If your goal is to become an entrepreneur, it’s important to understand that simply having unique ideas isn’t enough. You must also implement them in ways that differentiate you from others. With the internet now accessible to even the smallest villages in India, there is a growing demand for various services, making it an opportune time to start a business. Additionally, unlike in the past, there is no longer a requirement for substantial capital to establish a business, further adding to this trend of entrepreneurship.
If you look around, you will notice that many people have become entrepreneurs by investing a small amount of money. While there are a few that may not have clicked, there are many that have become successes. You too can create a success story by following the right approach. The first of which is to decide what business you want to start. To help you with that, we have put forth a list of the Top 10 Best Business Ideas With Investment From 10 Lakhs To 20 Lakhs. If you have less than 10 Lakh investment on hand at present, we suggest you take a look at another related article that lists the Top 10 Business Ideas From 5 Lakhs To 10 Lakhs. You can be sure to find a more suitable business idea there!
List Of The Top 10 Best Business Ideas With 10 To 20 Lakhs Capital Investment
Looking to venture into the world of entrepreneurship without breaking the bank? We’ve got you covered! In this comprehensive list, we present a compilation of innovative business ideas with low investment, tailored specifically for aspiring Indian entrepreneurs. Whether you’re a budding entrepreneur or a seasoned professional seeking to explore new opportunities, these carefully curated Business Ideas under 20 Lakhs in India offer the potential for success and growth in diverse industries. So, let’s dive in and discover the perfect venture that suits your budget and aspirations.
1. Food Truck Business
Though the Indian food industry is evergreen, it has seen some changes over the past few years. Among the many changes, one of the most important is the food trucks. While food trucks have been around for more than a decade, the business has really picked up only recently. You can find a variety of cuisines, ranging from famous Chinese cuisine to burgers, South Indian idlis, and dosas. There are many reasons why the food truck business is booming. If you too want to jump on the bandwagon, it is one of the best Indian small business ideas with moderate capital of 20 lakhs or less.
Equipment And Raw Materials Required
Depending on the type of cuisine you plan to cater, the raw materials required vary, and so do the costs. Some of the common equipment needed will be a
- Gas stove
- cooking oven
- Refrigerator
- Truck
- Serving equipment
- Garbage bins
- Cutlery, containers (disposable and reusable)
The manpower needed for this business idea includes chefs, busboys, cleaners, and coordinators.
Capital Allocations – Fixed And Recurring
Most business ideas need capital, and for a standard food truck, the total cost could go up to Rs 10 lakhs for a basic setup. If you want your food truck to be fully equipped with the latest equipment, then the investment can go up to Rs 15 to 20 lakhs. Apart from the fixed investment for cooking stations, furniture, ovens, food trucks, etc., you will have a recurring cost of about Rs 15 to 25,000 per month for raw material inventory. If you hire staff, then the salary is about Rs 15 to 20,000.
Registrations And Licenses Required
A government-issued licence is needed to register your business. Some of the legal documents needed to obtain the licence and registration are:
- FSSAI license
- NOC from Chief Fire Officer since a food truck is deemed a fire hazard
- Area municipality allowance letter to set up the business.
- Vehicle license
Business Location Considerations
The area you choose to run your food truck business can make or break it. Look for a suitable location where there is ample parking space not only for the truck but also for your customers. Look for a spot that people visit regularly so that you can earn more revenue. Since this is a grab-and-go choice, you have to choose a place where your truck is visible. To build a loyal customer base, look at unique methods of marketing and customer service.
The profit margin and turnover from the food truck business are huge, as Indians love their food and won’t miss a chance to eat out. Also, the scope for business expansion is huge as the target customer base is immense in India.
2. Pet Grooming Business
People love their pets. They are willing to spend for the well-being and upkeep of their beloved pet animals. There has been a huge increase in the number of pet parents in India in recent years, and it has become more of a hobby and a style statement. Showcasing a well-groomed pet is a trend these days, and with that, there is a rise in pet grooming services across India. Professional groomers are more preferred as its tough giving pets a bath at home. It is also because pet parents believe that a trained professional can keep an eye out for any health issues that go unnoticed. So if you too love pets and want to start a venture, then it is one of the most profitable business ideas in 20 lakhs.
Equipment Required
Below are some of the items of equipment required for starting a pet grooming service. It includes
- Kennels
- grooming tables
- Clippers
- Nail cutters
- grooming hose
- cleaning products
- Safety Supplies
- Conditioners
- Mattes
- blades
- Hydraulic dryers
Apart from these, furniture like sofas, chairs, etc. for the caretakers is needed.
