Good Small Businesses to Build in Residential Areas

Last Updated: 

May 31, 2024

If you're looking for a small business to start, consider starting a business that serves residents in residential areas. These businesses tend to have high margins and low overhead costs. In this blog post, I'll explain what makes a good small business idea for residential areas and why they're so profitable.

Key takeaways on business ideas in residential areas

  1. Home-based bakery: Tap into the growing demand for specialty baked goods and offer delicious treats from the comfort of your own home.
  2. Personal training or fitness studio: Set up a small gym or studio in a residential area and offer personal training sessions, group fitness classes, or specialised workouts.
  3. Daycare or preschool: Provide a safe and nurturing environment for children while offering convenience to busy parents in the neighbourhood.
  4. Pet grooming and boarding: Cater to pet owners by providing grooming services, pet daycare, or overnight boarding facilities for their furry companions.
  5. Home renovation and handyman services: Offer home improvement and repair services, such as painting, plumbing, or carpentry, to homeowners in the area.
  6. Mobile food truck: Bring delicious food options to residential neighbourhoods by operating a mobile food truck that offers unique and tasty cuisine.
  7. Eco-friendly cleaning service: Provide environmentally friendly cleaning services to residents, using non-toxic products and sustainable practices.
Discover Real-World Success Stories

Start a daycare

Running a daycare business is a great way to start your own small business. When creating your daycare business plan, you'll need to think about the costs, get started with training and licensing, market your services and decide whether this is the right industry for you.

Start-up costs can be as low as $10,000 but could be as high as $100,000 depending on where you operate and how many children you plan to take care of at one time. You will also need insurance coverage for workers' compensation premiums paid by employers who have employees under their employment during any week in which any work was performed by those employees (including those who were not paid).

A dog walking business

If you're a physically active person and love animals, a dog walking business could be a good fit for you. You will need to be able to walk your clients' dogs for at least 30 minutes every day, but this can be an enjoyable way to spend time with other people's pets while getting some exercise yourself.

You will also need to be prepared for different breeds of dogs who may or may not be friendly--some of them may even be aggressive! In general, though, most dogs are happy when they're outside playing or running around in the yard with their owners. Businesses like Kip have done exceedingly well in providing a space for pets that is accessible to owners.

Landscaping service

If you're thinking of starting a business, landscaping service is a great option. Landscaping services are high margin and require little overhead. You can start this business part time and then expand your hours as needed.

Landscaping services include lawn maintenance, gardening, tree trimming, shrubbery pruning and planting new plants or trees in the yard. Landscapers also do drainage work to prevent flooding during heavy rains; install drainage systems in new construction projects; remove snow from walkways using shovels or snow blowers; clear brush from around houses so they won't catch fire easily; fertilise lawns every year before springtime comes around again (this helps keep grass healthy); rake leaves off driveways after fall season ends so they don't turn into mud puddles when winter hits again next year...the list goes on!

Cleaning service

Setting a price for your services is one of the most important decisions you'll make. You want to charge enough that people will be willing to pay, but not so much that it's unaffordable for them.

It's also important to consider what competitors are charging for similar work in your area--if they're charging less than you, then perhaps there's room for negotiation on their end too! If they're charging more, then their prices might be justified by the quality of their work or reputation in the community (if one exists).

Once you've determined how much money you need out of each customer and have set a realistic rate based on this information, it's time to get some clients! Word-of-mouth referrals are always great ways of attracting new clients; however if no one knows about your business yet then try placing flyers around town or putting up advertisements online via social media channels such as Facebook ads/Instagram sponsored posts/LinkedIn ads.

House sitting service

House sitting is a service that provides house owners with someone to look after their home while they are away. The sitter will check in on the property and make sure everything is running smoothly, including watering plants or taking care of any pets that live there.

The benefits of this type of business include:

  • A steady stream of work year-round (since people are always travelling)
  • A low startup cost, since you don't need any special equipment or supplies to get started (just some basic knowledge about how to take care of houses)

However, there are also some drawbacks:

  • You'll have fewer customers than if you had opened another type of small business; many people feel uncomfortable leaving their homes unattended when they travel for more than a few days at a time

These are perfect businesses for residential areas because they have high margins and low overhead

These are perfect businesses for residential areas because they have high margins and low overhead.

