Best Business To Start In Michigan

Michigan offers a thriving environment for entrepreneurs seeking to embark on online business ventures. With its diverse economy and a growing tech scene, the state presents many opportunities. This guide will explore the best online business ideas tailored to Michigan's unique landscape. With these ideas, you can take your small business online or develop a new one. 

We'll cover a spectrum of options, from e-commerce ventures leveraging the state's manufacturing heritage to tech startups capitalizing on emerging trends. Michigan's online business potential is vast whether you're interested in automotive-related ventures, the gaming sector, or healthcare. Discover how to tap into this market, make the most of local resources, and build successful online businesses to cover the Great Lakes State.

Business Facts and Figures About Michigan 

• More than 80% of the businesses in Michigan are small sized businesses. 
• Healthcare is the third largest sector where businesses are making the most.
• 28,682 employees provide Educational Services in Michigan.
• 78% of the businesses have an online presence in the US.
• About 70-80% of the buyers prefer to check the products online before going to offline stores.
• By the end of 2030, buyers will prefer to shop online instead of offline.

List Of The Best Business Ideas To Start In Michigan

Ready to start a business in Michigan but not confident which business might be the best? Well, check our list containing the top business ideas to start in Michigan.

1. OnlyFans Like App

An OnlyFans-like app can be beneficial for businesses by providing a subscription-based content platform. It allows businesses to monetize their content, build a loyal customer base, and offer exclusive perks to subscribers. This model fosters direct engagement, boosts revenue, and can be a valuable tool for content creators across various industries.

• Onlyfans is the 25th most visited website, according to Semrush.
• Onlyfans have registered 190 million users till 2023.
• It is growing at the rate of 70% per month.
• The maximum of the users are from 35-44 years. 

In Michigan, 50.1% of the population belongs to the age slab of 20-54 and developing an AI Onlyfans like application can be one of the most beneficial businesses. After the pandemic, youth got attracted to similar applications like Onlyfans with AI integration. Developing an Onlyfans like app from scratch can cost you around $40,000 - $80,000. Some of the popular applications like Onlyfans are Fansly, Loyalfans, Fanvue, etc.

2. AI Chatbot - NSFW/AI Boyfriend/AI Girlfriend

Developing Virtual Boyfriend/Girlfriend AI chatbots presents an intriguing opportunity in Michigan. With a population of over 10 million, there is a significant market for virtual companionship. Loneliness and the need for emotional connection have become increasingly prevalent, especially in the digital age. 

It indicates that the demand for AI companionship apps has been growing steadily. By providing emotional support and companionship, these chatbots can address the evolving needs of users. Investing in Virtual BF/GF AI chatbot development in Michigan taps into this demand, offering a unique and potentially profitable solution for those seeking digital companionship in the state. 

Also Read: Virtual Boyfriend & Girlfriend Development Cost

3. Smart Parking

Developing a Smart Parking App in Michigan offers a promising business opportunity. The state's urban areas, including Detroit, face parking challenges due to high population density and limited spaces. With over 10 million residents, the demand for smart city and efficient parking solutions is evident.

The smart parking industry is on the rise, with global market projections exceeding $7 billion by 2025. These apps streamline parking, reducing congestion and emissions while enhancing user convenience. By optimizing parking space utilization, IoT based Smart Parking Apps not only solve a real problem but also have the potential to generate revenue through parking fees. This venture aligns with Michigan's urban development needs and technological aspirations.

Also Read: Parking App Development Cost

3. Blockchain Based Businesses

Blockchain-based solutions offer businesses transparency, security, and efficiency. They enable tamper-proof record-keeping, reducing fraud and errors. Smart contracts automate processes, saving time and costs. Decentralization enhances trust and removes intermediaries. 

• The blockchain market shows immense promise, with global industry estimates set to soar to a staggering $163.83 billion by 2029. In 2023, there are already over 8,832 active cryptocurrencies worldwide.
• By June 2023, daily Bitcoin transactions exceeded 40.5 million, involving a whopping 85 million users on the Bitcoin block explorer blockchain.com wallet.
• Remarkably, the United States spearheaded Blockchain spending, with Western Europe closely following suit. Notably, the banking sector emerged as the top spender on blockchain technologies.

Blockchain apps offer businesses unparalleled benefits. They ensure data integrity and security through transparent, tamper-proof records. Smart contracts automate processes, reducing errors and costs. The decentralization aspect fosters trust and eliminates intermediaries. In addition, blockchain enhances supply chain management, streamlines financial transactions, and enables tokenization of assets. Blockchain app development can cost you around $35,000 to $100,000, according to the industry, features, and demand of the blockchain in that particular industry. 

Blockchain is suitable for the following industries:

•  Healthcare
• Automotive
• Supply Chain & Logistics
• Education
• Hospitality
• Real Estate
• Fintech

4. Metaverse Based Businesses

Metaverse has created a whole new canvas of virtual reality with plenty of options to make business from the platform. From concerts to virtual meetings and from virtual shopping centers to gyms, each business has the potential to grow with excellence. 

