Back to Business Ideas Categories

12 Best Business Ideas in Minnesota

Written by:

Edited by:

Published on September 16, 2022

Updated on September 16, 2022

12 Best Business Ideas in Minnesota

Disclaimer: Step by Step Business’ content is for informational and educational purposes only. It’s not intended to be a substitute for professional legal or tax advice. All of our articles are thoroughly reviewed and fact-checked by our editorial team. Read our editorial guidelines for more details.

Some of our articles include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.

12 Best Business Ideas in Minnesota

Minnesota is home to the Twin Cities, where many Fortune 500 companies are based. It’s also where the Mall of America, the biggest mall in the US, is located. The state is recovering from the biggest economic downturn in its history due to the pandemic. 

Aside from the services sector, Minnesota also has vibrant finance, insurance, and real estate industries. So businesses involving HR consulting, real estate, virtual assistant, and ecommerce have great chances of success. Check out our list of business ideas in Minnesota below.

1. Clothing Boutique

Boutique Business

Are you obsessed with fashion? Do you have an eye for trends? If so, starting your own boutique may be a great fit for you. Following years of steady growth, the US clothing boutique industry is worth more than $18 billion. More and more of today’s serious shoppers tend to walk right past the brand outlets and department stores and head straight for the exclusive boutiques offering new, unique and vintage clothing and accessories not found anywhere else. 

To draw them in, you will need to establish a strong based on your own sense of style. You might embrace a pre-WWII theme and embrace flapper dresses, hats and brooches. Or maybe you’re a disco lover and all about bell bottoms, short shorts, tube tops and more. Or you could go with a clean and simple, more futuristic look. The key is finding and highlighting your own sharp fashion sense. If it’s right, the shoppers will come.

2. Gym

Gym

As the US economy recovers from the pandemic, gyms and fitness centers are also expected to reopen and bounce back. The gym, health and fitness clubs industry is poised for a modest growth and expected to earn more than $36 billion in 2022. Starting your own gym business can be very profitable and rewarding, too. 

Setting up a gym can be a breeze if you’re motivated and have a clear idea of what it will offer and what you want to achieve. You will need to invest in exercise equipment, choose a location that is accessible to potential customers, and secure the necessary permits and certifications. An option is to get a franchise or buy an existing fitness center. You will also need to identify a target market. There’s an increasing number of younger people who want to get fit and healthy, so you might want to direct your advertising and marketing efforts to this demographic. Don’t forget the older fitness buffs, though. Their number is also increasing.

3. Summer Camp

Summer Camp

Setting up a summer camp is a lot of fun, and it’s also a great way to make money. If you’re looking to start a summer camp business, you’re right on time. The industry, valued at around $3 billion in the US, is expected to return to growth as the economy recovers from the pandemic and thousands of summer camps across the country reopen. 

To get started, you’ll have to choose a niche and decide whether to set up a vacation camp, sports camp, or outdoor adventure camp. Most camps still cater to children, but some have programs for adults as well. Your choice will determine the kind of facilities that you will build. Camps generally provide cabins, campsites, and recreation facilities and equipment. They also provide meals, snacks, and non-alcoholic beverages. You will need to make an upfront investment. Unless you already have an existing property that’s ideal for a summer camp, you will have to choose your location well to be able to attract customers.

4. Ice Cream Truck

Ice Cream Truck

Americans LOVE ice cream: we eat almost half a pound a week on average. Americans also love food trucks, which have exploded into a multi-billion-dollar industry in recent years. Yet for some reason, the rise of food trucks has in many areas meant the end of the ice cream truck. 

But now that’s starting to change, as a new generation of ice cream trucks has begun to emerge. These vendors don’t offer the same old popsicles and ice cream sandwiches you got when you were a kid, but instead provide a wide selection of locally-made ice cream treats, supporting local businesses and helping build a network of partners. More importantly, today’s ice cream trucks are wired, allowing customers to book them for events online, track their location and get a text message when they’re in the neighborhood. 

If you love making kids happy, there’s never been a better time to drive an ice cream truck.

5. Mechanic Business

Mechanic Business

As the economy improves, car owners in the US are likely to seek repairs that were delayed by pandemic measures. If you’re an entrepreneur with a good grasp of automotive parts and functions, now is the time to start a mechanic business. Nearly 70,000 job openings for automotive service technicians and mechanics are projected on average every year through 2030. To get a share of this lucrative market, you will need to keep up with the latest technologies, diagnostic software and tools to assess vehicles.

Before launching your business, you will need to check out the licensing and zoning requirements. Generally, a mechanic needs to finish high school and undergo an in-depth training or certification program. Once you comply with government regulations, it is important to research ways to differentiate yourself from the competition. Remember that there are hundreds of thousands of repair shops across the country. Although the industry seems to be saturated, there are still many ways for you to succeed. An option is to find an underserved location, set up your shop there, and work very hard.

6. Logging Business

Logging

If you’re an entrepreneur with a penchant for the outdoors, starting a logging business may be a great opportunity for you. Logging is a $17 billion market in the US. It is still growing, although at a decelerating pace because of a slowdown in the construction of new homes, home repairs and remodeling projects. As the economy recovers from pandemic fallout, the industry is also expected to grow correspondingly. 