  • High margins: These businesses tend to make money on each unit sold, so you don't need to sell a lot of them in order to make a profit.
  • Low overhead: It's not necessary to maintain an office or storefront in order to run these types of businesses; they can be run out of your home or garage with little or no additional equipment or supplies beyond what you already own (or access through family members).

These small business ideas are great choices if you're looking for something simple and easy-to-set up that will bring in some extra income without requiring much investment on your part. They also work well if there are zoning restrictions in place where you live--you won't need any special permits from local authorities because these types of operations don't require any special licenses from state agencies either!

FAQs on starting a business in residential areas

Interested in starting a small business in a residential area? Here are answers to frequently asked questions that will help you explore and choose the right business idea that aligns with the needs and preferences of residents in the community.

How can I determine the demand for a specific small business idea in a residential area?

If you're not sure whether a small business idea is going to be successful in a residential area, here are some things you can do to get an idea:

  • Talk to local residents. Find out what their needs and wants are by asking them directly. You could also look at reviews of businesses nearby on Yelp or other review websites; if they have many positive reviews, that's usually a good sign that the business has been providing good service for years (or at least since the last time someone reviewed it).
  • Look at demographics and population statistics for the area where your prospective business will be located. The more people there are living nearby, the more likely they'll be interested in buying products from local shops rather than traveling into town every time they need something new--and this includes groceries and household items like toilet paper!

What are the zoning regulations and permits I need to consider when starting a business in a residential area?

Zoning regulations and permits vary by city. Check with your local city hall to find out what is required and how much it will cost you.

There are some businesses that require special permits, such as food trucks and mobile vending carts. The good news is that these permits are often easier to get than others because they don't require a lot of work on the part of government officials to set up or process applications (since they can be done online).

Are there any restrictions or limitations on operating a business from a residential property?

There are some restrictions and limitations on operating a business from a residential property. For example, you can't have a business that makes noise or smells. You also can't have a business that will attract a lot of traffic to the area and cause problems for your neighbours. In addition, you should avoid operating any kind of business that requires large amounts of parking or deliveries as this might prove to be disruptive for your neighbours.

How can I effectively market my small business to residents in the neighbourhood?

Once you've decided on a small business to start, it's time to figure out how you're going to market your product or service. The following are some of the most effective ways of doing so:

  • Social media. Facebook, Twitter, Instagram and LinkedIn are all great platforms for reaching out to potential customers. You can post pictures of what your business does as well as testimonials from happy clients who have used your services.
  • Local newspapers/magazines/websites/radio stations/TV channels (depending on where in the world you live). These media outlets often have sections dedicated specifically for local businesses like yours that could be interested in advertising with them--check them out!

What are some cost-effective strategies to attract customers and build a client base in a residential area?

  • Word of mouth: If you have a good product or service, people will talk about it. The most effective way to get the word out is by having satisfied customers do the talking for you.
  • Social media: Social media platforms like Facebook and Twitter are great tools for marketing your business in a residential area because they give people an opportunity to reach out and interact with others through comments and likes on posts.
  • Door-to-door marketing: While this strategy may seem old-fashioned, door hangers can be very effective if done correctly! Hang them on doors at homes near yours so that people see them when they leave or come home from work/school each day (and perhaps even again during dinner). You could also place flyers under windshield wipers at grocery stores or coffee shops that are close by if there aren't enough homes within walking distance from where your business will be located; just make sure not too many other businesses use this same tactic!


We hope that this article has given you some ideas for starting a small business in your neighbourhood. It's important to note that many of these businesses can be run out of your home, which means they have low overhead costs and high margins. This is especially true if you're starting an online business or are willing to work from home as an independent contractor (IC). With these types of businesses, it's also important to consider zoning regulations before starting up--especially if there are any restrictions on operating from residential property!

People Also Like to Read...