Have you ever considered starting a business with your spouse? If so, check out these fantastic business ideas tailor-made for couples!

The concept of husband and wife business ideas has been around for a long time, and the prospect of building your dream life together is undoubtedly appealing. Let's explore some great business ideas for couples!

[su_note note_color="#dbeafc"]Click a link below to skip to the idea that interests you (and your partner!) most.

• • Tips for Getting Started With a Business Idea for Couples
  • Strategies for Couples to Start a Successful Business
  • Best Online Businesses for Couples
  • Part-Time Business Ideas for Couples
  • Two-Person Team Start-Ups: Profitable Business Ideas for Couples
  • Small Businesses for Couples to Start
  • Which Business for Couples Will You Choose?[/su_note]

Tips for Getting Started With a Business Idea for Couples

There are numerous considerations when couples decide to start a small business together. You’ll want to:

• Consider the initial time and financial investment required.
• Identify activities that you both enjoy doing consistently.
• Decide if you want immediate returns or are willing to invest in a more passive venture.
• Combine your skills as a couple to find synergies in the business.
• Follow your shared passions and interests.
• Determine your preference for a location-based or online business.

Strategies for Couples to Start a Successful Business

You’ll also want to find ways to make sure that both partners feel fulfilled by the business. That means you should:

• Ensure the business idea suits both partners' needs and interests.
• Practice effective communication and maintain a balance between work and personal life.
• Consider the roles you can play within the business to complement each other.

Best Online Businesses for Couples

1. Blogging: Start a blog and monetize it over time

• Average Annual Revenue: $46K
• Average Profit Margins: 14.6%
• Startup Costs: Under $100-$200
• Time To Revenue: 1 month to 3 Years
• Annual Market Growth Rate: -1.50%
• Best for: Couples with writing, graphic design, and other content creation skills, strong marketers

A blog can be a great business venture on its own or in combination with other business ideas like a podcast, vlog, or online education business. It’s easy to get started but can take a while to build an audience and generate regular and recurring income.

One of you can write, while the other does design, or work together on everything.

Kevin Espiritu used a blog to turn his passion for gardening into a $7.3 million-a-year business. Hear his story in this podcast interview:

2. Sell Stock Photos: Create and sell unique stock photography

• Average Annual Revenue: $50K
• Average Profit Margins: 7.3%
• Startup Costs: $1K-$10K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 0.3%
• Best for: Photographers, visual artists, people who want flexibility and passive income

A photography business can be a highly profitable business, and it is among the best couple business ideas to run from the side at home. There are tons of sites to sell stock photographs, including:

• iStock Photos by Getty Images
• Shutterstock
• Alamy
• 500px

3. Freelance Writing: Offer content writing services

• Average Annual Revenue: $46K
• Average Profit Margins: 14.6%
• Startup Costs: $100-$200
• Time To Revenue: 1 month to 3 Years
• Annual Market Growth Rate: -1.50%
• Best for: Writers, editors, SEO and digital marketing experts

Writing content is a great business idea for couples who want to start their own business quickly out of their home. Just set up a profile on a freelance platform like Upwork or Fiverr and you can begin accepting clients in minutes.

4. Cleaning Service: Offer residential or commercial cleaning

• Average Annual Revenue: $61K+
• Average Profit Margins: 10.8%
• Startup Cost: $300-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 2.4%
• Best for: Detail-oriented people with strong customer service skills, people who like physical work and don’t mind getting their hands dirty

The low investment to start a cleaning business is one thing that draws people to this niche. Demand is also strong and growing, at a rate of 6.6% each year for the last decade.

Chris Mondragon grew Queen Bee Cleaning Services to $120,000 a month in revenue from an initial investment of just $5,000. He teaches how to follow his model in his 7-Figure Cleaning Business Blueprint. You can also watch this interview with Chris to hear how he started:

[su_youtube url="https://www.youtube.com/watch?v=d4Iip7BHXwg"]

You can even start a remote cleaning business.

5. Printables: Design and sell customizable printed products

• Average Annual Revenue: $1.6M
• Average Profit Margins: 4.3%
• Startup Cost: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: -5.6%
• Best for: Graphic designers and visual artists, marketing experts

An online store selling custom-printed items is among the best business ideas for creative entrepreneurs who want a passive income stream.

People buy customizable printables for a lot of reasons, from marketing swag and business gifts to favors for weddings and parties. All of those niches mean lots of potential customers for your eCommerce business.

[su_youtube url="https://youtu.be/BmYCYMAsQ8Y"]

6. Web Design: Create and manage websites for clients

• Average Annual Revenue: $239K+
• Average Profit Margins: 5.3%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.4%
• Best for: Web developers, programmers, graphic designers, SEO experts

Every business needs a website but not all business owners can make one. If graphic design, visual layout, or coding are among your or your partner’s interests, website design is a good business idea with a low investment up-front and a lot of growth potential.

7. Virtual Assistant: Provide a wide range of online assistance

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Highly-organized people, excellent communicators with strong time management and problem-solving skills

Virtual assistants (VA) help busy professionals take care of day-to-day tasks, like scheduling appointments, booking travel, and similar administrative things.

Being a VA is a great online business idea because it has a low investment to start and doesn’t require any special skills. The hours are usually flexible, too, making it ideal for parents looking for business opportunities they can fit around other commitments.

8. Ads: Offer ad writing and design services for various platforms

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $1.8K-$16K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: Marketing experts, writers, visual artists, graphic designers, people skilled in SEO, SEM, and other digital marketing techniques

Similar to web design, creating compelling advertisements requires a unique set of skills that not all business owners have. This makes it a profitable business idea with a lot of growth potential, especially for a two-person team.

9. Vending Machine Owners: Establish or buy vending machine routes

• Average Annual Revenue: $182K+
• Average Profit Margins: 4.3%
• Startup Cost: $2K-$10K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.5%
• Best for: People who want flexibility and passive income potential, system-driven entrepreneurs

Do you ever wonder who makes money from the vending machines in workplaces, schools, and other businesses? It could be you if you start a vending business!

Vending has a high profit potential without needing a huge time investment. UpFlip’s Vending Bootcamp teaches you how to get started step-by-step. You can also watch this interview with Hill Vending founder Adam Hill to learn how he got started:

[su_youtube url="https://www.youtube.com/watch?v=-s_Y-O1nosw"]

10. Online Educational Resources: Create and sell online courses together

• Average Annual Revenue: $234K+
• Average Profit Margins: 5.8%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.1%
• Best for: Teachers and educators, people with in-demand skills and knowledge, writers and content creators

Selling online courses lets you make a living sharing your knowledge. Creating the course takes the most work. Once you’ve made online educational resources, you can run a profitable business with little time investment.

It’s also a cheap business to start. Jacques Hopkins started his online course business with a $ 150-a-month budget, and he’s grown it to more than $40,000 a month in revenue. Hear his advice in this interview:

11. Tutoring: Offer virtual tutoring sessions in various subjects

• Average Annual Revenue: $18K+
• Average Profit Margins: 13.10%
• Startup Cost: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 8.5%
• Best for: Teachers and educators, excellent communicators and motivators, experts in academic subjects or test prep

Speaking of an online education business, tutoring is another of the best business ideas for couples who are educators. You can run a completely online business with virtual tutoring sessions or set up an online portal to connect with in-person students.

There are a number of tutoring platforms where you can begin accepting clients to get your business up and running. Some of the most popular include:

• Preply
• Wyzant
• TutorMe
• Cambly
• Strive Academics

12. Stock Market: Manage other people’s investments

• Average Annual Revenue: $1.8M+
• Average Profit Margins: 36.1%
• Startup Cost: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 8.2%
• Best for: financial advisors and money experts, investors and stock traders

For business partners with a background in finance, investment management is a highly profitable business idea. The people who have investments to manage tend to be high-earners, so you can easily build a client list of people willing to pay top dollar.

Bear in mind that investment advisors need to be registered with the Securities and Exchange Commission (SEC) and may also need to register with their state in order to operate legally. The SEC explains how to register on its website.

13. Consultancy business: Provide expert advice and recommendations

• Average Annual Revenue: $364K
• Average Profit Margins: 6.4%
• Startup Costs: $1K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.2%
• Best for: Creative problem solvers, excellent communicators and motivators, experts in in-demand areas like marketing, human resources, and leadership

Entrepreneurs will pay top dollar for business development advice that helps them grow revenue, become better leaders, master their digital marketing, or hone other necessary skills. A couple with that expertise can make excellent business partners for a consultancy business.

