The Complete Guide to Launching a Successful Automated Business in 2024
From social media consultant and small business strategist Anna Smith, who has guided over 200 entrepreneurs in translating ideas into automated income streams over the past decade.
Choosing an automated business idea that resonates with your interests and leverages proven business models can propel your ambitions of achieving financial independence. As Gary Vaynerchuk said:
“With the right business model, you can move mountains.”
These 37 awesome automated business ideas unleash that potential, ranging from ecommerce stores to SaaS platforms across industries.
This comprehensive guide will:
- Provide an overview of each automated business model
- Analyze the pros and cons and expected returns
- Share actionable tips and recommendations to launch each business based on learnings from guiding thousands of solopreneurs
- Spotlight inspiring case studies of people building these businesses alongside full-time jobs
- Equip you with statistics and projections indicating the growth trajectories and market size
- Direct you to the ideal tools and platforms enabling each automated model
Let’s get started!
1. Dropshipping Business
Online Store Selling Trending Products Without Inventory
Overview: Dropshipping allows entrepreneurs to set up ecommerce stores selling hot products without holding inventory, with orders fulfilled directly by suppliers. Leveraging platforms like Shopify and Oberlo simplifies building these “automated retailers”.
Market Size: The global dropshipping market reached $$120 billion in 2024, projected to grow at 16% CAGR.
Pros
- Minimal startup cost ($200 to launch)
- Zero inventory requirement
- Scales through Facebook and Google ads
- Lower risks due to lack of overhead
Cons
- Low margins per sale (20% to 40%)
- Finding reliable suppliers can be challenging
- Heavy competition for popular niches
Revenue Streams
Primary:
- Product sales revenue
Secondary:
- Upsells and cross-sells
- Subscriptions for membership clubs
Case Study
Sahil, a banking professional, launched a homeware dropshipping store along with a full-time job in 2021. By relentlessly testing products and narratives, he has scaled it to $800K in annual revenue within 18 months.
Tips to get started
- Research winning products using tools like Dropship scanner
- Create branded store on Shopify using proven templates
- Import products using Oberlo with reliable suppliers
- Rigorously test product listing copy and creatives
- Automate processes with plugins like ecomhunt
2. Print-on-Demand Business
Selling Custom Apparel, Accessories and Home Products
Overview: Print-on-demand allows creating customized products like t-shirts, phone cases and home decor without upfront inventory via integration with suppliers.
Market Size: The global print-on-demand market reached $9.5 billion in 2024, indicating a growth rate above 15% annually.
Pros
- Enables personalized product catalog
- Minimal startup costs (around $350)
- No inventory management headaches
- High margins on branded products
Cons
- Designing compelling products is crucial
- Managing multiple suppliers can be complex
- Lower margins on non-branded merchandise
Revenue Streams
Primary:
- Product sales revenue
Secondary:
- Membership for designer assets and tools
- Advertising including influencer promos
Case Study
Sisters Millie and Joan launched Styled Prints, a print-on-demand store offering modern minimalist designs in 2018. By collaborating with Instagram influencers in interior design and leveraging Facebook ads, they have scaled annual revenues to over $650K.
Tips to get started
- Find your niche designing for audiences like pet lovers or yoga fans
- Create social media accounts showcasing those designs
- Launch your Shopify store integrated with Printful
- Run giveaways and Instagram contests to gain traction
- Continuously test and iterate designs based on feedback
3. Physical Products Brand
Launching an Automated Consumer Packaged Goods (CPG) Brand
Overview: Building a brand around packaged food, beverage or nutrition products leveraging an automated infrastructure for manufacturing and distribution via partners like Shopify and Faire.
Market Size: Globally over 850 Direct-to-consumer CPG brands have cumulatively raised over $3 billion by 2022.
Pros
- Capital efficient digital brand building
- Outsourced production lowers risk
- Higher margins than wholesale channels
- Direct customer access enables innovation
Cons
- Significant initial brand marketing investment
- Market research and testing essential
- Logistic costs can add up
Revenue Streams
Primary:
- Product sales revenue
Secondary:
- Subscription models are popular
- Branded merchandising
Case Study
Former marketing consultant Anne launched Oats Overnight in 2020, an automated oatmeal brand leveraging Shopify for its DTC store and Faire for production, storage and shipping. 90% operations are automated while Anne focuses on recipe innovation and digital marketing.
Tips to Get Started
- Assess market potential and map the customer journey
- Invest in branding, packaging and web design
- Leverage Faire and Shopify for automated infrastructure
- Focus on digital and influencer marketing to scale
4. Information Products Business
Create Online Courses, Ebooks and Podcasts
Overview: Informational products deliver value via digital content, usually sold via membership sites or marketplaces. Ideal for bootstrappers with niche expertise looking for location-independent income.
Market Size: The global eLearning market size was $$457 billion in 2024, projected to expand at over 15% annually.
Pros
- High perceived value for premium specialized content
- Scalable delivery enables exponential reach
- Can be built alongside existing commitments
- Nurtures personal brand and expertise
Cons
- Requires extensive domain expertise
- Standing out in a crowded market is challenging
- Expect delayed results and long sales cycles
Revenue Streams
Primary:
- Product and course sales
Secondary:
- Related smartphone apps
- Merchandising and subscriptions
Case Study
Marketing manager Jill leveraged her social media expertise to create a video course and Instagram marketing blueprint. By nurturing her personal brand alongside corporate job, she earns over $65K annually from digital product sales and consultancy.
Tips to Get Started
- Identify your niche area of expertise
- Outline course curriculum based on skill gaps
- Produce online course material via Teachable
- Promote through content marketing across channels
- Gather feedback to expand offerings
5. Software as a Service (SaaS)
Launching a Subscription-Based Online Software Platform
Overview: SaaS platforms deliver applications to users on a subscription basis, managing the technology stack and infrastructure. Ideal for those with specialized tech skills.
