75+ of the best small business ideas for 2025 that are profitable and low-cost
Sep 18, 2024
Can you imagine that the number of commercial registrations in Saudi Arabia reached 1,606,169 commercial registrations by the end of 2024, with a total of 521,969 registrations issued in 2024 alone, according to the Business Sector Bulletin issued by the Saudi Ministry of Commerce?!
Certainly, not all of these registrations are for large or huge commercial activities; some may include small or even micro-enterprises.
This growth reflects the role played by the Kingdom to encourage individuals and investors to start commercial activities and advance the local economy. And since you are here, you must have thought about owning your own project, right?
In this comprehensive guide, we will show you profitable and low-cost small business ideas as proposals to start your journey towards profit, whether you are looking to work from home alone or with the help of partners, and whether you want to target a specific group such as women or benefit from the Saudi markets. In addition, we will provide you with a step-by-step strategy to help you turn your business idea into a thriving establishment.
Let's follow…
What are small businesses?
Small businesses refer to commercial projects that usually require minimal initial investment and can be managed on a smaller scale compared to large institutions.
Small businesses vary between home-based businesses, home-managed projects, and local services and products that meet the different needs of the community.
These projects are characterized by their flexibility, low risks, and potential for high profitability. They are also ideal for individuals who are looking to start their entrepreneurial journey without bearing the burden of large financial commitments.
Small projects also provide a way to test the market and improve business ideas without the pressures of large-scale operations. They also provide direct interaction with customers, making it easy to study them and know their preferences, thus granting the ability to adapt quickly to market changes, and this flexibility can be a significant advantage in today's fast-growing business environment.
👈 For a simple example of a profitable business idea in Saudi Arabia, we invite you to read the success story of Felt store, which is a business managed by one person and based on selling only one product.
Now, before presenting the proposed ideas for small businesses that you can start, we will quickly review some important factors through which you can measure the profitability of your project or not.
How can you measure the profitability of small businesses?
Measuring the profitability of small businesses involves evaluating several key factors:
Initial Investment which refers to the capital or the amount of money required to start the project.
Operating Costs which are the ongoing expenses that you will need daily, monthly, or annually, such as rent, purchasing raw materials and supplies, or wages, and so on. It is very necessary to reduce these costs as much as possible, especially at the beginning of your project.
Revenues which is the income generated from sales. Consistent revenue streams are a sign of a stable business.
Net Profit Margin which is the percentage of net profit remaining after deducting all the operating expenses mentioned earlier. A higher margin indicates a more profitable business.
Return on Investment (ROI) which is an important measure of profitability compared to the initial investment. A high ROI indicates that the company is using its resources efficiently.
To determine if a small business is profitable, it is essential to conduct comprehensive market research, create a detailed business plan, and constantly monitor financial performance. Market research involves understanding the demand for the product or service you wish to trade. You must also analyze competitors and identify your target audience.
More than 75 successful and low-cost home-based business ideas for 2025
First: Ideas for small and profitable businesses in the field of Freelancing:
Content Writing, providing article writing services, and marketing texts for companies and websites.
Affiliate Marketing, promoting others' products in exchange for a percentage of the profits.
Voice Over.
Dropshipping, selling products without the need to store them, as they are shipped directly from the supplier.
Graphic Design, designing logos, advertisements, and personal cards using tools like Adobe Illustrator.
Professional Translation, providing translation services between different languages, focusing on quality and cultural context.
Proofreading, offering services to review texts and correct linguistic and spelling errors.
Audio Transcription for books and lectures.
Online Personal Training, offering training sessions in areas such as self-development or fitness.
Educational Content Creation, designing lessons and courses and selling them online in various fields.
Product Photography.
Digital Advertising Campaign Management, creating and managing paid advertisements across platforms like Facebook and Instagram.
Digital Template Design, producing and selling ready-made templates for websites, presentations, or blogs.
Mobile App Development that meets customer needs.
Second: Profitable small business ideas in the field of handicrafts:
Handmade Accessories Industry, including designing necklaces, bracelets, and earrings using beads and gemstones to meet various tastes.
Hand Knitting and Embroidery for making distinctive clothing and household covers with unique designs.
Glass Painting to turn ordinary glass vessels into colorful artistic pieces suitable for home décor.
Wood Carving, designing artistic pieces such as wall decorations or household tools like utensil holders.
