33 Great Business Ideas For Men (to Start in 2024)
July 19, 2023
Did you know that approximately one in nine men owns a small business? If you want to join the ranks of small business owners, check out some of our best business ideas for men.
Many of these business ideas are working with your hands. Most of them make great money and will help you become more self-sufficient.
Click on one of the businesses below to learn more about these business ideas for men.
What are the 10 most profitable businesses for men?
Want to get the most bang for your buck? We’ll start our list with the most profitable business ideas, ones with a high return on your investment of time and energy.
#1. Social media marketing
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, people with strong digital marketing skills
These days, just about every business owner uses social media sites to connect with their customers, but not all entrepreneurs are experts in these platforms. That makes becoming a social media manager one of the most profitable business ideas for men with strong marketing skills and social media expertise.
While you can make good money in social media marketing as a one-man business idea, starting an agency lets you scale revenue even further. Eric Berman started Brandetize in 2001, and today the company earns an average revenue of $400,000 a month. Listen to his advice on how to get started here:
#2. App and software development
Average Annual Revenue: $400K-$1M+
Average Profit Margins: 14.5%
Startup Costs: $100-$50K, depending on size and scope
Time To Revenue: 3 months to 2 years
Annual Market Growth Rate: 3.1%
Best for: Programmers, software developers, digital design experts
An average of 250 million apps are downloaded every day, with $129 billion spent on apps in 2022. You can get in on this billion-dollar industry by starting your own business selling apps on the Google Play store or Apple app store.
One great thing about software or app development is the variety of revenue streams. You can sell the app itself, include in-app purchases, or design custom software for other businesses.
Whatever business model you choose, you don’t need much to get started. With just a few tools and coding skills, you can turn your app idea into a lucrative business venture.
How lucrative? Pace Ellsworth makes an average of $45,000 a month with his software development business. Find out more in this podcast interview:
#3. Dropshipping business
Average Annual Revenue: $36K-$50K
Average Profit Margins: 5%
Startup Costs: $150-$500
Time To Revenue: 1-3 months
Annual Market Growth Rate: 25%
Best for: marketing, social media, and automation experts; organized and process-oriented entrepreneurs
If you’re looking for profitable one-man businesses you can start from home, dropshipping is an excellent way to earn money online with a small startup capital investment.
In a dropshipping business, you sell products that are made and stored elsewhere. The dropshipper markets and sells products to customers through their own website or online store but doesn’t need to store or ship the inventory themselves.
The UpFlip blog on how to start dropshipping has step-by-step advice for starting your own successful business in this niche. We also did a podcast interview with Heather Johnson, who started her print-on-demand dropshipping business as a side hustle and now makes an average of $15,000 a month in revenue. Hear her advice here:
#4. Cleaning business
Average Annual Revenue: $74K+
Average Profit Margins: 6.7%
Startup Costs: $1K-$30K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.2%
Best for: Detail-oriented entrepreneurs, organizers and neat freaks
In the post-pandemic world, people are more concerned than ever with keeping their environment clean both at home and in the workplace. This makes a cleaning business a very profitable small business idea with a high demand.
There are a variety of models for a cleaning business. You can work with both residential and commercial customers or focus on a tighter niche, like home cleaning or janitorial services. You can also work with other local businesses like Airbnbs or apartment building landlords.
The UpFlip 7-Figure Cleaning Business Blueprint is an excellent resource for anyone who’s considering this profitable small business idea. You can also hear advice from course instructor Chris Mondragon in this YouTube interview:
#5. Catering business
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: chefs, cooks, bakers, and other food experts
Restaurant businesses can be very lucrative, but they require substantial financial resources to start and have a high failure rate, with 80% failing within their first 5 years according to the National Restaurant Association.
A catering business is an excellent alternative, with significantly lower startup investment and more flexibility than a brick-and-mortar restaurant business.
Connecting with other small business owners is a great way to grow a catering business. For example, you could sell grab-and-go options in a cafe, or partner with an event planning business to cater weddings, parties, or corporate events.
#6. Food truck business
Average Annual Revenue: $41K+
Average Profit Margins: 6.4%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 1.2%
Best for: outgoing food experts, chefs, and cooks with strong marketing and customer service skills
Another alternative way to get into the food retail industry is to start a food truck. Like catering, this is a profitable business idea for people who have cooking and customer service skills but lack the capital to start a full-service restaurant.
Like a catering business, a food truck offers lots of flexibility and room for growth. Carlo Chalisea started with a small food cart, expanding into a full truck and then into a restaurant as his business grew. Hear his story here:
#7. Bakery business
Average Annual Revenue: $1.52M
Average Profit Margins: 5.4%
Startup Costs: $100-$3M
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.1%
Best for: foodies, bakers, food service professionals
Another of the most profitable small business ideas for men who love food is to open a bakery. Like catering, there are multiple ways to start your own bakery business. One business model is to have your own storefront, like the 7-figure Wild Wheat bakery:
You can also make bread and pastries for commercial customers like cafes and restaurants or sell baked goods directly to customers in an online store.
The variety of revenue streams you can explore is why a bakery is among the most profitable small business ideas in the food industry.
#8. Vending business
Average Annual Revenue: $182K+
Average Profit Margins: 4.3%
Startup Costs: $2K-$10K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.5%
Best for: organized entrepreneurs who like driving; people who want a semi-passive business
Vending machines are a convenient way to provide food and drinks in schools, workplaces, and other places people gather. A vending business is among the best business ideas for men who want full control over their schedule. It’s also one of the top business ideas for beginners since you don’t need special skills or equipment to be successful.
The start-up costs for a vending business vary widely. They can be as low as a few thousand dollars if you start with just a few machines, or $25,000 or more if you’re buying an entire route.
Adam Hill of Hill Vending walks through the process of starting a vending business step-by-step in UpFlip’s Vending Bootcamp. You can also hear some of Adam’s insights in this YouTube interview:
#9. Construction business
Average Annual Revenue: $696K+
Average Profit Margins: 3.4%
Startup Costs: $1K-$100K
Time To Revenue: 1-6 months
Annual Market Growth Rate: -1.3%
Best for: skilled tradesmen, architects, builders, and real estate experts
The U.S. construction market was a $2.1 trillion industry in 2022, and that market is growing. General contractors and other construction professionals work with both residential and commercial customers, and both sectors are forecasted to grow over the next five years.
You will need to be licensed to run your own successful business in construction. You don’t need to go to school to get the necessary skills and knowledge, though. Vitaly from VP Homes learned the trade on the job when he was 18 and now builds custom homes for a very healthy profit (hear his advice in the video below).
#10. Car rental business
Average Annual Revenue: $5M+
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, car experts, and collectors
If you have a passion for classic or luxury cars, you can turn that into a profitable small business idea with a rental service.
While buying a large rental fleet can mean a 7-figure investment, there are more affordable ways to get started, too. One option is to rent out cars you already own through a site like Turo, then use that revenue to expand your fleet. Car repair experts can also save on both initial and ongoing costs by restoring and maintaining vehicles themselves.
As for how much you can make, Ronnie Danelian averages $175,000 a month with Legends Car Rentals. Hear how he got started in this interview:
12 unique business ideas for men
#1. Floor coating business
Average Annual Revenue: $1.2M+
Average Profit Margins: 2.8%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: -0.1%
Best for: construction and repair professionals, systems-oriented entrepreneurs, people with skills in math and chemistry
Epoxy floor coating is a protective layer often used in commercial spaces or residential garages. Installing floor coatings is one of the best small business ideas for men who like both working with their hands and meeting and talking to people.
