Do you want to start a small business in Minnesota? Find here a list of the best businesses to start with low startup investment.
Minnesota, an avid agrarian state has successfully transformed itself into a diverse economy over the years. Backed by some of the largest global conglomerates, Minnesota is now home to different businesses spread across multiple domains and sectors.
Businesses around agriculture have seen a rapid transformation through manufacturing, IT, and finance.
Over the years, the internet and technology have opened up a new market for small businesses in Minnesota. If you wish to start a business in Minnesota from home, here’s a complete guide on how you can start a successful business in the state.
List of Top 20 Small Businesses Ideas in Minnesota
1. Digital Marketing Agency
Minnesota is now surrounded by several small companies. Businesses are now going digital and they need digital advertising services. You can start to offer online marketing in the state by offering customized campaigns, search engine marketing, and more.
2. Recruiting Agency
You can start a Minnesota-specific recruiting business to help companies find the right candidates. Different companies need qualified professionals, and you can help bridging up the gap between the right individuals and companies.
3. Bed & Breakfast Business
Tourism contributes billions of dollars to Minnesota’s economy annually via expenditures of visiting tourists. If you are near any tourist destination, starting a bed and breakfast business at your own home by listing it on Airbnb can be a very profitable venture.
4. Social Media Management
Businesses now depend on social media to generate leads and bring in more revenue. If you are someone who is addicted to social media, here’s a good opportunity for you to make money with it. You can specific social media marketing services like Facebook marketing, Instagram promotions, and more.
5. Music Lessons
Do you play instruments? Well starting to teach what you know can fetch you good money. You can either opt to start an online class or offer offline one-on-one classes. There’s a huge demand for people who know to play specific instruments.
6. Packaging Design Business
Companies who sell some sort of product, do need their own packaging. As per a recent survey, attractive packaging accounts for 30 percent more sales compared to products that are not packaged well. You can offer designs and visual graphics to companies to be used for transportation, distribution, storage, resale, and use.
7. Niche Website
An online website on a sub-niche can bring in good revenue. You can produce online content on a separate topic for a specific section of readers. Start publishing content in the form of a magazine with special editorials and pieces. You can either charge your subscribers a monthly fee and sell advertisement space.
8. Business Planning Services
Minnesota is now a growing pad for new businesses. While the failure rate is growing at the same time, these companies need the right path and guidance. If you are professional, you can opt to offer business plans with the actual needs, requirements and well-detailed do’s and don’ts.
9. Travel Agency
Minnesota is one of the top-ranked tourist destinations in the United States. Travel agencies earn revenue through commissions. Consumers often choose agencies because they help cut down on the time needed to research various locations and book accommodations.
10. Virtual Assistant
Do you want to work from home? Companies often look for professionals who can work from home with a specified list of tasks, known as virtual assistants. You can work as a freelancer for a fixed time of the day which may range from daily task management to customer support to sales and more.
11. Flea Market Vendor
You can opt to work as a flea market vendor to sell items for cash. There’s substantial demand for flea market products in Minnesota. While you can sell anything, flea markets have a variety of different items on sale, starting from handcrafted jewelry to secondhand books.
12. Business Consultant
If you have some years of working experience in a company or as an entrepreneur, you can start a business consultancy. There are a number of growing and upcoming businesses in the state. You can start to offer customized business plans online via Email or Skype.
13. Cleaning Service
While you may need some equipment, the business does not require any investment. You can use detergents and other stuff from your home to start a cleaning service business for free, and later buy specialized equipment with the profits.
14. Business Around Forestry
Forestry remains strong in Minnesota. The industry includes logging, pulpwood processing, and paper production. You can start a business around forest products manufacturing in the state. You may also choose to outsource and export such products outside the state or country.
15. Farm Stand
A great business idea in Minnesota, you can start a farm stand around fresh foods, vegetables, or similar items. You can set up a farm stand where customers will be able to make purchases directly. The investment involved is low, and the risk is very minimal.
16. Corn & Soybeans Farming
Minnesota is one of the largest producers of corn and soybeans in the United States. You may start to farm corn or soybean to sell them directly or start as a wholesaler. You may even start an exporting business to outsource corn or soybeans to other states or countries.