Fabric Bag Making, producing fabric bags in multiple colors and sizes suitable for shopping or daily use.
Artificial Flower Making, producing flowers from paper or plastic to decorate homes.
Handmade Card Design, creating greeting and wedding cards using decorated paper and simple materials.
Printing on Clothes, customizing shirts with phrases or drawings to suit customers.
Handmade Carpet Making, weaving carpets in colors and designs that meet customer needs.
Seasonal Decoration Design, producing decorations for occasions like Ramadan or holidays using simple materials.
Third: Profitable small business ideas in the food sector:
Preparing homemade baked goods such as bread, cakes, and cookies and marketing them to stores or cafes.
Food Truck Project for serving fast and innovative food such as organic beef burgers.
Preparing ready-made breakfast meals such as healthy breakfast boxes containing oats, fruits, and nuts.
Mini Desserts Making, preparing small-sized desserts perfect for occasions such as mini cupcakes or tarts.
Specialized Bread Project for healthy diets, producing keto bread or gluten-free bread.
Preparing food gifts for occasions, such as presenting baskets containing dates, chocolate, or nuts with elegant packaging.
Flavored Yogurt Making, offering yogurt with flavors such as natural strawberry or wild berries for those who love natural products.
Fourth: Profitable small business ideas in the field of beauty and personal care:
Natural Soap Making, preparing organic soap with herbal extracts and natural oils for sensitive skin.
Preparing homemade moisturizing creams, producing natural creams for the face and body using shea butter and coconut oil.
Home Beauty Salon, providing hair cutting, styling, and makeup services from home or through home visits.
Preparing natural face masks, preparing natural masks for the skin such as charcoal or Moroccan clay masks.
Launching a perfume brand, mixing distinctive perfumes and presenting them with unique designs that suit all tastes.
Selling natural skin care products, marketing products such as rose water, aloe vera gel, and other natural products.
Selling personal makeup sets, preparing and selling makeup sets customized according to each customer's needs.
Launching an educational beauty channel, offering free and paid lessons to teach beauty and makeup techniques.
Preparing beauty gift boxes, assembling cosmetic products in customized gift boxes.
Fifth: Profitable small business ideas in various fields:
Cultivating Medicinal Herbs, cultivating mint, basil, and thyme and selling them fresh or dried.
Poultry Farming Project, producing eggs or poultry meat for the local market.
Honey Production, establishing small apiaries to produce natural honey.
Rabbit Farming, producing meat or fur and selling them to local markets.
House Cleaning Services, providing professional cleaning services for families.
Organizing small events, such as birthday parties and graduation parties.
Organizing local tourist trips and tours to cultural and natural landmarks.
Renting travel equipment, such as cameras or backpacks.
Selling home fitness equipment, such as weights and exercise ropes.
Waste Recycling, collecting and recycling plastic and metals.
Managing Blogs and Websites.
Home Childcare.
Providing pet care services.
Providing consultations in the field of family and social relations.
Drawing and Fine Arts and selling paintings.
Providing scientific research services, and preparing studies and research reports.
Investing in stocks and bonds online.
Mobile phone maintenance and repair services.
Launching a nursery for childcare and education.
Providing consultation on improving home energy consumption using technology.
Preparing professional photography workshops using modern cameras and techniques.
Creating a digital library of professional photos and selling them to marketers.
Launching online relaxation sessions to teach meditation and relaxation techniques.
Selling products dedicated to relaxation such as comfortable pillows or scented candles.
Launching a mobile cafeteria project to serve fast meals and drinks.
Creating interactive YouTube channels with content directed at children or youth.
Food delivery project.
Selling flowers and home decorations.
Renting bicycles.
Leather tanning.
Selling used clothes wholesale.
Selling plants and medicinal herbs.
Providing health care services for the elderly.
Project for caring for people with special needs.
A library for selling school supplies.
Running literacy classes.
Sixth: Small and profitable low-cost projects for women
Saudi women hold a great and significant position, and the Kingdom seeks to empower them to own their private commercial entities. In the second quarter of 2023, Saudi women's ownership reached more than 45% of small and medium enterprises, and "establishments" generally witnessed an increase of 2.6% over the first quarter, reaching 1.23 million establishments, according to the Business Sector Bulletin issued by the Saudi Ministry of Commerce.