It’s also a great choice for people who want to build a team and focus on sales, marketing, and growing the business. That’s what Brandon Wise did when he started Wise Coatings, and he quickly scaled to $500,000 a month in revenue. Here’s how he did it:
You will need some niche knowledge to install floor coatings. Getting a mentor in the business can be a huge help in doing this if you don’t have experience to draw on.
#2. Solar business
Average Annual Revenue: $1.3M
Average Profit Margins: 5.7%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.9%
Best for: construction workers, effective salesmen, people with a passion for the environment
Solar panel installation is a fast-growing industry, projected by the BLS to grow at a CAGR of 27% through 2031. As people look for ways to live more sustainably, the demand for solar power will continue to rise.
Installing solar panels requires some construction knowledge in areas like roofing, metal fabrication, and basic contractor skills. This is one reason it’s great for a male entrepreneur with a background in construction.
A solar business can make very good money for those with a combination of sales and construction skills. There are also niches like solar landscape design or photovoltaic system installation that can be a profitable business model in saturated markets.
#3. Drone business
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 and videographers, drone users and experts
Drone photography has a ton of uses. You can record events like festivals and weddings, work with real estate agents and land surveyors, or make marketing and advertising materials for other local businesses.
Whichever of these drone business ideas you’re drawn to, it’s a unique and lucrative way to start your own business as a photographer. Mile High Productions started as a side hustle and grew to $35,000 in revenue a month by landing high-profile clients. Hear their advice on getting started in this video:
#4. Scrap metal business
Average Annual Revenue: $52M+
Average Profit Margins: 2.9%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.9%
Best for: materials and construction experts, business men who like physical work
Scrap metal recycling might not be the most glamorous option on the list, but its high demand makes it a great small business idea for men who like physical work. The sector is expected to grow to $88.5 billion by 2030, opening up lots of opportunities for new profitable business ideas.
A scrap metal business collects recyclable materials and turns them into raw materials for new goods. Along with being a potentially profitable small business idea, this helps the environment by reducing the trash in landfills and the need to mine new metals.
You will need some niche knowledge about different metals and how to process and separate objects for scrap. Getting experience or a mentor in the industry is a crucial factor in succeeding in this industry.
#5. Car repair or tuning
Average Annual Revenue: $268K+
Average Profit Margins: 6.1%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 2%
Best for: mechanics and car experts, detail-oriented entrepreneurs
More than 91% of U.S. households own at least one car, and people are keeping those cars longer than in the past. The consistent demand for automotive services puts this among the best small business ideas for men who love cars.
One option is to open an auto repair shop.This can require a high startup investment, though it can also yield big returns. This step-by-step blog post explains how Lucky Sing started his $500,000 a year auto shop with $20,000.
Car tuning is another niche business for auto experts. You can learn how the $7 million tuning company Sheepy Race started in this video:
#6. Fingerprinting business
Average Annual Revenue: $132K+
Average Profit Margins: 9.1%
Startup Costs: $500-$250K
Time To Revenue: 6-18 months
Annual Market Growth Rate: -0.6%
Best for: legal and security professionals, regulatory experts, process- and detail-oriented entrepreneurs
Lots of people need fingerprinting services, from law enforcement to businesses doing background checks on new hires.
Fingerprinting is a great business idea with a minimal initial investment. While you will need some training, you don’t need a degree or other costly education.
Dan Jurkowisch is an expert in fingerprinting businesses, and he shared his insights on how to start this profitable business idea in this podcast:
#7. Cell phone or 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: detail- and systems-focused entrepreneurs, electronics and repair experts
Electronics repair is a billion-dollar business—$21.1 billion in 2022, to be exact. This puts it among the profitable small business ideas for men who know how to fix cell phones, computers, and other electronics.
Electronics repair is a flexible business with low start-up costs. You need just a few tools and a space to make repairs. As a home business for men that advertises services online, you can get started for under $100.
A physical storefront will cost more but also has higher revenue potential. Find out how Joe’s Electronics Repair grew to a 7-figure small business in this interview:
#8. Shed building business
Average Annual Revenue: $696K+
Average Profit Margins: 3.4%
Startup Costs: $1K-$100K
Time To Revenue: 1-6 months
Annual Market Growth Rate: -1.3%
Best for: handymen, DIY builders, construction and woodworkers
Building a shed is one way homeowners can maximize the usable space on their property. Since the training and licensing requirements are lower compared to other construction businesses, it’s a good business idea for men who love to build things but don’t have construction industry experience.
Having a niche can help you grow faster in this industry. Outdoor Office focuses on building shed workspaces. After starting in a garage, it quickly grew to a $1.2-million-a-year business.
#9. Painting business
Average Annual Revenue: $76K+
Average Profit Margins: 7.2%
Startup Costs: $1K-$100K
Time To Revenue: 6-18 months
Annual Market Growth Rate: -2.0%
Best for: men who like physical and outdoor work, painters and artists, construction and repair pros
Painting is another excellent small business idea for men in the construction niche that doesn’t require licensing or extensive training.
Many successful small businesses in painting start as small one-man business ideas. There’s a lot of growth potential, too. Doug Caris bought Arizona Painting Company in 2014 and has grown it to 5 locations with $2 million in monthly revenue. He explains how he did it in this podcast:
#10. Van conversion business
Average Annual Revenue: $665K+
Average Profit Margins: 7.8%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.8%
Best for: DIY builders and makers, creative problem solvers, interior design pros
Converted vans are a favorite vehicle of digital nomads and other travelers. Turning vans into mobile living spaces can be a fun and lucrative business for men, letting you earn money from your building and design skills.
Axis Vehicles is just one of many successful small businesses in this niche. You can find out how they grew to $65,000 a month in this YouTube interview:
#11. Trucking business
Average Annual Revenue: $449K+
Average Profit Margins: 5.5%
Startup Costs: $1K-$100K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.9%
Best for: logistics experts, travelers and drivers, vehicle repair and maintenance pros
Roughly 72% of freight in the U.S. is transported by truck, driving the industry’s $875 billion in revenue in 2021. That puts trucking among the best business ideas for men who have a mind for logistics or experience in freight transportation.
While a trucking business can have high start-up costs, there’s a lower barrier to entry on the knowledge side. Mikael Sant started Sant Lines when he was only 19, so this is a good option for a young business man, too. Hear how Mikael grew his company in this podcast interview:
#12. Gym or personal trainer business
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: athletes, fitness and exercise experts, strong communicators and motivators
Fitness is another massive industry, especially in the United States, where it generated over $1.5 billion in revenue in 2022. This puts being a personal trainer or gym owner among the best small business ideas for men with a passion for exercise and wellness.
Being a personal trainer is a great home-based business for men who want to get into the fitness industry. You can teach out of a home studio, go to clients’ homes, or work out of a community center or local gym.
If you want your own brick-and-mortar business, you can start a gym. That has a higher startup cost, though it might be smaller than you’d expect. Jake Brog started his own gym for less than $10,000 and explains how in this interview:
1-man business ideas: What are 5 good business ideas for solo entrepreneurs?
#1. Start your own e-commerce business
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 and hand-crafters, designers, sales and marketing experts
Starting your own online store is a great way to earn money from anywhere on your own schedule. What’s great about an e-commerce business is that you can sell anything you can find a market for.
An e-commerce business is the best fit for people with digital marketing skills, though you can also develop these as you grow if you don’t have them from the start.
This is also a business you can start with 1000 dollars or less. You can check out this step-by-step guide for advice on starting your own online store, or watch this interview with the founder of the unique e-commerce business I Heart Dogs:
#2. Event planning business
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: strong networkers, extroverts, organized and system-driven businessmen
Event planning is often overlooked on lists of manly business ideas, but it’s among the best small business ideas for men who are extroverted and excel at planning and organization.
