What is Lucrative Business: Definition and Examples

The Philippine entrepreneurship landscape is continuously growing and will see significant growth in the next few years. In it, the most important concept found is the lucrative business. In simpler terms, a lucrative business refers to business ventures that guarantee huge profits and financial success.

Suppose you are interested in what is a lucrative business. In that case, you should dive deep into this article as we will give you comprehensive definitions and examples that you might need when you start your own business. Let’s start!

Definition and Key Factors

Lucrative businesses or profitable businesses are a cornerstone of every successful business venture. Best small business ideas can be profitable if they have a great business plan.

If you plan to be a business owner, you need to know that most profitable business ideas can be learned through online courses.

Let’s review its definitions below:

• Profitable Industries: Lucrative businesses guarantee financial profitability. They are the ones that generate absolute financial returns for the company/business. We are not talking about the revenue but the consistent ROI, potential scalable profit, and margins.

• Adaptability to New Markets and Innovation: Lucrative businesses are agile to market changes and innovation. They need to be able to adapt and are constantly evolving. Leveraging innovation to expand the market to meet customers’ demands and stay competitive.

If you want to launch an online store that provides a positive return on investment (ROI), this type of business is the one you should pursue.

Here are some of the key factors contributing to lucrative business:

• Market Demand and Choosing the Right Niche: Most profitable businesses tap into specific niches that address underserved demands and fill that gap to target market needs.

• Great Business Model: Most successful small businesses start from low startup costs with a great business model, strategy, and a dream. Great business ideas and strategy are two of the foundations of success for a business and a plan for sustainable growth.

• Adaptability and Innovation: When there are shifts in the market, a lucrative business must know how to adapt and leverage innovation to meet the changing consumer behavior and industry trends. Many business owners need to remember to make room for changes in their business, and that’s why some fail.

• Prioritizing Customer Needs: A lucrative business should have a customer-centric approach. Prioritizing the customers and getting their feedback is essential. You should always include in your future business idea that building customer relationships is critical. Customer retention is one of the reasons for successful small businesses.

Understanding a lucrative business goes way beyond how it is profitable or its financial gains. You must also know its holistic approaches, sustainable value creation, market adaptability, innovation, and many more fundamental factors. 

As a budding entrepreneur, you must grasp and implement these factors well in your digital business strategy. Remember, successful business owners navigate their way well through long-term success.

Emerging Lucrative Business Opportunities

There are many highly profitable industries in the Philippines. The most profitable businesses in the country are online selling, e-commerce, gym/personal training, etc. These businesses are gaining benefits due to the country’s youthful, tech-savvy population. Also, another factor that affects these small businesses is the rapidly growing middle class.

Most successful small businesses, especially online businesses, started with low-cost startup capital but eventually turned into profitable online businesses.

If you are aiming for the most profitable small businesses, you can start with the following:

• Online selling;
• Vacation rental;
• Food cart business;
• Gym/Fitness and health business;
• Catering business;
• Consulting business;
• Cleaning services;
• Courier service;
• Auto repair service.

Having commercial properties can help establish the last three business models you can aim for if you want to be part of the high-profit industry. But, with the current small business landscape, small business owners can start with online selling or businesses that involve social media management, digital marketing services, or any other businesses requiring low startup capital.

Lucrative Small Business Ideas

Even with a low startup capital, many of the best small business ideas can guarantee you profit. To help you venture into the most lucrative businesses you can start with, we have a list of small, profitable ideas for small business owners like you.

Let’s review some of the ideas below:

• Print-on-demand business;
• Freelancing;
• Selling digital products;
• Tutoring;
• DIY crafts selling;
• Cleaning services.

The list above is some of the vague and most common small business ideas here in the Philippines. Most of the younger small business owners started with these lucrative businesses. Always do market research and market analysis to find your niche and find the best business idea for you.

Lucrative Franchise Opportunities

Franchise opportunities are great, especially if you have extensive startup capital. It is a standard business approach in the Philippines because it offers some advantages, like avoiding your own brand creation and identity and the hassle of marketing your business.