The key to success is finding the right niche market. For example, Ryan Gromfin turned his experience managing five-star restaurants into a $ 35,000-a-month restaurant consulting business. Hear his advice here:

14. Coaching: Become life, business, or mindset coaches

• Average Annual Revenue: $63K+
• Average Profit Margins: 10.5%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.5%
• Best for: Empathetic entrepreneurs, active listeners and great communicators, people with strong organization, time management, and creative problem-solving skills

Coaching can be a very profitable business to start with a business partner because you can accelerate your growth and build your client list twice as fast. You can be a coach in any area where you’re an expert, from personal organization to parenting to being a landscape and gardening consultant.

15. Digital Marketing: Offer online marketing services

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $100-$10K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: social media experts, designers and content creators, data analysts, people with SEM, SEO, and similar digital marketing skills

A digital marketing agency is one of the top business ideas for couples who want high-profit potential as well as schedule flexibility. Most businesses today need an online presence, and that puts digital marketing skills in high demand.

The digital marketing firm Socialistics has grown to $500,000 a year in revenue by attracting big-name clients like the Air Force and Habitat for Humanity. Find out how they got started in this interview:

[su_youtube url="https://www.youtube.com/watch?v=kb1czTEK8f8"]

16. E-books: Write and sell e-books

• Average Annual Revenue: $712K
• Average Profit Margins: 14.6%
• Startup Costs: $100-$200
• Time To Revenue: 1 month to 3 years
• Annual Market Growth Rate: -1.5%
• Best for: Writers and editors, strong online marketers, couples seeking a passive income stream

Selling e-books is a very flexible business. You create the books on your own schedule then list them in an online store, which you can manage any time and from anywhere.

The tricky part about starting an e-book business is that there are a lot of them out there, so you’ll need strategies to get customer attention in a crowded market. It can help to focus on a niche market, or if you have other ways to build an audience, like through a podcast, YouTube channel, or large social media following.

17. T-Shirt Business: Design and sell custom t-shirts online

• Average Annual Revenue: $147K
• Average Profit Margins: 3.2%
• Startup Costs: $1K-$200K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: 3.3%
• Best for: Artists and graphic designers, strong marketers and networkers

One particularly popular custom printables niche is a print-on-demand t-shirt business. This is among the best business ideas for couples who are creative and need flexibility.

Artem Ionitsa makes $2,000,000 a year with his Logo Unlimited that prints clothing for major businesses. Find out how he started and grew his business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=CJRWc1ZPCpQ"]

18. eCommerce: Sell products through a website

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$1K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best for: Makers, designers, and crafters, artists and creators, fashion and shopping lovers

You can sell just about anything with an eCommerce business. Vlad Kuksenko started TagPup with a low investment of just $500 and in two years made more than $1 million in sales. Hear how he became the #1 pet products store on Etsy in this interview:

[su_youtube url="https://www.youtube.com/watch?v=7dqHBHA4AmU"]

19. Website Flipping: Buy, enhance, and sell websites

• Average Annual Revenue: $239K
• Average Profit Margins: 5.30%
• Startup Costs: $100-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.40%
• Best for: Web designers and developers, experts in SEO, web traffic, data analysis, or automation

Domain flipping is like a digital version of a real estate business. You purchase a website at a low price, then improve its design, functionality, and search rankings to increase its value and sell it for a profit.

After starting OneHourProfessor.com in 2014, Ron Stefanski has built a portfolio of websites that bring in $30,000 a month in revenue on average. Hear his advice on how to start a website business in this interview:

20. Podcasting: Create and monetize a podcast

• Average Annual Revenue: $4M+
• Average Profit Margins: 27.1%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 6.4%
• Best for: Entertainers, skilled communicators, teachers, presenters, and content creators

Podcasting was an $18.5 billion industry in 2022, and it’s expected to grow another 27.6% by 2030. Like a blog, podcasting can be a successful business idea on its own or in tandem with other online educational resources.

Building an audience is the most challenging part of starting a podcast. Listen to this interview to learn how Entrepreneurs on Fire became one of the top business podcasts with more than 142 million listeners:

Part-Time Business Ideas for Couples

21. Junk Removal: Help clear out people’s homes and offices

• Average Annual Revenue: $5.7M+
• Average Profit Margins: 2.9%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 1.9%
• Best for: Construction pros, couples who like physical work

Many people don’t know how to dispose of large junk like appliances and construction trash—and they don’t want to deal with it even if they do. That’s what makes junk removal a $10 billion-a-year industry and a profitable, unique business idea for couples.

22. Dog Walking: Provide pet walking services

• Average Annual Revenue: $34K+
• Average Profit Margins: 16%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.7%
• Best for: Pet owners, animal lovers, people with high physical stamina who like working outdoors

Nearly 20% of American households adopted a dog during the pandemic. Now that people are being called back to the office, dog walkers are in increasingly high demand.

That demand has driven up prices. In large markets like New York, dog walkers can charge $600 or more a month per client. This gives it potential to be a highly profitable business even as a part-time venture.

Starting with a partner makes it where you can walk twice as many dogs.

23. Catering: Start your own catering business for events

• Average Annual Revenue: $124K+
• Average Profit Margins: 5.5%
• Startup Costs: $1K-$100K
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 1.0%
• Best for: Cooks, bakers, and foodies with strong customer service and time management skills

One drawback to most food industry businesses is the high startup cost. Starting your own catering business is one way around this issue. You can rent a commercial kitchen when you need it instead of buying your own equipment, and that means a much lower up-front investment.

A catering company also gives you more scheduling flexibility than a restaurant. You can book events only during the times you’re available, and how much work you take on is completely in your court, too.

24. Personal Training: Offer fitness coaching services

• Average Annual Revenue: $16K+
• Average Profit Margins: 10.9%
• Startup Costs: $500-$5K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 0.6%
• Best for: Health and fitness experts, great motivators with strong communication skills and empathy

A personal trainer helps their clients meet their fitness goals, and you don’t need your own gym to open a fitness business. You could offer sessions from your home, at clients’ homes, or partner with a local athletics and fitness association to use their facilities.

There are also affordable opportunities to become a franchise business partner as a personal trainer or fitness business. Jazzercise franchises start at $2,500, for example, and Anytime Fitness franchises have a similarly low investment.

25. Car Wash and Detailing: Provide car washing and detailing services

• Average Annual Revenue: $73K+
• Average Profit Margins: 16.1%
• Startup Cost: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.0%
• Best for: Car lovers, detail-oriented entrepreneurs who like working with their hands

More than 91% of households in the United States own a car, and about 22% own three or more. This makes businesses related to car maintenance a smart move.

A mobile business is often a better side hustle than a brick-and-mortar, with both a lower upfront cost and more schedule flexibility. Seattle Mobile Detailing was started by business partners with just $300 and now grosses $40,000 a month. Learn how they got started in this interview:

[su_youtube url="https://www.youtube.com/watch?v=Rk4L1O2b84Q"]

26. Horticulture: Grow plants for nurseries

• Average Annual Revenue: $262K+
• Average Profit Margins: 5.4%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.8%
• Best for: Gardeners and plant experts, people who love working outside

You don’t need a huge plot of land to start a flower or herb farm. A rose, sunflower, or lavender farming business are outstanding couple business ideas for those with unused yard space and green thumbs.

27. Resume Writing: Write professional resumes and LinkedIn profiles

• Average Annual Revenue: $46K
• Average Profit Margins: 5.8%
• Startup Cost: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.1%
• Best for: Human resources professionals, writers and editors, people with recruiting or hiring experience

A well-written resume is key to a successful job search, and a strong LinkedIn profile can be just as important. It’s typical to charge $200-$400 for a mid-career resume, while executive resumes command prices of $700 or more.

That’s not bad for a one-to-two-page document and makes a very lucrative part-time business for a couple with career expertise.

28. Personal Shopping: Assist clients with personal shopping needs

• Average Annual Revenue: $37K+
• Average Profit Margins: 1.9%
• Startup Cost: $100-$1K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 10.5%
• Best for: Strong communicators, people who are patient, organized, and empathetic with a sharp eye for detail and good decision-making skills

As a personal shopper, you get clients the things they need—even when they’re not quite sure what those are. The guidance personal shoppers give is what differentiates them from a virtual assistant or delivery service and makes it a more profitable business.

29. Handyperson: Offer general handyman services

• Average Annual Revenue: $204K+
• Average Profit Margins: 5.4%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.7%
• Best for: Contractors and skilled trade workers, people who like working with their hands and have good communication and customer service skills

Every homeowner needs repairs now and then, and they don’t always have the time or skills to make them. This is a great business idea for a two-person team because you can do more work faster, making for happy customers and higher profits.

It doesn’t take much to start a handyperson business. Find out how Caleb Ingraham started his $ 25,000-a-month business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=leUta_q_MPQ"]

30. Interior Painting and Wallpapering: Provide interior painting and wallpapering services

• Average Annual Revenue: $76K+
• Average Profit Margins: 7.2%
• Startup Costs: $1K-$100K
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: -2%
• Best for: Construction and home repair professionals, painters and designers, people who like physical work, detail-oriented and process-driven entrepreneurs

Painting and wallpapering are among the best business ideas for couples who want to stay active and make money together. The mess and labor involved in painting houses is why many customers pay for a service.