17. E-commerce Business
While you do your job, start selling something online. An e-commerce business offers you the ease to work part-time. Either you can make the products, drop-ship them or buy in wholesale to start selling them online via platforms like Amazon or eBay.
18. Iron Ore Export
Minnesota produces over 75 percent of the country’s usable iron ore. While the business may involve a sizable investment, starting a plant around iron ore can be very profitable given the geography. You may even export iron ore to other states and counties.
19. Website Designer
You can learn to design websites online for free online. Often small companies need such website designing services online. You can start to work as a freelancer online to offer professional web designing services via UpWork and Fiverr.
20. SEO Consultant
If you know a bit about digital marketing, you can offer online SEO services in Minnesota. There are several small businesses operating in the state. You can help them with their keywords and online marketing. You will go through your client’s sites to help them fix their SEO to improve their ranking and grow sales.
How to Start a Business in Minnesota – Startup Guide
If you are planning to start a business in Minnesota MN, you need to follow some steps. Find below a stepwise guide to starting a business here in this part of the world.
Step 1. Choose a Business
We have discussed some of the most profitable business ventures relevant to Minnesota. Before you finalize an idea, brainstorm different ideas and evaluate all the resources available to you properly.
Step 2. Business Plan
Minnesota currently has different businesses spread across multiple sectors. With a steady competitive, you need a detailed business plan to sustain yourself in the market. Start to work on your business plan and include all the necessary business details including finance, goals, and how to wish to run your business. Follow this guide on how to write a successful business plan in a day.
Step 3. Financing Your Business
There are certain investors and venture capital firms in the state. You can pitch your idea if you think it’s unique and actually feasible. You can even fund your own business where you can enjoy complete ownership with all the independence. Check out these top business loans available at very low payback rates.
Step 4. Naming Your Business & Domain Registration
Next up you need a name for your business. Officially registering a business name is important to register a business. You can also use a business name generator to check some unique suggestions. Once you finalize, register it with the US trademark department and immediately buy a domain with the same name.
Step 5. Choosing A Business Structure
Now you need to choose a business structure. You have the option of a proprietorship, partnership, corporation, or LLC. If you choose to form an LLC, you can enjoy additional benefits like tax reductions and legal advantages. You as an owner will no more be held individually liable for any mishap.
Step 6. Federal EIN & Tax Filing
You need to apply for a Federal EIN to be legally taxed in Minnesota. The EIN will make your business eligible for separate tax filing. Apply for a FEIN at the IRS. You may also have to additionally register your business with the Minnesota Department of Taxation and Finance to complete the legal process.
Step 7. How to Get Business Licenses to Start a Business in Minnesota
Minnesota has different local city-specific licenses applicable to some of the businesses. Make sure that you take legal help and go through all the city-specific legal requirements and references. There are also additional licenses you have to apply for certain businesses, for example, plastic recycling.
The first step to getting a business license is to understand the type of license you need to have for running the business you have decided on. Next, you need to fill up the application form and submit it to the Minneapolis Development Review Office. A licensed inspector will inspect your application and will contact you for further proceedings.
Step 8. Business Bank Account
Have a separate business bank account. It will keep all your financials in one place, making it easy to be taxed. Next up, set up an accounting method for your business. Go through the top accounting software so that all your transactions are maintained securely in one place.
Step 9. Business Insurance
Minnesota has no such specific compulsory insurance applicable, but having a professional liability policy is recommended if you sell services. Also, go for worker’s compensation insurance if you have a working employee.
Step 10. Promoting Your Business
Marketing your business is important initially. Start with social media. It’s free and easy to use. Scale-up accordingly. It’s better to hire an agency to promote your business professionally via effective channels.
Best Places to Start a Business in Minnesota
Choosing the right location is going to determine how your business runs. Here are some of the best places in Minnesota to start your business:
- Saint Paul
- St. Cloud
Minnesota’s economy has grown exponentially over the last few decades. Hope this list of small businesses in Minnesota will help you in starting your business venture.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.