manufacturing

Best small business ideas in India

India and Indians don’t prefer to be identified by the names, caste, religion. They are what their business is because that’s the means to their survival, their reputation and standing in the market and an identification of their name.

India is populated with 58.5 million entrepreneurs. The self-employment in India is recorded at 76.8% as of 2019.

It’s not because of the deployment of the opportunities at the established cooperations but because of the increasing needs of the consumers which has fueled theses entrepreneurs and businessmen to increase the production of the major necessities, essential and demanded goods and keep the money running in the economy with all their needs met.

Consumer satisfaction is surely one objective of these entrepreneurs to the extent their demand makes their business but profitability is the word and the element they are looking for in terms of what keeps them bucks in and flowing.

So, here’s something for you if you are wondering to start small but have plans for not letting that just be it.

These businesses are likely to provide you with the following advantages

Low capital investment
Minimal man power requirements
Low space/area/land requirements
Easily available raw materials
Large target customer base
Easy marketing
Wide scope for expansion
Minimal license requirements
Adequate profit margins

5 profitable small business ideas

Noodle making business:

With the growing increase in ready-to-eat food and take outs which is worth $261million and $0.62 billion respectively. Of which noodles market in India is worth at ₹93.66 billion. Wouldn’t you want to slurp this spicy business ?

Target consumers. : Chinese QSR, Instant noodle market (Maggie, yippee etc) Street food vendors, grocery stores
Investment required: ₹40000-₹150000
Profit margin : 53%
Licenses required:

FSSAI registration
GST registration
Trade license
MSME registration

Organic store:

The increase in westernisation in terms of maintaining a health lifestyle and preferring organic products for dietary purposes , skin benefits, avoiding animal cruelty and toxic substances over the artificially produced and chemically induced products has increased the needs for organic products like organic shampoos, lotions, vegetables, perfumes, incense sticks etc. whose market is worth at $1.70 million.

You can establish an organic store comprising of all of these organic products and also customising the products like shampoos, creams etc according to the needs of the consumers

Target consumer: Restaurants, hotels, cafés, gym goers, millennials
Investment. : ₹50000
Profit margin. : 25-30%
License required:

FSSAI registration
MSME registration
Trade license
Organic food certification by NPOP

Paper bag making business:

The paper bag industry witnessed a sale of 9,00,000 tonnes in 2018 causing this industry to grow at a CAGR of 4% by 2029. The constant need among consumers to ensure environmental stability and trust the brands motivating them to buy their products from, have a similar aim.

This business is as light on operations as the weight of that paper bag is.

Target consumers: Retail outlets, shopping malls, high end companies, Small scale and medium scale shops, grocery stores, supermarkets etc
Investment. : ₹5 lakhs
Profit margin. : ₹70000 per month
License required:

GST registration
NOC by the state board
MSME registration
Trade license

Shoe laces making business:

Yes, you read it right. A fastening/ancillary product like shoe lace also has its own business opportunities. India accounts for 85% of the unorganised footwear industry so to imagine the demand your shoe lace business is likely to get is vast.

Shoe laces of different lengths, materials, colours are required across the nation or even internationally given the labour the cost benefits present in India.

Target consumers : Retail shoe stores, Online shopping websites, shoe companies: Nike, Bata, unorganised Indian shoe sector etc
Investment: ₹25000-₹50000
Profit margin: 30%-40%
Licenses required

MSME registration
GST registration
Trade license

Phone cases business:

About 300 million phones were purchased in India in 2019 and the mobile phone accessory market alone is expected to splurge at $3.54 billion. Although, mobile phones are a trend in itself the phone cases are adding to it through customised phone case, printed, graphically designed, 3D phone cases etc

Target consumers: millennials, teenagers, online shopping platforms etc
Investment: ₹2lakh-₹3lakh
Profit margin: ₹1lakh-₹2 lakh per month
Licenses required

Trade license
GST registration
MSME registration
NOC by the state board

Suggestions

Firstly, all these business opportunities mentioned above require minimal capital investments worth less that ₹6lakhs
Secondly, All these businesses have a wide scope for expansion in terms of offline and online presence
Lastly, the profit margins of these businesses are ample and the possibility of capturing a global demand is also vast