A successful business man with a strong local network can make good money organizing private parties, community gatherings, or conferences and other corporate events. This variety is one reason it’s among the best self-employed ideas for men.
#3. Mobile detailing
Average Annual Revenue: $241K+
Average Profit Margins: 16.1%
Startup Costs: $1K-$100K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 1.8%
Best for: car and truck lovers, detail-oriented and outgoing entrepreneurs
Mobile detailing is an ideal small business for men who want a minimal initial investment and high profit potential. Since you go to your customers, you don’t need a commercial space. The convenience of mobile services also gives this sector high demand.
You can start a mobile detailing business with as little as $500. Learn how Alan from GoDetail grew his detailing business revenue in this YouTube interview:
#4. Affiliate marketing
Average Annual Revenue: $60K-$160K
Average Profit Margins: 8%
Startup Costs: $500-$2K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 10.5%
Best for: bloggers, influencers, digital marketing and social media experts
Many successful bloggers use affiliate marketing as an extra revenue stream. It’s also among the top stand-alone home business ideas for men who want flexibility and the potential for passive income. All you need to start is your own website, blog, or other outlet to connect with customers.
As you might guess from the name, marketing skills are crucial for a small business man to succeed in this business. Matt Diggity is an expert in affiliate marketing and shares more tips in this podcast interview:
#5. Data entry
Average Annual Revenue: $35K-$50K
Average Profit Margins: 10.5%
Startup Costs: $100-$200
Time To Revenue: 1-3 months
Annual Market Growth Rate: 1.90%
Best for: fast typers, clerical and administrative pros, people with a sharp eye for details
Data entry is the best one-man business to start if you want to make money quickly without investing much up front. All you need is basic computer equipment and an account on a site like Upwork or PeoplePerHour to get clients.
While data entry isn’t the most exciting work for many, it is very flexible, and there’s consistent demand for these services. You can also use automation and other software tools to handle the more repetitive work, increasing your profitability at the same time.
What are 3 good business ideas for 25-year-old men?
#1. Tutoring
Average Annual Revenue: $30K-$50K
Average Profit Margins: 13.1%
Startup Costs: $100-$1K
Time To Revenue: 1-6 months
Annual Market Growth Rate: 8.5%
Best for: Educators, experts in academic subjects, people who want to help and mentor others
Offering tutoring services is a popular way for students and recent graduates to earn extra cash. It’s also an excellent home-based business idea with a low startup cost.
Communication skills are key to starting a successful business in tutoring services. Having knowledge in a school subject area is helpful, too, but that won’t help your students if you can’t convey that knowledge effectively.
As for where to get students, one great way is to connect with local schools and colleges. You can also tutor online through platforms like The Tuition Teacher, Preply, TutorMe, or Wyzant.
#2. Pressure washing business
Average Annual Revenue: $64K+
Average Profit Margins: 8.8%
Startup Costs: $200-$5K
Time To Revenue: 3+ months
Annual Market Growth Rate: 0.9%
Best for: men who want to work outdoors; people with customer service, time management, and mechanical skills
Pressure washing is among the best small businesses for men under 25 because it’s cheap to start and easy to learn. A pressure washing business also has big revenue potential.
Chase Lille started his business when he was 18, and he brings home 50% margins on his $12,000 average monthly revenue. Hear how he got started in this interview:
#3. Landscaping business
Average Annual Revenue: $272K+
Average Profit Margins: 8.7%
Startup Costs: $1K-$100K
Time To Revenue: 1-3 months
Annual Market Growth Rate: 8.1%
Best for: gardeners, landscape designers, people who love hands-on, outdoor work
Rounding out our recommended self-business ideas for men under 25, a landscaping business shares a lot of advantages with pressure washing. This includes a low startup cost, no licensing or education requirements, and high scalability.
Mike Andes was in his early 20s when he started Augusta Lawn Care. Within three years, he grew it to 7-figures and started franchising to grow even further. Hear his story in this interview:
3 small business ideas for a 50 year-old man
#1. Real estate business
Average Annual Revenue: $298K+
Average Profit Margins: 44.6%
Startup Costs: $500-$5K
Time To Revenue: 1-3 months
Annual Market Growth Rate: -0.3%
Best for: strong communicators and negotiators, smart investors, construction and home repair pros
If you’re a business man with money, investing that into real estate could be your best business idea. There are a variety of small business ideas for men in the real estate sector, from flipping homes to managing multi-family properties to renting homes out as a landlord or Airbnb host.
Thach Nguyen built his real estate business from scratch. After starting as a realtor, he launched his own business by buying properties and now averages $800,000 in revenue every month. Hear his story and advice in this interview:
#2. Business consultant
Average Annual Revenue: $1.4K
Average Profit Margins: 6.4%
Startup Costs: $100K-$3.5M
Time To Revenue: 6-18 months
Annual Market Growth Rate: 1.3%
Best for: leadership experts, strong communicators, educators with business expertise
Experience is one advantage that comes with age. As a business consultant, you leverage that experience to earn an income and share successful entrepreneur small business ideas with others.
You can be a general business consultant or focus on a niche where you have expertise. For example, Ryan Gromfin pivoted from a career managing restaurants to consulting, giving him both more freedom and a higher income. Hear his advice in this interview:
#3. Handyman business
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: construction and repair pros, creative problem solvers, outgoing and hands-on entrepreneurs
Fixing things is one of those hobbies for men in their 40s that is also among the best business ideas for men in their 50s. A handyman does some physical work, but not the heavy lifting and exhausting labor found elsewhere in the construction industry.
This is also among the best side business ideas for men, and is a viable way to earn extra cash out of your home. Just advertise your services online through sites like Nextdoor or Craigslist and you can start building a customer base.
Caleb Ingraham started in construction. Seeing the demand for handyman services prompted him to pursue his own small business idea. Learn how he makes $1,000 a day in this interview:
Men’s Small Business Ideas FAQ
What is the best business to start for men?
There’s no single answer for the best business for men because some men like working outdoors, some like managing, some like problem-solving, and some just want to pay someone else to do the work.
If a business man wants the most profitable business, it’s an online lending company with nearly 100% gross profit and up to 30% net profit.
What businesses are easy to own?
The easiest businesses to own are where you trade your time for money. They normally have low startup costs, few regulations, and are exempt from taxes in many places. Consider ones like:
- Tutoring
- Affiliate marketing
- Personal Trainers
- Fingerprinting
- Data Entry
- Repair Businesses
- Recycling
What are some business ideas for black males?
Black businessmen can do anything any other businessmen do. The wealthiest black people in America develop their wealth from the entertainment industry and fashion, but these industries create the most millionaires
- Finance and Investments
- Technology
- Manufacturing
- Fashion and Retail
- Healthcare
I Wanted 1000 Business Ideas!
Be wary of anyone claiming to have more than 1,000 business ideas.
Here’s why:
The North American Industry Classification System (NAICS) currently only has 1055 NAICS codes. That means lists of business ideas with more businesses are repeating their ideas.
Here’s the downloadable all-business list.
What small business idea do you like?
There are so many business ideas for men that you can pursue whatever you want, but that doesn’t mean you should just jump in.
Women-owned businesses tend to be more successful, which means you might be better off partnering to get a more balanced approach.
If you start a business, would it be on your own or with a partner?
Author
Brandon Boushy
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Are you struggling to find your employer identification number (EIN)? There are 12 ways to perform an EIN lookup, and we’ll share them with you.
