Profitable Business to Start in 2020
The year 2020 was a turning point for entrepreneurs worldwide. With the onset of the global pandemic, traditional business models were disrupted, opening the door for innovative and adaptive ideas. If you were wondering about the most profitable business to start in 2020, you’re not alone. Many found success by responding to the unique challenges of that year.
Why 2020 Was a Unique Year for Starting a Business
While the economy faced downturns, remote work, online shopping, and health awareness surged. Businesses that could meet new demands and operate digitally were especially profitable. 2020 was about being lean, flexible, and customer-focused.
- Increased demand for home delivery services.
- Surge in online education and remote work tools.
- Need for health and wellness products.
- Shift from brick-and-mortar to e-commerce.
Top Profitable Businesses to Start in 2020
1. E-commerce and Dropshipping
Online shopping exploded in 2020. Entrepreneurs who started e-commerce stores, especially in health, fitness, or remote work niches, saw massive growth. Dropshipping allowed low-risk entry with no inventory.
2. Digital Content Creation
YouTube channels, podcasts, and blogs thrived as people sought online entertainment and education. Monetizing content through ads, sponsorships, and merchandise became a lucrative business model.
3. Online Education and Tutoring
With schools shut down, there was an enormous demand for virtual learning. Teachers and experts who started online tutoring or course creation platforms experienced consistent demand and income.
4. Home Fitness and Wellness
Home workout gear, virtual fitness classes, and wellness coaching boomed. Entrepreneurs offering yoga sessions, meal plans, or mental health support online filled a crucial gap in 2020.
5. Freelancing & Remote Services
Writers, graphic designers, developers, and marketers saw an increase in freelance opportunities. Websites like Upwork and Fiverr enabled professionals to turn their skills into sustainable income.
Challenges for New Businesses in 2020
- Supply Chain Issues – Many physical products faced sourcing problems.
- Market Uncertainty – Consumer spending was unpredictable early in the pandemic.
- Digital Competition – Low barrier to entry led to high competition in online spaces.
- Technical Gaps – Not all founders were tech-savvy or had online experience.
Tips to Start a Profitable Business in 2020
- Choose a problem-solving idea aligned with the times.
- Start with minimal overhead and validate the market first.
- Use digital tools like Shopify, Zoom, and Canva to scale quickly.
- Build your audience through social media and content marketing.
- Keep learning and adapting — flexibility was key to survival.
Conclusion
Despite the chaos, 2020 created golden opportunities for innovative thinkers. The profitable business to start in 2020 was one that could adapt to new norms, meet changing needs, and leverage digital platforms effectively. Many entrepreneurs who took the leap that year now run thriving businesses today.
Further Resources
- The Lean Startup – Eric Ries
- Side Hustle – Chris Guillebeau
- Startup Tools: Shopify, Teachable, Fiverr
- Inspiration: Indie Hackers, Y Combinator, Foundr