch.

The competition can be fierce but the market is large, and you can easily set up a shop and start listing your products. Several platforms can help you reach millions of potential customers who appreciate unique, handmade items:

• Etsy^[9]: A popular marketplace for handmade and vintage items, Etsy connects you with a global audience looking for unique, handcrafted products. The competition can be fierce, but the market is large, and you can easily set up a shop and start listing your products.

• Shopify^[10]: Though based in Canada, Shopify is extremely popular in the USA, allowing you to create your own online store with ease. It’s highly customizable and offers various tools to help you market and manage your business effectively.

• Amazon Handmade^[11]: This is Amazon’s platform dedicated to artisans selling handcrafted products. It offers the advantage of Amazon’s vast customer base and fulfillment options.

• Big Cartel^[12]: An American platform ideal for artists and makers, Big Cartel provides a simple platform for small businesses to set up an online store and sell their products.

• eBay^[13]: A global e-commerce leader headquartered in the USA, eBay offers options for sellers of handmade goods. It’s another way to tap into a large audience and establish your brand.

4. Buy products in bulk and resell them online

Buying products in bulk and reselling them online is a fantastic way to start a home-based business. This model lets you buy items in bulk at a lower cost and sell them individually for a profit.

The key to success in this business is smart product selection. Look for items that are trending on social media or popular in foreign markets. Platforms like Alibaba^[14]and DHgate.com^[15] are excellent resources for finding bulk products at great prices.

Once you’ve sourced your products, set up an online store using platforms like Shopify. A well-designed online store can attract customers and make shopping easy and enjoyable.

As suggested earlier, considering a niche market is always a great idea to stand out in the crowd. By focusing on specific customer needs, you can create a loyal customer base. You might even use your home as a showroom if your products benefit from being seen in person.

Another approach is wholesaling—selling products in larger quantities to retailers. This method can help you move inventory quickly and build a steady stream of business. By choosing the right products and effectively marketing your online store, buying in bulk and reselling can become a profitable and enjoyable home-based business.

5. Start an Airbnb management service

Airbnb management services are a great way to help property owners handle their vacation rentals. As a manager, you take care of everything from guest inquiries and bookings to check-ins and cleanings. This allows owners to rent out their homes without the hassle of day-to-day operations.

You can earn money through a commission on bookings or a set monthly fee. While not entirely home-based, much of the work can be done remotely, especially if you use self-check-in options and hire professional cleaning services.

With millions of people using Airbnb^[16], the demand for rental properties is high. By offering management services, you can ensure that properties are well-maintained and guests have a great experience. This business requires minimal startup costs and no special certifications, making it accessible and potentially profitable.

6. Become a virtual assistant 

Becoming a virtual assistant (VA) is an exciting and flexible home-based business opportunity. As a VA, you’ll take on essential tasks for business owners and executives, such as blog writing, social media management, travel arrangements, and appointment setting. 

One of the best things about starting a VA business is that it requires no upfront costs—all you need is a computer and an internet connection. If you’re organized and skilled at multitasking, you can offer your services at an hourly rate or create custom packages that cater to different client needs.

By handling tasks that are essential but time-consuming, you make a real difference to your clients’ productivity. The demand for virtual assistants is growing, making this a dynamic and promising business venture that you can run right from the comfort of your home.

Several strategies and platforms can help you connect with potential clients effectively:

• Social media groups: Join social media groups and communities focused on small businesses and entrepreneurs. Platforms like Facebook, LinkedIn, and Reddit have numerous groups where you can network, share your services, and attract potential clients.

• Fiverr^[17]: A popular freelance marketplace where you can offer specific services at various price points. Fiverr is known for its ease of use and the ability to reach a wide audience looking for diverse services.

• PeoplePerHour^[18]: This platform connects freelancers with clients seeking various services, from digital marketing to web development. It provides a straightforward way to find and manage client projects.

• Toptal^[19]: A platform that connects freelancers with clients looking for top-tier professionals in fields like software development, design, and finance. It’s particularly useful if you have specialized skills and are looking for high-quality projects.

• Local networking events: Attend local business networking events and meetups to connect with potential clients in your area. These events can provide valuable face-to-face interaction and opportunities to showcase your expertise.

