25 Small Business Ideas for Chicago

Chicago is the third largest city in the U.S., home to 2.7 million residents within city limits and nearly 10 million in the metropolitan area. It also welcomes over 50 million visitors every year. This major market presents prime opportunities for small business owners.

From busy professionals and families to scores of tourists, niche customer bases abound in the Windy City. Chicago‘s diverse neighborhoods–ranging from the glitzy Gold Coast to the indie darling Wicker Park–each have their own unique culture and needs.

Ready to jump on the small biz bandwagon? Here are 25 innovative yet practical small business ideas well-suited for Chicago‘s local economy.

1. Food Truck

The food truck craze isn‘t dying down anytime soon. These mobile restaurants allow you to literally drive your business to customers. According to the City of Chicago, there are currently 122 licensed food trucks operating, leaving hungry room in the market for more.

Cost to Start: $55,000-$100,000 (including the cost of procuring the truck/kitchen equipment)

Licenses & Permits: Mobile Food License, Vehicle Sticker, Food Sanitation Certificate

Potential Earnings: $200,000-$500,000+

2. Coffee Shop

Despite the saturation of Starbucks locations, locally owned coffee shops thrive in Chicago. Residents take their coffee seriously and want to support independent cafes. Focus your shop on high-end coffee drinks, specialty beans, and craft baked goods to stand out.

Cost to Start: $80,000-$250,000

Licenses & Permits: Retail Food License, Business License

Potential Earnings: $100,000-$200,000

3. Bike Shop

Chicagoans love cycling, whether for commuting or recreation. The flat terrain and abundance of bike lanes make it a bike-friendly city. Cater to this healthy and eco-conscious market by opening a specialty bike shop selling bikes, accessories, gear and service.

Cost to Start: $100,000-$300,000

Licenses & Permits: Business License, Sales Tax License

Potential Earnings: $100,000-$200,000+

4. Craft Brewery

Craft beer is hot, especially in a city like Chicago where residents crave high quality food and drink. Set up a microbrewery focusing on ales and lagers made in house. Serve from your taproom.

Cost to Start: $250,000-$500,000+

Licenses & Permits: Brewpub Liquor License

Potential Earnings: $60,000-$150,000+

5. Coworking Space

With remote work on the rise, cowoking spaces meet the demand for flexible, community-oriented office spaces. Rent out shared and private offices on a monthly basis, along with conference rooms, event space and coffee bars that attract solo entrepreneurs.

Cost to Start: $100,000-$300,000

Licenses & Permits: Commercial Lease, Business License

Potential Earnings: $100,000-$300,000

6. Fitness Studio

Health and fitness Membership revenues are strong in the Chicago metro market. Stand out from mainstream gyms by focusing your workout studio on one specialty, like yoga, pilates, barre, cycling, rowing, HIIT training or Crossfit.

Cost to Start: $50,000-$250,000

Licenses & Permits: Business License

Potential Earnings: $100,000-$250,000+

7. Meal Prep Service

Many Chicago residents value healthy eating but lack the time for home cooking. A weekly meal prep delivery that provides customized, macro-counted meals will appeal to fitness buffs, athletes, bodybuilders and health-conscious individuals.

Cost to Start: $20,000-$50,000

Licenses & Permits: Food Service License, Food Safety Certification

Potential Earnings: $100,000-$200,000

8. Mobile Dog Groomer

Pampered pups are the name of the game in dog-friendly Chicago. Bring high-demand grooming services like bathing, haircutting, nail trims directly to your client‘s home or office with a pet grooming van outfitted with everything you need.

Cost to Start: $50,000-$100,000

Licenses & Permits: Pet Grooming License, Vehicle Permit

Potential Earnings: $100,000+

9. Airbnb Management

Managing Airbnb rentals is a scalable side hustle in tourism hub Chicago. Build relationships with Airbnb hosts to take over preparing units for guests, coordinating check ins/outs, laundry and restocking. The more properties you manage, the higher your earnings.

Cost to Start: $2,000-$5,000

Licenses & Permits: None

Potential Earnings: $50,000-$150,000

10. Staffing & Recruiting Agency

A niche staffing and recruiting agency that specializes in a specific industry like tech, healthcare, finance or the food & hospitality sectors can find a niche in Chicago. Contract with local employers to staff contract, temp and permanent positions. Place the right talent and collect your fee.

Cost to Start: $10,000-$100,000+

Licenses & Permits: Employment Agency License

Potential Earnings: $100,000+

11. Makeup Studio

Makeup artistry is an in-demand skill in a trendsetting city like Chicago. Set up a home studio and offer professional makeup services like special occasion, weddings, head shots, makeovers as well as workshops and training for clients.

Cost to Start: $5,000-$10,000

Licenses & Permits: Cosmetology License

Potential Earnings: $50,000-$100,000+

12. Event Planning Agency

Between corporate events, conferences, weddings, private parties and nonprofit fundraisers, Chicago offers an abundance of event planning opportunities year-round. Start an agency specializing in full-service event coordination and execution for medium to large scale events.

Cost to Start: $2,000-$5,000

Licenses & Permits: LLC

Potential Earnings: $60,000-$150,000+

13. Resume Writing Service

A resume writing service helps job seekers put their best foot forward in Chicago‘s competitive job market. Analyze clients‘ experience and career goals to create polished, keyword-optimized resumes that help them land interviews. Expand into LinkedIn profile writing and interview coaching services over time.

