18 Best Business Ideas In South Dakota

South Dakota, home to Mount Rushmore, which welcomes 3 million visitors each year, is known for its thriving agriculture and tourism sectors. You might consider opening a travel agency or retail outlet, or an accounting, woodworking, or insurance business.

There are a lot of options, so check out our list of excellent South Dakota business ideas and see what strikes your fancy.

1. Insurance

Starting an insurance business can be a great way to make money while helping others plan for the future and hedge against financial losses. The global insurance industry has been growing, with revenues estimated to reach more than $6 trillion in 2025. Analysts believe the industry is poised for a more rapid growth as the world recovers from the pandemic. This could be the right time for you to start your own insurance business.

You can start small by setting up an office affiliated with a major industry player. Before you launch your business, you need to know your products well and focus on a niche market. Will you be offering property, health or life policies, among others? You’ll also need to consider the emerging technologies in coming up with business models. It would be helpful if you have actuary skills, some customer service experience and great networking skills. 

2. Fish Farm

The average American ate less than 20 pounds of fish and shellfish in 2019, nearly a third less than the US Department of Agriculture’s recommended 26 pounds per year. This presents an opportunity for fish farms to increase their output. If you’re looking to start a fish farm, you’re on the right track. 

A fish farm commercially breeds fish and seafood, usually for food. It’s important to prepare a substantial amount to find a suitable location, establish your fish pond, procure the required equipment, and find a reliable supplier of fingerlings. Of course, you’ll need to comply with licensing, zoning, and other regulations. It’s also to your advantage to scope out the market and draw up a plan on how to corner a share. With these in place, you’re on your way to launching a successful fish farm business.

3. Health Care

Thinking of setting up a health care business? You’re on the right track. By 2030, the number of US adults age 65 and older will exceed 60 million. This means increased health care spending. Which segments are booming, you might ask. Profits are growing fastest in medtech and health care IT.

So what are you waiting for? Now’s the time to start a health care business. Take the first step by finding a niche to focus on. Make sure you have the necessary permits and licenses, whether you’re thinking of starting a medical practice, home health care company, or something else. You’ll also need to decide on a value proposition that will set you apart from the competition and bring in steady business.

4. Manufacturing

A great deal of manufacturing has moved overseas in recent decades, but US manufacturing is still an $8 billion industry that has seen steady growth in recent years. Manufacturing businesses can be extremely profitable, but they also require a lot of planning and hard work.  

The first step is to decide what you’re going to produce. Do some market research and see which products are selling well and where there may be a market gap. You should keep an eye out for products that are more affordable to manufacture or offer a significant markup and strong profits. Next, you’ll need to rent or purchase a manufacturing facility, preferably in an out-of-the-way location to keep costs low. Once you start making your products, you’ll need to have them tested and certified and acquire all the necessary licenses and permits. 

Finally, you’ll be ready to launch a marketing campaign that, with a bit of luck, should start bringing in orders and put you back in the black.

5. 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.

6. Retail

Are you thinking of starting your own retail business? If so, you’re in good company. The retail industry is a huge part of the economy, and it’s only getting bigger. But starting a retail business isn’t easy. There are a lot of things to think about, from choosing the right location to setting up your payment system. And let’s not forget the most important step: deciding what to sell! 

A good way to choose your product offerings is to first do some research — see what’s out there, and more importantly what’s not. You’re looking for what sells well, as well as a market gap to fill. Once you know your products, finding a great location for your store will be the next big step. However, you might want to initially run your retail business out of your home. This would significantly reduce your costs and give you time to build a brand and a reputation. 

After a year or two, assuming your products are well received by the market, you’ll be in a much better position to find a great location and open a serious retail outlet. 

7. Wholesale

Wholesale is all about the advantages of scale: prices are lower than retail because the purchases are in bulk, vast amounts of tomatoes, cement mix, shoes, or whatever it may be. If you’re good at scaling up and making sales, you might want to consider starting a wholesale business, because the industry is expected to continue its steady growth in the years ahead. 