• Market size in the Metaverse market is projected to reach US$17.5bn in 2023.
• Market size is expected to show an annual growth rate (CAGR 2023-2030) of 37.11%, resulting in a projected market volume of US$159.2bn by 2030.
• With a projected market volume of US$17.5bn in 2023, the largest market size is generated in the United States.
• In the Metaverse market, the number of users is expected to amount to 120.7m users by 2030.
• User penetration will be 11.7% in 2023 and is expected to hit 35.5% by 2030.

Starting a metaverse platform as a business is a forward-thinking move for several compelling reasons. By entering this emerging market early, you position yourself for growth and innovation, capitalizing on the increasing interest and investment in metaverse technologies. Moreover, it allows you to shape the metaverse's future, exploring diverse revenue streams through virtual real estate, NFTs, and unique experiences while also fostering a sense of community and connectivity in an increasingly digital world.   

5. Web3 Gaming

The decentralization of the gaming industry has opened the doors to maximum profit for businesses and players as well. In the gaming industry, where profits were one-sided, but Web3 gaming is providing benefits for businesses as well as players. 

What the previous year shows:

• In 2021, the global Web3 gaming market saw a remarkable milestone, surpassing the $2 billion mark in total revenue.
• An impressive revelation from the world of blockchain gaming is that more than 40% of blockchain gamers dedicate over 10 hours each week to playing Web3 games, emphasizing the engaging nature of these decentralized experiences.
• Looking ahead, predictions for 2025 are highly optimistic, with the Web3 gaming market poised to exhibit remarkable growth at a Compound Annual Growth Rate (CAGR) of 61.5%, reaffirming its status as a thriving sector in the digital landscape.

The Web3 gaming industry will be $23,926 million by the end of 2023, and taking your gaming platform on the Web3 platform will be an exciting business to generate high revenue. A maximum of the citizens in Michigan are youth, and making them your target audience will be beneficial. In another report by Forbes, 31% of the youth hold cryptocurrency, and 163.3 million adults in US are game lovers making games for both will help to grow in the market to the extent. Building a profitable Web3 gaming is a good option for business. 

5. Healthcare

The healthcare industry was $808 billion in 2021; by the end of 2023, it will reach $16.810.  Delivering the service in the healthcare sector with the advanced application will help you to generate high revenue from the platform. 

• The healthcare apps sector is poised for substantial growth, with revenue expected to skyrocket by 3.8 times from 2022 to 2032, reaching a remarkable US$155.9 billion.
• Over the next decade, mobile health applications are projected to become the primary revenue driver, comprising an impressive 96.4% of the total revenue in the medical apps segment, marking a 24 basis points increase.
• Within the medical health apps niche, women's health applications reign supreme, boasting a substantial 34.4% market share. These apps are forecasted to maintain robust growth at a CAGR of 15.2% over the next ten years.

Healthcare app development costs can be between $40,000 and $60,000, and AI integration in the healthcare app can take the cost up to $80,000 or $100,000 with all the advanced features. 

If you belong to the healthcare industry, then this could be the best possible business solution for you. 

6. Food Delivery App

In the era of technology, each one of us wants everything at our doorstep in minutes, and in this marketplace, food delivery application development has turned the tables for aggregator business owners as well as restaurant owners.

• By the end of 2029, the food delivery app business is expected to grow upto $165 billion.
• Uber Eats is one of the most popular applications globally. 123 million users were using Ubereats in 2021, and in 2023, the number increase to around 150+ million users.
• By the end of 2023, the online food delivery business  revenue will be upto $220 billion.

Michigan has great connectivity and mostly land area, so developing a food delivery application will be a good option. Michigan has more than 2000 restaurants as per the latest update, and connecting each of the restaurants with the 10.5 million citizens of Michigan will be a great business idea to start.

7. Education App 

Education is the need of the time to help people to make them progressive and to lead the country with perfection. About 1 million students are there in Michigan, and developing a metaverse education platform or an Android or iOS application for the students will be a good option. Let’s see what the stats say about online education:

• The education apps market is estimated to grow at a CAGR of 28.61% between 2022 and 2027.
• The size of the market is forecast to increase by USD 124,782.56 million.
• Duolingo is one of the most popular education applications in US, with registered users of more than 500 million.   

Education is not limited to just youth but also for the age slab of 25-40 or even more. Developing an educational application for everyone will be an exciting business model. It generates good revenue by providing various courses, from technical to general, etc. An average educational app can cost you between $35,000 - $60,000. 

8. Grocery/Medicine Delivery

A grocery or medicine delivery app development is one of the most cost effective businesses that you can get if you have a limited amount of money to start the business. 

• One of the most popular grocery delivery apps “Instacart” made a revenue of $2.5 million in 2022.
• The net profit of instacart was $428 million at the end of 2022.
• By the end of 2023, the approx. revenue of grocery delivery applications will be around $100 billion.  

The average development cost to build a grocery delivery application will be between $25,000 to $50,000. In the era where everybody is running out of time, providing a high end grocery delivery application will be beneficial. In the coming years, the demand for grocery delivery applications will definitely set a new benchmark. 

