20 Low Budget Businesses to Start in Alabama

Last updated on October 16th, 2022 at 09:32 pm


As of 2021, there were 408,374 small businesses in Alabama. The 24 largest U.S state by population also has 809,024 people employed by small business owners, and small business employees, according to the data on the site of U.S Small Business Administration, Office of Administration.

The growing number of small businesses in the 24th largest U.S state by population is encouraging coupled with the economic policies of the state. However, all these do not come without some challenges.

Regardless of the challenges at the implementation stage, even though the state is the 11th happiest in the U.S, we’ve compiled a list of low-budget small businesses you can start in Alabama as an entrepreneur for you to enjoy some of the incentives of doing business in the Cotton State.


What are the small business opportunities in Alabama?

Below are numerous profitable business investment opportunities in Alabama that an individual can consider to make a steady and profitable income.

Online Pet Supplies Shop

An online pet supplies shop is a low-budget business idea. Individuals in Alabama love dogs and will go the extra mile to purchase pet-related items. So, this it is a great business idea that can be executed in the state.

 Exportation Business

Known as the Cotton State, the state’s output in agricultural products like fish, peanuts, sorghum, cattle, and poultry is huge.

For instance, Alabama exported goods valued at $20.9B in 2021, thereby making it the 23rd largest exporter in the US in 2021.

The exportation business requires some capital, you may however provide service in the exportation business if you don’t have enough capital to kick this business.

Some of the services you can provide in this sector is helping companies to conduct research, collate data, and help in the analysis of actionable statistics.

Gift Shop

Starting a gift shop is a good business idea one can consider in the beautiful state of Alabama. One can suitably start up a gift shop and make massive sales, especially during festive periods like Thanksgiving, Valentine’s Day, Halloween, and Christmas.

Also Read:  20 Startup Business Ideas for English Language Graduates

Medical Staffing Firm

A medical staffing firm is a great business idea to establish in Alabama. The hospitals in the state generally demand qualified medical practitioners.

As a result of this need, you can start a firm where you provide qualified health personnel within and outside the state.

Professional Cleaning Services

One of the best businesses to start in Alabama is a professional cleaning service. One can ensure to get the right cleaning equipment and utilize them in offering cleaning services to clients.

If you intend to enter this business, you must submit an application for a privilege license to the county’s Probate Judge or License Commissioner.

Freelance Data Analyst

Freelancing has always been lucrative, but the demand for qualified freelancing data analysts skyrocketed during and after the COVID-19 pandemic.

It is one of the businesses which does not require huge take-off capital and would earn high individual benefits when applied on multiple sites.

A freelance data specialist in Alabama makes an average of $71,474 salary per year. In today’s business world, data analysts are in high demand.

Savings Advisor Service

Generally, Americans pay attention to what the future holds for them, as such, they tend to save for the future or set a financial goals for themselves. A savings consulting service is one of Alabama’s most lucrative and lucrative business ideas.

Starting a savings advisor service is an ideal business to establish. You would be responsible for helping customers achieve their respective financial goals.

Pizza Parlor

Pizza is a famously recognized food in Alabama; residents in the state consume it on a large scale. Given the massive demand for pizza, one can consider opening a pizza parlour on a small scale and then grow it to a more advanced business.

iHert.com even reported that demand for pizza is higher in Alabama than the fast-food chains. To stand out, add home/office delivery to your service

Temporary Staffing Business

Numerous companies and small businesses are being formed in Alabama, they require workers. An individual can start up a temporary staffing business where qualified workers are being provided to these companies temporarily.

Start Recycling Business

Another uniquely good idea is a recycling business; one can operate a small recycling factory where multiple products are recycled. Once you conduct this specific recycling, the products gathered can be sold to various manufacturers.

Also Read:  15 Business Opportunities in Ondo State For Investors

The good news is that there is Alabama Recycling Fund Grants that promotes local recycling efforts by making available grants to local governments to develop, implement, and enhance recycling programs. Your business can be one of the beneficiaries of the grants, however, your business must be registered and obtain the necessary licence.

Producing Wooden Cabinets and Closets

If you are an experienced individual and can utilize wood in making diverse household materials, you can consider this particular business.

In-Home Care for Elders

With 4.8 million population, Alabama had 811,200 being 65 and older as of 2020, according to the available data by Auburn University at Montgomery entitled, “Caring for Alabama’s Elderly”.

So, an in-home care house for older people would be a brilliant business idea in the Cotton State. One can start a small business where direct care is being provided for senior citizens.

Considering the activities involved, one would need some help with cooking and cleaning, so you need to plan for staff.

Automobile Maintenance

There are a lot of vehicles on the roads in Alabama. If you are skilled and fully technically minded, you can decide to provide repairs and car maintenance services. Also, you can make considerable money from selling diverse car parts.

Hairdressing Salon

Staying beautiful is essential for all women, and with this comes massive business opportunities. One can suitably establish a hairdressing salon and offer multiple services. Having sufficient beauty abilities is a massive advantage in this business.

Start a Fitness Center

As a result of the high level of obesity, a fitness center would be a great business idea. Given that you have the right working equipment, you can suitably open a small fitness center where people come to work out.

You can also have a special fitness section for the elderly where light and less-stressful exercises can be performed.

Carpet and Rug Cleaning

Carpet and rug cleaning business is one of the cheapest and more affordable businesses to start in Alabama.

As a result of the busy schedule of residents, they would need assistance with some cleaning. You can consider this business because it does not require much capital.

Appliance Repair Services

An appliance repair business focuses on fixing household equipment and appliances. If you have the expertise, you can start a small appliance repair service in your neighborhood.

Also Read:  20 Startup Business Opportunities in Texas That Can Turn You Into a Boss


Photography is an excellent business idea to carry out in Alabama. Though a lot of phone users have phones that can snap and record video, a lot of people prefer a professional photographer to capture their memorable moments.

You can fill in this gap by offering photographic services. You can also sign up on pixels, Unsplash, and pixabay to upload free images for people to download around the world. You can be rewarded from this service (reward you through PayPal), if some of those who use your free photos are satisfied.

Coffee Shop

Many individuals like coffee and then require it to start their day-to-day activities. Operating a coffee shop in a lucrative area such as Alabama is a good business idea. You can add snacks such as doughnuts, bagels, or pretzels to compliment the coffee.

Start Tourism Blog

Tourism is a big sector in Alabama as millions of people within and outside the United States Alabama every year generate billions of US dollars in revenue.

For instance, in 2014 Alama was ranked 14th most visited state in the U.S by Business Insider. In 2018, an estimated 26 million fun-lovers.

It is estimated that 22.3 million tourists spent $8.3 billion in 2006, this is huge. Millions of others are searching for reliable information to guide them when before visiting the state.

Starting a tourism blog that provides top-notch information, on where to visit, best hotels to lodge, best local food to eat, and the best place to swim among other fun things that catch the attention of visitors will make them not drive traffic to your blog, they will also refer your blog content to their colleagues.

This is a great business if you do your content marketing through some of the tips we covered in our earliest article. Through this, you can sign up for the best travel affiliate where you can make commissions from sales and referrals. You can also monetize your content with Googe Adsense, Ezoic, Propeller, and other ad networks.


Auburn University at Montgomery (2020). “Caring For Alabama’s Elderly”. aum.edu

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