Top 5 Illinois Business Ideas: Find the Right Fit For You
Small business is booming in the Prairie State, and the Internet is buzzing with searches for profitable Illinois business ideas. We’ve put together a quick guide on the most successful industries, niches for each industry, and tips to start a Limited Liability Company (LLC), Corporation, or DBA. We can also form your company for you with just a few details on our online order form. Whether you want to start your business yourself or would rather save some time and money with one of our formation packages, you’ll find everything you need to explore Illinois business opportunities and make your business official.
Since 2001, MyCompanyWorks has formed tens of thousands of companies across the U.S. Find out why entrepreneurs prefer our services and refer new startups to us. See the MyCompanyWorks difference for yourself. Discover some of the best business ideas in Illinois and turn your passion into a money-making machine.
Profitable Small Business Opportunities
While Chicago is the most obvious hub for business and trade in Illinois, over 1.2 million small businesses call the Prairie State home. According to Small Business Majority, about 45% of the private workforce (about 2.5 million people) is employed by small businesses. Below are the top 5 profitable products and services in Illinois.
- Business and Professional Services
- Wellness and Personal Care
- Online Courses
- Children’s Education and Enrichment Activities
- Local and Online Clothing Shops
Between these industries, there are a number of successful business opportunities, and you may find one that fits well with your passion and interests. Let’s explore each industry below.
Business and Professional Services
- Consulting: Consulting agencies offer expert advice and strategies to help their clients do everything from growing their businesses, to organizing their homes. If have advanced knowledge and practice in a certain area (finance, fashion, business management, the list is almost endless), you could start an online or local consulting business to make money from your skillset.
- Bookkeeping and Accounting: Depending on the level of service, bookkeeping and accounting services can be offered both locally and online. Help individuals and companies manage finances, file tax returns, and work with tax professionals.
- Marketing, Social Media, Copywriting: You can create a business with any combination of these niches. There are plenty of businesses that are willing to pay someone to manage their web presence. These types of businesses are highly flexible when it comes to work/life balance.
- Virtual Assistant: A virtual assistant works over the internet to manage a range of tasks and projects, from phone answering to bookkeeping, to marketing, and so much more. There’s a VA for literally every niche. Work with a variety of clients and projects to increase your customer base and offerings. Here’s an article to give you an idea of what entrepreneurs are looking for in a virtual assistant.
- Graphic Design: Combine custom text and images to create unique logos, website banners, screen printing stencils, and anything else that requires graphics. Work from home to keep costs low and meet clients at their offices or in meeting-friendly places.
- IT Services: Information technology is a huge industry worldwide, and the opportunities are endless for new startups. If you can develop an app for an under-served market, you have a great chance to build success, and perhaps even make money from selling your app!
Wellness and Personal Care
- Therapist or Counselor: Health and wellness services have taken off in recent years, and Illinois is a great place to be a therapist or counselor. The Prairie State spends almost $2,700 per person on healthcare services each year, so contracting with the state’s government offices can open the door to a qualified customer base. Most counseling services require a Professional Limited Liability Company or Professional Corporation to operate in Illinois.
- Fitness Instructor: Fitness is a growing niche in the health and wellness industry, and many coaches teach classes online. If you can record beginning, intermediate, and advanced exercise programs, you can host them on an e-commerce website to sell as individual lessons or in packages.
- Life Coach: Life coaching doesn’t necessarily require the same licensing as therapists, but you do need to research specific requirements in the state and your county. Life coaching can take place in-person, or online, or you can rent out space to offer larger conferences and reach more clients.
Online Courses
- Cooking and Food Management: Many cooks and foodies turn to the Internet for recipes, classes, and community to find help and resources. Develop a cooking class, set up virtual cooking or tasting demonstrations, and offer ingredients, kitchen gadgets, etc. to create a space for your business in this niche.