Before you can launch your business, you need to find out the permit and licensing requirements and familiarize yourself with the environmental laws and regulations governing forestry products. You also need to brace for the hazards of working in close proximity to heavy equipment, trucks and trees. Workers in logging industries have to watch out for falling trees and other objects, log movements, noise and more. This needs a huge upfront investment because you’ll need to acquire heavy equipment, so be ready to secure the necessary funds, too.

7. Tourism Agency

Tourism

If you’re looking to start your own tourism business, you’re in luck! The US has reopened its land and air borders to vaccinated tourists. After suffering devastating losses due to the pandemic, the tourism industry is poised for growth. The US Travel Association says domestic leisure travel is expected to surpass pre-pandemic levels in 2022 as 82% of American travelers are excited to travel in the next 12 months. International inbound travel, on the other hand, is anticipated to increase gradually and fully recover in 2024 or 2025. This is the highest level since the start of the pandemic. 

When starting a tourism business, it is important to keep track of the latest Covid-19 travel guidelines per state or city so you can properly advise your clients. Besides complying with licensing, insurance and other regulations, you will need to choose your niche market from the get-go. You will also need to be creative and come up with a marketing strategy. You can start by building social media presence to promote your services and attract clients.

8. Real Estate Agency

Real Estate

The US real estate market has been booming in recent years, and is now worth nearly $400 billion and expected to see further growth in the years ahead. As an entrepreneur, you’re probably always on the look-out for new opportunities. Right now, with sales totals and home prices at record highs, real estate ranks among the largest and most promising markets. And best of all, you’ll be helping families settle down and build homes and communities. 

Of course, starting a real estate business isn’t as easy as getting out of bed. You’ll need to educate yourself about the market and obtain a real estate agent’s license. You’ll need to familiarize yourself with all of the relevant online tools and information to keep you updated on market trends, and find a local broker to partner with. Finally, you’ll need to set up a website and successfully market your home buying and selling abilities in order to stand out in a crowded marketplace. 

All that done, you’ll be ready to start building your real estate empire.

9. HR Consulting

HR Consulting

If you have people skills and knowledge of human resources (HR) management principles, then an HR consulting business may be a perfect fit for you. HR consulting in the US is a $24 billion industry that offers more opportunities for growth in the next five years as more companies outsource their HR functions. HR consultants are hired for a wide range of services, from recruitment to implementation of training programs.

Before you can launch your business, you need to find out your state’s licensing requirements. You might want to develop core competencies and focus on these. It’s a good idea to identify your target market, network with other professionals in the industry, and promote your services to land your first contract. Make sure you are updated with the latest trends and best practices in HR management, and build trust with your clients to succeed and grow your business. HR consulting can be a lucrative career path if you have the right skills and are passionate about what you do.

10. Virtual Assistant Service

Virtual Assistant

The job didn’t even exist 20 years ago, but now, thanks to new technologies and the sharp increase in remote work during the pandemic, the virtual assistant industry is booming. After years of strong growth, the market is expected to be worth more than $4 billion by 2025. That means now is a fantastic time to start your own virtual assistant business. 

To be clear, we’re talking about a human, not a digital or AI-powered, assistant, who provides administrative, technical, and creative services to clients remotely, via the internet. If you have a strong business skillset, you can get started with a minimal investment and run the company out of your own home while serving clients anywhere in the world. You could also add more skills over time, increasing your revenue streams and the rates you’re able to charge. 

With hard work and a bit of luck, you’ll soon be helping businesses run more smoothly and efficiently while making good money for yourself.

11. Farm

Farm Business

Do you have a green thumb and always dreamed of starting your own farm? Well now is a great time to take the plunge, with countless people leaving cities for the countryside and looking to eat healthier, all-natural foods fresh from the farm. Farming is a trillion-dollar industry in the US, and offers considerable opportunity for the hard-working entrepreneur. 

And there will be hard work. Farming is not as easy as putting on overalls. You’ll need to find and purchase the right piece of land. You’ll need to choose your crops. Maybe heirloom tomatoes, zucchini and soy beans? Next, work the soil and make sure it’s ready for planting, then keep your fields clear of insects and blight. You’ll also want to decide on livestock. Will you have chickens, lambs, cows, pigs? There’s so much work to do on the farm, but you’ll get to work in the great outdoors, providing nourishing foods to your family and community.

12. Ecommerce Store

Ecommerce Business

Do you have a great business idea, but don’t know where to start? These days, the best way to get started is often by turning to the internet, where a wide variety of ecommerce businesses have found great success in recent years. Of course you know about Amazon, but there are also millions of smaller businesses that make up what is now a $4 trillion global industry. 

With countless people stuck at home, ecommerce revenues increased by more than a quarter in 2020, and they’s still growing, so opportunity in this market remains strong. You will need an appealing, in-demand product, a simple, easy-to-use website, and a sharp marketing plan, but if you’re willing to invest a good chunk of your time and money your new ecommerce business will have a great shot at success. Somebody’s got to be the next Jeff Bezos, right?