It takes a surprisingly low investment to start a house painting business. Joshua Douglass only invested about $6,000 to start A Painter’s Touch, and today it makes around $25,000 a month. Hear his story in this interview:

31. Party Planner: Plan and coordinate events for clients

• Average Annual Revenue: $34K+
• Average Profit Margins: 12.2%
• Startup Costs: $500-$5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1%
• Best for: Organized and outgoing people with strong creative problem-solving, time management, and customer service skills

A wedding planning business is the best-known niche in event planning, but that’s far from the only option. From family reunions and celebrations to corporate events, there are a lot of ways to profit from your party planning skills.

32. Paint Wall Murals: Create artistic murals for customers

• Average Annual Revenue: $76K+
• Average Profit Margins: 7.20%
• Startup Costs: $1K-$100K
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: -2.00%
• Best for: Painters and visual artists, designers, creative people who like physical work

An eye-catching mural can be a great draw for customers to a business, or bring a unique touch to a home. Mural artists typically charge $10-$20 per square foot, which can put this among the most profitable business ideas for a creative side hustle.

With the right equipment, you don’t need to be an artist to make money from murals. Paul Baron started a business in vertical printing with The Wall Printer. Find out more in his podcast interview.

Two-Person Team Start-Ups: Profitable Business Ideas for Couples

33. Pinterest Account Manager: Manage Pinterest accounts for businesses

• Average Annual Revenue: $42K to $208K
• Average Profit Margins: 6.9%
• Startup Costs: $1.8K-$16K
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best for: Social media experts, photographers and graphic designers, organized and creative entrepreneurs

Pinterest is a popular platform for anyone running a food business, clothing shop, or cosmetic line as well as others who have visually compelling products to sell. The average Pinterest Virtual Assistant makes about $500 a month per client or up to $100 per hour, but you can certainly make more than that as a skilled Pinterest manager.

One of you can find clients while the other one manages the Pinterest accounts.

34. Subscription Box Service: Curate niche subscription boxes

• Average Annual Revenue: $60K to $120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: 16.5%
• Best for: Data experts, people tuned in to trends, strong marketers and salespeople, people with specialized product niche expertise

A subscription business is a fantastic business model because you earn regular and recurring income by default.

Any type of consumable product can be part of a subscription box, from healthy snacks to on-trend clothes, shoes, or makeup. Whatever your or your partner’s interests, you can start a successful business curating monthly goodie boxes for other fans of that niche.

35. Local Guides: Offer guided tours and experiences in your area

• Average Annual Revenue: $995K+
• Average Profit Margins: 6.6%
• Startup Cost: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 3.5%
• Best for: Friendly, outgoing couples with excellent communication skills, actors and performers, people with niche knowledge about their local area

This is a fantastic business idea for couples who are active in their local community or have unique expertise in the history, culture, wildlife, or other aspects of their region.

You could give general tours or niche down. If you’re plugged into the local food scene, for instance, you can market to tourists and food lovers who flock to food truck tours and brewery crawls.

36. Adventure Tourism: Get people out and exploring

• Average Annual Revenue: $995K+
• Average Profit Margins: 6.6%
• Startup Cost: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 3.5%
• Best for: Adventurous and outgoing entrepreneurs with strong marketing and communication skills

People love experiencing new things, and you can offer that as business partners in the adventure tourism niche.

Jonathan Newar started Captain Experiences in 2020 to do just that and has already grown the business to $100,000 a month in revenue. Hear his story in this interview:

37. Eco-Friendly and Chemical-Free Makeup and Beauty Products: Produce natural cosmetics and self-care products

• Average Annual Revenue: $11.5M+
• Average Profit Margins: 5.7%
• Startup Costs: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best for: Makeup artists, stylists, and other fashion and beauty experts with strong sales and creative problem-solving skills

Cosmetics is the third-largest segment of the U.S. beauty industry, projected to bring in $20.13 billion in revenue in 2024. Natural and chemical-free products are a growing niche within this sector and can be very profitable as either a brick-and-mortar store or eCommerce business.

38. Meal Prep Business: Prepare and deliver healthy meals

• Average Annual Revenue: $41K+
• Average Profit Margins: 6.4%
• Startup Cost: $1K-$100K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best for: Cooks, chefs, and other restaurant industry pros with strong time management and organization skills

Meal delivery services spiked in popularity during the pandemic and that trend shows no signs of reversing. You can offer meal delivery services as a subscription business for recurring revenue, too, or home in on a niche like office food delivery.

39. Food or Grocery Delivery Business: Deliver prepared food or groceries

• Average Annual Revenue: $31K
• Average Profit Margins: 3.6%
• Startup Cost: $100-$9.5K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 6.7%
• Best for: Organized and system-focused entrepreneurs with strong sales, marketing, and customer service skills

If you like the idea of a meal delivery service business but aren’t much of a cook, you can start your own business delivering groceries or food from other restaurants. While these services are in demand, you will be competing with heavy hitters like Uber Eats and DoorDash, which is the main challenge of getting started.

Adam Haber started Trellus Local Delivery to help small businesses. While Trellus delivers more than just food, you can follow a similar model for meal delivery services. Hear his story in this interview:

40. Interior Design for Small Businesses: Provide interior design for office or retail spaces

• Average Annual Revenue: $168K+
• Average Profit Margins: 10.6%
• Startup Costs: $1K-$100K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: Designers and artists who are excellent communicators, networkers, and salespeople

If you’re looking for business ideas for couples with a low investment, service-based niches like a design business can be a perfect fit.

Building a client base is often the hardest part of getting started. One option is to provide free services in exchange for referrals or reviews and to establish portfolio of past work to show potential customers.

41. Organizing Business: Help clients declutter and organize their spaces

• Average Annual Revenue: $168K+
• Average Profit Margins: 10.6%
• Startup Cost: $1K-$100K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: Organized, system-driven, and empathetic entrepreneurs who are good communicators and motivators

Another low-investment service business, professional organizing services work with clients to bring order to the chaos of life. This can range from decluttering a home to helping busy professionals organize their workspaces, and it’s among the top business ideas for couples who thrive on systems and order.

42. Travel Photography: Sell beautiful photos of your favorite places

• Average Annual Revenue: $44K
• Average Profit Margins: 7.30%
• Startup Cost: $5K-$15K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 0.3%
• Best for: Artists, photographers, and creative couples

A photography business in the travel niche lets you take your business on the road wherever you want to go. You can sell your images as prints in an online store, sell them as stock photos, or work with clients like news sources and travel guides.

43. Translator: Leverage your bilingual- or multilingualism

• Average Annual Revenue: $75K-$200K
• Average Profit Margins: 12.4%
• Startup Cost: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best for: People who speak multiple languages, excellent communicators with strong problem-solving skills

While AI-driven translation apps are functional for travelers, there is still a high need for professional translators in the global economy. The most in-demand languages include Spanish, German, Russian, and Mandarin (and bonus points if you speak three or more).

44. Handmade Jewelry, Candles, or Soap: Craft and sell handmade products

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best for: Artisans, crafters, and artists with strong sales, marketing, and customer service skills

There are lots of ways to start a handcrafted soap, artisanal candle, or handmade jewelry business. While it’s fastest to start as an eCommerce business, you can supplement those sales with a festival or farmers market stall, or even get your own storefront as the business grows.

Check out this interview with Blk Sunflower to learn how Jazmin Richards made $300,000 in 18 months selling handmade candles:

[su_youtube url="https://www.youtube.com/watch?v=UzZ5aTbiLh0"]

Small Businesses for Couples to Start

45. Coffee Shop or Coffee Industry Business

• Average Annual Revenue: $865K+ (Starbucks makes this number sky high)
• Average Profit Margins: 5.8%
• Startup Costs: $1K-$100K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best for: Baristas and coffee experts who excel at customer service

A coffee shop provides more than a caffeine fix. It’s also a gathering place for the community, making it a great business idea for couples who love meeting and talking to new people (and, of course, love coffee).

Starting a coffee shop can require a big startup investment. One way to get into the coffee industry for a lower price is with a coffee stand. You can expand that into a sit-down coffee shop as the business grows. Learn how Sandy Edin started a $24,000-a-month coffee stand in this interview:

[su_youtube url="https://www.youtube.com/watch?v=HvQt2wbj7DE"]

46. Childcare

• Average Annual Revenue: $143K+
• Average Profit Margins: 0.9%
• Startup Costs: $0-$1K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 51.7%
• Best for: Parents, babysitters, people who love kids and are outgoing, patient, and good multi-taskers

A childcare business is among the best business ideas for couples who are parents themselves. You already have the skills to take care of kids—and this is one way to make a profit from them!