- Hobbies, Interests, Pastimes: YouTube is loaded with tutorial videos and recordings of people doing their favorite things. You can turn your own hobbies into a money-making machine by streaming videos and adding affiliate links for related products or services. If making things with your hands is your interest, you can also sell the products featured in your videos.
- Business Management: Entrepreneurs are constantly looking for ways to manage their business without having to be an expert in every area. Simple business management courses are a great way to attract business from anywhere on the planet.
- Arts and Crafts: People love handmade art pieces and craft items. If you are crafty with your hands, you can sell quilts, wooden toys, jewelry, and just about anything else with an Etsy store or with our e-commerce website package.
Children’s Education and Enrichment Activities
- Enrichment Activities: Parents are always looking for new ways to inspire and educate their children. Online stores like Amazon, eBay, and Etsy are loaded with educational games, handmade toys, puzzles, and activities kids can enjoy at home. You can also explore opening a kids’ gym or activity center where you live. The possibilities range widely and both local and online options can draw a steady customer base.
- Mobile Apps: Many children have their own mobile devices, so mobile games, puzzles, and online activities are a hot market. If you have a creative game or activity in mind, and the tech-savvy to develop apps, this type of platform is popular with young people.
- Childhood Education: This niche covers all kinds of options. From in-home daycares to neighborhood preschools, and larger organizations, childhood education is a very successful niche in the U.S. There may be additional licensing and certification requirements, but an education-based business for children can be a very profitable long-term business idea.
Local and Online Clothing Shops
- Online Clothing Rentals & Swap Meets: Shoppers have become creative in how they find the best clothing deals online. Online clothing swaps are gaining popularity, but the concept is still new, so it’s a great time to dive into the used clothing market. You can either offer your own inventory to start or build a website where customers trade for a nominal fee. Either way, this business model is low-cost to run and could be very easy to manage with the right setup.
- Brick-and-Mortar or Online Clothing Boutique (or both!): Clothing shops are as diverse and unique as you can imagine. Some of the world’s top fashion designs are born in Chicago. Styles may change, but fashion never ends, and shoppers are always looking for something new and different to add to their wardrobes. Bring together your own styles on a clothing shop website or in a physical location. And you don’t have to do one or the other. More than two-thirds of all consumers look for websites when they’re deciding where to shop. Get double the exposure to your goods with both a store and an e-commerce website.
Other Profitable Illinois Business Ideas
- Auto Repair and Mobile Detailing
- Pressure Washing
- House Painting
- Restaurants and Food Services (Ghost Kitchens, Food Trucks, Pop-up Restaurants)
- Residential and Commercial Cleaning
Illinois Small Business Resources
10 Steps to Register Your Illinois LLC, Corporation, or DBA | The Perfect Business Execution | Why Choose MyCompanyWorks?
How to Create a Business in Illinois
If you’re inspired by any of these startup opportunities, you’ll need to register your business in Illinois to operate legally. Below are 10 steps to create an Illinois LLC, Corporation, or DBA, and market your business.
Save time and money. Manage your business in one place. Form your company now with MyCompanyWorks.
1. Your Business Needs a Structure and Name
Stand out with a unique business name
Selecting a name for your business may not seem like a big decision, but it’s important to give it thought, and search the internet and state business sites to make sure the name you select is available. Making sure to have a unique business name can help you avoid legal issues, such as lawsuits from other companies due to people getting mixed up on which company they’re dealing with.
The Most Popular Small Business Structures
The most common business type for startups is the Limited Liability Company or LLC. The LLC is considered the most flexible and easily managed entity. If you’re not sure which option to choose, talk with a lawyer or accountant who can help you make an informed decision.
- LLC (Limited Liability Company): Starting an LLC is the most popular form of company for startups. It provides tax benefits, and you don’t have to file a ‘business’ tax return each year but just report your profits and expenses on your personal taxes.
- Corporation: This entity type is usually appropriate for large or complex businesses. Corporations can apply for the Subchapter S – or “small business” tax status. This means that your business expenses, profits, and losses are reported on personal tax returns. If it sounds like it’s overkill to you, talk to an accountant or lawyer before committing to this entity type.