An EIN isn’t a subject often discussed in interviews, but I’ve applied for an EIN for several businesses. In addition, I once had an employer put the wrong EIN on my Form W-2. That was my introduction to the federal employer identification number, so I learned about EIN lookups years before starting my first business.
We’ll discuss:
A federal tax identification number (TIN or FTIN) refers to the tax ID you use on all tax documents involving the IRS. There are five primary TINs according to the IRS:
You should get a business’s EIN when starting a small business. You can go without a business EIN if you are a sole proprietor or single-member LLC without employees. You need an EIN if you fall into the following categories:
When considering how to lookup your EIN number, the best place to check is the EIN confirmation letter sent from the IRS. This document is sent to you after the EIN application is completed. There is no IRS EIN lookup for the general population. It’s essential to keep the unique identifier somewhere safe after you apply for an EIN. Check out the picture below to see where to find your tax id number.
We’ll explore how to find your EIN in other places next.
You can get your EIN from a bank because most banks require you to provide an EIN to open a business bank account. The business EIN will help you comply with government regulations and make it easier for lending institutions to establish your creditworthiness. Just talk to a banker in the location or call your bank.
Many eCommerce sites will ask you to input your EIN. You can check your business profile to see if you included it. Shopify and Printful have it where you can view them, but Shopify is difficult to find. See the screenshot below to find where to download the tax information on Printful.
I first learned about an FEIN number lookup because TurboTax was rejecting my W-2. I had to do an FEIN lookup to find the correct number. During my research, I realized the company excluded the first number of the EIN because it was a zero. So I tried using a search that included “company name EIN.”
My EIN number lookup didn’t yield the results I had hoped for so I looked at the pattern of the EIN and guessed that there was an issue with the software and the number. I added a zero to the front of it and did a reverse EIN lookup. A reverse lookup means that you search EIN number(s) you have and see what business name it belongs to.
Given search engines have access to information that normal companies don’t, I was able to establish the new EIN was correct and file my taxes.
- EINs and Other Tax Identification Numbers
- Why Your Business Needs an EIN
- How to Lookup Your EIN
- Ways to Lookup the EIN for Another Business
- Frequently Asked Questions About an EIN (with Answers)
What Is an Employer Identification Number (EIN)?
An employer identification number is a free tax identification number issued to a business by the Internal Revenue Service (IRS). According to the IRS, you need an EIN ”If you’re required to report employment taxes or give tax statements to employees or annuitants.” If you want a walkthrough of how to apply for an EIN, we provide it in the blog How to Register a Business. The EIN will be on all business tax documents. An EIN is a nine-digit number that follows the pattern 00-0000000, which makes an employer identification number easily distinguishable from a social security number (000-00-0000) and other tax identification numbers. We’ll cover some other uses of the EIN after discussing other federal tax identification numbers.What is an FEIN number?
An FEIN is a federal employer identification number and is typically used interchangeably with an EIN. It is the 9-digit identifier used for business communications with the IRS. You’ll also need a state EIN in states with personal income tax. That’s why you’ll see people use an FEIN. If you live in the following states, you don’t need a state EIN.- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
- New Hampshire
- Tennessee
Is there a difference between an EIN and an FEIN?
Yes. An EIN could refer to a federal or state employer identification number, while an FEIN specifically refers to the number the Internal Revenue Service uses to identify a business entity.What is a Federal Tax Identification number?
A federal tax identification number (TIN or FTIN) refers to the tax ID you use on all tax documents involving the IRS. There are five primary TINs according to the IRS:
- Social Security number "SSN"
- Employer Identification Number "EIN"
- Individual Taxpayer Identification Number "ITIN"
- Taxpayer Identification Number for Pending U.S. Adoptions "ATIN"
- Preparer Taxpayer Identification Number "PTIN"
What is my tax ID number?
A Tax ID number is what the IRS uses to identify your personal or business account. Common times to apply for an EIN are:- When a baby is born
- Upon entry to a new country (needed to work)
- When you start a business
Is there a difference between an EIN and a TIN?
Yes. An EIN will always be a TIN, but a TIN can also be an SSN, ITIN, ATIN, or PTIN. Each TIN is given to people based on different sets of circumstances. In addition, sharing your personal social security number will open you up to identity theft, but an EIN will not. Other TINs won’t work for a small business with employees. You specifically need an EIN nine-digit number issued for hiring.When Do I Need an EIN Number?
You should get a business’s EIN when starting a small business. You can go without a business EIN if you are a sole proprietor or single-member LLC without employees. You need an EIN if you fall into the following categories:
- The business hires employees.
- You are running a partnership or corporation.
- The small business files employment taxes, excise taxes, or alcohol, tobacco, and firearms tax returns.
- Your business employs a nonresident alien and pays taxes on non-wage income paid.
- A Keogh plan is used for your retirement account.
- You want to build business credit.
- Any of the following structures apply to the small business:
- Trust
- Non-profit organization
- Estate
- Real estate mortgage investment
- Farmers cooperative
- Plan administration
When does a Sole Proprietorship need an EIN number?
A sole proprietor will need an EIN if: [su_note note_color="#dbeafc"]- They hire employees.
- The business needs independent business credit.
- They are concerned about identity theft impacting their business.
- They want to have a business bank account, business credit card, or business loans.
Do I need an EIN if I’m self-employed?
No. There are some exceptions including:- Hiring employees
- Building business credit
- Protecting against identity theft
- Your bank requires them
How to Find My EIN Number
These are in the exact order that I would conduct a FEIN search if I didn’t know exactly where to find mine.Location 1: How to lookup my EIN number
When considering how to lookup your EIN number, the best place to check is the EIN confirmation letter sent from the IRS. This document is sent to you after the EIN application is completed. There is no IRS EIN lookup for the general population. It’s essential to keep the unique identifier somewhere safe after you apply for an EIN. Check out the picture below to see where to find your tax id number.
We’ll explore how to find your EIN in other places next.
Location 2. Business licenses and tax permits
Checking my business licenses and tax permits to see if my EIN tax ID is on there would be easy because you should know exactly where to find your documents. Hopefully, your business keeps them on the wall or somewhere equally convenient because most states require visible proof to the public that you are a licensed business.Location 3. Tax returns and other IRS documents
If you own an existing business that has filed a tax return, you’ll be able to find it in:- Box D of a 1040 or 1040-SR
- The top row of a Form 941 or Form 944
- W-2 Block B
- W-3 Block Box E
- 1099 Second box from top on the left
- 1096 Box 1 Source
- Form 940 Top box
- Form 945 Top right box
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Location 4. Internal Revenue Service phone number
In addition to the tax forms, you can do an EIN lookup through the IRS business and specialty tax line at 800-829-4933 between 7 am and 7 pm local time. Make sure the person who calls is the business owner or authorized agent. Authorized agents include a:- Corporate officer
- Sole proprietor
- Trustee of a trust
- Partner in a partnership
- Executor of an estate
Location 5. Bank
You can get your EIN from a bank because most banks require you to provide an EIN to open a business bank account. The business EIN will help you comply with government regulations and make it easier for lending institutions to establish your creditworthiness. Just talk to a banker in the location or call your bank.
Location 6. Loan applications
Lenders will have your business EIN number if you apply for a loan. You can ask them, but they will then have it in their CRM. I would personally avoid this if possible. Next, we’ll look at how to do an EIN lookup online.How Do I Find My EIN Number Online?
You can find your EIN online through most of the ways mentioned above except for those requiring a phone. Plus, you can check websites and credit reporting agencies.Location 7. Websites
Many eCommerce sites will ask you to input your EIN. You can check your business profile to see if you included it. Shopify and Printful have it where you can view them, but Shopify is difficult to find. See the screenshot below to find where to download the tax information on Printful.
