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17 Best Business Ideas in Minnesota

Written by:

Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

17 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. As the pandemic recedes, the state is recovering from the biggest economic downturn in its history — and expecting strong growth ahead.

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 profitable business ideas in Minnesota below.

1. Manufacturing

How to Start a Pallet Manufacturing Business

n the heart of the Midwest, Minnesota’s manufacturing sector stands robust, spurred by a skilled workforce and a legacy of craftsmanship. From medical devices to electronic equipment, setting up a manufacturing business here taps into a strong network of suppliers and a culture that prides itself on quality and innovation. The state’s supportive business climate, with incentives for manufacturers, makes it an ideal location to start a production facility.

2. Real Estate

how to start a real estate business

Minnesota’s diverse real estate market, ranging from bustling urban centers like Minneapolis to serene lakefront properties, offers a fertile ground for real estate ventures. The state’s strong economy and growing population contribute to a steady demand for both residential and commercial properties, making real estate investments and development particularly promising.

3. Health Care

How to start a home health care business

With some of the nation’s top hospitals and a population that values health and wellness, Minnesota is ripe for new health care businesses. Entrepreneurs can capitalize on the intersection of technology and health care, developing innovative services or opening clinics to serve the state’s aging population and the vibrant Twin Cities’ metropolitan area’s diverse health needs.

4. Insurance

How to start a insurance agency

Minnesota’s varied climate and active outdoor lifestyle create a need for comprehensive insurance coverage, from health to auto and property. Starting an insurance business in a state that’s home to several Fortune 500 companies, including insurance giants, means stepping into a competitive but rewarding market with a wide range of clientele.

5. Graphic Design

How to start a graphic design business

The state’s thriving arts scene and strong corporate presence provide a rich environment for graphic design firms. With many businesses seeking to establish or refresh their brands, a graphic design company in Minnesota can find a diverse clientele, from burgeoning startups in the Twin Cities to established firms looking to connect with a digital audience.

6. Clothing Boutique

How to start a clothing boutique business

Minnesotans enjoy a unique sense of style that blends urban chic with outdoor ruggedness. A clothing boutique that captures this essence can thrive, particularly in fashionable neighborhoods of Minneapolis-St. Paul or in upscale tourist destinations like Duluth or along the North Shore of Lake Superior, catering to both locals and visitors.

7. Gym

How to open a gym business

With wellness being a top priority for many Minnesotans, a gym that offers a variety of fitness programs can become a community hub. Emphasizing both indoor and outdoor activities to suit the state’s four distinct seasons, such a venture could cater to the fitness needs of a diverse demographic year-round.

8. Summer Camp

How to start a campground

Minnesota, known as the “Land of 10,000 Lakes,” is an ideal setting for summer camps. Entrepreneurs can leverage the state’s natural beauty and the local passion for outdoor activities to create camps that offer memorable experiences in wilderness exploration, water sports, and environmental education.

9. Ice Cream Truck

How to start an ice cream business

Capitalizing on Minnesota’s love for ice cream, especially during the warm and inviting summer months, an ice cream truck can be a mobile oasis of delight. This business can flourish by frequenting city parks, family-friendly events, and popular tourist areas, offering a reprieve from the summer heat.

10. Mechanic Business

How to start a car repair shop

Minnesota’s cold winters and hot summers take a toll on vehicles, making car maintenance a necessity. A mechanic shop here can build a strong, loyal customer base, especially if it specializes in preparing and repairing cars for the seasonal extremes.

11. Logging Business

How to start a logging business

With its vast northern forests, Minnesota supports a robust logging industry. Sustainable logging operations can meet the demand for timber while contributing to the state’s economy, particularly in the more rural and forested northern regions.

12. Tourism Agency

How to start a travel agency business

A tourism agency in Minnesota can capitalize on the state’s rich tapestry of cultural events, outdoor adventures, and historical landmarks. Tailoring experiences to various interests, such as urban explorations, boundary waters canoe trips, or cultural heritage tours, can cater to both domestic and international tourists.

13. Real Estate Agency

how to start a real estate business

With an ever-evolving housing market, a Minnesota-based real estate agency can guide clients through the complexities of buying, selling, and renting in various markets—from the dynamic metropolitan neighborhoods to serene rural settings.

14. HR Consulting

How to start a consulting business

The diverse business landscape of Minnesota, from agriculture to technology, provides ample opportunity for HR consulting firms. These firms can help businesses navigate the state’s employment laws, find talent, and manage workforce development, particularly in a state known for its educated and industrious workforce.

15. Virtual Assistant Service

How to start a virtual assistant business

Supporting the state’s many small businesses and busy professionals, a virtual assistant service can offer a wide range of administrative and organizational skills remotely. This business can appeal to clients who are looking to increase productivity without the overhead of a full-time staff.

16. Farm

How to start a farm business

Minnesota’s rich farmland is ideal for starting a farm that could specialize in a variety of products such as corn, soybeans, dairy, or even specialty organic produce. There’s a growing market for farm-to-table products and a supportive community for local agriculture initiatives.

17. Ecommerce Store

How to start an ecommerce business

With high internet penetration and a population comfortable with online shopping, an e-commerce store based in Minnesota can reach a vast market. The state’s central location is also advantageous for distribution, making it an excellent hub from which to ship goods across North America.

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17 Best Business Ideas in Minnesota