Here are some examples of profitable small business proposals and ideas that women and girls can start without a large capital:
Home Baking
You can turn your baking skills into a profitable business by selling homemade cakes, cookies, and pastries. This can start as a small operation from your kitchen and expand according to demand. Customized cakes can be offered for occasions and holidays to attract more customers.
One of the beautiful examples in this article is the "Mushmis" store for selling cookies with unusual flavors. We find that the owner of the idea started by making cookies with new flavors and continues to add other flavors and new ideas to her product while expanding her project, and she also paid attention to the quality of packaging to add an artistic touch to her baked goods.
View this post on Instagram A post shared by مشمس ☀️ | كوكيز - جدة 🌅 (@mushmis*)
Fitness Training
Providing online or in-person fitness training specifically designed to meet the individual needs of individuals, including personalized exercise plans and nutritional advice. This business can leverage social media for marketing and customer acquisition, and can, for example, offer group classes or specialized programs such as pre- and post-natal fitness and post-weaning fitness.
Beauty Services
Start a home beauty salon offering services such as manicures, pedicures, and facials. This business can attract a loyal customer base looking for personalized beauty care that reaches them in their homes.
Party Organization and Event Planning
Organizing and coordinating events such as weddings and corporate gatherings, focusing on detailed planning and execution. This business requires strong organizational skills and a network of reliable vendors. Offering packages that include everything from venue selection to decoration can help attract customers.
Seventh: Promising small business ideas in Saudi Arabia
Mobile Car Wash
You can offer convenient car cleaning services that reach the customer's location wherever they are, eliminating the need for a physical storefront. This business meets the busy lifestyle of many Saudi residents. You can offer different promotions and eco-friendly cleaning options to attract more customers.
All you will mostly need are cleaning supplies and a mobile application to build your virtual presence so customers can request the service through it.
Food and Beverage Trucks
You can offer famous local dishes or unique international cuisine through your mobile kitchen that serves food to passersby, especially in crowded areas. Hot beverage carts such as coffee, and others, have also become popular, as well as carts selling frozen juices and fruits, especially in the summer.
Home Cleaning Services
Home cleaning services have been and continue to receive increasing acceptance and demand. Therefore, you can provide residential cleaning services, taking advantage of the growing demand for professional housekeeping by forming a team of workers and managing them and directing their services in a systematic way through a pre-order made through a mobile application, for example.
This business can start small and expand with a team as demand increases, and offering specialized services such as deep cleaning, move-in/move-out cleaning, or eco-friendly cleaning can help you stand out.
Pet Sitting and Care
Providing pet care services for busy pet owners, including companionship, walking, and health care. This niche market is growing as more people adopt pets and look for quality care. Offering additional services such as pet training or pet photography can increase your revenue.
Custom Gift Baskets
Creating and selling custom gift baskets for various occasions, such as holidays, birthdays, and corporate events. This business allows for creativity and serves a wide range of customers, and partnering with local artisans and businesses to include their products in your baskets can add value and uniqueness.
A 10-Step Strategy for Developing Your Small Business Idea
1. Define your project idea
The first step in developing a successful small business is to formulate the idea, which may begin by defining your passion and skills. Think about what you enjoy doing and what you are good at, as this will help you choose a business idea that excites you and makes you possess the necessary skills to implement it.
2. Conduct market research
Market research is crucial for understanding the demand for your product or service, analyzing your competitors, identifying your target audience, and exploring market gaps that your business can fill. Use tools and surveys and search the internet to collect data. We will cover how to conduct market research at the end of the article.
3. Create a business plan
A business plan is a roadmap for your business. It outlines your business goals, strategies, and financial projections. Therefore, you should include details about your target market, marketing plan, operational plan, and financial plan. A well-thought-out business plan can help you secure funding and guide your business decisions.
Here are the key components to include:
Executive Summary: A brief overview of your business.
Company Description: A detailed description of your business, including products or services.
Market Analysis: Information about your target market and industry trends.
Organization and Management: Your business structure, including the management team and ownership.
Products or Services: A detailed description of what you sell or offer.
Marketing Plan: Strategies for promoting and selling your products or services.
Operational Plan: Day-to-day operations and logistics.
Financial Plan: Financial projections, funding requirements, and revenue models.
Appendix: Any additional information or supporting documents.
A well-thought-out business plan can help you secure funding and guide your business decisions.
4. Calculate startup costs
Estimate the initial investment required to start your business, including the costs of equipment, supplies, marketing, and any necessary licenses or permits. Look for ways to reduce costs by starting with small projects and scaling up as your business grows.