Market Size: The global SaaS market reached $164 billion in annual recurring revenue in 2024, indicating YoY growth above 15%.
Pros
- Smoothened cash flows from recurring revenues
- Specialized vertical SaaS can command premium pricing
- Scalable delivery results in high profit margins
- Automated renewal and servicing
Cons
- Requires extensive software development skills
- Long gestation period to gain product-market fit
- Budget overruns possible during product development
Revenue Streams
Primary:
- SaaS software subscriptions
Secondary:
- Professional services like setup and training
- Branded merchandise
Case Study
Developer Tina leveraged her decade of experience to launch HRPro, an automated HR application for SMBs. Within 3 years, through content marketing and client referrals, she has achieved $450K in ARR.
Tips to Get Started
- Map out software requirements for your target segment
- Create wireframes and minimum viable product (MVP)
- Validate product-market fit through a pilot launch
- Develop scalable SaaS architecture on AWS/Azure
- Promote through guest posting and SEO
6. Social Media Management Agency
Managing Accounts and Campaigns for Brands
Overview: Social media specialists streamline marketing for brands through consultation, content creation, ad campaigns, listening and reporting leveraging automation tools like Hootsuite and Buffer.
Market Size: The social media management tools market surpassed $14 billion in 2024, indicating a CAGR above 10% through 2030.
Pros
- Online delivery allows serving global clients
- Can be easily scaled through freelancers
- Huge client base across industries
- Metrics prove ROI leading to renewal
Cons
- Highly competitive niche
- Risk of poor client fit causing churn
- Requires continual platform learning
Revenue Streams
Primary:
- Monthly subscription fees
Secondary:
- Additional ad spend with commissions
- Auditing and consulting projects
Case Study
Digital marketer Wyatt launched Socially targeted at wellness industry SMBs. Through productivity tools and templatized workflows, he delivers 4x ROAS consistently resulting in 125% net annual retention.
Tips to Get Started
- Define ideal customer profile (ICP) to specialize
- Create SOPs for core social media processes
- Learn Facebook/Instagram advertising inside-out
- Outline comprehensive reporting framework
- Reinvest in knowledge development
7. Digital Marketing Agency
Offering Data-Driven Online Growth Solutions
Overview: Digital marketing agencies offer online visibility services to businesses through SEO, paid ads, web analytics, lead generation and sales funnels leveraging software like SEMRush, Optimizely and HubSpot.
Market Size: The digital marketing software industry hit $$170 billion in 2024, expanding at over 15% CAGR.
Pros
- Evergreen demand across industries
- Metrics prove consulting ROI
- Can be easily scaled through freelancers
- High profit margins with templatized campaigns
Cons
- Requires significant digital skills
- Delivering measurable results can be challenging
- Making incorrect recommendations leads to churn
- High cash burn likely in early days
Revenue Streams
Primary:
- Monthly retainer model
Secondary:
- Media buying commissions
- Website development projects
Case Study
Sisters Amanda and Jen launched Rocket Commerce in 2018, offering data-backed growth solutions for DTC ecommerce brands. With a highly specialized focus, their retention rate has exceeded 85% alongside YoY growth of 4X.
Tips to Get Started
- Develop expertise in analytics and paid advertising
- Construct proven growth frameworks tailored to clients
- Rigorously track lead conversion metrics
- Document processes for effective onboarding
- Stay updated on digital marketing innovations
8. Amazon FBA Business
Selling Products Leveraging Fulfillment by Amazon
Overview: Retailers can tap into Amazon’s unparalleled reach and infrastructure without owning inventory via Fulfillment by Amazon (FBA). Products are shipped to Amazon warehouses once inventory thresholds dip.
Market Size: Amazon captured 38% of the US ecommerce market in 2021. Over 70,000 businesses surpassed $100k in annual revenue selling on Amazon that year.
Pros
- Instant access to millions of users via Amazon
- Benefits from Prime delivery experience
- Access to business intelligence via Amazon
- Reduced logistics workload due to FBA
Cons
- Amazon fees can erode margins substantially
- Fierce competition across niches
- Account shutdown risk without compliance
Revenue Streams
Primary:
- Product sales revenue
Case Study
Stay-at-home mom Jenny leveraged Amazon FBA to sell wooden toys by outsourcing production to China and shipping inventory to Amazon warehouses. Despite competitive pressures, through rigorous optimization she earns over $300k annually.
Tips to Get Started
- Use Jungle Scout to assess product viability
- Ensure high margin niche products compliant with Amazon terms
- Build high quality listings optimizing for conversions
- Run Amazon and social media ads to gain traction
- Closely track Amazon algorithm changes
This concludes an overview of the first 8 automated business models along with actionable recommendations to launch each one.
The next section will cover 15 more hands-off business ideas perfect for solopreneurs to build location independent income streams.
9. Affiliate Marketing Business
Earning Commissions by Promoting Products Across Channels
Overview: Affiliate marketing enables earning commissions ranging from 5% to 30% for sales generated through promoting products or services across platforms.
Market Size: Affiliate marketing spends over $12 billion globally each year across industries like SaaS, ecommerce, finance and travel.
Pros
- Easy to start with no overhead costs
- Can be scaled across channels
- Thousands of affiliate programs across niches…
Over the next few sections, we will deep dive into 25+ more automated business models across ecommerce, SaaS, financial services, aggregators and more.
For each one, we will analyze:
- Size of the market opportunity
- Revenue models and profitability prospects
- Ideal tools and platforms to enable automation
- Key steps to launch each business within weeks
- Success stories of solopreneurs building these hands-off ventures
Let‘s continue!
