Top 10 Best Business Ideas Under 20 Lakhs In India

Are you looking to kickstart your entrepreneurial journey with a medium-level investment? Running a profitable business in this ever-growing market trend is quite challenging. Both hard work and skill are important for the success of your business. Make sure you choose the right business venture that meets current demands.  If you’re running out of ideas on profitable business ideas under 20 lakhs you are at the right place. Here are some reliable business ideas carefully curated by the Top 10s Only Team. 

Check Out Competitive Business Ideas In India

You may find it overwhelming to start a new business or to figure out the type of business.  A clear business plan is crucial when starting a business with sufficient funds. Choose a business idea that differentiates you from competitors so you thrive in the market. Dive into some pioneering business ideas under 20 lakhs to help you launch your business journey.  

1. Pet Grooming Business 

Do you know pet grooming service is one of the high-growth industries?  Every pet deserves special attention and care. Pet owners wish to provide the best care for their pets. However, pet owners hardly find time to groom or even bathe their pets regularly. So they rely on professional pet grooming businesses. This increases the demand for professional pet grooming services. So if you love animals, a pet grooming business is a great startup idea. A proper set-up at home with the right equipment for pet grooming is sufficient to kick-start a pet grooming business. So if you’re looking for a lucrative business idea under 20 lakh, start a pet grooming service for better returns.  

Equipment Required

You must own the following equipment to run a full-fledge pet grooming business

  • Washing equipment
  • Cleaning products
  • Kennels
  • Dog dryers
  • Shampoo and Conditioners
  • Dog 
  • Slickker brushes
  • Ear cleaner
  • Plastic aprons
  • Deshedding tool
  • Nail clippers
  • Bath station
  • Big Tubs
  • Pet-friendly disinfectant

Capital Allocations-Fixed and Recurring

A carefully planned pet grooming professional service may entail an initial investment of around 15-20 lakhs. You may need a minimum of Rs.1 lakh for monthly running costs including rent, electricity, grooming supplies, groomer salary, etc. 

Registrations and Licenses Required

Register with the Animal Welfare Board of India when you start a pet grooming business. You may also need a license from the local government to run your pet grooming business. 

Business Location Consideration

It is a good idea to start with pet grooming services in areas with more number of pets. You can establish your grooming service near veterinary clinics or pet stores. Look for locations close to pet walking trails and places with a lot of foot traffic. 

2. Ice Cream Manufacturing Business 

Ice cream is an all-time favourite of people of all ages. The ice cream industry has witnessed steady growth in recent years as dining out with friends and family has become a trend. The consumption of ice cream will increase for sure in the future. So, if you’re looking for a small-scale business idea with moderate investment, ice cream manufacturing is a better choice for businesses under a 10 lakh investment. 

Equipment Required

  • Pasteurizer Tank
  • Cold Room
  • Agitation Tank
  • Homogenizer
  • Continuous freezer
  • Milk
  • Ice cream flavours

Capital Allocations

For a medium-scale ice manufacturing factory you must come up with an initial investment of about 5 to 10 lakhs. You may need to spend most of your investment on machinery and marketing. The other costs include rent, electricity, labourers, transport etc. 

Registrations and Licenses Required

You must possess the FSSAI license to run an ice cream manufacturing business. 

Business Location Consideration

You must set up your ice cream manufacturing factory close to the market where you sell your products. 

Manpower

You will need skilled workers experienced in ice cream making to run a successful ice cream manufacturing company. 

Target Customers

Identifying your target customer can help you earn good profit in setting up an ice-manufacturing factory. Local ice cream parlours, supermarkets, dairy stores, supermarkets and malls are the notable target customers of this business. 

3. Jewellery Making Business

Are you looking for a low-budget business idea? Jewellery making is a profitable business idea for businesses under 1 lakh. If you’re skilled in hand-made jewellery, this business venture will be a great start in your entrepreneurship journey. There is a rising demand for jewellery made of other metals as the gold prices are high. You can make a lot of sales with a handmade jewellery-making business with minimal money. 

