A prominent question to ponder on when you decide to be an entrepreneur is – what business to build? Following which, you need to ask what kind of investment it would need? If you have a great idea but lack access to funds, there are low cost business ideas that you can adopt.
In order to build a profitable business in India with low investment, you need to have the right idea. This article discusses some of the business ideas with low cost investment.
12 unique business ideas with low-cost investment
Before discussing some of the business ideas, it is recommended to get your business registered and reap the benefits of MSME Udyam certificate. This will help you get additional benefits, subsidies, and loan options, to help you accelerate growth for your business.
1. Social media marketing services:
Although many small businesses acknowledge the importance of presence on the social media platforms, they do not understand how to go about it. You can cater to these businesses by helping them with social media posts, connecting with their audience more effectively, engaging audience on these platforms, etc. It is a low investment high profit business idea because it does not need huge infrastructure. You can work from home too. All you need is subscription to a few basic digital tools such as Canva (for designing) and Hootsuite (for scheduling and analytics) to serve your clients better. As your business grows, you can also venture into other digital marketing services such as blogging, web designing, SEO & SEM, vlogging, etc.
2. Tours and travelling:
Post pandemic, people have shown inclination towards staycation wherein they can combine work and vacation.
Moreover, increasing awareness towards health and self-care is resulting into increase in wellness travel. According to a report, theme holidays such as heritage travel, pilgrimage trips, wildlife sanctuary trips, adventure, star gazing, etc. have gained popularity. Taking advantage of consumers’ preferences, you can begin your tours and travels business with minimal investment. Your initial investment may include marketing cost, hiring 1-2 resources and a small office space for client meetings.
3. Be a trader of healthy food items:
A report suggests that since the pandemic, consumers have become more conscious about food choices. Food grains such as millets, bajara (pearl millets), jowar (sorghum), ragi (finger millet), etc. are some of the popular grains adopted by health-conscious consumers.
Similarly, healthier oils like olive oil, cold pressed oil, etc. are preferred. As a result, it makes an attractive MSME business idea. As a trader/distributor, you can also explore options like vegan food, plant-based food, etc.
Consumers’ preference towards buying from online platforms is increasing. Hence, having an online store can be a profitable idea. For this, you need to choose a right platform. Marketplace platforms such as Amazon not only help you in connecting with potential customers but also provide software and logistics support.
If you already have a business, eCommerce can be an ideal way of expansion and increasing your digital footprint. Alternatively, you can also begin an online store and partner with third-party logistics companies for affordable delivery services.
5. Homemade food:
Home cooked food is a go-to option for office goers and students staying away from their homes. Although this is not a new business idea, depending on the location and demography, it can turn out to be a profitable venture. Also, the investment required is minimal. You can hire a couple of cooks, cooking utensils and equipment, rent a place where you can cook and serve. Also, consider cost of raw materials that you will have to incur on a daily basis.
A mess or tiffin service can further be expanded to other homemade food items such as mukhwas, pickles, papad, chutney, sauces/pastes, etc.
6. Interior designing:
Increasing urbanisation, population expansion and availability of disposable income is contributing to higher demand for interior designing services.
This can turn out to be a successful small scale business idea. For this, you need to identify your target audience correctly and understand what exactly your customers want. It is one of the low investment business ideas in India and all you need is a laptop, suitable software solutions, and a small office.
Note: Since interior designing requires specific skills and certification, you will need the required certificates and licences. Alternatively, you can hire trained interior decorators for your business.
There are various successful brands thar are constantly looking for franchisees. You can explore this option too. The investment and other requirements change as per the industry and segment the franchisor is operating into.
However, holding a franchise of a popular restaurant or café chain can be a profitable low investment business idea for you.
8. Fitness Centre:
As consumers are becoming health and wellness conscious, focus on fitness has increased. A business can ride on this trend to reap profits if the right audience is targeted. While returns are high, this idea required basic investments in terms of infrastructure, equipment, fitness coaches and nutritionists, etc.
There are different types of low-rate MSME loans available today that can enable you to access instant funds for setting up your fitness centre.
9. Insurance agency:
Awareness towards having an insurance is increasing. May it be individual’s term insurance, Mediclaim or business insurance, providing customers a support with right insurance policy can be profitable with low investment.
10. Party organiser/event planner:
This is another low cost business idea that can be operated from comfort of home. All you need a laptop and a meeting place. However, you will need to know and manage vendors well.
11. Financial consultancy:
Individuals and businesses need financial planning and investment plans. Awareness of financial planning has increased since the pandemic. If you think you have requisite knowledge for the same, you can begin your business on smaller scale and add new services later.
12. Recruitment agency:
Businesses have various hiring needs. Positions requiring varied skills and proficiencies need to be filled. Hence helping other companies find a right fit for them can turn out to be a profitable business.
Tips to set up a low investment business
- Turn hobby into a business: While exploring business ideas, consider turning your hobby or skills and knowledge into a business. For example, if your hobby is jewellery making, you may consider a business idea in jewellery designing.
- Attend trade-fairs: Before starting a business, attend industry related trade fairs. This will help you to get familarise with the market, industry trends, consumer behaviour, etc. Talking to industry veterans and experts can reveal challenges and solutions too.
- Register your business: Whichever business idea you choose, always register your business. It helps you to be identified as an authentic and legal entity. Additionally, MSME registration can help you avail various schemes and subsidies that the government launches for small businesses. You will require some basic documents for online MSME registration and can complete the process in a few minutes.
- Obtain all licenses: Acquiring all licenses is essential. Check the list of licenses you require for your business. For example, a food business will need to obtain Shop Act (Gumasta) license, FSSAI license, Health Safety license, etc. Obtaining all required licenses will ensure smooth functioning of your business.
- Get GST number: It is mandatory to have GST registration if your business’ annual turnover is over ₹20 lakh. However, it is better to get the registration done to avoid future hassles.
- Consider all expenses: Make a consideration of all expenses while making a business investment plan. Apart from rent, raw material, software, you will also have expenses such as marketing, website development, licensing fees, etc.
To sum up, make a robust business plan, analyse risks, compare with competitors before investing.