7. Start freelance content writing 

If you are passionate about writing and have a way with words, becoming a freelance writer is a fantastic idea. Businesses are constantly on the lookout for talented writers who can create compelling content to enhance their online presence. From copywriting to blogging, the opportunities are diverse and abundant.

Freelance writing is not only flexible but also lucrative. The average annual salary for a freelance writer is around $55,000^[20], with digital marketing writers, e-commerce writers, and blog writers being particularly in demand.

Several platforms can help you find freelance writing opportunities and build your portfolio:

• LinkedIn^[21]: A professional networking platform where you can find job postings, connect with potential clients, and showcase your writing skills. Join writing and freelance groups to network and find job leads.
• Upwork^[22]: A popular freelance marketplace where you can create a profile, bid on writing projects, and connect with clients looking for various writing services. Upwork offers a wide range of opportunities, from short-term gigs to long-term contracts.

• Freelancer^[23]: Another freelance marketplace that allows you to bid on projects and connect with clients. Freelancer offers diverse writing opportunities and can help you build a strong portfolio.

• Fiverr^[24]: A platform where you can offer specific writing services at various price points. Fiverr is known for its ease of use and the ability to reach a wide audience looking for different types of content.

• ProBlogger^[25]: A job board dedicated to blogging and content writing jobs. ProBlogger is a great resource for finding quality writing gigs and connecting with clients who need blog posts, articles, and other content.

• Contently^[26]: A platform that connects freelance writers with high-profile clients. Contently allows you to create a portfolio and showcase your best work to attract potential clients.

These sites are great for finding clients and building your portfolio. As you gain experience, continue to learn new skills to complement your content writing, such as SEO or content management systems like WordPress. A diverse skill set will add even more value to your services and make you eligible for higher rates.

8. Become a petsitter or start a doggy daycare 

If you love animals and have some extra space at home, starting a doggy daycare could be a fantastic home-based business. On average, doggy daycares charge up to $45 per day^[27] per dog. With just a few furry clients, you could easily earn around $100 a day.

Beyond daily daycare rates, you can boost your income by offering extra services like training, bathing, or grooming. These added perks not only increase your earnings but also make your daycare a one-stop shop for pet owners seeking top-notch care for their furry friends.

You can set your own hours and choose whether you want clients to bring their pets to your home. Depending on your location, pet sitters can earn up to $40,000^[28] a year.

Several platforms can help you connect with pet owners in need of reliable sitters:

• Rover^[29]: A popular app and website where pet owners can find trusted pet sitters and dog walkers. Rover allows you to create a profile, set your rates, and choose the services you want to offer, whether it’s pet sitting, dog walking, or drop-in visits.

• Wag!^[30]: Another well-known platform that connects pet owners with dog walkers and sitters. Wag! provides opportunities for pet sitting, dog walking, and even dog training. You can set your schedule and accept jobs that fit your availability.

• Care.com^[31]: A broader caregiving platform that includes pet care services. On Care.com, you can create a profile highlighting your experience with pets, set your availability, and connect with pet owners looking for reliable sitters and walkers.

• PetSitter.com^[32]: A dedicated platform for pet sitting jobs, PetSitter.com allows you to browse listings and post your services. It’s a great way to reach pet owners in your area who need pet sitting, boarding, and walking services.

• Thumbtack^[33]: While not exclusively for pet care, Thumbtack is a platform where you can offer a variety of services, including pet sitting. Create a profile, set your rates, and connect with clients looking for pet care in your area.

9. Become an affiliate marketer

Affiliate marketing is a popular home business model where you promote a brand’s products or services. When a customer buys a product through your affiliate link, you earn a commission on the sale. This business model is especially appealing because it requires minimal upfront investment and can be done entirely online.

To succeed in affiliate marketing, you need to choose the right affiliate programs^[34] and develop a strategy to promote the products effectively. Some marketers use Instagram Stories to showcase partner brands and products, while others create content-rich websites to drive traffic and conversions.

If you have digital marketing skills and can build website traffic, affiliate marketing can be a lucrative venture. For example, imagine you run a blog focused on healthy living. By partnering with brands that sell health supplements or fitness equipment, you can earn commissions by recommending these products to your readers.

The key to success in affiliate marketing lies in your creativity and ability to engage your audience. Whether you leverage social media platforms, start a blog, or create YouTube videos, the goal is to convert your audience into customers and earn a profit from the sales.

