When most entrepreneurs think of small business ideas to start, businesses that address people’s everyday needs are the usually first to spring to mind; like businesses that sell food or offer transport services. No doubt, these businesses are lucrative, and they are recession-proof.

But the problem is, when everyone starts to look in the same direction of business, only one thing happens—stiff competition. The mindset that businesses must address everyday needs to succeed in the long term has only led to the emergence of more and more businesses that address the same everyday needs.

And very small localities now abound with restaurants, snack joints, coffee shops, grocery stores, department stores, and other outlets that cater to people’s everyday needs. However, one of the qualities of smart entrepreneurs is their ability to sense opportunities where others are not paying attention to, and taking advantage of those opportunities.

Now, as a smart entrepreneur you need to start looking beyond those saturated areas. You need to look at places others are overlooking, and find opportunities. An example of such areas is the luxury goods and services industry.

While luxury products and services are catered to the wealthy, there is little competition in this industry, which leaves huge profit opportunities for the few players. However, you must bear in mind that starting a business that offers luxury products or services usually requires huge startup capital—for obvious reasons. Without wasting time, below are 10 profitable business ideas in the luxury goods and services industry.

Top 10 Luxury Goods & Service Small Business ideas for 2020

1. Luxury smartphones or tablets

Even manufacturers of smartphones and tablets are aware that some people would love to buy their products, but would prefer devices with some extra touch that makes them unique and classy—and different from the type everyone else is using. This is why some versions of smartphones come in casings plated with gold, diamond, or other precious materials. Unknown to many, there is decent demand for these devices.

2. Luxury cars

A luxury car is what separates the wealthy individual from other people. Little wonder, some people assess the worth of rich individuals by the number of luxury cars in their garage. Though you won’t find many of them on the roads, luxury cars are in demand among the rich folks.

3. Luxury gifts

Whether it’s a diamond ring or a handbag made of crocodile skin, luxury gifts are greatly appreciated by everyone. This niche is particularly lucrative because the rich love to exchange gifts among themselves. And when they do, they don’t share what everyone shares. They go for the priciest gifts—gifts that are worth keeping as monuments.

4. Yacht rentals

Yacht rental services are becoming more popular due to the increasing demand for yacht cruises among the rich. If you have what it takes to start this business, you will make a lot of money off the rich ones who love to spend their free time on the water.

5. Private jet flights

The rich people hate to join those pesky long checking queues at airports. Many of them prefer being in control of the flight. They want to take off at their own convenient time, and they want to enjoy privacy even in the air. This explains why the demand for private jet flights is on the rise.

6. Luxury property insurance

If you have a solid background in insurance, then you should consider becoming an insurance agent with a special focus on luxury property insurance. Rich people who have invested huge sums in their property hate to lose such property to disasters, theft, and other unfavorable circumstances.

So, they will readily cover their property with insurance. And just as you know, the higher the cost of a property, the more the insurance premium payable on it, and the more commissions you will earn as an agent.

7. Luxury fashion

From handbags to wristwatches to clothing and perfumes, rich people have a fair share of these products, made specially for them. Since fashion is one of the ways by which the rich show off their worth, the demand for luxury fashion products is always high. Venture into the business, and you will never regret it.

8. Handmade craft

Some handbags, clothing, artwork, shoes and so on pride themselves on being produced manually and specially for the rich. Such products are usually made of rare and valuable materials that only the rich can afford.

9. Luxury business consulting

If you have created a good number of successful luxury businesses, you can convert your experience into money by starting a consulting service for luxury business owners. Many of them are willing to learn how to attract more customers, especially since their target customers are usually few in any locality.

10. Wines

Expensive wines are the hallmarks of expensive parties. When rich people organize weddings, birthday parties, get-togethers, meetings, and other events, you will see expensive wines all over the venue. You too can make a killing by selling those expensive wines.