Capital Allocations – Fixed And Recurring
The fixed capital allocation for this business includes a one-time investment for equipment as well as the monthly maintenance of staff salaries, rent, electricity bills, pet supplies, and more. The one-time investment can entail a capital of Rs 15–20 lakhs. The running costs for the monthly maintenance can be around Rs 1 lakh. However, despite the high monthly maintenance, it is still one of the top 10 lucrative small business ideas for 10–20 lakhs in investment.
Registrations and Licenses Required
Like all other businesses, this too needs a licence and a GST number. Get the needed licences and permits for your establishments from the local municipality. Once you get the permit, ensure that you display the certificate on your premises.
Business Location Considerations
Your pet grooming business should be in a location where there is a high population of pets. The business should be located in a place where there is ample parking space and that is also easily reachable on foot. It is preferred to start your business in a place where there are no other pet salons.
The revenue generated from the pet grooming business is dependent on the kind of services you offer and the quality of those services.
If you are a pet owner, check out these top 10 pet clinics located in prominent cities all over India.
3. Mobile Shop
Mobile phones have become an extension of a person and an important part of life. These gadgets are not only a way to communicate with others but also a source of information. Every Indian household has a phone, and there is a great reliance on it. When a mobile phone is damaged, many people prefer to get it repaired rather than buy a new one. Mobile shops have huge business potential because people are accustomed to using them and find them an indispensable part of their lives. Looking at the size of the market and the number of people who own mobiles and want to buy them, it is certainly one of the best small business ideas with potential for growth in India, needing a capital of at least 10 lakhs and above but under 20 lakhs.
Equipment Required
A mobile shop is not limited to selling a brand new model of phone but also repairing and servicing old ones. Some mobile shops also refurbish and sell them. So the major equipment needed is to stock different kinds of phones and accessories. It includes:
- Designer covers
- Phone cases
- Earphones
- Tempered glass
- Speakers
Then there is a need for service and repair-related equipment.
Capital Allocations – Fixed And Recurring
To start a mobile-shop business in India, you can start with a small investment of Rs 10 lakhs and then upgrade it as and when you make profits. Then there is the recurring cost of rent, electricity bills, employee salaries, and monthly maintenance.
Registrations And Licenses Required
To start any business, small or large, in India, one must first register the company and get a GST. Apart from that, you need:
- Business Name Registration DBA certificate
- Federal Tax ID,
- Indian business licence,
- Certificate of occupancy to open the shop.
Complete all the paperwork and keep it handy before starting a mobile shop.
Business Location Considerations
The ideal location for the mobile shop is where there is a high footfall of people. As a result, small complexes, shopping malls, or business centres are ideal places for mobile shops. Since most of the phones are also sold online, ensure that the shop is strategically located to compete with them.
The mobile phone industry is lucrative, and the retail giants catch small business dealers off guard sometimes. So it is important to have good retention plans and use every bit of information available to your advantage.
4. Juice Bar
Indians are becoming increasingly health-conscious, making it a prime opportunity for businesses to capitalise on this sentiment by offering health-related products and services. With everyone wanting to include natural foods into their diet, the fresh juice business has seen an upturn of late. The change in lifestyle and the need for a healthy and clean drink has made starting a juice bar one of the top 10 affordable business ideas in India, with investments of less than 20 lakh rupees.
Equipment And Manpower Required
While a nice juicer is one of the prerequisites for starting a juice bar, there are many other top-quality equipments needed to start this business. So apart from a juicer which can be a juicer-mixer grinder, cold press or a masticating machine, the other things needed are the
- Refrigerator
- ice machine
- Blender
- fruit peeling machine
- Knives
- cutting boards
- Table
- chair.
Capital Allocations – Fixed vs. Recurring
Starting a juice business does not need heavy investment. There is a fixed capital allocation for an initial investment of various equipment. Then you may have to spend money on the design of the juice bar and printing and preparing menus. The recurring costs include rent, electricity and water bills, maintenance of the equipment, and monthly staff salaries.
Registrations And Licenses Required
Various registration and licences are needed from the appropriate authority to start and operate a juice bar. Some of the mandatory registrations required are
- Business registration
- GST registration
- Registration under the Shop and Establishment Act
- FSSAI licence or the licence from the Food Safety and Standards Authority of India, FSSAI department.