That’s what led Kristy Bickmeyer to start Twinkle Toes Nanny Agency, and she’s now grown it to 20 locations across five states. Hear how she got started here:

47. Bakery or Cake Shop

• Average Annual Revenue: $1.95M
• Average Profit Margins: 5.4%
• Startup Costs: $100-$3M
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.1%
• Best for: Cooks, chefs, bakers, or foodies with customer service, leadership, and marketing skills

Bakeries are among the most popular types of food retail business—who doesn’t love tasty cookies, cakes, and pastries?

While bakeries often have a high startup cost, they don’t have to. One option is to start as a bakery catering business, then expand into a storefront as the business grows. That’s how Mignon Francois turned $5 into a $10 million cupcake business. Hear her story in this interview:

[su_youtube url="https://www.youtube.com/watch?v=jmviDvmh5js"]

48. Boat, Bike, or Car Rentals

• Average Annual Revenue: $285K+
• Average Profit Margins: 6.8%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.0%
• Best for: Mechanics and vehicle repair pros with excellent sales, marketing, and customer service skills

Vehicle rental services are fantastic couples business ideas for people with a passion for cars, boats, or bikes. While it helps to have some repair or maintenance skills, all you really need to get started is an inventory of vehicles and a way to connect with customers.

Legends Car Rentals makes $175,000 a month, so you can definitely make a lot of profit in this niche. Hear how they started in this interview:

[su_youtube url="https://www.youtube.com/watch?v=W_01eckETe0"]

49. Doggy Daycare

• Average Annual Revenue: $73K+
• Average Profit Margins: 11.5%
• Startup Costs: $1K-$100K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.1%
• Best for: Animal lovers and owners, patient and personable entrepreneurs with strong customer service skills

Busy professionals and families sometimes need a hand watching their pets. You can solve that problem by opening a kennel or doggy daycare. If you love the idea of spending your days caring for dogs, this could be the perfect business for you!

50. Food Truck

• Average Annual Revenue: $41K+
• Average Profit Margins: 6.4%
• Startup Cost: $1K-$100K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 1.2
• Best for: Cooks and food industry professionals who are excellent at marketing and customer service

It takes a lot to keep an entire restaurant afloat. The comparatively low investment and greater schedule flexibility are why food trucks are a popular alternative.

The food truck industry is crowded in some markets, which can make it challenging to attract customers. Learn how Aybla Grill started and grew their food truck business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=Qi_RBWualJ8"]

51. Bookkeeping and Accounting

• Average Annual Revenue: $206K+
• Average Profit Margins: 13.9%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.6%
• Best for: Accounting, math, and business professionals, detail-oriented entrepreneurs

While you need to be licensed to operate as a CPA, you don’t need that credential to start a bookkeeping service. For math and accounting pros, this is a solid business idea with a low investment to start. That said, this is another area you may need to provide free services to build a reputation and client trust.

52. Rental or Airbnb Property Management

• Average Annual Revenue: $372K+
• Average Profit Margins: 10.1%
• Startup Cost: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 1.3%
• Best for: Real estate and construction professionals who are organized and strong customer service skills

A property management business is among the best low-investment business opportunities in real estate.

One niche market with especially high demand is Airbnb management. NICASA makes $3 million a year as an Airbnb business, and a lot of that comes from managing other people’s properties. Hear founders Sid and Eva’s advice and story in this interview:

[su_youtube url="https://www.youtube.com/watch?v=6m-MosXlpOE"]

53. Consignment Shop

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best for: Fashion and style experts who are excellent negotiators and communicators

Starting a consignment shop lets you open a retail business without worrying about providing your own inventory. Instead, you earn a commission selling other people’s products, saving you lots of hassle, cost, and risk.

Clothing and art are among the most popular niches for consignment, but you can start this kind of business with any type of products.

54. Boutique Retail Business

• Average Annual Revenue: $114K+
• Average Profit Margins: 10.3%
• Startup Costs: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 2.0%
• Best for: Designers, artists, and fashion experts with strong marketing and customer service skills

If you’d rather make and sell your own clothes, a boutique retail business could be your perfect fit. Learn how Urbanity grew to $102,000 in monthly revenue in this interview:

[su_youtube url="https://www.youtube.com/watch?v=_wUc28d8KkE"]

55. IT Support

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best for: Tech-savvy couples who are patient and have excellent communication skills

Sometimes, it’s not the device that needs to be repaired—it’s the user who needs help using it. Online businesses in IT support are especially great for business partners since it doubles how many customers you can help (and people who need IT support are likely internet users already).

56. eBay Selling Business

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Cost: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best for: Shoppers, thrifters, and antiquers who are good marketers, negotiators, and salespeople

An eCommerce business as a reseller is among the easiest online businesses to start. If you’re strapped for cash, you can even take your initial inventory from things you already own.

Mike Wilson started with about $1,000 in inventory and has grown to a revenue of $30,000 a month selling on eBay. Hear his story here:

57. Electronics Repair

• Average Annual Revenue: $560K+
• Average Profit Margins: 5.7%
• Startup Costs: $500-$5K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.4%
• Best for: Tech and repair professionals with a sharp eye for details

Electronics repair is among the most profitable business ideas for couples who are tech-savvy. You can get started for cheap, too. Joe’s Electronics Repair is a seven-figure business that was started with just $45. Find out how in this interview:

[su_youtube url="https://www.youtube.com/watch?v=Rqce8NAZWYw"]

58. Flower Shop

• Average Annual Revenue: $262K+
• Average Profit Margins: 5.4%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.8%
• Best for: Designers, artists, and creative people with a green thumb and excellent customer service

Flowers are a go-to gift for just about any situation. If you don’t want the costs of a brick-and-mortar, you can open a business stand, sell at a local farmers market, or open an online store.

Stemistry started online and grew into a brick-and-mortar—and the owner’s still a teenager! Find out how it started in this interview:

59. Auto Repair

• Average Annual Revenue: $268K+
• Average Profit Margins: 6.1%
• Startup Costs: $1K-$100K
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: -0.8%
• Best for: Mechanics and repair pros, car experts who are good communicators

People rely on their cars and they’re keeping their cars longer, too. That means more demand for businesses related to car maintenance and repair.

A repair shop will need a fairly high investment. Lucky’s Auto Repair cost about $20,000 to start. Find out how they grew that investment into a lucrative business in this interview:

[su_youtube url="https://www.youtube.com/watch?v=chhmCdYt0iQ"]

Which Business for Couples Will You Choose?

There are plenty of small businesses to start as a couple. Consider both of your skills and interest and choose the one that works for you. Which will you start?

Are you struggling to make the money you want with your business? Profit margins are the key to measuring and improving your financial success. Did you know some industries hit 50% net profit? We’ll show you how. The average gross margin is 38.44% across 7,229 publicly owned companies, and the average net margin is 9.84%. But if you are a service-based industry, you can try to hit over 50% net margins to make a great living.  Understanding margins will help you create a more profitable business model because you’ll be able to quickly identify where you can make improvements.  In this article, we’ll explain:

1. Where to find industry profit margins
2. The seven most common equations for calculating profit margins
3. Calculating industry profit margins
4. Improving your business results by comparing your profit margin ratio to industry averages

What profit margins should you expect?

You’ll need industry benchmarks before you can possibly know whether your profit margins are high, low, or average. At UpFlip, we have access to three data sets we use regularly:

1. IBIS World: Here’s their list of highest margin businesses. Their paid reports are phenomenal and are what is used in most blogs to help you get an idea of what your expenses should look like.
2. NYU STERN: Analyzes 7,229 publicly owned businesses and publishes 17 different margins and percentages of revenue for each. They update the documents annually.
3. UpFlip Featured Businesses: Our YouTube Channel and blog are full of business owners sharing how they run their businesses and where their costs go.

You’ll find great benchmarks that will help you establish how your margins are. 

What is the profit margin?

Profit margins measure the difference between business expenses and revenue as a percent of the revenue. There are eight types of profit margins you may want to monitor: [su_note note_color="#dbeafc"]

1. Gross profit margin
2. Net profit margin
3. Operating profit margin
4. EBIT margin
5. EBITDA margin
6. Product margin
7. Sales margin

[/su_note] We’ll look at each of the profit margins and how you can better use them to manage your small business.

What is gross profit margin?

Gross profit is the difference between gross sales and the cost of goods sold (COGS). The cost of goods sold includes all raw materials, labor, and shipping that are incurred directly from the goods sold. The gross profit margin is gross profit divided by the revenue. You may also hear it referred to as gross margin. The gross profit margin formula is included in the following picture. I have also provided an example of how to calculate the gross profit margin: Many service businesses use the gross profit margin to help employees create quick estimates.  With a gross margin of 50%, they can simply add the cost of their hours and the cost of the parts then multiply by 2 to get the quote price.