Equipment Required

  • Jewellery making kit 
  • Flat Nose Pliers
  • Nylon Tipped Pilers
  • Wire cutters

Capital Allocation

Jewellery-making requires less investment as you can easily set up the business at home. The running cost for this business is much less when you have your own space. An initial investment of 1 lakh is sufficient to start this business. 

Registrations and Licenses Required

You need a license to run this business. To export your jewellery products, you must apply for an importer-exporter code. 

Manpower

This business demands less manpower when you operate the business on your own. You may need one or two people to help you with handmade jewellery making. 

Target Customers

Reaching out to potential customers is key to success in jewellery-making business. People of all ages love to wear fashion jewellery. So students, women, working professionals, and homemakers are the most sought customers of the handmade jewellery business. 

4. Candle Making Business

If you’re a new entrepreneur candle making business is a descent business idea. There is a steady demand for candles throughout the year. Today candles are used as home decor and for fragrance and beauty. Scented candles are in demand as it is a fantastic gifting option.  So there is a good profit margin in the candle-making business. This is definitely a reliable business idea under 10 lakh investment. 

Equipment Required

  • Candle mold
  • Wick bars
  • Candle sharpeners
  • Wax
  • Thermometer
  • Fragrances

Capital Allocations

You can start this business if you can arrange funds of 5-10 lakhs. You must be able to meet the recurring costs say rent, electricity, salary for workers and other expenses. 

Registrations and Licenses Required

You must register your company and also apply for MSME. Obtaining an NOC from the State Pollution Control Board is a must. GST and trade license are other things you must possess to run a candle-making business

Target Customer

Plenty of other businesses make use of candles. Beauty parlous, aromatherapy clinics and decor shops are the notable places where they use or sell candles. 

Manpower

You need at least two skilled workers who can handle the equipment and machinery with ease. 

5. Disposable Paper Plate And Cup Manufacturing

One of the best startup ideas for businesses under 5 lakh. With the ban on disposable plastic products say plastic plates and cups, degradable paper plates and cups are in rising demand. People have started to make use of disposal paper plates as they care for their environment. So if you’re about to start a business with a nominal investment, disposable paper plate and cup manufacturing is a great option. With an investment of around 5 lakhs, you can earn profit from this business. 

Equipment Required

  • Disposable plate-making machine
  • Sitting plates
  • Kraft paper
  • Die cutter
  • Cup forming machine

Capital Allocations

Disposable paper cup and plate manufacturing is a small-scale industry with low investment. You need to invest money in machinery and raw materials. You may also need a rented space, and labourers to run this business. 

Registrations and Licenses Required

As it is a small-scale industry you may need Udayam registration. No objection certificate from the pollution control board is a must. 

Manpower

You must hire two or three skilled labourers who can handle machinery and help in packaging and delivery. 

6. Daycare Centre

With the rise of working women, there is a great demand for daycare centres in India. The nuclear family setup has forced parents to rely on daycare centres. It is completely different from hiring a nanny to take care of kids. Do you know daycare centres are the top profitable performers in the current market? This makes daycare centres a thriving business idea for young entrepreneurs.  You need a license and ample space to run a daycare centre. It is a lucrative business under 20 lakh. 

Equipment Required

You need a safe and well-ventilated space to run a daycare centre. The other essential things to run a daycare centre are

  • Baby furniture
  • Kids toys
  • Blankets
  • Diapers
  • TV
  • Fridge
  • Microwave oven
  • CCTV

Capital Allocations

The investment in setting up a daycare centre depends on the size, locality and type of services you provide. You may need 15-20 lakh for renting a space, buying equipment and salary for staff. 

Registrations and Licenses Required

You need to register with the local authority for running a daycare centre. You also need a safety license from education authorities. 

Manpower

You can save considerable money if you’re certified in childcare. Else you must hire certified childcare professionals to manage the daycare. The number of teachers and helpers you may need depends on the kid’s intake. 

Business Location Consideration

Choose a residential location or a place with a larger number of offices. The place must be calm and safe for kids. Avoid crowded areas. 