Location 8. Credit reporting agencies
When you order a business credit report, it will provide all the information the company can gather about your business including:- The responsible party
- Any bankruptcy proceeding over the past three years
- Entity type
- Business tax ID number
- Revenue
- Profit
- Number of employees
- How it performs compared to the rest of the industry
- All the business trade lines
- Dun & Bradstreet (D&B): At over 200 years old, this is one of the oldest business credit bureaus in the world. It’s the main one that people suggest using for your EIN lookup. It runs about $15 to $40 per month for a subscription.
- Experian Business: You can order your credit report from Experian, too. They offer one time purchases for about $40 to $50, or you can choose monthly business credit reporting for under $200 per year.
How to Lookup EIN Number: Other Companies
The ways you can do a federal EIN lookup for other businesses will depend on: [su_note note_color="#dbeafc"]- Size: Larger companies are more likely to be found with a quick Google Search.
- Publicly traded: It’s easier to find the EIN for public companies than it is for a sole proprietorship because corporations send reports to the Security and Exchange Commission (SEC).
- Relationship to company: If you are an employee, there are different routes to get an EIN lookup free than if you have no relationship with the company.
- Use a Google search (all companies).
- Check SEC Reports (corporations only).
- Check the IRS database (nonprofits only).
- Contact the company’s accountant or a business owner.
- Buy a business credit report.
Location 9. Google search
I first learned about an FEIN number lookup because TurboTax was rejecting my W-2. I had to do an FEIN lookup to find the correct number. During my research, I realized the company excluded the first number of the EIN because it was a zero. So I tried using a search that included “company name EIN.”
My EIN number lookup didn’t yield the results I had hoped for so I looked at the pattern of the EIN and guessed that there was an issue with the software and the number. I added a zero to the front of it and did a reverse EIN lookup. A reverse lookup means that you search EIN number(s) you have and see what business name it belongs to.
Given search engines have access to information that normal companies don’t, I was able to establish the new EIN was correct and file my taxes.
Location 10. Securities and Exchange Commission (SEC) EIN lookup
In the section about tax returns, I listed a lot of documents that use an EIN for tax purposes. If a company is a privately held corporation, they have to submit the following documents to the SEC:- Quarterly reports (Form 10-Q)
- Annual reports (Form 10-K)
- Current reports (Form 8-K)
- Visit the SEC Statutes, Rules, and Forms page for a full list of filing documents.
Location 11. IRS database for nonprofits
If you need an EIN number finder for a non-profit organization (NPO), you’re in luck! You can search for tax-exempt organizations on the IRS website. People use charitable donations as a tax write-off, but the NPO only has to provide documentation under certain scenarios. If you are trying to claim the donation on tax returns, the company needs to be a 501( c )( 3 ). Make sure you check before you donate money and again when you file taxes.Location 12. Federal tax id number lookup company
In addition to credit agencies, there are paid tax ID lookup services. They apply for the TIN matching program with the IRS. If approved, they can look up an EIN with the complete company or person’s name, TIN, or both. An EIN operation like EINsearch.com provides an API for financial institutions and accountants to verify EINs.Did You Verify EIN Number Sources?
We covered a few ways to find an EIN Number. Let us know if you’ve found other ways to find an EIN number. We try to provide the most extensive lists possible. If you want to save this for later, download a copy of the free, printable how-to-find EIN number pdf below. Did we successfully answer how to look up a company’s EIN number?
Are you struggling to figure out how to run a successful business? Many business owners don’t figure it out on their first try, but Afshan Abbas, the owner of Fuchsia Shoes, told us:
[su_quote]Coming this far, [it] was having grit. We failed ten times, but the eleventh time it worked. So, it’s about repeating the process, trying out different things, and figuring out what works for you.[/su_quote]
We’ll share insight from successful businesses to help you learn how to run a business that lasts over a decade.
To effectively run a business, KPIs are necessary to measure progress. KPIs are metrics that measure how well your company is achieving goals laid out in the business plan, following your core values, and achieving your mission.
It’s commonly known that employees focus on what is measured and emphasized as important. Ensure that key performance indicators help measure the things that will keep you focused on running it as a business.
Keep reading for more business tips on how to run a business successfully.
One of the hardest things new businesses deal with is customer complaints. If you handle them well, they can help create a loyal customer, but you might lose a customer if you don’t satisfy their needs.
When a customer has a complaint, try the following process:
To run a business successfully, you have to manage your margins. For some companies, managing margins is easy.
Sanford Booth, a Big Frog franchise owner, told us:
[su_quote]Direct to garment is typically 60-70% (gross) margins or around 45-50% for screen printing, but it fluctuates from month to month based on how many non-profits I’m working with.[/su_quote]
Restaurants will often run such slim margins that they have to actively manage them by the hour to make sure their labor costs don’t rise too much and ruin their profitability. That’s why servers often don’t work eight-hour shifts.
Even if it’s small, you need a marketing budget. On average, businesses spend around 8-10% of revenue on marketing, but some spend up to 30%. During the early stages of the company, spend 8-10% of what you want to be making on marketing. It will pay off once you get there.
Be careful when marketing. You don’t want to spend it blindly. Pay attention to your cash flow and if it gets too low, alter your business plan to adjust for the marketing lessons you’ve learned.
Many business owners allow marketing to go far too long without improving it. You have to monitor the results, mainly social media marketing and paid ads.
If you just let it run without observing what channels are making a profit, you’ll lose too much money. When fine-tuning your marketing, make it a point to check its performance weekly. Once you’ve figured out which channels work, keep optimizing them and drop the rest.
Why Do Businesses Fail?
Businesses fail for many reasons, but the primary ones are:- Poor financial decisions
- Failure to grow sales
- Inability to manage inventory and growth
- Lack of Experience
How to Run a Business Well
#1. Use a Business Plan
To run a successful business, you need to focus on what the company is trying to achieve. A new business should write a business plan to help manage the company. Make sure to include: [su_note note_color="#dbeafc"]- Purpose of the company
- Business goals
- Mission statement and values
- Industry outlook including major and local competitors
- Market research
- Identify the target audience
- Identify ways to reach your ideal customers
- Identify the customer acquisition costs
- Marketing plan
- Financial projections for one year, three years, five years, and ten years
- Funding needed and how the company will get it
- A human resource management plan
- Necessary roles
- Employee benefits
- How to build company culture
#2. Use Profit Goals as Benchmarks for Success
Running a successful business means knowing your profit goals and measuring performance against them while running your business. These goals should be in a business plan, but you should frequently review them to measure your progress. The easiest way to establish profit goals is to start with the profit you’d like to make. Let’s assume your profit goal is $100K annually. Follow the steps below to find out how much revenue you’ll need:- Look up the net income ratio for your industry on NYUs Margins by Sectors chart.
- Divide your profit target by the net income ratio.
- That’s how much revenue you’ll need unless you can figure out ways to get a higher profit margin.
#3. Mission Statement
Successful business owners also use their mission statement to help guide business decisions. Your mission is simply what you do and why you do it. It is usually only a sentence or two. For instance, the following is Tesla’s mission statement: [su_quote]Tesla’s mission is to accelerate the world’s transition to sustainable energy.[/su_quote] It clearly states what the business leaders focus on accomplishing. Prominently displaying the company's mission where you and others will see it helps keep your team focused on your goals.#4. Values
You should write down your core values and keep them where you can view them regularly because your values should guide everything you do as you operate. Business functions such as customer service, hiring employees, and negotiating with vendors should all be based on your values. When you start a business, the values and mission are new ideas fresh in your mind, but as you progress further into the company, you may lose sight of them because of stressors like not having enough money. Make sure you review them consistently to align your business with your values. Keep reading for more tips on running your own business.#5. Key Performance Indicators (KPIs)
To effectively run a business, KPIs are necessary to measure progress. KPIs are metrics that measure how well your company is achieving goals laid out in the business plan, following your core values, and achieving your mission.