Why are restaurant profit margins so low?

This might be shocking to hear, but the average profit margin for the restaurant industry isn’t as low as you would think. Based on 70 publicly held companies, restaurants have average profit margins of 31.52%, operating margins of 15% to 18%, and a net profit margin of 12.63%. A restaurant with a low-profit margin needs to review its pricing strategies, increase its revenue, or reduce its costs.  Let’s look at net profit margins next.

What is net profit margin?

Net profit margin is probably the most common type of profit margin people will be interested in. Net profit is how much money the business made after all expenses including:

• Cost of Goods Sold
• Administrative and Marketing
• Depreciation
• Amortization
• Interest
• Taxes

You may also hear this called the net profit margin ratio or net profit ratio. The net profit margin equation and an example of how to calculate the percentage is shown below: This is what you hear companies report in the earnings reports and is the amount that would qualify as income to a small business owner who does not pay themselves a salary.

Is a profit margin of 20% good?

A 20% net profit margin is good in most industries, but in some industries, that profit margin is low, while in others, a good margin would be over 30% to 35%. If you’re asking about gross profit margin, 20% is a horrible margin for most industries. As a general rule, the cost of sales should be less than 60% of net sales. Let’s look at the operating profit margin next.

What is operating profit margin?

Operating profit margin is measured as a percentage of operating income. The operating margin includes all income and expenses from operations but excludes: [su_note note_color="#dbeafc"]

• Interest income or interest expenses
• Returns and costs from investment in other companies
• Taxes
• One-time costs or gains like lawsuits

[/su_note] You’ll want to take the gross income and subtract the following operating expenses to find the operating income:

1. Costs of Sales, General, and Administration (SG&A)
2. Overhead Costs (OC)
3. Depreciation (Dep) (how much your equipment and buildings go down in value based on their expected life)
4. Amortization (Am) (lowering the book value of a non-physical asset)

The operating profit margin may also be called the operating income margin or operating margin. To calculate the profit margin for operations, use the formula below. I’ve also included an example of operating profit calculations: The operating profit margin is useful because it helps businesses establish how well they are doing operationally. These can be used to compare different divisions of a company.  If your operating profit is negative, then you will either need to increase revenue or decrease operating expenses––if not, it will create cash flow challenges.  If you have interest income or dividends from another business, you will probably want to compare the operating margin with the EBIT margin. Let’s look at that measure of a company’s profitability next.

What is EBIT margin?

EBIT stands for “earnings before interest and tax expenses.” This will normally be similar to operating profit margins, but for companies with earnings from investments, you will want to compare the two.  For instance, in some quarters, a large portion of Tesla’s profitability has been impacted by the price of Bitcoin. Comparing the operating profit margin and the EBIT profit margin would help you identify what profitability is from the company’s revenue and which is from investments. To find the EBIT, just find the net profit and add the interest and taxes to the net profit. Then divide by revenue. The equation shows how to calculate the EBIT margin with an example: I intentionally made this one where I could show you an absurd example of what could happen when comparing EBIT and Operating margins. As you can see from the two examples, the company lost 10% of its revenue from investment losses or a lawsuit.  Another margin that can help business owners is EBITDA, which we’ll discuss next.

What is EBITDA?

EBITDA refers to “earnings before interest, taxes, depreciation, and amortization,” which is a way of separating the company debt from the profit margin calculation. This is especially beneficial if you want to buy a company with debt. To find this ratio, you’ll add the depreciation, amortization, interest, and taxes to the net income. You can see how to calculate the EBITDA margin equation below: I’ve been using the same numbers throughout to make the profits really easy to compare. As you can see, there is a lot of depreciation. I would not expect depreciation to be this high of a percentage unless the company is in the early stages and bought a factory to produce their products. Speaking of products, let’s look at the product margin.

What is product margin?

Product margin is the profits on an individual product divided by the sales price. This is helpful for comparing product lines to determine: [su_note note_color="#dbeafc"]

• Which new products should a business carry?
• What products are best for upselling?
• Should you consider getting rid of an offering?

[/su_note] This does not calculate the actual profits, but it lets you know how much of the sales price can go to other costs. Use the equation below to calculate product margins:

What is sales margin?

The sales margin is similar to the gross profit margin, but it is calculated on a per product basis. It includes not only the cost of the product but other expenses like marketing costs and labor associated with achieving the sale.  It may also be called the contribution margin, which we discuss in detail in our blog about calculating a business break-even point. The following formula is used to calculate the profit from each sale: Ultimately, this equation shows how much increasing sales will increase your profitability. It will also show how many products you need to sell to cover your costs. Next, let’s compare the net profit margin and the gross margin.

Net Profit vs Gross Profit

The two most commonly used profit margins are the net profit margin and the gross profit margin. Both of these matter to the performance of a company. The gross profit margin is revenue minus the cost of goods sold divided by total revenue. As long as this is a positive number, then you can theoretically continue to justify running the business. There’s a catch though.  If gross profit isn't high enough to cover the additional costs that are included in net profit plus your living expenses, you’ll need another source of income to keep the business running.  Meanwhile, the net profit margin is what most business owners will be focused on because it’s the amount they take home as profits for running the business. The higher it is, the easier it will be to grow the business. It’s just total revenue minus total expenses divided by total revenue.

How to calculate profit margins

I’ve explained how to find profit margins in each section but the general process is: 

1. Find the revenue attributable to the type of profit margin.
2. Calculate the expenses attributable to the profit margin.
3. Use the formula in the picture below:

You might want to use a net profit margin calculator to help you with pricing your products and setting up automations to help you manage your finances more effectively. I use an Excel Sheet to calculate various margins when needed, but you can find online calculators, too. Of the online profit calculators, the Calculator Site is the most well made.

What are good profit margins?

A good profit margin will depend on your industry, but most industries will have the following ratios:

• Gross Margin: 38.44% is average, but the range is from 1.41% for air transport to nearly 100% for money centers. 
• Net Margin: 9.84% is average, but it ranges from a high of 32.61% for money centers to a low profit margin of -28.57% for hotel and gaming. The gaming losses were due to light travel and shutdowns during the pandemic.
• Operating Margin: 10% to 14% is the average, depending on whether you want to include stock payments and taxes in the numbers. Like other margins, the range varies from -23% to as high as 45% operating margins. 

This information was gathered from NYU Sterns, which regularly analyzes the income statements of more than 7,000 companies to analyze financial ratios. The site shows the net margin, gross margin, and 15 other ratios to help you understand how publicly held companies in each industry perform.  Make sure you compare your pricing strategies and company’s profits to the same industry to make sure you aren’t making pricing errors that will prevent you from generating profits. Next, we’ll discuss how understanding the different types of profit can help you improve your company’s profit.

How can you improve profit margins?

Large businesses weren't always as big as they currently are. Like every business, they normally start with no revenue. As the company grows, it finds new ways: [su_note note_color="#dbeafc"]

1. Increase the revenue.
2. Decrease the total expenses as a percentage of revenue.
3. Make more net income, a byproduct of the first two.

[/su_note] Let’s look at how to increase company revenue first.

Increase Revenue

Finding ways to increase revenue can be challenging, but a net income statement can help you identify areas where you might be able to increase revenue.  Some areas you may want to look at to improve profit through revenue increases include:

• SG&A or Advertising Budgets: If your marketing percentage is less than the industry average, you may have an opportunity to increase your sales revenue through marketing. A higher SG&A is a sign of inefficiencies in your processes.
• Product and Sales Margins: Set your product margins to be in line with the gross profit margin of the industry and then compare them to your current prices. 
  • High Current Price: Consider lowering it to meet the industry average margins. It might stimulate sales.
  • Low Current Price: Increase the profit margin to where you make more money per product.
• Labor Cost Percentage: If the labor cost percentage is really low, you may need to hire more people to provide a better service and create more revenue. If you aren’t working at capacity, you may want to add new products or services also.
• Sales Returns: If you experience lots of sales returns, you may want to figure out why. It will improve your efficiency and lead to more profit because returns still cost you money from transaction fees.

These are just some ways to increase your total sales. Now, let’s look at ways to lower your expenses.

