India's robust economic growth and rapid urbanisation have helped create an environment where small investment businesses are able to thrive. In this article, we’ll take a look at some low cost business ideas and try to highlight some of the most profitable businesses you could start or buy in India with low investment.
The most profitable businesses in India with low investment
1.) Cloud Kitchens
Cloud kitchens or virtual kitchens that cater exclusively to delivery and takeout orders are a low-investment business idea for aspiring chefs and culinary entrepreneurs to realise their culinary dreams. The cloud kitchen model has become one of the most popular businesses in India due to its low barrier to entry, the rapid rise in food delivery apps like Swiggy and Zomato, and a convenience-driven customer base.
A modest kitchen, creative branding and social media skills, and a passion for cooking, and there's your recipe for a successful low-cost business idea. Another significant advantage of a cloud kitchen is the flexibility to experiment with menus and cuisines based on customer feedback and current trends.
In contrast to the considerable expenses of setting up and designing a restaurant and investing in high-quality industrial kitchen equipment, a cloud kitchen is a perfect business model for new entrepreneurs with limited financial resources to enter the competitive food and beverage business.
Top tip for success: Many cloud kitchens fail due to inconsistent food quality, taste and a lack of hygiene practices. Stay true to your cuisine, and be transparent about the quality of ingredients you use and the overall kitchen hygiene. The most successful cloud kitchen operators post regular live camera feeds from their kitchens to assure customers of sanitation and food quality.
2.) Tiffin Service
The demand for home-cooked, nutritious meals has significantly increased in recent years. This trend is particularly notable among working professionals, students, individuals living away from their families, and seniors living alone.
Starting a tiffin service is a perfect side business idea for those who enjoy cooking and want to provide delicious homemade meals to busy professionals and students. You can start a tiffin service catering to up to 15 people per day with an investment of Rs. 10,000, and you can scale up later as more orders come in.
You will need to tie up with a delivery partner or use delivery platforms like Dunzo. If your customers are in your local area, you can initially manage the deliveries yourself to cut delivery costs.
A cloud kitchen and a tiffin service can operate from a home kitchen, but they function differently. A cloud kitchen is essentially a restaurant that offers an à la carte menu, allowing customers to choose individual dishes. In contrast, a tiffin service delivers home-style meals based on a fixed monthly menu, with payments made through a subscription or a per-tiffin basis.
Top tip for success: Keep your menu interesting and offer variety so customers do not get bored with the taste - a common complaint with monthly tiffin services.
3.) Online Coaching
As the focus on personal and professional development continues to grow, many individuals now recognise the value of working with coaches. Thanks to the internet, coaching has evolved beyond conventional in-person sessions, allowing coaches to connect with clients from any city or country, significantly expanding their influence and reach.
If you possess expertise in a specific field and the ability to guide others towards success, coaching is an excellent online business idea without investment.
Begin by identifying your areas of expertise from your professional background, personal experiences, or both. You need to be qualified to be a fitness or yoga coach, or if your online business involves providing medical advice.
Some ideas for an online coaching business:
- language classes
- fitness coaching
- nutrition
- yoga
- marketing coaching for small businesses
Top tip for success: Identify your niche and ideal client to understand how you can help them, what they need from you, and how to attract new clients.
- Helping new mums lose their pregnancy weight
- Supporting individuals with hypothyroidism to eat better
- Assisting seniors to live more fulfilled lives with yoga
These are all great examples of specific coaching businesses with a clear target audience. You want your target audience to see your services and think, “That’s what I need!”. Have a look at this career counselling franchise for sale on our website.
4.) Handcrafted Products
Consumers today are searching for unique products that reflect their tastes and convey a sense of personal identity. Additionally, society has become more aware of the environmental and social impacts of mass-produced goods.
Products made from organic, sustainable, natural materials such as bamboo, organic cotton, reclaimed wood, recycled metals, and natural dyes are gaining significant popularity, as are products that represent the cultural heritage and ethnic diversity of India.
If you are artistic, starting a handmade products store can be the best business idea in India. You can source affordable raw materials or upcycle items and launch your handmade products business with minimal investment.
Pottery items, customisable jute bags, scented candles, fashion accessories, soaps, handmade cards, and artisanal sauces are some excellent low-cost business ideas to get your creative juices flowing.
Top tip for success: Products that cater to modern consumer preferences while maintaining traditional and cultural elements have a competitive edge. Create a 'story behind the craft' and utilise social media, influencers, and online advertising to reach and engage with a broader audience.
5.) Print on Demand
Print-on-demand (POD) is an attractive side business idea and an excellent way to enter the ecommerce world and earn money online without significant investment. This model is particularly advantageous as it eliminates the overhead costs of storing and managing physical inventory.
With POD, when a customer places an order, the entire process—from printing to packaging to shipping—is handled by a third-party service provider. Entrepreneurs can focus on marketing and designing unique products without worrying about the logistics of order fulfilment.
The types of products available through print-on-demand are diverse and creative, including custom-designed t-shirts that cater to niche markets, personalised mugs perfect for gifting, stylish caps that showcase unique artwork, eye-catching posters that can brighten up a room, and elegant journals for those who love to write or sketch.
This flexibility allows sellers to tap into various trends and customer preferences, making it a dynamic business model.
Top tip for success: Always request samples. The most effective way to ensure your products meet your expectations is to experience them as a customer yourself. Order samples through your online store to evaluate the complete shopping experience, from browsing to delivery.
6.) Preschools and Daycare
The early childhood education sector in India is experiencing rapid growth. With an increase in women's employment rates and a rising number of nuclear families, preschools and daycare facilities are mushrooming in every nook and corner of India.
Starting a preschool can be a rewarding endeavour, both personally and professionally. It offers a chance to make a meaningful impact in early childhood education while managing a thriving business.
If you're interested in education and enjoy working with children but do not want to start a preschool from scratch, have a look at this preschool franchise on our website.
Top tip for success: Create a safe, stimulating, and nurturing environment for children. Implement a developmentally appropriate curriculum and foster strong relationships with parents. Invest in professional development for your staff. Emphasise play-based learning activities that are fun and engaging, and promote learning through exploration and discovery.
Launch your small investment business today!
With a rapidly growing economy, rising urbanisation, and tech-driven transformation, the Indian market is brimming with potential for low-investment businesses, making it an ideal environment for aspiring entrepreneurs. All you need is some gumption and creativity to start your entrepreneurial journey.
FAQs
Which business is most profitable in India?
Retail shops are a highly profitable business in India. There is always a demand for groceries, clothing, and electronics.
What business is in high demand in India?
Currently, Zudio franchises are very high in demand in India. This article will help you discover everything about starting a Zudio franchise in India.
How do I start a business with Rs. 50,000?
With Rs. 50,000, you can start a variety of small businesses in India, including online coaching, food stalls, tiffin delivery, soap making or even a YouTube channel.
Which business is most profitable in India with low investment?
In India, profitable businesses with low investment include website design, content writing, online coaching and opening a cloud kitchen.
Is dropshipping profitable in India?
Yes, dropshipping is a profitable, low-cost business idea in India, offering a low-risk entry into ecommerce. However, the success of your business will depend on the right product, reliable suppliers and effective marketing strategies.
