The 6 Best Small Businesses to Start in Texas in 2025

The 6 Best Small Businesses to Start in Texas

Texas is not subtle about business. The state boasts over 3.3 million small businesses, zero income tax, and a government that holds “cutting red tape” events with greater enthusiasm than most people reserve for sports. In 2025, the state’s mix of low regulation, fast-growing metro areas, and industry-specific support makes it one of the more practical places to open a profitable business.

Here, we outline six business types that aren’t based on vibes and wishful thinking. These are backed by numbers, regulatory policy, current demand, and financial data. Each section includes market context, state-specific regulations, startup costs, and actual revenue figures.

1. Food Trucks and Mobile Food Services

Food Trucks and Mobile Food Services

Texas treats food trucks like semi-official representatives of local culture. In cities like Austin, Houston, and San Antonio, food events rely on them as core infrastructure. Festival organizers build vendor lots around them. Commercial real estate developers use them to keep foot traffic near empty lots. And the economics, surprisingly, make sense.

Market Conditions

By the end of 2024, Texas had over 1,400 operational food trucks generating a median of $437,800 per unit annually, according to economic estimates pulled from the Dallas Fed and local permitting offices. That number moves up to nearly $1.8 billion when rolled into larger mobile food sales across event staffing, catering, and festivals. Austin and Houston account for nearly 60% of the state’s food truck revenue.

The average ticket size is $12 to $16. Weekend events drive 60% of weekly revenue. Trucks with themed or hybrid menus, Korean BBQ tacos, Vietnamese-Cajun seafood bowls, etc, reported 2.4x repeat customers compared to generic burger-focused trucks.

Newer operators in suburban areas like Frisco and Katy earn less on weekdays but pull stronger margins due to lower permit costs and storage fees.

Regulations

Texas handles food truck licensing at both the state and city level:

  • State food unit permit: Costs $258 annually. New operators must apply before conducting any business.
  • Local permits: Cities like Houston charge an extra $450/year and inspect prep facilities or commissary kitchens for compliance.
  • Central Prep Facility agreement: Required in over 87% of counties. Passing inspection for CPF often requires industrial sinks, refrigeration logs, and pest control reports.
  • Sales tax permit: Required by the Texas Comptroller. The base tax is 6.25%, though cities tack on more, capping at 8.25% total.

HB 2683, passed in February 2025, now allows statewide vendor permits to override local proximity bans. Previously, some cities banned trucks within 200 feet of restaurants. That protectionist relic is gone unless a city formally opts out.

Startup Costs

Most new food truck businesses in Texas spend between $75,000 and $150,000 to get started. The truck itself, depending on new versus retrofit, ranges from $40,000 to $100,000. Add in commercial insurance ($1,200–$2,400 per year), equipment, and permitting, and your break-even timeline runs 12–18 months.

Trucks that do events can bring in $3,000 to $8,000/weekend. Margins average 10% to 20% net post-COGS, fuel, and food waste.

2. Real Estate Brokerage and Property Management

Real Estate Brokerage and Property Management

Real estate functions in Texas like college football—constant attention, record numbers, and regular scandals involving unlicensed players. For small business owners, though, this sector’s appeal is clear: transaction volume, population growth, and favorable tax conditions.

Demand and Demographics

Texas adds around 1,200 residents each day. Georgetown’s population climbed over 40% since 2020, while Fort Worth hit a 5.9% increase by Q2 2025. With this surge comes demand for both residential buying activity and professional property managers.

Houston logged a 12.52% rise in new employer firms, boosting demand for commercial leasing. Meanwhile, Airbnb occupancy rates in Austin and San Antonio outpaced national averages by 42%, giving short-term rental managers plenty of work.

Licensing and Compliance

Every real estate agent must obtain a license through the Texas Real Estate Commission. Requirements include:

  • 180 classroom hours of coursework
  • FBI background check
  • Passing a state exam (75% pass on the first try, according to 2024 data)
  • Active sponsorship by a licensed broker before transacting with clients

Brokers, who can supervise agents and open their own firms, must accrue at least four years of active experience and pass a tougher exam. Broker fees and overhead are regulated under Texas Occupations Code §1101.002, which governs how agents manage client trust funds and rental security deposits.

Financial Breakdown

Commissions average 2.5% to 3% of total sale price, split between buyer and seller’s agents unless otherwise contracted. A mid-level agent closing one home/month in the $350,000 range earns $89,000–$107,000/year post-commission split.

Brokers managing five to ten agents average between $150,000 and $300,000 annually, depending on market cycles, firm overhead, and leasing commissions. Short-term property managers take 15–25% of rental income and can leverage software platforms to manage 20+ properties with minimal staff.

3. Green Construction and Renovation

Green Construction and Renovation

Construction lives in the fastest-growing zip codes, and Texas now leads the nation in home starts, finishing over 210,000 new housing permits in 2024 alone. What’s different heading into 2025 is the material shift from new builds to green retrofits, solar-ready remodeling, and LEED-compliant commercial renovations.

Sector Data

Roughly 68% of housing activity is now in renovations, not new homes. Cities like Frisco, Leander, and Round Rock are issuing historic levels of building permits, many to fix structural deficiencies or install energy-efficient features.

The Texas construction industry employs over 800,000 workers and saw 14% compound growth in green construction demand between 2022–2024.

New energy codes (2025 IECC standards) require builders in certain jurisdictions to raise insulation levels and install low-flow fixtures. Retrofits and upgrades are often cheaper—average project margins land between 5% and 12%.

Regulatory Red Tape (and How to Avoid It)

While Texas doesn’t license general contractors at the state level, cities interpret that liberty differently.