It’s commonly known that employees focus on what is measured and emphasized as important. Ensure that key performance indicators help measure the things that will keep you focused on running it as a business.
Keep reading for more business tips on how to run a business successfully.
#6. Show an Interest in Your Customers’ Problems (and a Desire to Solve Them)
A famous quote attributed to Theodore Roosevelt says: [su_quote]Nobody cares how much you know until they know how much you care.[/su_quote] Keep this in mind when you run a business because small businesses become successful through personal service. To truly understand how to run a company, you need to care about your customer base and help them solve their problems. Sometimes showing compassion can be a real challenge, especially when a customer is frustrated, but we can build our levels of understanding through conscious effort. Greater Good in Action is a site run by UC-Berkeley to help people develop better practices around compassion, forgiveness, and other qualities that help us be our best selves. I strongly recommend it. Keep reading for more business running tips.#7. Providing a Reliable Service Is Crucial
Potential customers expect to get what they need when they need it. When starting a business, make sure you make informed decisions about operating and what you carry. You must be reliable, or your target market will go elsewhere. The owner of Wild Wheat Bakery told us: [su_quote]You have to treat everybody that walks in this door with great customer service. Make sure they are getting what they need. Make sure you’re giving them quality food. Over 50% of our customers daily are our regular customers.[/su_quote] Check out our interview with him below. [su_youtube url="https://www.youtube.com/watch?v=j2_xwBgyFFU"] If you don’t provide your target market with the product or service they need, you’ll have difficulty maintaining your customer base and attracting new customers. Ensure you give the customer base the products and services they expect.#8. Deliver More than Is Promised to Every Customer
Imagine your air conditioning or heater stops working on an inclement day. So you call an HVAC company at 10 a.m., and they tell you they’ll be there within the next four hours. Meanwhile, you are highly uncomfortable waiting for them to get there. They call at the last minute to say they’ll be there in a couple of days. That’s a stressful scenario, and it’s not how to run a business. Sure, things go wrong, but that’s why a lot of creative professionals use the saying: [su_quote]Under-promise and over-deliver.[/su_quote] New businesses can do this by: [su_note note_color="#dbeafc"]- Providing worst-case time and price estimates and delivering for less.
- Throw in a small gift like a sticker, a coupon, or pieces of candy.
- Provide free bread or chips & salsa at restaurants.
- Fix something small that you can do quickly without charging.
#9. Reward Customer Loyalty
To effectively run a business, it is necessary to reward customer loyalty because two-thirds of new customers come from referrals, according to SignPost. If you don’t already have a loyalty program, set it up now and offer benefits that show you value your returning customers. To find a loyalty program that works for your business, check out Capterra’s shortlist. For best results, make sure it integrates with your customer relationship management software and accounting software so that you can effectively measure the results of your loyalty program. There’s more! Keep reading our tips on running a business. Keep reading to learn how to run a small business when a customer complains.#10. Handle Customer Complaints Immediately
One of the hardest things new businesses deal with is customer complaints. If you handle them well, they can help create a loyal customer, but you might lose a customer if you don’t satisfy their needs.
When a customer has a complaint, try the following process:
- Hear them out.
- Apologize for the inconvenience.
- Ask what you can do to make it right.
- Do what they ask (within reason).
#11. Operate Lean
Operating lean should be considered one of the basics of running a business. Lean focuses on several factors, including: [su_note note_color="#dbeafc"]- Limiting the amount of inventory and equipment you buy to what is currently needed
- Finding ways to remove waste
- Focusing on continuous improvement
- Making everything easier for employees and the business owner
#12. Avoid Unnecessary Loans
Borrowing money makes it harder to grow a business unless you have a solid plan for it and follow through. Loan payments increase expenses, and interest rates quickly become higher than your profit margins, especially when using credit cards. In one of his interviews, Paul told us that he avoids loans and selling equity because someone else thinks they have a say in the business.#13. Manage Your Margins
To run a business successfully, you have to manage your margins. For some companies, managing margins is easy.
Sanford Booth, a Big Frog franchise owner, told us:
[su_quote]Direct to garment is typically 60-70% (gross) margins or around 45-50% for screen printing, but it fluctuates from month to month based on how many non-profits I’m working with.[/su_quote]
Restaurants will often run such slim margins that they have to actively manage them by the hour to make sure their labor costs don’t rise too much and ruin their profitability. That’s why servers often don’t work eight-hour shifts.
#14. Cut Underperforming Lines
If you are offering products or services that tie up resources without making a reasonable profit, eliminate them. There’s no reason to have money tied up in inventory that isn’t selling. If you are using net-30 payments, slashing the prices to pay it before the interest kicks in may be necessary.#15. Outsource as Many Functions as Possible
As a business owner, focus on making the business money. You should outsource anything that doesn’t increase your business's revenue to the best provider for your budget. Areas you should consider outsourcing to another company or freelancers on Fiverr or Upwork include:- Bookkeeping
- Marketing
- IT
- Administrative work
#16. Offer Industry-Leading Pay and Benefits
If you decide you need to hire people, take care of them. A Harvard study showed that increased wages improved productivity more than the cost of labor, reduced turnover, and increased the ease of recruiting. The old saying, “Take care of people, and they take care of you,” definitely holds in business. Do some market research to find out what competitors in your industry are doing and then offer a little more. If you pay your people as much as you can and give them the benefits to take care of themselves, it will create loyalty that eludes many businesses today.#17. Hire Passionate Employees
Remember the mission statement and values we suggested you review frequently? Review them before every interview. Most jobs you can train people to do, but it’s much harder to teach people to have a positive attitude, passion for what you do, and share values they don’t already hold. So look for people who already embody your company culture. Just be easy on them in the interview. Some people are highly passionate but clam up in job interviews. If you can do a “working interview” and allow them to do the job with you for a few hours or a day, do it! If you can do a “working interview” and allow them to do the job with you for a few hours or a day, do it! You are far more likely to see a potential employee’s personality than if you just do a 30-minute interview. Most people have some anxiety in interviews. Based on my work in photography, it takes about 45 minutes for someone to shed their nervousness. Give them a chance to show their true self.#18. Maintain a Marketing Budget
Even if it’s small, you need a marketing budget. On average, businesses spend around 8-10% of revenue on marketing, but some spend up to 30%. During the early stages of the company, spend 8-10% of what you want to be making on marketing. It will pay off once you get there.
Be careful when marketing. You don’t want to spend it blindly. Pay attention to your cash flow and if it gets too low, alter your business plan to adjust for the marketing lessons you’ve learned.
#19. Hire an Agency
One of the benefits of hiring an agency is having multiple specialists to help you achieve your goals. A good agency should have: [su_note note_color="#dbeafc"]- High-quality content marketing specialists.
- Social media management specialists.
- Graphic designers create content such as infographics, videos, and memes.
- People who specialize in optimizing search engines.
- Paid ads experts.
- Google My Business Experts.
