Best Businesses to Start in Chicago, Illinois

Thinking of launching a side hustle, but wondering what the best business to start in Illinois is? You've come to the right place. 

Why start a business in Chicago?

Nicknamed "the Prairie State," Illinois is known for farmland, corn crops, and nuclear power plants, so it's understandable that this may not be the first location that comes to mind when you're thinking about where to launch your business.

But consider this: Illinois is in a central location with three international airports and access to waterways, ports, freight railroads, and interstate highway systems. It's also home to 36 Fortune 500 companies, numerous research and innovation hubs, and 192 higher education institutions. In 2021, Illinois had a 70% increase in business start-ups. 

Chicago, Illinois' most famous city, is the most populous city in the United States and called "the cultural heart of the USA." Chicago is one of the country's major business centers, with a diverse regional economy and established industries ranging from technology and financial services to food, manufacturing, healthcare, and transportation.

Its central location and extensive air, rail, highway, and freight connections can also make Chicago attractive to businesses serving customers throughout the Midwest or across the country.

For entrepreneurs, Chicago offers opportunities across both business-to-business and consumer industries. You can build a company serving large employers, local residents, tourists, other small businesses, or customers entirely online.

Entrepreneurs in Chicago and the metro area benefit from:

● Enticing LLC laws

● A strong startup scene and business infrastructure

● Finance, logistics, tech, and healthcare hubs

● A population of nearly nine million

● A growing housing market

● Access to world-class talent from top universities

● A thriving tourism and hospitality industry

Whether you're planning on opening a boutique in a trendy neighborhood, launching a tech startup, or running a fully remote service-based business, there’s a place for you in Illinois. 

Best business to start in Chicago

Wondering what type of business to launch? Some of the best businesses to start in Chicago include technology and software services, ecommerce businesses, food concepts, health and wellness services, professional consulting, home services, childcare and education businesses, and logistics-related companies. Here are a few suggestions to get the ideas flowing.

Tech startup

Chicago is fast becoming a Midwest tech hub. From SaaS solutions to fintech platforms, there’s a growing ecosystem of incubators, accelerators, and angel investors eager to support the next big idea. Potential businesses include SaaS companies, app development, AI and data services, cybersecurity consulting, IT support, and other business technology services.

You don't necessarily need to build a venture-backed startup. Freelance developers, technology consultants, and small IT firms can also serve Chicago's large base of businesses and professional organizations.

Ecommerce or online retail store

Thanks to its central location in the United States, Chicago is a prime spot for warehousing, logistics, and order fulfillment, making it ideal for running an online store. You can maintain a low overhead by using a virtual office and employ local fulfillment centers to ship products efficiently across the country. This could be a dropship store, reselling vintage or niche products, or even running a homemade craft enterprise.

Food truck or specialty food services

If you’ve got talent in the kitchen, the food scene in Chicago offers plenty of opportunities. Food trucks, pop-up concepts, and delivery-only kitchens allow you to break into the industry without massive overhead or upfront investments. Consider offering ethnic cuisine, plant-based or gluten-free concepts, or catering services.

Health and wellness services

Service-based businesses in fitness, nutrition, and mental health continue to grow in Chicago and beyond. This could be a yoga or pilates studio, mobile massage services, or online health coaching. The sky's the limit!

Consulting and other professional services

Chicago's large and diverse business community creates opportunities for consultants and professional service firms. If you have experience in a professional field such as law, accounting, marketing, or HR, why not offer your expertise to other companies? Many consulting companies can also start with relatively little physical infrastructure. A Chicago virtual office can provide a professional business address while you work remotely and reserve physical meeting space only when you need it.

Cleaning and home services

Residential and commercial cleaning services are always in high demand. With a reliable team and solid systems, this type of business can grow quickly and generate recurring revenue. Consider an Airbnb turnover service, office cleaning and janitorial, or innovative green cleaning services.

Childcare and education services

With more parents returning to work in-office or on a hybrid schedule, demand for reliable childcare and tutoring services is high. This could be an in-home daycare, enrichment classes (such as music, art, or coding), or even private tutoring.

The right business for you depends on your experience, budget, customers, and how much physical space you need. Chicago's diverse economy, large customer base, major transportation network, and established business community create opportunities for both local service businesses and companies that can operate remotely.

Consider a virtual office for your new business in Chicago

Starting a business in a big city doesn’t have to mean leasing expensive office space downtown. A virtual office can give your business a professional presence—complete with a business address, mail handling, and access to meeting rooms—without the long-term commitment or high costs.

Virtual office solutions are especially helpful for:

● Freelancers and consultants

● Remote-first companies

● Solopreneurs needing a Chicago business address

This gives you credibility and privacy and helps you stay agile as your business grows.

Ready to start your business in Chicago, Illinois?

Whether you're a first-time business owner or a seasoned entrepreneur looking for a new challenge, Chicagoland is a smart choice to set up shop.

Chicago is more than just the home of deep-dish pizza and iconic architecture. Illinois is a business-friendly state with a diverse economy, a strong labor force, and access to major transportation networks. With the right business idea and smart planning, you can build something meaningful that makes a lasting impact.

About Robyn Roste

Robyn Roste is a professional writer living and working in Abbotsford BC Canada. Her personal blog about freelance writing(http://robynroste.com) is listed in The 100 Best Websites for Writers in 2020 by The Write Life.