5. Choose a business structure
Decide on the legal structure for your business. Common options include sole proprietorship, partnership, limited liability company (LLC), and corporation. Each structure has different legal and tax implications, so choose the one that suits your needs.
6. Register your business
Register your business name and obtain the necessary licenses and permits. This step is essential to ensure that your business operates legally. Check with local government agencies to determine the requirements for your specific business.
7. Develop a marketing strategy
A strong marketing strategy is essential for attracting customers and growing your business. Use a mix of online and offline marketing methods, such as social media marketing, email marketing, content marketing, and local advertising. Focus on building a strong brand and creating a loyal customer base.
8. Launch your business
Once you have everything in place, it is time to launch your business. Start by offering your products or services to friends and family to get feedback and build initial traction. Use their feedback to make any necessary adjustments before reaching a wider audience.
9. Monitor and adjust
Continuously monitor your business performance and make adjustments as needed. Use financial data, customer feedback, and market trends to guide your decisions. Be flexible and willing to adapt to changes in the market.
10. Work on scaling your business
As your business grows, look for opportunities to expand. This may include expanding your product line, entering new markets, or increasing your marketing efforts, and also focusing on maintaining high-quality products and services while effectively managing growth.
Steps for conducting market research for any project idea
Conducting effective market research for any business involves several essential steps to collect, analyze, and interpret information about the target market. We summarize these steps in the following points:
Define clear objectives for what you want to learn from the research. Are you looking to understand market size, customer needs, competition, or potential sales?
Develop a research plan and determine the research methods that suit your goals. Common methods include surveys, interviews, observation, and others.
Determine the research sample, which is the group from which you will collect data, and make sure that the sample represents the target market.
Collect data from all available primary sources such as conducting questionnaires and communicating with potential customers and asking them, or use secondary sources such as data found in industry reports, market analysis, academic papers, and other resources available on the internet.
Analyze your data after cleaning it and ensuring that the collected data is accurate and complete.
Draw conclusions and link your results to your original objectives. What does the data tell you about your market?
Identify opportunities and threats: Use the analysis to identify potential opportunities for growth and areas of concern that need to be addressed.
Develop strategies based on your findings to meet predetermined needs
Implement strategies in marketing, product development, or business operations.
Monitor the market continuously to measure the effectiveness of your strategies, and make adjustments as necessary.
Summarize the research process, findings, conclusions, and recommendations in a comprehensive report and present the report to relevant stakeholders, including management, investors, or team members.
Practical Tips
Use online survey tools like SurveyMonkey or Google Forms to collect data efficiently.
Leverage social media to gather customer feedback and conduct informal polls.
Stay up to date with industry publications and news regularly to stay informed about market trends and shifts.
Example
For practical application, suppose you are conducting market research for your store, let's say its name is "Wurood" (Roses), which specializes in selling cosmetics, perfumes, and beauty products in the Kingdom of Saudi Arabia:
Objective: Understanding the preferences and purchasing behavior of Saudi women aged 18-35 regarding beauty products.
Research Plan: Use online surveys and direct messages with them to collect primary data and analyze industry reports for secondary data.
Data Collection: Conduct online surveys targeting your specific demographics through social media ads and direct messaging to potential customers.
Data Analysis: Use statistical tools to identify trends in product preferences and purchase frequency and analyze interview transcripts for qualitative insights.
Interpretation of Results: Determine the most popular products and why, and identify whether there are unmet needs or common customer complaints.
Take Action: By introducing new product lines that align with customer preferences and improving customer service based on feedback.
Report Results: Compile a report summarizing the findings and proposed actions. Share with your marketing and sales teams to align strategies.
Following these steps will help you gather actionable insights to make informed business decisions.
Conclusion
Starting a small business should not be costly or complicated. With the right idea and a strategic approach, you can launch a profitable venture that meets market demands and fits your lifestyle. Take the time to research profitable and low-cost small business ideas, settle on the desired idea, plan, and execute your business idea, and you will be on your way to entrepreneurial success.
The key to small business success lies in identifying market needs, offering a unique value proposition, and maintaining a focus on customer satisfaction. With dedication and perseverance, your small company can thrive and grow, providing you with financial profit and practical advancement. Remember that every large company started small, so take that first step today and turn your business idea into a reality.
Mohamed Alkady