#20. A Successful Business Tells a Story
Marketing is like Hollywood storytelling. In it, your customer is the main character, and you are the sidekick, the person who helps them overcome their antagonist (the problem they are trying to solve). Make sure your marketing keeps that in mind at all times. If you successfully tell a story that communicates how you can help them achieve their goals, you’ll be on your way to knowing how to run a business.#21. Stop Wasting Time and Money on Marketing that Doesn’t Work
Many business owners allow marketing to go far too long without improving it. You have to monitor the results, mainly social media marketing and paid ads.
If you just let it run without observing what channels are making a profit, you’ll lose too much money. When fine-tuning your marketing, make it a point to check its performance weekly. Once you’ve figured out which channels work, keep optimizing them and drop the rest.
Closing Thoughts on How to Run a Business
Business success relies on a variety of different skills. Regardless of what industry you are in, you should make it a point to be resilient, open to change, and learn when to cut your losses. Learning how to run a business is highly challenging but equally rewarding. Don’t be too hard on yourself. Check out our blog about business podcasts to find more great insights on running businesses. What are the most challenging parts of business operations for you?
Every interaction counts in the dynamic realm of sales. Each prospect holds the potential for growth. That’s why mastering the art of opportunity management is crucial to your success in a competitive market.
We’ll explore opportunity management by guiding you through its definitions, synonyms, and fundamental goals within the sales landscape. We’ll provide strategies, best practices, and software recommendations to empower your business to manage sales opportunities effectively.
[su_note note_color="#dbeafc"] Click on any of the links below to jump straight to the section that interests you, or just read on.
- What is opportunity management?
- Sales opportunity management goals
- How to manage sales opportunities
- Best practices for managing the sales process
- Opportunity management software
- Start managing opportunities better [/su_note]
What is opportunity management?
Opportunity management is a collaborative process for businesses to identify and pursue sales opportunities. The process is used to track and manage opportunities throughout the sales pipeline to increase sales and revenue. Opportunity management helps businesses:
- Gain insights into customer needs and preferences
- Prioritize deals that are most likely to close
- Optimize internal resources by focusing on leads with the highest chances of conversion
- Target customers with personalized offers
- Strengthen their sales approach
Activities in the opportunity process generally fall into one of three categories:
- Lead management: You want to take leads through the lead generation software, qualifying, nurturing, and conversion process.
- Process tracking: This refers to tracking and analyzing who's in your pipeline, their path to becoming a customer, and the communication.
- Process improvement: You’ll also want to review your process, disqualify poor fits for your service, and remove wasteful steps.
Synonyms and definitions
There are numerous terms that you will see used in management opportunity discussions. We’ll discuss:
- Synonyms for opportunity management
- Sales leads
- Sales opportunities
- Opportunities in customer relationship management
- Differences between leads and opportunities
Synonyms for opportunity management
There are some terms you will see used interchangeably when researching opportunity management, including:
- OM
- CRM opportunity management
- Pipeline management
- Sales opportunity management
They all mean the same thing: identifying, pursuing, and managing sales opportunities.
What is a sales lead?
A sales lead is a person or business that might become a customer. Leads are the earliest stage of the customer journey. Leads might not be ready to make a purchase, but they need what you offer.
A lead will always be someone who has expressed interest in your business by clicking on a link, filling out a form, signing up for an offering, or asking a question. You might find sales leads through:
- Advertising
- Direct mailings
- Referral from an existing customer
- Direct response through advertising or publicity
- Trade shows
- Third parties
- Other marketing efforts
What is a sales opportunity?
A sales opportunity is further in the lead management pipeline than a sales lead. When a contact becomes a sales opportunity, they are a qualified prospect, likely to become a customer.
By qualified prospect, we mean you have already interacted with them, established their pain points, and confirmed your product or service will solve their problem.
Once you have reached this stage, you are more likely to make a sale.
Sales opportunity planning is a complex multi-step process including researching, then qualifying the individual, and then developing a strategy to solve their problem. It is helpful to have a documented process, guide, and training to help your sales team manage opportunities.
Some of the best ways to identify or create new sales opportunities include:
- Creating buyer personas
- Using a CRM software to manage client interactions
- Pursuing customer referrals
- Establishing affiliate programs or third-party referral streams
- Going to events, expos, and conventions
What is opportunity in CRM?
In customer relationship management (CRM), an opportunity is a qualified lead that has shown interest in your product or service—and with the proper nurturing is likely to become a customer.
Opportunities are used to manage your business, not people or client companies. They’re identified and tracked through the sales process from inquiry to contract to satisfaction. Measuring opportunities is most successful for longer sales cycles and maintaining ongoing relationships.
What is the difference between opportunity management and lead management?
Opportunity management is a subsection of lead management. Lead management focuses on the acquisition, assistance, tracking, and converting of new clients; opportunity management is focused on assisting, tracking, and converting the leads who are most likely to convert into customers.
As you can see in the picture below, opportunities are several steps closer to becoming customers than leads, but they’re still part of the lead management process.
Sales opportunity management goals
Opportunity management is used by a business owner, sales manager, or sales opportunity manager to increase three main metrics:
- Conversions
- Revenue
- Profitability
To attain these objectives, sales entities need a system for overseeing and monitoring opportunities within the sales pipeline. Additionally, they should employ strategies to engage with potential clients throughout the sales journey, ensuring the timely delivery of relevant communication aligned with their decision-making stages.
Next, let’s look at how to manage sales opportunities.
How to manage sales opportunities
The opportunity management process can be complicated, but if you use a strategy and implement a sales pipeline, you’ll find the sales process gets easier as time goes on. You’ll want to:
- Understand the sales cycle.
- Track communication.
- Standardize the sales cycle.
- Create a sales pipeline.
- Research the prospect.
- Qualify leads.
- Follow up appropriately.
- Review your process.
- Disqualify dead prospects.
- Refine the opportunity management process.
Understand your sales cycle
Potential customers will go through a series of steps before they become paying customers. In most purchasing decisions, prospective customers will:
- Realize there is a problem they need solved.
- Research how to solve the problem. It’s common for purchases to start with an online search, so part of your business strategy should be content marketing optimized to help potential customers understand how to solve the problem.
- Research alternatives to solve the problem. Customers might look at options like which company to use, reviews, and alternatives such as replacement or repair. You’ll want to address all of these to help build customer relationships and prepare them for what comes next.
- Request information. Customer behavior, like sending an email or signing up for a free trial, shows they are interested in your business. You need to provide them information in a timely manner.
- Choose a provider. Customers might contact a single provider or multiple. Then they’ll choose the one who solves their problem best.
- Make a purchase. Once the customer has chosen you, they will want you to solve their problem and pay as conveniently as possible.
- Evaluate the product or service. Your new customer will evaluate your work, so make sure to ask for customer feedback.
- Appreciate the company’s work or become dissatisfied. Hopefully, you’ll have another satisfied customer and be able to build an ongoing customer relationship. Do everything you can to fix it when customers aren’t happy with your product or service.
- Make future decisions based on their experience. Existing customers will make decisions based on your customer relationship management. Satisfied customers will probably return to do business with you. They might even refer their friends.
In our interview below, Neel Parekh discusses how he approaches the opportunity management process. Check it out.
Track communication
As a busy entrepreneur, you’ll want to track communication during the opportunity management process. CRM software will help you track all the communication you have with sales leads. There are numerous sales CRM tools you can use, which we discuss in our reviews of client management software.
The most important thing to know right now is you need all your points of contact to connect to the CRM software. This allows you to have a single place for you (or your sales team) to refer to previous customer data, like referrals, previous conversations, and customer lifetime value.
Standardize the sales cycle
The next step of your opportunity management strategy should be to define exactly what your sales team does when managing sales opportunities. This step will probably be performed by a sales manager who is familiar with the opportunity management process flow, while the next step will normally be performed by someone well-versed in automation software.