- DBA: Doing Business As (DBA) is a legal name you can use when starting a company that won’t require you to start an LLC or Corporation. If you decide to use a DBA, it won’t protect your assets in the way that a corporation or LLC would. That means unless you apply for an EIN, you’ll need to provide your personal SSN on all business-related documents. DBAs are not required to have an EIN if you don’t hire workers, but you can use one as an alternative for your personal information.
Talk to a tax professional to decide which business structure is the best option.
2. Learn How to Use a Business Plan
Why you need a solid plan
A well-designed plan acts as a roadmap to growing your business. If you plan on getting financing, it helps to find investors who share your goals. If you’re seeking a business loan, you will need a detailed plan covering the short-term and long-term goals of your project and a way of showing how they will be accomplished. A business plan is one of the first things that lenders will ask to see after they hear your pitch. It’s a good idea to have one from the start of business, so you can provide them with it when asked. There are many different business plan templates online to help you get started fast. They not only allow you to change the language, but they are also flexible enough to accommodate changes in your company’s needs. We also have a guide to writing an effective business plan.
Best practices
A good business plan should start with a summary. Include information about the company’s mission and what they do, followed by more specific details like pricing and marketing strategies in the next section. You’ll need to look into things like the local markets and demographics, as well as what pricing strategy is effective in your industry. On top of this, banks and investors want to know if you’ll be profitable in the future. Indeed has a great article that talks about how to forecast revenue.
Business Plan Highlights
- Executive summary that describes your business, its purpose, and how customers will benefit from your product or service
- Sales and marketing strategies to establish and grow your business
- Products or services being offered
- 1-3 years financial forecast including the steps to accomplish goals
Illinois business funding
NOTE: Investors want to know the average costs for each business stage, so they can see if your company is worth their investments. Estimate build-outs and rent as part of steps 1 and 2 in your business plan to give investors the best financial picture.
Startup costs will vary depending on trade, but you can get a pretty solid idea by researching the product, equipment, rent, storage & business licensing costs before you spend a dime. All Startup Packages include negotiated rates & we offer same-day turnaround time so it’s never too late to start your own successful business.
4 sources for small business funding
- One of the best ways to fund your startup is through personal savings, home equity, and retirement accounts. You’re borrowing from yourself, so there’s less risk than if you were borrowing money from other people.
- According to the Federal Reserve Survey of Consumer Finances, nearly $96 billion each year was borrowed from close friends and family to start a business. Nearly 40% of startup funds can come from relatives and friends. They’re more likely to invest in your business if you offer them rewards and benefits, such as a little interest on their loans, free products or services. Debt.org shares valuable tips on borrowing startup funds from friends and family.
- Angel investors use their wealth to help startups establish new companies and expand existing businesses. The benefit to them is a portion of the profits from the businesses they support. Funded.com, startengine, and Gust are popular funding platforms that are simple to use.
- Crowdfunding platforms like SeedInvest, Kickstarter, and IFundWomen provide advice and help start successful fundraising campaigns. Fees vary, so compare options for the best value.
Related Helpful Resources
Winning With a Business Plan | Which Entity is Right for My Business? | Good Business Credit
3. LLCs and Corporations Must Apply for a Tax ID
(Optional, but recommended for DBAs)
All Illinois LLCs, Corporations, and DBAs with employees must have a federal tax ID, officially called an Employer Identification Number to hire workers.DBAs need an EIN (employer identification number) only if they hire other people. However, using one reduces the risk of identity theft and it’s easy to apply with an SSN on the IRS website. International business owners may have to provide additional documents. You will need to apply by phone, email, or website application.
The EIN is an important indicator of a business’s existence. With it, you can open business bank accounts, hire workers and file tax returns.
TIP: Adding an EIN license to any business package is easy. We’ll submit your EIN application, and keep you updated about its progress.