  • TRCC registration: Costs $625 and is recognized by counties overseeing large-volume residential work.
  • OSHA: Applies to most crews working on public projects. The 10-hour “construction safety certification” course is mandatory for state contract eligibility.
  • Waste disposal: Contractors dumping more than 40 cubic yards of old materials must document proper landfill use or recycling allocations, especially under municipal green programs.

Cost Structure and Revenue

Contractors earn $45,000 to $120,000 per new home build, depending on project size, subcontractor mix, and location. Remodels focused on energy retrofitting report better labor margins, especially when using reclaimed building materials. Some firms sourcing supplies from deconstruction warehouses across Austin and San Antonio reported 18–22% savings on costs.

4. Health and Wellness Microbusinesses

Health and Wellness Microbusinesses

Texas gyms, yoga studios, nutrition bars, and holistic care providers racked up $4.2 billion in wellness industry revenue in 2024. Austin’s health-conscious workforce spends $220/month on average per employee for wellness program incentives. This is scalability with purpose minus regulation overload.

Sector Insights

The highest growth is found in ultralocal studios (e.g., mobile yoga, pay-as-you-go Pilates) and micro wellness centers offering stress management, bodywork, and dietary support.

Meal prep services have monthly recurring revenue averaging around $12,000 in mid-market cities like Plano and Round Rock. Nutrition coaches often double that with packaged consultations.

Regulation and Certification

  • Texas does not license personal trainers, but employers prefer certifications like NASM or ACE.
  • Integrated medicine practitioners (e.g., acupuncturists, naturopaths) must be licensed under the Texas Medical Board if they diagnose or treat health conditions.

In wellness, the lack of licensing for general trainers means fewer overhead issues but opens up competitors who aren’t qualified. Consumers still default to certified providers when spending more than $50/session, according to statewide consumer behavior studies.

Cost vs Revenue

Yoga studios report per-session rates of $80 to $120, filling about 60% capacity across open floors. Insurance, location, and instructor pay can eat into margins unless sessions are pre-paid.

Meal prep vendors charging $9 to $14 per meal, often batch-prepare over 1,500 meals/month for subscribers. If logistics and packaging are streamlined, margin averages hit 40%.

5. Specialty Recycling and Waste Management

Specialty Recycling and Waste Management

Statewide mandates aren’t often good for new businesses. However, Texas’s 2025 update to the Solid Waste Disposal Act now requires cities to divert 50% of municipal garbage from landfills. This opens the market for specialized recycling and collection services, especially in mid-tier cities.

Market Mechanics

In construction-heavy areas, junk hauling and drywall recycling drive business. Landfill tipping costs have risen 12% in the past two years. Municipal recycling depots now pay bounties on contractor delivery—between $120 and $200 per ton for sortable material.

E-waste produces better margins. Electronics recyclers in Texas now make $0.35 to $1.10/pound for dismantled circuit boards, with consumer devices adding extra income from batteries and salvageable components.

Licenses and Fees

  • Recyclers need consistent contracts with TXDOT-approved sorting or disposal facilities.
  • Curbside collectors apply for solid waste transport licenses, often bundled with vehicle compliance forms.
  • Some counties (e.g., Tarrant, Bexar) run local grants for haulers who serve underserved rural routes—municipal payoffs range from $85 to $150/hour.

Capital Needs

Startup costs for a standalone recycling facility run from $150,000 to $400,000 depending on land, building purchase, and baling equipment. Hauling-based models can launch for less ($60,000–$90,000) if using existing trucks and subcontracted sorters.

Small operators often partner with housing developers or school districts to score large-scale pickups during renovation or semester-end move-outs.

6. Drone Services for Infrastructure Inspection

Drone Services for Infrastructure Inspection

Texas is an infrastructure-heavy state. Between energy, agriculture, and construction, there’s demand for aerial imaging and inspection—especially since 2025 FAA relaxations for commercial drone pilots took effect in multiple regions.

Field Applications

  • Energy inspection: Pipelines pay $1,200 to $2,500/day for thermal imaging of welds or leak detection.
  • Real estate: $250 to $500/property for aerial shots of homes listed above $500,000.
  • Agriculture: Ongoing crop monitoring contracts pay $3,000 to $8,000/month per farm.

Austin, Tyler, and Midland now house 100+ drone operators handling monthly contracts with insurers, builders, and farmers.

Regulations and Data Use

  • FAA Part 107 certification is required for all commercial operators. Approval takes four to six weeks to process.
  • Texas Civil Practice Code §129A bars drone use on private property without clear consent. Infractions can result in voided contracts or civil suits.

Operators with FAA waivers for beyond-visual-line-of-sight (BVLOS) flights in 14 Texas counties tripled their available assignment zones by Q1 2025. Those with AI-based report software now produce visual inspection packets in 48 hours rather than two weeks.

Revenue Trends

Full-time operators report $68,000 to $92,000 annually with seasonal peaks. Consulting add-ons (like rooftop heatmaps or volumetric analysis) increase top-line earnings, especially in contracting and large-ag use.

Insurance providers now give premium discounts to engineering and utility firms who hire certified drone operators—further incentivizing contracts through better risk ratings.

Final Notes

Not all businesses are worth starting, especially ones that sound better at brunch than on a spreadsheet. But in Texas, profitable small businesses follow three rules: serve real demand, meet basic compliance, and move faster than regulators expect. If you’re opening a service with a strange charm—like mushroom farming or waste hauling—find the cities offering program support and build there.

Check state codes. Learn local permit rules. And if you sell tacos on wheels, do not park next to the Mayor’s cousin’s diner. That’s the kind of legal drama no small business needs.

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