Reduce Expenses

If your total sales are where you want them, but your cost of doing business is high, this will cause the company’s net income to be lower than you’d like. You’ll need to review your net income statement, which will look something like this: [su_table responsive="yes" alternate="no" fixed="yes"]

Gross Sales	$1,000,000.00	100.00%
Less: Sales Returns and Allowances	$200,000.00	20.00%
Less: Cost of Goods Sold	$300,000.00	30.00%
Less: Direct Costs (Labor, Shipping, Etc.)	$100,000.00	10.00%
Gross Profit	$400,000.00	40.00%
Expenses		0.00%
Less: Rent	$60,000.00	6.00%
Less: Utilities	$60,000.00	6.00%
Less: Other Wages	$80,000.00	8.00%
Less: Commissions	$10,000.00	1.00%
Less:  Supplies	$5,000.00	0.50%
Less: Marketing	$80,000.00	8.00%
Less: Logistics	$20,000.00	2.00%
Less: Repairs and Maintenance	$20,000.00	2.00%
Less: Miscellaneous	$5,000.00	0.50%
Operational Profit	$40,000.00	4.00%
Less: One Time Costs (lawsuits, purchase competitor, etc)	$0.00	0.00%
Other Income (dividends, interest income)	$20,000.00	2.00%
EBITDA	$80,000.00	8.00%
Less: Depreciation	$10,000.00	1.00%
Less: Amortization	$10,000.00	1.00%
EBIT	$60,000.00	6.00%
Less: Interest	$10,000.00	1.00%
Earnings Before Tax	$50,000.00	5.00%
Taxes (Assume 21% Corporate)	$10,500.00	1.05%
Net Income (Loss)	$39,500.00	3.95%

[/su_table] You’ll want to look for areas that are really high. In this scenario, you would want to find ways to reduce the returns, cost of goods sold, rent, and utilities.  Let’s look at how dropping these expenses to the level of similar businesses would impact your net profit margin ratio.

• Returns: Shopify estimates that returns are typically 10.6% of purchases. This reduction would increase gross income and net income to better than average percentages and make the business nearly $75K more after-tax profit. You’d need to find patterns that are causing returns and figure out how to correct them.
• COGS: Reducing the material costs to 20%, which is a common recommendation for restaurants, would create a similar change as the returns. This would require finding lower-cost but comparable-quality vendors. 
• Rent & Utilities: Using the final column of the NYU Sterns sheet, you can see that most industries would have 1.62% of their revenue dollar going to the lease. If you use that number for utilities too, it would increase the profit by nearly $70,000.

Combine all these changes, and you would turn $39,500 net income into over $261,000 which would be likely to attract investors in almost any industry.

Improve your profit margins for greater business success

At this point, we’ve answered the following questions:

• What are profit margins?
• How to find profit margin using the profit margin equation?
• What is a good profit margin?
• How do you find products with high-profit margins using the product and sales margin?
• How can I decrease sales expenses?
• How to improve net sales with an income statement comparison?

Now it’s up to you. Follow business news. Track your data. Look for seasonal patterns. Improve the profitability of your services.  What strategies have you used to impact your gross and net sales? Which succeeded and which failed?

Did you know the average poultry farm provides over a million dollars of chicken for people to eat every year? John Mathia and Geoff Scott showed us how to start a poultry farm and turn it into a vertically integrated award-winning business. You can too! Geoff and John started Marion Acres in 2012 so they could eat healthier food than they could buy at the supermarket. Their first attempt at growing their own food went horribly wrong: tractors broke, rains made the land unusable, and the landowner sold the land out from under them––but they persevered. They went from 32 chickens in Geoff’s garage to a poultry farm with different animals, a grocery store, a slaughterhouse, and award-winning chickens. We’ll share how they developed one of the northwest’s most successful poultry farms! You’ll learn about government subsidies, partnerships, and building a vertically integrated business. They’ve got information any poultry business can use. Let's start by learning about the poultry industry. 

Step 1. Learn About Poultry Farming

Don’t try to just jump straight into the chicken business and expect to make a million dollars overnight. There’s a lot to learn about the chicken farming business. You will have federal, state, and local laws to follow. In addition, there are lots of capital expenditures. Plus, you’re raising animals, so without proper hygiene, your whole farm could die. Don’t be scared, though. You can start small. Geoff told us: [su_quote]I had read somewhere that you can turn around a chicken in eight weeks. So we're like, ‘Well, let's go get some chickens.’ So we went down to Wilco, bought every chicken they had, which was 32. Raised them in my garage, and processed them in early November. Then we left that farm, came across the street over here to the landowner.[/su_quote] Geoff recommended Reading Pastured Poultry Profits by Joel Salatin, plus we added some other best sellers on Amazon for avid readers. Here are some interesting reads I found while researching the topic:

• Why poultry is better than beef
• Different feeds for different chickens

We’ll help you understand the poultry business so you can decide the best strategy for your chicken farm. Let’s start by looking at the poultry industry.

How much to start a chicken farm?

Geoff and John started off with:

• 32 broiler chickens: $75
• One chicken tractor: $220
• 150 pounds feed: $100
• Gravity water dispenser: $60
• Total: Under $500

So, you don’t need a lot of money to start raising chickens. If you don’t have land, that’s another story. Let’s look at how much it costs if you need land.

How much does it cost to start a chicken farm if you don’t own land?

Poultry farming will be more expensive if you don’t already have land to use. Chickens need space and a healthy environment. Chickens require at least three square feet per chicken plus space for storage, vehicles, home, etc.  That means the first acre will hold a maximum of 4500 chickens and each additional acre can hold around 5,000 chickens. If you don’t have land, you can expect at least $100K startup costs for poultry farming. Some resources even say a poultry farmer should expect to spend $250K. The number of chickens you can hold will depend on the number of acres you buy. Check out the table below for an idea of how land will impact the costs and revenue. Of course you don’t have to start off with 5,000 chickens. You can start smaller and build your way up. But realistically expect to spend the cost of a down payment and the first two to six months of the mortgage right away. Then, with every 100 chickens expect to spend $1.500.

Is chicken farming profitable?

A poultry farm business can sell both chicken and eggs on the commodity markets or direct to consumers (DTC). Let’s look at each. 

Poultry companies selling DTC

Egg production and meat production can be highly profitable if you sell directly to consumers. Marion Acres sells most of its meat to people and local restaurants, which differs from many farms that sign contracts with major poultry corporations. Geoff told us: [su_quote]Chicken is about a 30% margin.[/su_quote] Check out the rest of our interview with Geoff and Josh. [su_youtube url="https://www.youtube.com/watch?v=m4qhDGG1C3k"] They sell their meat at $13.99 per pound (lb) because it is non-GMO, pasture-raised broiler farming. That means they make about $50 per chicken and $15 is margin. Unless a poultry farmer processes the meat onsite, they shouldn’t expect to get such high margins, though.

Selling as a commodity

A poultry farm business might sell on the open market as well. In this scenario, you’ll need to register with the USDA. You’ll be selling to companies that process the live chickens and turn them into breast, wings, thighs, and other meat for consumption. In this scenario, your profit would be: [su_note note_color="#dbeafc"] Broiler Companies Gross Profit = (market rate per pound x pounds of live chickens) - (costs of chicks + feed + labor caring for chickens + transportation costs). Egg Laying Companies Gross Profit = (market rate of eggs x number of eggs) - (feed + labor caring for chickens + transportation costs). [/su_note] You’ll want to compare current pricing for broilers versus eggs to decide which is more profitable. Alternatively, you could do a mix of broiler meat and egg laying. Geoff told us about how a lot of farmers operate: [su_quote]Bring on a bunch of debt, get all your equipment, and then farm for the rest of your life. You hope to pay off that debt. John and I took a little bit more measured approach.[/su_quote] During many years farmers will run at a loss and have to be subsidized by the government, so make sure you talk to a financial advisor before you jump into the poultry farm business.

Poultry Industry

According to IBISWorld, the average American eats approximately 112 pounds of chicken, eggs, turkey, and other farm fowl each year. They expect Americans to increase their consumption by about half a pound per year.  Chicken farms sell chicken and other birds based on the commodity market rates, which have ranged from 59 cents per pound at the beginning of the COVID-19 shutdowns to an all-time high of 99 cents per pound on June 17, 2022. Estimates expect that this inflation will level off and return to approximately 1% increases in the prices paid for full birds. From the poultry farm, the birds will go to: [su_note note_color="#dbeafc"]

1. A processing plant (or slaughterhouse)
2. A wholesale processor
3. Supermarkets and retailers
4. The final consumer

[/su_note] As a result, a bird that sold for 99 cents per pound, increases to about $5.99 to $7.99 for a whole chicken in the supermarket. Breasts and tenders can go for over $4 per pound according to the USDA.  However, Geoff and John reap most of the profits from their poultry farming because they own the processing and supermarket. Let’s look at each of the players in the poultry farm business to see how it quadruples in price from the farm to the consumer.