When you invest in a well-known franchise, you can guarantee a loyal customer base and have it easy to attract customers.

Here are some of the best profitable franchise businesses you can start within the Philippines:

• Food and Beverage Franchise: The Food and beverage business in the Philippines is a vibrant venture and a highly profitable industry. This sector includes fast-food chains, coffee shops, etc. Some examples of franchises that you can start with are Jollibee ( Startup capital – 25,000,000 – 55,000,000 PHP) and Potato Corner (Startup capital – 250,000 PHP).

• Health and Beauty Franchise: Skincare and beauty products are very in demand in the Philippines, and most Filipino consumers do not easily buy newly emerged products from small businesses. That is why having a franchise is easier in comparison. Some franchise examples are Anytime Fitness (Startup capital – 5,000,000 – 10,000,000 PHP).

• Retail Franchise: This sector includes convenience stores, retail shops, etc., catering to consumers’ daily needs. Such stores should be studied well, for the location of these business models is very important; you would need to establish this business in high-traffic areas to guarantee a steady flow of customers.

• Financial Services Franchise: The Philippines’ financial services sector is essential too. It comes with various venture opportunities like payment processing, financial solutions, pawnshops, etc.

With a franchise business model, you must understand that you will have less decision-making because you will adhere to the franchisor’s established guidelines and rules. Also, you will need a high startup capital for this type of lucrative business and many business permits and registrations.

Online Business Models

One of the best online business ideas for a budding entrepreneur like you is to work online and join the digital innovation of the Philippines. A good internet connection and working equipment could guarantee you profit.

Here are some of the most common business models in the online world that guarantee successful businesses:

• Dropshipping stores: Ecommerce dropshipping solutions could guarantee a profitable business. You can start with famous platforms or trending websites in the Philippines and choose your niche well. For dropshipping you can start with a startup capital of 5,000 – 25,000 PHP, while with an e-commerce store it depends on your niche, but generally you will need at least 50,000 – 250,000 PHP.

• Affiliate marketing and niche websites: A niche website is a site that caters to a specific market/audience or topic. It can be about anything, depending on your chosen niche. To monetize this website, you need to do affiliate marketing. You can promote other people’s products on your website, and once your audience purchases from the link you provided, you get commissions from the company you promote. Social media marketing is a must in this business model.

• Online course creation and digital products: This business model suits you if you are more into teaching, content creation, selling courses, platform hosting, etc. Also, graphic designers can earn profit by selling their digital products. 

Another option would be to consider the SaaS ecommerce platforms. This business model delivers software applications online, offering customers access to specific software via subscriptions. It is a subscription-based business, so the more customers subscribe to your software/application, the more profit you’ll gain.

International Business Ventures

Other business owners in the Philippines want to try international business ventures.

Here are some of the business models that you can try:

• Exporting and importing goods: Exporting refers to the goods in the Philippines that other countries would buy. At the same time, importing is bringing goods to the Philippines from another country.

• Global consulting and advisory services: Business consulting, consulting about business finances, legal advisory, etc, are some of the business types you can do to reach international customers/audiences. Creating a business website would help you build your brand identity.

• Tourism and hospitality businesses in popular destinations: Other business owners use the advantage of the Philippines’s beautiful and popular destinations. If you have extensive startup capital, you can build lucrative businesses in popular destinations in the country. For example, an inn, hotel, souvenir store, cafe, etc.

If you have an e-commerce platform, you can expand and leverage innovation and technology to reach audiences from other countries. Selling products on an online global marketplace would help you be visible to potential international customers.

Success Strategies for Lucrative Businesses

Building a profitable business takes a lot of work. It would require all resources like time, money, effort, and other factors to drive your sales and success.

As a budding entrepreneur, you must never forget to set a SMART goal – Specific, Measurable, Achievable, Relevant, and Timely. Organize your goals, and create your business’s mission and vision. Keep your detailed records, and never forget to do market research, market analysis, and analyze your competitors.

The road to a successful business in the entrepreneurship landscape is long. But if you also want long-term success, you can start now by turning your small business idea into a profitable business. Best of luck!