Getting started will require a significant investment, because all of that inventory is not going to suddenly appear out of nowhere, and you’ll need a place to keep it. Fortunately, unlike retail, a wholesale business doesn’t have to worry about finding an area with heavy traffic. Instead, the main concern is space. Once you’ve got your goods and a warehouse, you’ll need to obtain all the necessary licenses, then start reaching out to local businesses that might be interested in your goods.

Keep in mind that this is a big and growing industry, which means you’re going to face stiff competition from established firms and other new entrants. You’ll likely need to work hard, and smart, to succeed.

8. Tax Preparer

Taxes are inevitable, which is why the tax prep industry has seen slow but steady growth for years, and is expected to continue to do strong business in the years ahead. If you’re a licensed accountant or enrolled agent, you could easily start your own tax preparer business. But even if you’re not, many US states, including South Dakota, still do not require licensing for tax preparers. But be sure to check with the state government for guidelines before you get started. 

Beyond that, you will need to get a PTIN, or Preparer Tax Identification Number, which the IRS requires all tax preparers to have, and register your business to start offering services online. Once you get that first client or two and provide excellent and affordable tax prep, you’ll start seeing referrals and be well on your way to success.

9. Accounting Firm

If you’re an accountant, why not consider launching your own accounting business? It’s one of the most lucrative small businesses and there’s always a demand for accounting services. As the US economy improves, corporate profits are expected to increase, presenting vast opportunities for accounting businesses. The accounting services market in the US is worth more than $140 billion and still growing.

Before you get started, it’s important to have a clear vision of your purpose and a firm grasp of the risks involved in starting a business. In South Dakota you don’t need to be a certified public accountant to start an accounting firm. You just need to register it as a business and comply with all applicable laws and regulations. But getting certified will allow you to offer some services that only CPA businesses can. With the right skills, a good marketing plan, and a lot of hard work, you can make your accounting business incredibly rewarding.

10. Travel Agency

Do you love to travel? Are you always planning your next vacation? Well then maybe you should start your own travel agency. It’s a great way to share your love of travel with others and it can be very lucrative. US travel agencies in the US are rebounding strongly from the pandemic and saw a revenue leap in 2022 due to pent-up demand. The market is predicted to grow steadily through 2026.  

If you have the resources, starting a travel agency can be a breeze. But first, you should identify your target market. Will you focus on domestic or international travel? A lot of Americans are going on overnight trips for vacations or business purposes, providing an opportunity for travel agencies to earn money. Arranging trips for international visitors is also possible now that the US has eased travel requirements. Once you find your niche and draw up a business plan, you should work on establishing your brand and promoting it to find clients.

11. Tour Guide Business

An alternative to a travel agency could be starting your own tour business. It’s a lot of work, but it can be a very rewarding endeavor. The US tour industry is recovering, with revenues set to increase to more than $8 billion in 2022 due to pent-up demand for travel. Both land and air borders of the US have been reopened to vaccinated tourists. 

Tour operators are primarily responsible for arranging tour packages that they offer to tourists and travel agencies. Demand is rising for tour packages in the countryside, national parks and the outdoors. Before you can start operating, you should pick a niche, choose your target demographics, and understand the competition. Also, familiarize yourself with relevant laws and regulations, such as the seller of travel laws, which tour operators, travel agencies and other tourism-related businesses must follow.

12. Bakery

Who doesn’t love freshly made baked goods? If you often find yourself elbow-deep in flour, now’s a great time to take the next step and become an entrepreneur. Despite the anti-carb trend, US baking has been growing for years and is now worth more than $12 billion. You could open your own bakery, or start a home-based baking business, and share your delicious creations with the world while making a good living. 

But starting a baking business can be tricky, and there are several hurdles to clear before you can start. You’ll need to nail down a handful of fantastic baked goods that will keep people coming back. You’ll need to outfit your kitchen, or new bakery, with all the right equipment and ingredients. And of course you’ll need to pass health checks and government licensing required for food businesses. 

After that, you’ll just need to start marketing your tasty treats and, with a bit of luck, you’ll soon have too many orders to fill!

13. Bar

Are you looking to open your own bar? It can be a great way to make money. The bars and nightclubs industry in the US is slowly coming out of the pandemic slump and its prospects are bright. There are more than 60,000 bars and nightclubs in the country, and there’s still room for more. Starting your own bar business now is the right thing to do.  