Cost to Start: $500-$2,000

Licenses & Permits: Business License

Potential Earnings: $100,000+

14. Interior Design Firm

Many of Chicago‘s old homes and apartments undergo renovations. An interior design firm can provide the aesthetic vision, from layouts to color schemes to furnishing selections. Develop your house flipping or commercial design niche over time.

Cost to Start: $5,000-$10,000

Licenses & Permits: Business License

Potential Earnings: $75,000-$150,000+

15. Dog Daycare & Boarding

For thousands of Chicago pet owners, finding reliable pet care while at work or out of town is a struggle. Stand out from your competitors by designing an exceptional dog boarding experience–focus on play, enrichment and homelike suites. Consider offering pickup/drop off services as well.

Cost to Start: $150,000-$300,000+

Licenses & Permits: Kennel License, Commercial Zoning

Potential Earnings: $150,000-$200,000+

16. Kitchen Incubator

Encourage food entrepreneurship in your community by providing licensed commercial kitchen rentals for meal prep, cooking classes, recipe testing and catering. Build a base of diverse clients, from bakers to food truck operators to jam makers needing inspected equipment and space.

Cost to Start: $200,000-$500,000

Licenses & Permits: Food Establishment License

Potential Earnings: $100,000-$250,000+

17. Bookkeeping Service

The backbone of business operations, bookkeeping is a service in steady supply as Chicago‘s small businesses grow. An independent bookkeeping agency lets you leverage your financial expertise across an array of client industries and needs–from data entry to reporting to taxes.

Cost to Start: $2,000-$5,000

Licenses & Permits: LLC

Potential Earnings: $60,000-$100,000+

18. Translation Services

From Latino neighborhoods to Chinatown, Chicago benefits greatly from multicultural communities–and so could your translation agency. Offer document, website, media and interpreter services bridging 100+ languages.

Cost to Start: $2,000-$5,000

Licenses & Permits: Business License

Potential Earnings: $70,000-$150,000+

19. Kitchen Supply Store

Avid home cooks and semi-pro chefs alike yearn for high quality kitchenware locally–and Windy City foodies fit the bill. Curate must-have pots, pans, gadgets, cutlery, bakeware, barware and more cooking tools than typical big box stores in your retail or ecommerce cookware biz.

Cost to Start: $100,000-$300,000 (retail location)

Licenses & Permits: Sales Tax ID, Business License

Potential Earnings: $150,000-$200,000+

20. Home Healthcare Agency

As Chicago‘s senior population grows, so does the need for assisted living services provided in clients‘ homes rather than facilities. An agency offers caregiver services like personal care, housekeeping, transportation, meal prep, companionship and more.

Cost to Start: $2,000-$5,000

Licenses & Permits: Home Care License

Potential Earnings: $150,000-$200,000+

21. Furniture Refinishing

A furniture flipping and refinishing service turns old, damaged pieces into refreshed vintage decor. Pick up second-hand pieces from thrift stores or directly from clients, transform through repairs, updates and paint, then resell or return to owners.

Cost to Start: $10,000-$25,000

Licenses & Permits: Sales Tax ID

Potential Earnings: $100,000+

22. Metal Fabrication

Metal fabrication remains an in-demand trade as industries like construction, tech and healthcare grow. If experienced with CNC machining, welding and precision cutting, launch a custom metal manufacturing workshop to make components, parts and prototypes for business clients.

Cost to Start: $40,000-$100,000+

Licenses & Permits: Shop Permit, Trade License

Potential Earnings: $100,000-$300,000+

23. Corporate Housing Rentals

Furnished, temporary apartment and home rentals geared at traveling business executives fill a profitable niche for the hospitality sector. Partner with companies relocating employees or manage properties directly. Services may involve housekeeping and concierge offerings.

Cost to Start: $50,000-$250,000+

Licenses & Permits: Short Term Rental License

Potential Earnings: $100,000+

24. Vintage Shop (Ecommerce or Brick-and-Mortar)

Windy City shoppers eagerly peruse stores selling curated throwback goods. Focus your vintage inventory around niche categories like luxury handbags, cowboy boots, letterman jackets, vinyl records, or decorative Mid-Century ceramics and lighting. Go brick-and-mortar or digital.

Cost to Start: $2,000+

Licenses & Permits: Sales Tax ID

Potential Earnings: $100,000+

25. Food Tour Operator

For tourists and locals alike, food tours offer a delicious way to explore Chicago‘s top culinary establishments. Combine history and culture with iconic snacks and staples across avariety of signature neighborhoods. Guided group excursions mean more income potential.

Cost to Start: $2,000-$5,000

Licenses & Permits: Seller‘s Permit

Potential Earnings: $70,000+

Chicago pulls in entrepreneurial go-getters thanks to its bustling economy and opportunities in industries like food, hospitality, creative services, pet care and more.

Narrow down an idea that matches your skills, interests and local demand, then determine exact startup costs, legal and zoning parameters.

Leverage local small business resources like the City of Chicago‘s Small Business Center and the Chicagoland Chamber‘s Small Business Development Center for guidance on licensing, financing and planning to launch your profitable venture!