10. Purchase an existing e-commerce business

If you have the capital to invest and don’t want to start building a business from scratch, purchasing an existing e-commerce business is your best bet. This approach allows you to step into a business that’s already up and running, complete with established customers, proven products, and a revenue stream.

Buying an existing business saves you the time and effort of building a brand, setting up a website, and developing marketing strategies from the ground up. Instead, you can focus on scaling the business, improving operations, and maximizing profits.

If you’re interested in purchasing an existing e-commerce business, several online marketplaces can help you find the perfect fit. These platforms list businesses of all sizes and niches, allowing you to choose one that aligns with your interests and expertise.

• Flippa^[35]: One of the most popular marketplaces for buying and selling online businesses, Flippa lists e-commerce stores, blogs, apps, and more. You can browse through various listings, filter by niche and price range, and find detailed information about each business.

• Empire Flippers^[36]: Known for its rigorous vetting process, Empire Flippers lists established e-commerce businesses that have been thoroughly evaluated for performance and profitability. This platform provides detailed financials and performance metrics to help you make informed decisions.

• Exchange by Shopify^[37]: Specifically for Shopify stores, Exchange allows you to buy and sell e-commerce businesses that are already set up on the Shopify platform. You can find a range of businesses, from starter stores to established brands with significant revenue.

• FE International^[38]: Specializing in high-value e-commerce businesses, FE International offers a range of online businesses for sale, including SaaS, content, and e-commerce businesses. The platform provides in-depth analysis and support throughout the buying process.

• BizBuySell^[39]: A broader marketplace for buying and selling businesses, BizBuySell includes listings for e-commerce businesses. You can filter by industry, location, and price to find the right business for you.

• Quiet Light Brokerage^[40]: This platform focuses on profitable online businesses, including e-commerce stores. Quiet Light Brokerage provides detailed listings and offers support from experienced brokers to help you navigate the buying process.

Note: Before making a purchase, it’s crucial to perform due diligence. Review the business’s financials, understand its customer base, and evaluate its growth potential. This ensures you make a well-informed decision and invest in a business that has a solid foundation and promising future.

The bottom line

Starting a home-based business can be incredibly rewarding. However, as your business scales, keeping your bookkeeping up to date starts feeling like an added challenge. 

That’s where CoCountant’s dedicated accounting and bookkeeping services for small businesses come in. We offer affordable monthly rates to help keep your books in perfect order so you can focus on growing your business, knowing that your finances are in expert hands.

FAQs

How do I register a home-based business?

Although some of the businesses we discussed here, such as freelance content writing, might not need to be registered because they can operate as sole proprietorships without formal registration—other ventures, like dropshipping stores or selling homemade products, might require more formal structures due to the need for business licenses, permits, and compliance with industry-specific regulations.

To register your home-based business, you need to follow a few steps:

• Choose a business name and check its availability with your local government.
• Decide on a legal structure, such as a partnership or LLC. 
• Register your business name with your state’s business authority and apply for any necessary licenses or permits. 
• Obtain an Employer Identification Number (EIN) from the IRS if required, and make sure you understand local zoning laws that may apply to your home-based business.

What are the most profitable home business ideas?

The most profitable home business ideas often leverage digital platforms and low overhead costs. Popular options include starting a dropshipping store, offering online tutoring or virtual assistant services, freelance writing, selling homemade products, affiliate marketing, and managing an Airbnb property. Each of these businesses can be started with minimal investment and scaled up as you grow.

How can I start a home-based business with no money?

Starting a home-based business with no money is possible by leveraging free resources and your existing skills. Begin by offering services like freelance writing, virtual assistance, or social media management, which require minimal initial investment. Use free platforms like social media, blogging, and online marketplaces to promote your services. Additionally, look for free online courses to improve your skills and market yourself effectively. Networking in online communities can also help you find clients without spending money upfront.

What are the tax implications of running a home-based business?

Running a home-based business comes with specific tax implications. You may be eligible for home office deductions, which allow you to deduct a portion of your home expenses, such as mortgage interest, utilities, and repairs, based on the percentage of your home used for business. Additionally, you can deduct business-related expenses like supplies, internet, and phone bills. However, it’s essential to keep detailed records and consult with a tax professional to ensure you’re compliant with all tax regulations and maximizing your deductions.