Top 5 Profitable Halal Business Ideas That You Can Start TODAY

Having a 100% halal income source is something that Muslims care deeply about, that’s why lots of Muslims who aspire to be entrepreneurs end up asking themselves the question “Is this business idea halal?”.

In this article we wanted to make your life easier by sharing 5 halal business ideas that you can start right away. We handpicked these ideas keeping three criteria in mind:

  1. They are 100% halal.
  2. They don’t require lots of capital.
  3. They don’t require lots of technical know-how.

We kept these points in mind because we wanted this article to be beneficial to any Muslim that wants to start their entrepreneurial journey, regardless of their background and their experience.

All of the business ideas that we are about to mention have the potential to generate halal profit and be your sole source of income, so make sure you read through this article, and insha’Allah you will find an idea that fits your skillset!


Idea #1: Coaching

The industry of ‘coaching’ is expected to grow to 1.34 billion dollars by next year. Needless to say, there is an increasing demand for coaching.

What makes this business model even more appealing is its simplicity. Coaching is one of the simplest and most straightforward business models that you can follow. More importantly, it’s a halal business model as you are just providing a service!


If this business model interests you then here are some tips that will help you understand what you need to get started. First, you need to understand WHY people need coaches. The short answer is that people need coaches to help them overcome a problem or help them achieve a certain goal, so think to yourself “What is something that I’m good at that could potentially help people overcome a problem or achieve a goal?”.

Once you answer this question, the next step would be to determine how to turn that into a coaching business. We know that this is easier said than done, that’s why we recommend you watch this 45-minute training where we go in depth on how to start an online coaching business.

Idea #2: Agency

The second business model that we want to share with you is the agency business model, specifically, a marketing or a social media agency.

Agencies are rising in popularity and there is a reason gurus are always promoting this business model, and that’s because it WORKS. Surely it’s more competitive now, however, there is no shortage in demand. The reason the demand is so high is because businesses all over the globe are transitioning to online, so all the businesses that used to advertise in newspapers, on TV or didn’t operate online at all, they’re now forced to transition online because of the pandemic.

It’s a great opportunity for agency owners to position themselves strategically in a way where they can offer services to help these businesses transition online. 

So, depending on what you good at, you can offer:

  • Marketing services 
  • Web Design 
  • Graphic Design
  • Social Media Management services

Once you have determined what you want to offer, you can proceed by improving your skills by getting more information on the topic. You can do that by enrolling in courses, reading, or watching videos about it.

Regardless of how you do it, you need to make sure that you have the information necessary that allows you to provide a high-quality service to your clients.

If this business model interests you then make sure you check the training we mentioned earlier where we discuss this business model, as well as the coaching business model more extensively.

Idea #3: Online courses

Yet another billion industry, the online courses business model is growing rapidly, and this is why you’ve probably seen around you lots of ads for online courses and training.

Online education is growing as more people are adopting it, so instead of going to traditional educational institutions like universities, they’re just going online searching for experts at the topic that they need to learn about and they buy their courses.

This is a great opportunity if you’re experienced with a specific topic even if this experience is related to your career. Your experience could be really valuable for other people in the same field who are getting started as it would help them increase their knowledge, make better decisions, and ultimately become more successful in their positions.

What’s great about this business model is that it doesn’t matter what your career is, because whether you are a lawyer, a dentist, a marketer, or a real-estate agent, your experience is valuable for other people in your field.

This business model is also quite simple to create and costs almost nothing, all you need is a microphone and a computer, and a social media account to advertise your services.

Idea #4: E-commerce

E-commerce is still a lucrative business model, however, e-commerce is one of the most difficult business models to start and grow, because it requires considerable capital to get started.

Here are some things you will need to spend money on:

  • Developing products
  • Shipping 
  • Advertising

These costs can rack up before you start to see some money coming in, so it’s not a business model that I recommend for beginners. However, it’s still one of the most profitable if you know how to make it work.

One thing that can increase your chances of success with e-commerce is having a great product in a specific target market. For example, Sister Khaoula, one of the Muslim entrepreneurs that were featured on our live podcast, founded a company called Dignitii where you can purchase modest sportswear. So she developed a high-quality product that targets women that dress modestly and want to lead an active lifestyle.

The reason this is a great idea is because she found a problem in a specific market, and she developed a product to solve this problem.

So if you’re going to create an online e-commerce store then the best thing to do is really get very specific on what problem you’re going to solve, who is going to be your audience, and create something unique that you can bring to the table.

If you manage to do this, then you would have a competitive advantage and you will be able to sell your products much easier than just trying to start another drop-shipping brand.

Idea #5: Tutoring & Mentoring

Starting a tutoring or mentoring business is a great idea if you have some experience in a certain field, or even if you went to school and you have a certain degree. There are lots of people that value this information and would benefit from having a tutor or a mentor to help them navigate their journey.


The reason this is a very lucrative business model is because all learning has transitioned online because of the pandemic. That’s why the demand for tutors is rapidly increasing.

Most importantly, as all the business models in this list, this one is also a completely halal business model, and it’s a great way to generate income online.

This sums up our list for the top 5 halal & profitable business idea for 2021, most profitable and halal business ideas. Share with me in the comments which idea resonated with you the most.


Written by Abby El-Asmar

Abby is a business & marketing consultant – and the founder of Ummahpreneur. His passion is to nurture a new generation of Muslim entrepreneurs that will impact the world in a positive way while uplifting the Ummah!

June 8, 2021

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