The more defined the process is, the easier it will be to manage your sales and automate portions of it using a sales funnel.
Create a sales pipeline
Sales pipeline management normally requires someone well-versed in automation technology. It helps you effectively manage your sales opportunities by providing the steps your sales team needs to take while managing opportunities. Each step will have a specific goal.
Many of the tasks can use automation. For instance, when someone books an appointment online, you can automatically send an email that confirms the appointment through the CRM system. The more tasks you can automate, the more efficient your sales representatives will be and the more potential sales you can close.
Research the prospect
This step is important. According to LinkedIn’s 2022 State of Sales report, 42% of potential customers leave because sales reps don’t understand their needs.
Salespeople should prioritize opportunities and focus on the most qualified leads first. Before reaching out to a lead, the sales team should research the prospect to understand as much about them as possible. You’ll want to identify sales opportunities based on their business objectives, pain points, budget, and team size.
Understanding this information creates effective sales opportunity management because you can provide the prospective customer with the right information at the right time without repeating yourself during each interaction.
Qualify leads
Not all sales opportunities are created equal. During the early stages of customer relationships, the sales rep should gain valuable insights to establish what the customer's needs and limitations are; then they should help them make informed decisions.
One of the things many small business owners struggle with is trying to make everyone happy. While everyone likes closing deals, some customers aren’t a good fit. Just because they don’t have purchasing authority isn’t a reason to rule them out, but as you learn more about the customer, you should consider whether they are a product-service fit.
If they aren’t a fit, consider referring them to someone who would be a better fit. Using this strategy for sales lead management can open up business opportunities.
Want to learn more? Check out our interview with Joshua Brown. He explains how bringing in a sales manager helped him double his business in a year.
From this point on, only qualified leads should be considered sales opportunities.
Follow up appropriately
As customers progress through the sales opportunity stages, they’ll want different information. At first, they’ll want to understand what impacts the success at solving their problem, followed by looking at your product catalog, then they’ll want to know which product or service will help them best, and, finally, how to become a customer.
Make sure to tailor the information you send them to the individual, reiterate your key points, and help them progress to making a data-driven decision.
While you’ll want to keep track of lead conversion ratios, a low ratio doesn’t always mean you’re missing potential sales. It can also mean that you need to narrow the requirements to identify sales opportunities.
Review your process
In addition to managing opportunities, you need to review your opportunity management process. You should have sales data that paints a picture of where your sales funnel is doing well and where the sales strategy needs improvement.
Your opportunity management system should have a dashboard that tracks:
- Churn rate: This key metric represents the rate a business loses customers over time. A low churn rate is better because it means a business is losing fewer customers and potential revenue.
- Win rate: The percentage of sales opportunities that a sales team successfully closes. A higher win rate means a sales team is more likely to close more opportunities, which can make a business more profitable.
- Sales cycle length: Tracks a prospect as they move from lead to customer. A shorter sales cycle length means a business can earn money faster.
- Average deal size: The average revenue generated per deal. This metric helps businesses understand the value of deals and plan for the future.
- Customer satisfaction: This helps boost sales and is a key factor for acquiring a new customer base.
- Lead response time: In some industries, a quicker response to a sales prospect's inquiry can increase the chances of getting a sale.
- Net promoter score: This is a reflection of how well a business satisfies its customers. It’s derived from a simple survey question: “On a scale from 0 to 10, how likely are you to recommend this product or company to a friend or colleague?”
You might also want to keep track of the following metrics on the dashboard.
- Revenue growth rate
- Gross profit margin as a percentage of sales
- Net profit and net profit margin
- Cash flow
- Accounts payable turnover
- Cost of goods sold
- Customer acquisition cost
Disqualify dead prospects
Many CRM systems charge based on the amount of automation actions that are used. Leads that have been dormant for an extended period should be removed from the sales funnel. You might not want to, but you’ll close more deals if you focus on hot leads.
Part of opportunity management is focusing sales activities on people who are interested. Don’t jeopardize your business over people you have to chase down. Focus on identifying the difference between qualified leads and dead leads so you can find a way to stop sales outreach to people who are unlikely to respond.
Explaining automation actions and their impact on business expenses
Automation actions are any step taken in an automated workflow. Companies will often bulk-send automated emails to people on their email list. If you have 20,000 people on the email list, that would cost between $230 and $535 per month on MailChimp.
Imagine 10,000 of them haven’t opened an email in three months. You can cut your costs by creating a new list called inactive contacts, stop sending those people emails, and save between $120 and $185 per month.
That’s why paying attention to the automation actions is important during opportunity management.
Refine the opportunity management process
Opportunity management is the process of improving your sales results, so make improvements when you find something isn’t working or isn’t adding value. Each sales call will be more productive when your sales reps can focus on closing the best leads.
Best practices for managing the sales process
It’s important to follow opportunity management best practices so you can avoid many of the reasons a sales team fails to close a deal.
Remember, over 40% of potential customers leave because sales reps don’t understand what they need. This is preventable with better training and a good CRM software.
That means you’ll need to focus on following best practices to close more deals. Best practices like:
Set responsibilities and tasks
Each step in the opportunity management process should be well defined and have a designated employee or team who handles it.
When you first start, you might be the one working on all the tasks, but as you grow, you might need to hire sales reps, sales managers, and maybe even entire sales teams.
Leverage data
You’ll have data coming in from marketing campaigns, accounting software, social media, sales calls, and other sources. If you don’t have all the information in real time, your sales marketing strategy probably won’t work. Make sure your opportunity management system provides you with the information you need to succeed.
In addition, you’ll want to automate to simplify data entry. You can do this by investing in a CRM with opportunity management tools.
Opportunity management software
Business owners and sales reps need CRM software to adequately manage their account planning, contact management, and communication. A good CRM software will also help decision-makers, project managers, and sales teams identify data-driven sales opportunities and conduct risk management.
Let’s discuss the CRMs with the best opportunity management tools and systems.
Jobber
Jobber is one of the most user-friendly opportunity management systems. Monthly plans start at $69 for one-person businesses, but they get dramatically more expensive if you want the best features.
The $349-per-month plan will make it where all you really need to run your business is your equipment and Quickbooks.
Monday Sales CRM
Many sales teams use Monday.com’s Monday Sales CRM to identify sales opportunities and manage their interactions. They have four tiered plans starting at $45 per month for three users and increasing to $99 monthly before going to the quote-only enterprise plans.
Learn more in our overall Monday.com review.
Salesforce
Salesforce is one of the most sophisticated CRMs on the market. Pricing starts at $25 per user but goes up to thousands per month.
One of the real benefits of this sales opportunity management platform is that it has some of the best training courses in the opportunity management field. This is a real positive for people who want to save money by setting up their opportunity management process themselves.
Check out Salesforce.
Start managing opportunities better
We’ve concluded our journey through the realm of opportunity management. We've navigated the depths of its meaning, explored synonymous terms, and outlined the fundamental goals that set your business on the trajectory for success in sales.
Understanding how to manage sales opportunities is not merely a skill; it's an indispensable strategy for any thriving business. Armed with best practices for managing the sales process, you now possess a toolkit for optimizing and maximizing the potential of every interaction.
Yet, in this digital age, the integration of technology plays a pivotal role. Opportunity management software has emerged as an ally to streamline and enhance your efforts. They create a structured approach to handling opportunities and boos overall sales efficiency.
Mastering opportunity management isn't just seizing moments; it's about creating a sustainable, strategic approach to unlock success. We hope the insights shared above help you harness the full potential of every sales opportunity.
Which parts of the sales process would you like to learn more about?
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