Starting a Small Business in Iowa

Welcome to the Small Business Startup Iowa Franchise Directory! Here, you’ll find everything you need to begin your journey to business ownership in The Hawkeye State. If you’re considering starting a small business in Iowa, read on for an overview of the state economy. Afterward, explore business opportunities and franchises for sale with our Iowa Franchise Search Tool.

Iowa Industry Trends

If an industry is performing well, business opportunities within it are often worth exploring. Begin your market research with this list of the Iowa economy’s most significant industries in 2022. Afterward, take your research one step further by investigating niche markets and B2B opportunities within one of these top revenue-generating industries.

1. Life Insurance & Annuities (Revenue: $49.0 billion)
2. Corn, Wheat & Soybean Wholesaling (Revenue: $28.2 billion)
3. Meat, Beef & Poultry Processing (Revenue: $20.7 billion)
4. Property, Casualty & Direct Insurance (Revenue: $14.9 billion)
5. Gas Stations with Convenience Stores (Revenue: $14.4 billion)
6. Hospitals (Revenue: $13.8 billion)
7. Commercial Banking (Revenue: $12.7 billion)
8. New Car Dealers (Revenue: $11.9 billion)
9. Margarine & Cooking Oil Processing (Revenue: $11.7 billion)
10. Farm Supplies Wholesaling (Revenue: $9.9 billion)

Iowa Sector Statistics

When starting a small business in Iowa, gross domestic product (GDP) is another tool entrepreneurs can use to make investment decisions. Generally, a steadily rising GDP means that people are spending more money and creating more jobs.

The three sectors contributing most to Iowa’s GDP in 2022 were Manufacturing; Finance & Insurance; and Real Estate and Rental and Leasing. Combined, these three sectors represented 43.9% of the state’s GDP. In 2022, the sectors that contributed most to Iowa’s GDP included:

1. Manufacturing (Value: $31.8 billion* | Annual growth: 2.4%)
2. Finance & Insurance (Value: $26.9 billion* | Annual growth: 5.8%)
3. Real Estate, Rentals & Leasing (Value: $16.3 billion* | Annual growth: -0.0%)
4. Agriculture, Forestry, Fishing & Hunting (Value: $13.0 billion* | Annual growth: -33.8%)
5. Healthcare & Social Assistance (Value: $11.3 billion* | Annual growth: 0.7%)
6. Wholesale Trade (Value: $10.1 billion* | Annual growth: -0.0%)
7. Retail Trade (Value: $9.2 billion* | Annual growth: -1.0%)
8. Professional, Scientific & Technical Services (Value: $6.6 billion* | Annual growth: 3.2%)
9. Construction (Value: $6.0 billion* | Annual growth: -1.8%)
10. Information (Value: $5.4 billion* | Annual growth: 2.0%)
11. Transportation & Warehousing (Value: $5.0 billion* | Annual growth: -0.5%)
12. Administration, Business Support & Waste Management Services (Value: $4.0 billion* | Annual growth: 6.6%)
13. Management of Companies & Enterprises (Value: $3.7 billion* | Annual growth: 11.6%)
14. Accommodation & Food Services (Value: $3.3 billion* | Annual growth: 2.6%)
15. Other Services (except Public Administration) (Value: $2.9 billion* | Annual growth: -2.5%)

*Approximately

Iowa Population Statistics

A growing population often means greater demand and a steady flow of new customers. If you are undecided about the location of your new business, start by investigating population statistics. Afterward, take your research a step further by exploring population demographics. Doing so lets you decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Iowa included:

1. Polk (Population: 502,800 | Annual growth rate*: 0.9%)
2. Linn (Population: 229,900 | Annual growth rate*: 0.4%)
3. Scott (Population: 173,400 | Annual growth rate*: N/A)
4. Johnson (Population: 156,600 | Annual growth rate*:0.9%)
5. Black Hawk (Population: 129,900 | Annual growth rate*: -0.3%)
6. Dallas (Population: 104,000 | Annual growth rate*: 3.6%)
7. Woodbury (Population: 103,500 | Annual growth rate*: 0.2%)
8. Story (Population: 99,300 | Annual growth rate*: 0.5%)
9. Dubuque (Population: 98,000 | Annual growth rate*: 0.2%)
10. Pottawattamie (Population: 93,200 | Annual growth rate*: -0.1%)
11. Warren (Population: 53,700 | Annual growth rate*: 1.3%)
12. Clinton (Population: 46,100 | Annual growth rate*: -0.3%)
13. Muscatine (Population: 42,100 | Annual growth rate*: -0.4%)
14. Cerro Gordo (Population: 41,500 | Annual growth rate*: -0.7%)
15. Marshall (Population: 39,200 | Annual growth rate*: -0.3%)

*From 2017 to 2022.

Iowa Business Opportunities

We hope this snapshot of the Iowa economy helps as you investigate business opportunities in The Hawkeye State! Starting a small business in Iowa is an exciting journey, and we know you’re probably eager to get started. But remember, take your time to explore all your options. While you’ll always have the “opportunity” to start your own business, sometimes, it makes more sense to invest in an opportunity that already exists. These are called “Franchise Opportunities,” and they offer several benefits, including the recognition of a well-established brand and a proven track record of success.

To learn more, start by exploring franchise opportunities in Iowa below!