4. Set Up Business Bank Accounts
The best way to keep your business and personal finances separate is to open a bank account just for business. This will also help you establish a credit score for your company. Get started by searching for business banking services at your personal bank, credit union, or one of our business partners. If they don’t offer it, you can always invest in a new account elsewhere. Before picking a bank, make sure to analyze and compare the features of different banks. A quick discussion with them at least is necessary so that you can get a clear idea about what you want in your banking experience.
5. Find Operating Space
Skip to Step 6 if you don’t need to rent or buy business space.
When you start your own business, you want to keep costs as low as possible. You also want to make sure the location works for your business model. If you can’t run an office from home and need commercial space, the commercial real estate brokers in your area can help you find a unit that suits your needs.
6. Apply for Permits and Business Licenses
All Illinois businesses must be registered with the state to do business legally. You may also be required to register with your city and county, depending on the type of business you open. Permits also vary, so it’s important to research which ones you need to operate. You’ll need to check with local, county, and the state to find out which licenses and permits are required. You can save time with a business license compliance package from our partners. They’ll research your business and only offer the licenses needed for your specific business.
Want to save time and money? Our partners will provide you with the right licenses for your business.
7. Find the Right Business Insurance
Your company may have additional insurance requirements, common policies are listed below.
- Business Owner Policy
- General Liability Policy
- Workers’ Compensation Policy
Hiscox and netQuote offer free estimates that can let you find all the right policies for your business.
8. Organizing Accounting and Filing Systems
You don’t need to be an accountant to keep track of your finances. You can set up and manage your bookkeeping using accounting software like FreshBooks. You can also hire a qualified bookkeeper from our Vendor Network, so you don’t have to manage the books. It’s easier to keep your accounting organized if you start a system from Day 1, so make sure this priority is handled as soon as your business is registered.
Almost every business has at least some paperwork, such as invoices, contracts, or notes. One of the best ways to manage paperwork is to have a filing system in place before things get out of hand. Documents like receipts, invoices, and legal or tax records need to be organized for easy access. Filing doesn’t need to be complicated, though. A filing cabinet or cloud storage system will work well for storing files. Whatever you choose, just make sure it suits your needs. It’s important that the system is good for your business and works well for you.
- Keeping track of your clients’ information, past contracts, invoices, and other documentation help you develop a better relationship with them.
- Files for each employee to keep applications, W4s, appraisals, disciplinary actions, etc.
- Vendor Files to keep contact information, contracts, and catalogs.
- Accounting files to organize paid and unpaid invoices, packing slips, receipts, etc.
- File legal documents such as your original formation paperwork and other official documents.
- Folders for tax returns with company information, payroll tax deposits, etc.
IMPORTANT: Tax returns need to be kept for at least 7 years following the filing year. Other paperwork can generally be kept for 3 years but there are a few exceptions. Read our Business Records guide to find out more information.
9. Recruit, Interview, and Hire Staff
Skip to Step 10 if you’re working on your own.
Learn how to be a smart recruiter
If you’ve finished your business plan, it can give you an idea of what type of people you need to hire. For example, if your company is customer-facing, be sure to focus on those who are outgoing and personable. Hiring essential staff members who have skills in math or data analysis may seem like a no-brainer but they are hugely important. You avoid wasting time and money when hiring new staff members by ensuring they possess these vital skills. Finding the right people can be tough, but it is essential for the success of your business. You want to find staff members who believe in your vision and can represent your company well.
Learn how to develop and motivate a winning team
If you’re looking to recruit new members for your team, online job forums are good places to do it. There are tons of potential candidates on sites like LinkedIn and local job pages.
Develop a training manual and invest in training
Policies about things like company conduct, uniforms, and procedures should be defined in your training manual. Make sure to add a signature page so employees can sign off and confirm their awareness of the manual. You can use free templates that are readily available online to help with this step.
