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Mississippi is home to 242,000 small businesses that span the state, from the banks of the Mississippi River to the shores of the Gulf Coast and everywhere in between. The Magnolia State’s small business owners employ about half of its workforce, per data from the Small Business Administration.
Mississippi has a rich agricultural history that once relied heavily on cotton. Today, agriculture is still important, but other industries like tourism and gaming are emerging as new economic leaders.
Potential business owners looking to launch a Mississippi small business should know how to set up an LLC in Mississippi, and what types of businesses are most likely to fare well in the state. To help, here’s a research-backed guide to the best businesses to start in Mississippi.
The best types of companies to start in Mississippi center on agriculture, basic needs, and recreation. The state’s population of 2.97 million provides plenty of opportunities for food service, repair, clothing, grocery, and gas station businesses.
The best startups in our list below have relatively low initial costs and plenty of built-in clientele. Pet grooming and dog walking companies are a great example, with heavy growth in the pet sector overall. Small businesses that support the agriculture industry, like cotton gin repair or catfish feed delivery, also have the potential to turn a healthy profit.
Ready to start a business in Mississippi but need a little inspiration? Look no further. Here are eight of the best business ideas to consider.
Home improvement is big in Mississippi. The state’s housing stock is fairly old, with about 75% of the homes built before 1970. The majority of the rest were built between 1970 and 1999. Older homes usually translate into more repairs and updates.
The aging housing stock makes contractors a valuable commodity, and the cost to remodel provides yet another incentive to start this kind of business.
Research suggests that a home addition costs a little over $100 per square foot in Mississippi, which is on the lower end of the national average of $86 to $202 per square foot.
To become a real estate agent in Mississippi, you need 60 hours of training and must pass a licensing exam. Most real estate agents start by working under another agent for a short time before branching out on their own.
Real estate commissions in the state are above the national average. In Mississippi, agents bring home 5.5% of the sale, which is a touch higher than the 5.4% average commission nationally.
Commissions can provide a comfortable living. A home that sells in Jackson for $130,000, for example, would net a commission of $7,150.
Companies in every state, including Mississippi, are looking for ways to raise revenues, streamline processes, and improve operations. As a result, the number of consulting firms continues to grow.
Consultants tend to get the best results when they offer specialized services. For instance, enterprise-level consultants may help small companies with managerial problems, cash flow issues, or customer service complaints.
Small businesses prefer working with niche consultants that can offer more competitive pricing than larger consultant firms with a broader focus.
An IT firm that offers cybersecurity could help fill the tech gap in the state and provide a much needed service. From high school students to large corporations, everyone relies on technology daily, but security is a major issue. A cyberattack that infiltrated Jackson Public Schools exemplifies the growing need for cybersecurity in Mississippi and across the nation.
Due to high demand, the number of cybersecurity jobs is expected to increase by 7.7% by 2023. A startup IT firm can consider offering application development security, cloud security, and risk management, as these are the fastest growing skills in the cybersecurity sector.
There’s no shortage of outdoor maintenance in Mississippi. The state has 2.5 million acres of maintained turf and almost 300,000 acres of turfgrass that surround 750,000 homes. Add to that 150 golf courses and 2,000 athletic fields and you’ll start to see why starting a landscaping business in the state is worth exploring.
You can start a landscaping business with as little as a lawn mower and a few gardening tools, so startup costs are low. Your company could focus on residential or commercial landscaping. Another idea is to specialize in landscape design, like Ambiance Landscape in Jackson, which installs outdoor kitchens and stone patios.
If you’re willing to complete 1,500 hours of training and pass an exam, you can become a cosmetologist in the state of Mississippi and start your own beauty salon. Today’s salons aren’t just places for a cut and color. Some salons specialize in nail art and others offer spa services.
Nationwide, salon owners can make a good living, with the average yearly income hovering around $75,000. A salon’s location can impact the owner’s salary, so if you’re looking for higher earnings, consider setting up shop in more populated areas, like Jackson, Laurel, or Biloxi.
Online stores are experiencing big gains right now, as more consumers choose to shop from home. One of the biggest advantages of launching an online store is its low startup costs. You’ll need a website that provides a streamlined checkout process, which can cost $3,000 to $27,000. The website and inventory are your biggest upfront costs.
To start, focus on a specific niche. Some of the most profitable stores are those that sell health and beauty products. For example, Musee, an online store based in Madison County, sells handmade bath products.
Digital marketing managers in Mississippi can earn upwards of $126,000. Even a locally-based marketing firm can tap into a vast national market, with advertising expenditures in the U.S. topping $183 billion in 2017. The key to starting a marketing firm that works is to choose success-building niches like fitness, health, weight loss, pets, relationships, and self-improvement.
To get clients, many firms start with referrals through friends, family, and on social media. After that, it’s a combination of doing great work to get more referrals and more work. When it’s time to hire help, start with a virtual assistant and an accountant. You won’t need to hire either one fill time, and both provide tremendous bang for the buck.
To help you figure out the best businesses to start in Mississippi, we did our homework. The ZenBusiness team researched all of the trends in the state’s economy and then took it one step further by analyzing the most recent national census data to find the business types that are currently underserved in Mississippi.
In doing so, we put together a list of glaring business opportunities that are perfect for soon-to-be entrepreneurs like you. Keep reading, get inspired, and reach out to us if you need help getting started.
There’s a large opportunity to build new businesses in the Southeast, and in Mississippi in particular. The state’s staunchly pro-business climate blends with a wealth of available services to help startups grow. For business costs, the state ranks second lowest in the U.S., and the Mississippi Development Authority’s Entrepreneur Center offers business assistance and dozens of incubator services to get you going.
Mississippi’s economy is driven by mining, logging, construction, and manufacturing, as well as information, professional services, and education. Industries like real estate, fishing, agriculture, and healthcare complete the picture. If those business types all sound too daunting, set your sights on smaller, supporting industries. Mississippi generated over $100 billion in GDP in 2016, and then grew to $118 billion by 2019. There’s plenty of room for all shapes and sizes of new business.
Recommended: The Best Businesses to Start in Louisiana
Mississippi has myriad opportunities for entrepreneurs looking to start a new business. Setting up an LLC in the state is easy, and the biggest challenge is selecting a business that’s right for you. The 10 businesses we highlighted are solid options for anyone looking to launch a business in the Magnolia State.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 700,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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