Farming

A farmer’s main costs include:

• Land: It’s best to be near but not in big cities. Prices of land can vary dramatically. For example, you might find two to five acres ranging from $5,000 per acre to $2.5 million per acre.
• Chicken coop: Later on, we’ll explain how to build a chicken coop, but if you’re building with three square feet per chicken, you’ll probably end up spending a ton on your chicken house.
• Chickens: You might find day-old chickens for approximately $1 to $2.50 per chick based on the quantity, sex, and whether they are GMO-raised.
• Feed: You’ll need to feed the chickens, and you’ll probably want to buy in bulk. Per pound, smaller bags are much more expensive than when you buy a ton of feed.
• Transportation costs: IRS mileage deductions change each year, but have been over $.50 per mile since 2008. You can deduct actual costs instead.
• Employees: If you have over 500 chickens per owner, plan to spend $15 per hour according to the BLS.

Processing

Poultry and other meats require processing, which is an industry worth approximately $227.6 billion with a 4.8% profit margin according to IBISWorld. Poultry processing is included in US Industry (NAICS) Report 31161. I strongly suggest you pay for the report if you’ll be involved in processing, especially if you need a loan. Using current market rates, the spending breaks down to:

• Purchase price per pound: $.99
• Additional expenses per pound: $.75
• Profit per pound: $.09
• Sell to the wholesaler by the pound: $1.83

Processing is where most of the additional costs in the industry occur, but not where most of the profits are. At the time of writing, there are 5,486 processing companies, and the major players get 57% of the revenue and 98.25% of the profits. The major players are included in the chart below: That means the average company can expect to achieve a maximum of $18,000,000 revenue and up to $867,000 per year. There are a lot of industry participants operating at losses. Once the meat has been processed, it is sent to the wholesaler.

Poultry Wholesalers

These are the companies that sell to grocery stores and restaurant chains. There are between 700 and 800 businesses in this category, but the industry is dominated by Sysco and Cal-Maine foods, which get a combined 52% of the revenue.  Interestingly, smaller wholesalers seem to perform better with a higher profit margin of 3.19% on a little over $8 million revenue on average.

• Purchase price per pound: $1.83 
• Additional expenses per pound: $.40 per pound
• Profit per pound: $.57
• Sell to supermarkets by the pound: $2.80 

Supermarkets

The supermarket industry makes $757 billion in revenue with 21.3% of that attributed to meat, poultry, cheese, and eggs. The purchase of food items accounts for almost 70%. They also average 1.8% profit, but Publix manages to hit a 27.6% profit margin.

• Payment to wholesaler: $2.80
• Profit: $.07
• Other expenses: $1.13
• Consumer price per pound: $4

Why does this matter to a poultry farm?

It means that by the time the food gets to the customer, three other companies are adding $3.01 to the price of the chicken, of which 75 cents is profit. That’s why John and Geoff’s business model is so brilliant. Instead of being a commodity that gets the short end of the stick, they’ve built their poultry farm into a slaughterhouse, packager, retailer, and online store. While this comes with additional costs, they effectively make 2.5 times the revenue while increasing the costs by approximately $2.28 per pound with potential profit margins of 10%. 

Governing Laws

There are a lot of laws covering poultry farming and egg production. You’ll want to familiarize yourself with:

• EPA rules on animal feed operations
• USDA policies regarding livestock
• Farmers Service Agency (FSA, a division of the USDA specifically to help farmers succeed)
• State agencies may have policies about farming permits, licensing, or inspection. Check the FSA map to find experts on your state regulations.
• Many cities and counties may have regulations that apply to starting a chicken farm. I would suggest talking to your local SBA office and health district.

Don’t forget to register your farm. Marion Acres is a multi-member LLC, but it operates similarly to a partnership. Read our blog that walks you through how to register an LLC. 

Market Forces

Weather, unemployment, and disposable income all have an impact on farming poultry. Chickens don’t sweat, so temperatures above 90 degrees can jeopardize their health. Make sure to take that into consideration if you are considering how to start poultry farming.

Choose a Poultry Sector Next

Now that you know a little about the types of businesses involving poultry, what kind of poultry business are you going to start? [su_note note_color="#dbeafc"]

• Sell chickens for meat
• Sell eggs
• Create feed to sell for poultry farmers
• Hatchery and breeding chicks
• Egg and meat processing

[/su_note] Whichever one you choose, your focus should be on how to maximize the output for the lowest cost. Given the primary variable cost is feed, you want to focus on the following ratios:

• Broiler farm: meat per pound of feed 
• Laying eggs: Eggs per pound of feed 

Let’s look at the different breeds of chickens you can choose for your own poultry business.

Type of Bird

Were you raised on a chicken farm? If you weren’t, I bet you’ll be surprised by the number of chicken breeds available. Fortunately, Chicken Breeds List has an extensive knowledge-base about chickens. It’s basically a one-stop-shop about poultry farming for beginners, with over 31 different breeds ranked based on:

• Number of eggs per year
• Growth potential
• Aggressiveness
• Space requirements 
• And other considerations

They rate the Leghorn as the best egg-laying chicken and the Cornish Cross as the best for producing fast and plentiful chicken meat production. Look for their awards on sites that educate, breed, or cook chicken. If you see one of them, this means they are a poultry company focused on excellence. Oops! I spent half the blog educating us on the chicken industry. Let’s carry on with how to start a poultry farm in the USA.

Step 2. Write a Poultry Farming Business Plan

Poultry farming business plans help you keep yourself focused on your goals. Whether you just want enough to feed family and friends, you want to sell eggs or chicken meat locally, or you have dreams of becoming a major chicken farming business, a business plan will help. Check out our blog about business plan writing and write your own. If that’s not your style, we understand. Marion Acres has never had an official business plan. They told us; [su_quote]I would say we're kind of unofficial. A lot of the growth that we have had is just kind of the market driving us that way. The goals we have are probably how to become more sustainable as a farm, and how to become more self-sufficient down the road. And that could be a one to two-year venture.[/su_quote] After you have a business plan for your poultry farm, you’ll know whether you need extra funding or not. If you do, you might want to consider business loans.

Step 3. Poultry Business Loans

If you don’t already have land to start a poultry farm, you’ll need to get some. That means you probably need to buy it. Most landlords won’t love a chicken coop in their garage. Plus, there's other poultry farming equipment you’ll need. In addition to the standard loans available for most businesses, the FSA has farming loans that help people buy land, invest in equipment, and make it until the next harvest.  There’s even youth funding to help 10 to 20-year-olds do farming projects. Put your kid to work raising chicks! Teaching them young is great for when they want their own business. Next, choose a location for your poultry farm.

Step 4. Find a Location of Chicken Farm

Where are you going to raise chickens?  Well, that depends on how many you have. Raising chickens can be a space-consuming venture. The poultry farm business can consume three to ten square feet per chicken meaning you can fit about 33 chickens in a 10 x 10 space.  That means an acre can hold between 4k and 14k chickens, but that doesn’t leave room for much else. That would also be a massive chicken house.  Chickens also do best in 70° to 75° weather, and they can have heat strokes when temperatures get above 90°. Geoff told us: [su_quote]They've gotta have water. They'll die pretty quick if they don't. Especially in the heat.[/su_quote] You also want to create a farm where the cost of land plus transporting poultry products is balanced to minimize costs. 

Step 5. How to Make a Chicken Farm 

Poultry farm design is focused on creating effective layouts and processes to help chicken farms become more profitable and efficient. Check out the Big Book Project.  You’ll need to do things like: [su_note note_color="#dbeafc"]

1. Establish how to position everything on your land.
2. Decide how to make the most of your space.
3. Build a chicken coop.
4. Manage your supply chain.
5. Purchase and care for your chickens.
6. Process and sell your poultry products.

[/su_note] We’ll look at a few, but I strongly advise checking out the Big Book Project and talking to other poultry farming businesses to learn more about designing a small farm. Acclimating to the setting in person will give you a powerful perspective on chicken farming.

How to start a poultry farm: Build a Chicken Coop

  Marion Acres uses what they call a Chicken Tractor with a Gravity Water Delivery System for their broiler chickens. It’s an 8-foot by 8-foot enclosure made from:

• Nine 2” x 2” wood beams: $4 each = $36
• Seven 8’ x 2’ corrugated steel panels: $22 each = $154
• Chicken wire: $39 (should be approximately 1 roll)
• Nails and screws: $5
• Estimated Total: $234 + tax, shipping, and handling

When they built it, the total cost would have been about $220 for the coop and $60 for the gravity water delivery system.  This makes it where they can easily move the chicken coop to different spots on the poultry farm. Watch the video below to view how they built the chicken tractor. [su_youtube url="https://youtu.be/m4qhDGG1C3k?t=1115"] Almanac.com has a good read on how to make a chicken house. They suggest keeping the poultry house near where people are at all times of day so that someone can hear if a fox tries to enter the chicken house. Farm innovations have created intensive poultry housing systems. With automated feeders, watering systems, and other improvements, you can more easily care for your chickens. You’ll have to establish the proper settings for your poultry house because chicken breeds vary on their needs. Learn about some of the best feeding systems.