7. Home Baker Services 

If you’re passionate towards cooking and love to bake, then go ahead and convert your passion into a business for better returns. This home-based business is the best choice for housewives and college students If you’re into healthy baking, it is an added advantage. There is a rising demand for cakes and other treats as children love to host parties with friends on their birthdays. The good thing is you need not spend much to run this business. 

Equipment Required

  • Oven 
  • Electric mixer
  • Decorating tools
  • Digital food scale
  • Measuring cups
  • Cookie sheet
  • Cake Boxes

Capital Allocations

If you own an oven and basic baking equipment this business demands very little investment. You need to spend for grocery, electricity and delivery charges. A minimal investment of 1-5 lakh is sufficient to start this business. 

Registrations and Licenses Required

FSSAI registration is a must to sell food products from home. 

Manpower

If you take up limited orders you can manage the business all by yourself. You may need staff for packaging and delivery. 

Target Customers

Middle-class families look for home bakers for cakes at parties. Some bakeries also accept to sell homemade cakes. 

8. Beauty Salon 

The beauty industry has witnessed tremendous growth in recent years. The sudden spike working population, awareness of self-care, and urbanisation have led to the demand for beauty salons in India. If you’re a make-up pro then without hesitation start a beauty salon. It is a dynamic business idea with a huge profit margin. The initial investment cost to set up a beauty salon may go up to 20 lakh. 

Equipment Required

  • Salon Furniture
  • Beauty Saloon tools
  • Spa equipments
  • Massager
  • Professional hair tools
  • Hair dryer
  • Facial steamer
  • Hair straightener
  • Premium quality beauty products

Capital Allocations

Based on the services you provide the capital investment may vary. You can invest about 10-20 lakh to run this business. The running cost of a beauty salon accounts for rent, cost of beauty products, and salary for staff. 

Registrations and Licenses Required

  • Business Registration
  • Trade license from local authority
  • NOC from the Chief Fire officer

Business Location Consideration

Choose a location where you can attract potential customers. It is wise to choose a location with fewer beauty salons to avoid competition.

9. Soap Manufacturing 

If you’re looking for a home-based business with less investment, soap manufacturing is the right choice. Today people hunt for organic and homemade products. They love to use soaps which are prepared from natural ingredients and free from chemicals. If you can build trust by selling quality products, soap manufacturing is a flourishing business idea with an investment of under 5 lakhs. 

Equipment Required

  • Soap making supplies
  • Plodder
  • Sap stamping
  • Soap cutter
  • Soap moulds
  • Scale
  • Measuring spoons
  • Immersion blender

Capital Allocations

The major part of your investment accounts for the purchase of soap-making machinery. The capital cost is reduced If you have extra space in your home. If you’re ready to invest 2 to 5 lakh in a business, think of setting up a soap manufacturing unit. 

Registrations and Licenses Required

  • Manufacturing License
  • Trade License
  • License under the Drug and Cosmetics Act

Manpower

You will need  5 to 6 workers to handle the soap-making machinery, sales and delivery. 

10. Printing Business Or Xerox Or DTP Centre 

The printing industry will never lose its importance. So if you’re looking for a profitable business idea, you can set up a printing centre providing printing, photocopying and other related services. This is a thriving business in areas with more schools, colleges and offices. With an initial investment of about 5 lakh, establish a printing business for better returns. 

Equipment Required

  • Printer
  • Photocopy machine
  • Lamination machine
  • Computer
  • Spiral binding machine
  • Wi-Fi

Capital Allocations

   An investment of about 5 lakh is a must to kick-start with Printing and Xerox business. Photocopies, printers, and computers are the major things you must purchase to run this business. 

Registrations and Licenses Required

  • Trade Registration
  • GST Registration

Manpower

A medium-sized xerox shop may require 2 to 3 people. If it is a small shop you can manage it all by yourself. 

Business Location Consideration

The location where you set up a printing business is important to earn a good profit. Check if the locality you choose has many educational institutes and offices. 

Establishing a business from scratch requires a considerable investment and a clear business idea. Hope you have gained insights into the popular business ideas with investments under 20 lakh. 

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