There are a few things you have to do before you launch your bar. Besides making sure that your business is legally compliant, it’s a good idea to be ready to adapt to the latest nightlife trends and shifting consumer tastes. A recent survey showed that more Americans would leave a bar if it gets too crowded or the music is too loud. More Americans are also choosing non-alcoholic drinks, low-alcohol cocktails, kombuchas, and other beverages with low to no-alcohol content. With careful planning and a great marketing strategy, you should be making big profits from your bar business soon.

14. Woodworking

Are you good with wood? If so, this is a great time to get into the woodworking industry, which has seen steady growth in recent years and is expected to be worth nearly $5 billion globally by 2026. These days, people everywhere are interested in hand-crafted, artisanal goods, from wooden rocking chairs to homemade pies. 

You could start your own woodworking business from home for little investment and ride this wave of appreciation for sturdy, traditional products to serious success. Even if the trend slows down, high-quality furniture and other wooden items are always in demand.  

To get started, there are a few key steps you’ll need to take. First, get all the necessary tools and equipment, if you don’t already have them, and brush up on your woodworking with an online class or two. Next, you’ll need to decide what you’ll be making: furniture, figurines and chess sets, decorative plaques and custom wood pieces, or all of the above. The choice is yours, but as long as you choose wood and are willing to work hard, you should find your way to success.

15. Retail Store

Are you thinking of starting your own retail business? If so, you’re in good company. The retail industry is a huge part of the economy, and it’s only getting bigger. But starting a retail business isn’t easy. There are a lot of things to think about, from choosing the right location to setting up your payment system. And let’s not forget the most important step: deciding what to sell! 

A good way to choose your product offerings is to first do some research — see what’s out there, and more importantly what’s not. You’re looking for what sells well, as well as a market gap to fill. Once you know your products, finding a great location for your store will be the next big step. However, you might want to initially run your retail business out of your home. This would significantly reduce your costs and give you time to build a brand and a reputation. 

After a year or two, assuming your products are well received by the market, you’ll be in a much better position to find a great location and open a serious retail outlet. 

16. Cattle Farm

The US is a major exporter and importer of beef, and the cattle sector accounts for the largest share of revenue nationally, so starting a cattle business is certain to provide a steady income. If you’re thinking of establishing your own ranch or opening a retail shop for cattle products, this is your opportunity! Commercial US beef production is set to grow in the years ahead.

If you open a breeder farm, you will need to comply with your state’s laws and regulations. There are also regulations for butcher shops and meat processing businesses. Do some research, choose your niche market and create a business plan. There are many factors to consider – from branding and customer acquisition to managing growth. Although the industry faces pressures caused by vulnerabilities in the supply chain and extreme weather, growing international demand for US beef should make your cattle business profitable.

17. Pig Farm

It’s a dirty job, but somebody’s gotta do it — because pig farming is a $8 billion US industry. Despite the common image of sows rolling in the mud, pigs are actually fairly easy to care for, not to mention intelligent. Besides, ham, bacon, pork chops and barbecued pork are always in great demand. So if you have a sizable outdoor space, or could lease one, you could start a pig farm, make a good living and provide quality meats to your community and beyond. 

There are several key steps you’ll need to take. The first is making sure your property is secured with a strong fence, so you don’t lose your merchandise. The second is making sure you have all the proper permits and licenses to keep and sell livestock in your town and state. Third is making deals with nearby meat markets to purchase and distribute your goods. All this done, you should be well on your way to entrepreneurial hog heaven!

18. Tourism

If you’re looking to start your own tourism business, you’re in luck! The US has reopened its land and air borders and the industry is poised for growth after domestic leisure travel surpassed pre-pandemic levels in 2022. International inbound travel, on the other hand, is set to increase gradually and fully recover by 2025.

When starting a tourism business, it is important to keep track of the latest travel guidelines so you can properly advise your clients. Besides complying with licensing, insurance and other regulations, be sure to choose your niche market, be creative and come up with a marketing strategy. You can start by building a social media presence to promote your services and attract clients.