How to start a poultry farm: Buy Feed

Every chicken will need to eat. Without poultry feed, you’ll have a hard time keeping your chickens healthy. Chicken feed is made with specific purposes in mind. You can buy poultry feed for:

• Baby chickens: Starter food is best for ages that range from day old chicks to 20 weeks.
• Chicken broilers: If you’re just trying to raise chicks to sell the meat, get food specifically for broilers.
• Teenage chickens: If you want to keep your chicks properly cared for until they each become an adult chicken, you might want to change from starter food to grower food at six weeks. You’ll want to change this when they start laying eggs.
• Egg layers: Once chickens start laying eggs, they need layer feed to help produce healthier eggs. It’s like grower feed but with more calcium and minerals.

When you’re just getting started, you can buy feed from Amazon or Walmart, but you may want to buy in bulk. When comparing a 40 to 50 lb bag to a 2,000 lb order, you can save up to $1,000 by buying in bulk based on online pricing.  Check out this blog to learn more about feeding chickens. You’ll want other equipment, too. 

How to start a poultry farm: Other Equipment

You will need equipment based on the chicken products you sell, the space you have, and your budget. Some of the items you might need before you buy your chicks include: [su_note note_color="#dbeafc"]

• Cages
• Feeders
• Waterers 
• Waste removal system(s)
• Lighting instruments
• Brooders (for breeding)
• Heaters (for cold weather)
• Crates (for collecting eggs)
• Egg trays (for handling and selling eggs)
• Perches (for laying hens)
• Nests (for laying hens and breeding)
• Incubator (for breeding)

[/su_note] Once you have all the equipment setup, it’s time to find dependable breeders.

Get Your Chickens

It’s time to buy some quality chicks from a reputable breeder. You can buy locally or online, but be careful when buying online. There are two ways to get new chickens and it sounds like a joke. You get to choose between the chicken or the egg. Geoff told us: [su_quote]You definitely wanna buy day-old chicks. Leave the hatching of the eggs to the hatchery.[/su_quote] Based on my research, it seems that eggs and chickens sell for about the same price, which means you are better off with the chicks. If you decide to expand your business to incubate your own eggs later, you can potentially increase your profit. You’ll need to learn poultry science first, though. Some breeders are more honest than others, so make sure they have a guarantee. You might also ask if they have an American Poultry Association flock certification. Some of the ones consistently mentioned include:

1. Jenks: Business success is often measured by profitability, but longevity is also important. As the longest operating poultry company supplier, they know they understand the poultry farm business.
2. Cackle Hatchery: If you are looking to buy from only one supplier, Cackle is probably the place. They sell pretty much everything you need for raising and selling chickens. Plus, they’ve been around for over 80 years.
3. Privett Hatchery: If you are on the west coast, you might consider getting your chickens from Privett. It’s in New Mexico making it more convenient for a farmer located in the southwest United States.

You can find more breeders and fertile egg suppliers on Chickens and More.

Step 6. How to Run a Chicken Farm

  Poultry farming is a delicate business. You have to:

• Feed your birds the proper nutrients: We discussed this in the section on feed. This will help promote chicken health.
• Treat against poultry diseases: If your flock catches a chicken disease, you need to separate the sick ones and care for them. You may also have to hire a vet. Learn more about diseases chickens catch.
• Protect against predators: We discussed this during the section on design.
• Dispose of their waste: You’ll need a waste disposal system to help keep the chicken coop clean. 
• The deep litter system is a method of composting inside the coop. 
• You can also use an automated system.

Geoff and John use manual processes. They told us: [su_quote]We move the chicken tractors around so their waste fertilizes the land. Every animal plays a role in the ecosystem.[/su_quote]

• Treat against poultry diseases: If your flock catches a chicken disease, you have to separate sick ones and care for them. You may also have to hire a vet.
• Maintain documentation of care: You'll need a great system to document your date of purchase, care, date of processing, and more. Check out USDA documentation requirements.

Author’s note: During my experience in the building automation industry, I found that automated systems make documentation of anything much easier. When you can easily check a log to see when feed was distributed, water consumed, temperatures, and other relevant data, it is much easier to comply with government regulations.

Step 7. Process the Birds

Once the birds have matured to an age you can sell them (typically six to 20 weeks), you need to turn them into meat. Most people will do this using an external processing company, which we discussed in the industry overview, but Geoff and John do it themselves. They told us: [su_quote]I wish we would've known more about how it was going to go with the county in developing the processing facility. I think we probably would've just hired a project manager and said, "Deal with the county, make sure everything is taken care of. Let us focus on the stuff we're good at.  And I don't wanna be distracted by explaining to the county about our storage tanks... In the end, I think it (hiring a land-use consultant) probably would've saved us a lot on (the) schedule.[/su_quote]

Step 8. Sell the Chickens or Eggs

There are several ways for a poultry farm business to sell their chickens and eggs. The business can sell its products to:

• Consumers: Reach this target market through websites, social media, your own retail location, and farmers' markets.
• Restaurants: Get in touch with restaurant owners through similar channels as consumers but also through trade organizations.
• Poultry processors and wholesalers: Join trade associations or keep reading to find out how to farm for Perdue or Tyson.

How to start a chicken farm for Perdue

If you want to learn the benefits of poultry farming with Perdue, check out the links on their poultry initiatives. As a Perdue farmer, you get access to: [su_note note_color="#dbeafc"]

• Some of the most advanced systems in the industry
• A consistent supply of industry best practices
• A regional vet dedicated to helping provide care for your poultry
• Flock advisors to help you maximize gross income and profit
• Technical assistance to maintain your systems

[/su_note] They'll guide you through the process of how to start a poultry farm for Perdue.

How to start a chicken farm for Tyson

If you’re wanting to contract with Tyson, check out their prospective farming partners page. They use guidelines from the University of Georgia and contract with more than 6,000 contract farmers. Contact the nearest live operations manager if you’d like to discuss how to start a poultry farm with Tyson.

How to start a chicken farm to sell eggs

Egg-selling poultry farms have many of the same requirements as broiler farms, but they are focused on getting the most eggs per unit of feed. You’ll be trying to keep your chickens healthy for a longer period of time because layers often start egg production near 20 weeks and can produce eggs daily for three to four years.

Step 9. Other Business Functions

In addition to the basic equipment and chicken care, you’ll need to have your systems in place for standard business operations like: [su_note note_color="#dbeafc"]

• Hiring
• Accounting
• Marketing
• Bartering (unique to farming)

[/su_note] Fortunately, John and Geoff gave us a ton of information on what they use to operate their business selling broiler chickens.

How to start a poultry farm: Hiring

Marion Acres, LLC emphasizes two aspects when hiring:

1. Skill: Do they at least somewhat understand the job?
2. Personality: Are they fun to be around? Similar values? Work Ethic?

For processing employees, they told us: [su_quote]It's called Poached. I think that attracts more of the food service industry, people that are used to handling knives and processing things, stuff like that. So we use that for the processing facility.[/su_quote] They also explained most other positions are easily filled with walk-ins and “now hiring” signs.

How to start a poultry farm: Accounting 

Marion Acres uses a variety of tools for accounting. John told us: [su_quote]Geoff does (accounting), but we do use QuickBooks Online, a lot of spreadsheets.[/su_quote] You can connect QuickBooks to most software, so you might be able to integrate it with other software you love. Geoff and John told us: [su_quote]We use Clover for here in the store. Shopventory, which handles our inventory. And we do use Square for some of our online.[/su_quote] Make sure you understand your accounting processes because you’ll need to have sufficient funds or be well documented for the farm programs. Learn about other accounting software for farmers and have a professional accountant help you set it up properly.

How to start a poultry farm: Marketing

John discussed their marketing strategy with us: [su_quote]We have mainly my wife who oversees that team, Rachelle. There (are) about two people right now, besides her. So three total.  We use Wix, which is very user-friendly, and a very simple platform. It just uploads some pictures and types in some things and they make it look good. So kudos to Wix.   The team that manages that also manages the inventory.[/su_quote] Marion Acres uses social media because it’s so powerful. Check out their Instagram and LinkTree. Like most business owners, they have found that their search engine optimization is what truly helps drive awareness. They also mentioned that customer service is a big part of their value. They treat people like family and have a beautiful view with picnic tables. Geoff and John have created such a pleasant experience that some customers come almost daily.

Go start your own business!

Chicken is a staple of most people’s diets. Now you have an idea of how to start a poultry farm, so take a training course with poultry farming for beginners, buy some baby chicks, and get farming today! Which type of farming would you rather do, broilers or egg-layers?