Best 21 Small Business Ideas in Iowa with High Profit

With a massive economy, many diversified businesses operate in Iowa. Manufacturing is the largest contributor to Iowa’s economy. While heavy machinery and agricultural chemicals continue to dominate, other industries are catching up as well. Iowa is also known as the “Hawkeye State,” The state offers a thriving business environment with diverse opportunities across various industries. If you are considering launching a business in Iowa, here are some of the best business ideas to explore:

List of 21 Small Business Ideas in Iowa

1. App Development Services

A business you start from your home, millions of apps are being rolled out every day. If you can create software applications, start working online, and make apps for clients from home.

2. Graphics Design

If you are creative and can create graphical designs, you can start an online graphic design firm. Business from around the world is looking for innovative designs for good prices.

3. Food Truck Business

A better business option than renting out space for a restaurant or commercial kitchen. You can start your food truck business with a small investment and by specializing in a specific category in Iowa.

4. Digital Marketing Agency

If you can produce successful online campaigns, starting your own digital marketing company can be quite profitable. With the internet spreading around the world, the next era of marketing is going to be digital.

5. Bed and Breakfast

Starting a bed and breakfast service will bring you a handsome income. Travelers often look for an alternative to hotels in Iowa. If you have a couple of extra rooms, starting your lodging option via AirBnB can be quite profitable.

6. Cake Shop

Iowa has several bakeries operating out of a storefront. You can also run your cake business from home by taking orders online through delivery portals and small-scale advertising.

7. Barber Shop

Grooming services in the state have seen a major jump in demand. You can start a small barbershop with a little investment specializing in grooming, cutting, shaving, and styling.

8. Start a Blog

If you enjoy writing and looking for an income opportunity. right at your home, blogging is the most legitimate money-making option. Check our detailed guide on starting a blog to learn more.

9. Online Business Consultancy

Startup businesses and new entrepreneurs often need consultants to help them with their businesses. You can offer services related to business plans, know-how, and resources necessary to succeed.

10. Candle-Making Business

Iowa has a sizable market for candles. If you are good at making candles and creative about your product line, this business can be quite profitable if distributed the right way.

11. Affiliate Marketing Business

As an affiliate marketer, you will be paid for endorsing a product online. You will be paid a commission when someone buys a product promoted by you. Choosing the right channels to promote is a major differentiator in affiliate business.

12. Copywriting Business

If you are good at crafting content, you can start a copywriting business from home. Companies often look for talented copywriters online who can help them write blogs, social media posts, reports, and more.

13. Content Marketing Agency

After ads and endorsements, content marketing is the next promotional tool being used by big companies around the world. It involves creating content that primarily can increase interest in customers.

14. Virtual Assistant

Businesses look for people online who can offer work strategies and help companies solve daily tasks. Virtual assistants offer services directly from home over the Internet.

15. Manufacturing

Iowa has a robust manufacturing sector. Hence, the state is an excellent place to start a manufacturing or engineering business. You can consider niche manufacturing opportunities. It can be aerospace parts, specialized machinery, or precision components. Furthermore, explore partnerships with larger manufacturers or focus on providing custom manufacturing solutions.

16. Financial Planner

If you are good with accounts and beekeeping, this can be a wonderful business to enter. You will help people manage their finances, taxes, and where they should invest.

17. Daycare Services

There’s a growing demand for qualified and reliable daycare services in the state. You need a license to start your daycare business in Iowa with little marketing.

18. Online Career Consultancy

If you are good at analyzing professional careers, you can start an online career consultancy. You will help young students to choose their careers and what should their best career decision.

19. Smartphone Repair Shop

The business has an ever-increasing demand for services related to replacements, changes, and breaks. Starting a smartphone repair shop in Iowa can turn profitable in a very short span.

20. Food Processing Business

Food processing is one of the largest components of the manufacturing business in Iowa. You can start at a low cost and export the products to the other states.

21. Data Entry Business

Data entry is a good side-income earning opportunity that can be started from home in Iowa. You will be paid on a per-project basis. Several websites offer online jobs where you can bid and take your data entry projects.

How To Start a Business In Iowa?

Follow the given steps to legally register your business in Iowa:

Step 1. Select a business idea. You can take help from the list of small business ideas mentioned later in the article.

Step 2. Select, analyze and arrange your finances accordingly.

Step 3. Chalk out a business plan.

Step 4. Register your business (preferably as an LLC).

Step 5. Apply for Federal EIN to be eligible for tax filing.

Step 6. Get your business insurance and set up your accounting method for business.

Step 7. Strategize your marketing, sales, and distribution route.

Step 8. Choose an agent who will help you to promote your business.

Best Places To Start A Business In Iowa

Choosing the right location is going to determine how your business runs. Here are some of the best places in Iowa to start your business:

• Des Moines
• Iowa City
• Ames
• Cedar Rapids
• Davenport
• Dubuque
• Sioux City

If you are looking forward to starting a business in Iowa, one of the best places to visit is the Secretary of State’s website. You will find all the necessary details for incorporating a business here.

Frequently Asked Questions

Are there support programs for entrepreneurs in Iowa?

Yes, Iowa offers various resources for entrepreneurs. It includes small business development centers, business incubators, mentoring programs, and funding opportunities. These resources provide guidance, education, and support for starting and growing a business.

Is Iowa a business-friendly state?

Iowa is known for its business-friendly environment, low operating costs, and supportive business policies. The state offers tax incentives, grants, and funding programs to encourage entrepreneurship and attract businesses.

How can I access funding for my business in Iowa?

Iowa provides several funding options, including small business loans, grants, and angel investor networks. Explore programs offered by state and local agencies, as well as private financing options and crowdfunding platforms.

Is Iowa a good place to find a skilled workforce?

Yes, Iowa has a highly educated and skilled workforce, particularly in sectors like agriculture, manufacturing, technology, and healthcare. The state’s strong education system and focus on workforce development ensure access to a talented pool of workers.

What are some unique aspects of doing business in Iowa?

There are several advantages of doing business in Iowa. Some of the unique aspects are Iowa’s strong sense of community, supportive business networks, and access to agricultural resources are unique advantages for entrepreneurs. The state’s central location, transportation infrastructure, and affordable cost of living are additional benefits for businesses.