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11 Best Business Ideas In South Dakota

Written by:

Edited by:

Reviewed by: Daniel Javor

Published on October 28, 2022

Updated on November 12, 2022

11 Best Business Ideas In South Dakota

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11 Best Business Ideas In South Dakota

South Dakota, home to Mount Rushmore National Memorial, is known for its thriving agriculture sector and tourism industry. It hosts around 3 million tourists who visit Mount Rushmore each year. The restaurants, shops, and other visitor facilities at Mount Rushmore were shut down at the onset of the pandemic, but reopened a few months later. 

Starting a travel agency or a retail business makes perfect sense, but you could also consider launching an accounting, woodworking, or baking business. Go through our list of business ideas in South Dakota and see if anything appeals to you.

1. Tax Preparer

Tax Preparer

Taxes are inevitable, which is why the tax preparation 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 still do not require licensing for tax preparers. Some states don’t have any requirements, while others require that tax preparers pass a beginner’s course in tax prep. Be sure to check with your state government 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. Beyond that, you’ll just need to register your business and start offering your services online. Once you get that first client or two and provide excellent and affordable tax preparation service, you’ll start seeing referrals and you’ll be able to increase your rates and be well on your way to business success.

2. Accounting Firm

How to start a 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 profit is also 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 some states, you may not 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.

3. Travel Agency

How to start a travel agency business

Do you love to travel? Are you always planning your next vacation? Why not start your own travel agency business? It’s a great way to share your love of travel with others, and it can be a very lucrative business. Travel agencies in the US are expected to rebound strongly from pandemic slump and see a 38% increase in revenue 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 business can be a breeze. But first, you need to identify your target market. Will you be focusing 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.

4. Tour Guide Business

Tour Business

Do you love to travel and see new places? Why not start your own tour business? It’s a lot of work, but it can be a very rewarding endeavor. The US tour industry was expected to recover in 2021 after total revenue fell below $6 billion in 2020 due to the pandemic.
Earnings were predicted 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. Because of the pandemic, demand is rising for tour packages in the countryside, national parks and the outdoors. Before you can start operating, you need to pick a niche, choose your target demographics, and understand the competition. You also have to familiarize yourself with the laws and regulations, such as the seller of travel laws, that tour operators, travel agencies and other tourism-related businesses must follow.

5. Bakery

How to start a bakery business

Who doesn’t love homemade baked goods, fresh out of the oven? 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-carbohydrates trend, the US baking industry 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 culinary creations with the world while also making a good living. 

But starting a baking business can be tricky, and there are several hurdles before you can start. You’ll need to nail down a handful of absolutely fantastic baked goods that will keep people coming back. You’ll need to outfit your kitchen, or your new bakery, with all the right equipment and ingredients. And of course you’ll also 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!

6. Bar

How to Start a 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 pandemic slump and the prospects are bright for a strong year ahead. 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.

7. Woodworking

How to start a woodworking business

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 strong demand.  

To get started, there are a few key steps you’ll need to take. First, you should 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.

8. Retail Store

How to start a hardware 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 you’ll be selling! 

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 run a successful retail outlet.

9. Cattle Farm

How to Start a Cattle Farm

The US is both a major exporter and importer of beef, and the cattle sector accounts for the largest share of total cash receipts for agricultural commodities nationally, so starting a cattle business is certain to provide anyone with a steady income. If you’re thinking about establishing your own ranch or simply opening a retail shop for cattle products, this is your opportunity! Commercial beef production in the US is projected to grow to more than 27 billion pounds on higher expected non-fed and fed cattle slaughter. 

If you open a breeder farm, you will need to comply with your state’s laws and regulations first. There are also regulations for butcher shops and meat processing businesses. You will have to 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 conditions, a growing international demand for US beef could still make your cattle business profitable.

10. Pig Farm

Pig Farm

It’s a dirty job, but somebody’s gotta do it — because pig farming is a $8 billion industry in the US. 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!

11. Tourism

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.