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Small Businesses That Are Very Profitable In LA


DOING BUSINESS IN LA - As the second-largest city in the U.S. after New York and the most popular city in California, Los Angeles (L.A.) is a hub for businesses to start and thrive.

As one of the cities where individuals come to fulfill their dreams, meet theirs and attain maximum potential, L.A. is all about creativity, experience, opportunities, and culture. As a melting pot for many things, there's no better place to start a new business than L.A. Indeed, it has up to 250,000 small businesses, which account for 43% of the entire city's workforce. This discussion explores small businesses that are very profitable in L.A., California. Keep reading. 

Recruitment Agencies 

The labor market profile in L.A. is very robust, thanks to hundreds of multinational companies and industries. For example, out of the 105 publicly listed Fortune 500 companies in California, 22 are based in L.A. As such, firms constantly recruit new candidates and job seekers looking for the best-suited agencies to place them in employment opportunities. Because of this, recruitment agencies are popular in L.A. and earn money by charging a small commission in return for services. 

Advertising Agencies 

Like other cities in the U.S., the advertising budget for businesses in L.A. takes a huge percentage of total spending. Therefore, an increase in the marketing budget is likely to fuel the demand for the services of advertising agencies. 

Advertising agencies in L.A. services include: 

  • Creating tailored ad campaigns for companies.
  • Driving high engagement rates for brands.
  • Creating websites and providing digital experiences for customers. 

According to the Bureau of Labor Statistics (BLS), overall employment in the U.S.'s advertising, marketing and promotion sectors is predicted to increase by 10% from 2021 to 2031. With these projections, small businesses venturing into advertising businesses are likely to be some of the most profitable in L.A. in the coming years. 

Tour Companies and Restaurants 

In 2018, L.A. achieved a historic milestone by having up to 50 million tourists. Even though the COVID-19 pandemic occasioned a slump in 2020, L.A. remains a center of attraction, especially for domestic tourists. Some reasons that make L.A. a magnet for visitors include favorable weather, fabulous restaurants, the popular Santa Monica Pier, and blonde Beaches, a bonus for sightseers. 

As a driver of employment and economic prosperity, tourism remains one of the most critical sectors in L.A. Small companies have offices in L.A. and get their income from commissions paid by vendors on vacation packages, cruises, air travel, consultation, and service fees. 

Due to the high influx of visitors every year, restaurants are some of the lucrative small businesses in L.A. Visitors love adventure and trying different cuisines. According to statistics, there are over 30,000 restaurants in L.A. Most offer plate, cart, plater, buffet, and family-style services. In LA, you can find small restaurants, including bars, diners, food trucks, delivery, pizzeria, and pasta spots. 

Translation Businesses 

Spanish and English are the most widely spoken languages in L.A. Still, other languages such as Chinese, Korean, and Filipino are also commonly spoken in L.A. According to World Atlas, there are over 200 languages spoken in California. 

Because of multiple languages, small businesses offer complex translation management services. Professionals run these businesses with expert services and tailored programs to meet clients' needs. Examples include academic and transcription services. Additionally, small businesses provide independent translation services to schools, courtrooms, conference centers, hospitals, and other businesses. 

Lending Businesses 

Estimates show that as of 2019, the average household debt in California was $73,400. Some debt items include mortgages, credit cards, auto loans, personal loans, and online loans. 

Like most cities, personal loans in L.A. are some of the most popular because they give quick access to money to finance large purchases, pay for emergencies or merge existing debts. Therefore, many personal loan lenders advance loans to individuals through physical branches or online platforms. 

Other than personal loan providers, there are lenders in California that fund other firms through popular business loan products. If you have a small business in L.A., you can benefit by seeking finances from these lenders. However, you must maintain a good credit score and healthy cash flows. It's essential to practice proper money management habits by diverting funds to the intended use. Also, pay your bills and loans on time to avoid negative listings by your lenders on the credit reporting agencies.  

Flowery Delivery Businesses 

Usually, flowery delivery businesses in L.A. and wider California are retail businesses that offer these services to individuals and corporate clients. A flower establishment business is profitable and can earn a tidy sum after deducting taxes and expenses. 

The flower business in L.A. offers multiple streams of revenue. Individuals buy flowers for various reasons, including weddings, funerals, anniversaries, birthdays, and celebrations. In addition, California leads the country in cut flower production, making it affordable for businesses looking for raw materials. 

Gift Shops and Interior Design Businesses 

Gift shops are available in L.A. mostly due to the high number of visitors who throng into the city yearly. Of course, guests look forward to carrying gifts back home, and businesses that offer a one-stop-shop option make a lot of money by selling unique gifts and souvenirs. 

As noted earlier, L.A. has a high population in California. Thus, there's a high demand for interior design for companies, homes, and restaurants looking for a renovation or new look. Figures reveal over 130,000 interior designers in the U.S. Out of the figures, California makes up the highest number of interior design businesses in the U.S. Throughout history, Hollywood has been the home to design experts, photographers, and showroom heads. 


Whereas there are no complex or quick rules regarding profitability, small and medium-sized businesses in the U.S. are some of the most profitable. This trend is replicated across all the states and cities, and L.A. is no exception. Hopefully, this discussion has shed some light on profitable enterprises that make a lot of money in L.A.