Write a job description for each position
A detailed job post with information about tasks, work environment, and the business will attract the most suitable candidates. Writing individualized posts for each position increases the quality of applicants and results in fewer unqualified applications. If you have specific needs and expectations, like doing heavy lifting or nightwork, make sure to list what you’re looking for in the ideal candidate to attract the best applicants and allow them to decide if the job is the right fit for them.
TIP: Expect to interview around 10 applicants to fill one position.
Interview qualified candidates and hire your team
On average, each job post receives 26 applications, but you may see hundreds of applications. Keep this in mind and only consider qualified candidates who have the skills to do the job. It’ll save time and money spent training them with misplaced expenses. Indeed.com is a great website that offers trusted tips to help you find and hire a quality team.
10. Market Your Business in Illinois (and Online)
Start a marketing plan, website, and social media accounts
If you build “it”, they may come, but any successful startup will tell you that marketing is critical for a new business. A simple marketing plan makes it easy to map your strategy and see how various advertising efforts perform. You can tweak a template like this one to add social media text, links, and images and keep everything together.
70% of potential customers are more willing to buy products from a company with a well-designed website. Be sure to include contact information so people can get in touch if they need it. If you want to target locals, register your free business description with Google My Business (GMB). The exclusive Domain, Website, and Email (DEW) package by MyCompanyWorks is easy to set up and maintain, and you can order separately, or with any business formation order.
Use your unique business name on social media accounts to expand brand recognition. Facebook, Instagram, Twitter, and Google My Business should all be used to get the best exposure. Facebook and Instagram are already combined in their free business platform, but if you need help managing social media, you can find free and inexpensive bulk scheduling tools online.
Quick Review
We hope this article has helped you explore some profitable business ideas and offered tips and resources to register your business. Illinois is home to many successful business services, professional services, wellness and personal care, online education, children’s services, and clothing. These are the top five Illinois industries, and any motivated entrepreneur equipped with the right plan and the right tools can build their business in the Prairie State.
Once you have decided which niche fits you best, you can follow our guide to form an Illinois LLC, Corporation, or DBA, or order any of our startup packages online. All businesses in Illinois must be registered with the state, and possibly with your city and/or county. You’ll also need licenses, permits, and insurance to open legally. We have shared links to our partners to help you find licensing and insurance for your particular business. The MyCompanyWorks Vendor Network offers professional services for everything needed to run your business. Take advantage of exclusive partner pricing with many of our providers.
Now that all your paperwork is being processed, you can either set up an accounting system or hire a bookkeeper or accountant to manage your finances. You’ll also have various paperwork as time goes by, so it’s best to start a filing system before the papers and receipts start to pile up. We have linked to a couple of helpful resources, and you can also find lots of free tools like Google Drive or Dropbox to save documents online.
If your business needs a team, it’s time to write out job descriptions, post online ads on sites like Indeed and Glassdoor, pick the top candidates, and schedule interviews. You might get lucky and find the right people with just a few interviews, but it’s common to review around 10 candidates for just one position, so be patient. It’s better to find the right people than to waste money on training and turnover. Good people are always looking for work, and they’re worth the wait.
At this point, you’re likely ready to open your doors, so it’s time to announce that you’re ready for business! Marketing doesn’t have to be a mystery if you use a simple plan. You don’t even have to start out by spending money on advertising. A current, clean, easy-to-navigate website with active social media accounts is a quick and easy way to start broadcasting your company. Adding relevant blog posts will create a “footprint” on the Internet, and you can share products and posts on your social media accounts. You can hire marketing experts later on, but starting out with a simple strategy can actually be more profitable over time. Using bulk scheduling tools makes managing your online presence easy, and also saves time and money.
Visit Our Illinois Business Guide
Find business resources, state websites, and help to get Illinois business licenses in our step-by-step startup guide. Our Startup Wizard will walk you through each step to start an Illinois LLC, Corporation, or DBA in about 10-15 minutes. Access the Startup Wizard free when you order a business formation.
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