9. Casino

Casino gaming apps have proven highly beneficial in Michigan, capitalizing on the state's burgeoning gambling market. In 2020, Michigan legalized online casino gambling, leading to a surge in demand. With over 10 million residents, the potential customer base is substantial.

Statistics reveal that by 2025, Michigan's online gambling revenue is projected to reach $650 million annually, generating significant tax revenue for the state. The convenience of mobile gaming appeals to a tech-savvy population, ensuring continued growth. Thus, investing in a Metaverse casino gaming app in Michigan offers a lucrative opportunity as the industry continues to thrive and evolve. Built Metaverse casino game platform to make your business globally popular.

10. Dating App

AI dating apps hold significant promise in Michigan's dating scene. With a population of over 10 million people, the potential user base is substantial. These apps leverage advanced algorithms and machine learning to match individuals based on compatibility, enhancing the dating experience. 

In 2020, the online dating industry generated over $3 billion in revenue in the U.S., and Michigan's share of this market is substantial. With the convenience and efficiency AI brings to matchmaking, investing in an AI dating app development business in Michigan offers a lucrative opportunity, tapping into the state's growing dating market and tech-savvy population.

11. OTT Platform

OTT (Over-the-Top) platform development is a lucrative opportunity in Michigan's media and entertainment landscape. With a population of over 10 million, the demand for streaming services is on the rise. Statistics indicate that streaming subscriptions in the U.S. surpassed 300 million in 2020, and Michigan is no exception to this trend. 

Additionally, Michigan's vibrant film industry and cultural diversity provide ample content creation opportunities. By 2025, the global OTT market is projected to reach $332 billion. Launching an OTT platform in Michigan presents a substantial market share potential, catering to viewers' preferences for on-demand content, making it a profitable venture.

Also Read: OTT App Development Cost

12. Real Estate

Creating a Real Estate Management App in Michigan is a lucrative venture. With a diverse housing market and a population of over 10 million, the need for efficient property management solutions is evident. Statistics reveal that the real estate industry contributes significantly to Michigan's economy, with property values rising steadily. 

The real estate market is dynamic, with property owners, tenants, and agents seeking streamlined management tools. By offering features like property listings, rent collection, and maintenance tracking, such apps address these needs. Investing in a Real Estate Management App in Michigan aligns with the state's thriving property market, presenting substantial opportunities for revenue and growth.

13. Agriculture

Given the state's substantial agricultural sector, developing an Agriculture Management App in Michigan is a strategic move. Michigan's agriculture industry is vital to its economy, with over $100 billion in annual revenue. With a population of over 10 million, a significant user base is interested in improving farming practices. 

Agriculture software solutions can provide features such as crop monitoring, weather forecasts, and inventory tracking, enhancing farm efficiency. Thus, investing in such an app in Michigan aligns with the state's agricultural importance and technological advancements, offering substantial business potential.

Conclusion 

Michigan presents a fertile landscape for entrepreneurial endeavors across various industries. From the automotive and manufacturing legacy of Detroit to the thriving healthcare, food, and blockchain sectors, the state offers diverse opportunities. Starting an application is accessible, given the robust internet infrastructure and consumer base. 

While competition exists, innovative ideas and well-researched business plans can carve a niche in this dynamic environment. With advantages like a skilled workforce, proximity to major markets, research institutions, and business-friendly policies, Michigan stands as an attractive destination for budding entrepreneurs. Successful tech-related businesses, in particular, find ample support in a state poised for economic growth and innovation.

FAQs

What are some popular industries to consider for starting a business in Michigan?

Michigan offers opportunities in manufacturing, automotive, healthcare, technology, and agriculture. The state is known for its thriving entertainment sector and investment in the blockchain and metaverse marketplace.

Do I need a license to start a business in Michigan?

The need for a business license in Michigan varies by location and business type. Many businesses require state and local licenses, and you can check with the Michigan Business One Stop portal for specific requirements.

Do I have to register my business in Michigan?

Yes, businesses operating in Michigan typically need to register with the Michigan Department of Licensing and Regulatory Affairs (LARA). Registration ensures legal compliance and access to various resources.

Can I start an e-commerce business in Michigan?

Yes, you can start an e-commerce business in Michigan. E-commerce is a viable option, considering the state's strong internet infrastructure and consumer base.

Is there a lot of competition for businesses in Michigan?

Competition varies by industry, but Michigan's diverse economy means there is competition across sectors. However, innovative ideas and a well-executed business plan can help you succeed.

What are the advantages of doing business in Michigan?

Michigan offers advantages like a skilled workforce, access to major markets, research institutions, and incentives for businesses. The state also ranks well for its business-friendly policies and infrastructure.

What kind of tech-related businesses are successful in Michigan?

Michigan is fostering a growing tech ecosystem. Due to the presence of major companies and research institutions in these fields, successful tech-related businesses include those in automotive technology, cybersecurity, software development, and medical technology.