- Business licence
- Trademark and MSME Registration
Business Location Considerations
The juice bar location depends on whether you plan to run a permanent or a mobile business. You should look for a place where there is a crowd or are hotspots. Start a juice bar close to schools, colleges, shopping malls, business centres or bus stations. Also, ensure that there is enough parking space as customers do not like to go to places where there is no space for their vehicles.
Many people are under the belief that a juice bar is not a profitable business, but this is just a notion. This is one of the good revenue generator ideas, provided you have an effective business strategy and plan.
5. Footwear Manufacturing Business
Footwear, or shoes, are an indispensable part of daily life. Footwear is needed for various purposes ranging from going to the office to attending a party or any other festive occasion. These are needed by all age groups, and that is one of the reasons it has great scope as the best profitable manufacturing business idea with a moderate investment of under 20 lakhs. Shoes are a product where the consumer has more than. You can choose to have a niche product or invest in a wide range of footwear which includes office shoes, fancy shoes, sports shoes, sneakers and more and make it a profitable business.
Raw Materials And Equipment Needed
The raw materials are the main products that dictate the quality. It is essential that you choose the best type and quality of material as it gives the right end results. The raw materials needed for shoemaking are:
- Plastic
- Leather
- Cloth
- Decorative threads
- Shoelaces and polish
- Latex
- Thermoplastic Rubber
- Rubber fall
- Polyvinyl Chloride
The equipment needed for the shoe manufacturing business
- Cutting board
- Sole attaching press
- Packaging materials
- Sole activator
- Scissors
- Zigzag machine
- Finishing machine
Capital Allocations – Fixed vs. Recurring
One of the important factors to consider before starting a business is capital allocation. You can start a small-scale shoe-making business with an investment of 5 to 10 lakhs. But if you want to test the waters in multiple types of shoes, then you will need startup money of about 15 to 20 lakhs. Plus, there will be recurring costs of purchase of raw materials, rent, electricity bills, staff salary and other maintenance-related expenses.
Manpower For Shoe-Making Business
The number of staff that you will need will depend on whether you plan to have multiple designs. If it is a small-scale business, you need at least 2 skilled, 1 unskilled worker and a manager to oversee production. For a medium-scale business, more than 3 skilled workers and a manager are needed. If you have plans for multiple designs, then the staff needed will increase.
Registrations And Licenses Required
- Business or company registration
- GST registration
- Trade License
- ISO 9001 certification
- Trademark registration
- MSME registration
Business Location Considerations
The location of your business depends on whether you plan to sell it online or in stores. If you are selling in stores, then look for a place with good access. Choose a market area, shopping mall, or business centre as the location for your business.
Before you establish your shoe-making business, ensure you do proper research on the target demographics. Every customer has a different set of expectations in terms of style, pricing and comfort. So you should figure out which category of clients to aim for and then develop a plan.
6. Bakery
Bakeries have been around for several years, but the recognition it is receiving has changed over the years as there is a revival of the art of baking. There has been a lot of demand for home-baked goods, a business that can be set up quite easily with an investment of 5 lakhs or less. However, if one has even more capital in hand, then the best business idea would be to start a small bakery. Many hypermarkets and grocery stores sell pre-sliced pastries, cakes, bread and more, but there is a desire for people to have freshly baked products from an artisan bakery. If you have a passion for baking, then people are looking for quality baked products for every occasion and even as a snack. As there are many items that can be made in a bakery, the market potential is huge and is one of the best low investment high-profit business ideas under 20 lakhs.
Raw materials And Equipment Required
The following are the raw materials needed for a bakery business.
- All-purpose flour
- Baking powder and soda
- Sugar
- Salt
- Milk
- Butter
- Eggs
- Jam
- Cheese
- Colours
- Assorted fruits
- Yeast
Apart from having high-quality raw materials, it is essential to invest in good-quality equipment as that eases the process of baking. Some of the equipment needed is
- Deep freeze refrigerator
- Traditional oven
- Microwave
- Pots and pans
- Weighing scale
- Working table
- Cooking stove
- Baking trays
- Planetary mixers
- Gas cylinders
Manpower Needed
You can run the show alone and be the main chef, but yet there is a need for about 2 people with a basic level of baking skills. If you plan to start a medium to large-scale bakery business in India, then you need about 6 to 10 workers.
Capital Allocations – Fixed vs. Recurring
An estimate of the initial capital needed for starting a medium-scale bakery business is about 5 to 15 lakhs. This includes the equipment needed, which is part of the fixed cost. When it comes to the recurring costs, include the cost of raw materials, water and electricity bills, rent, and employee salaries.
Registrations And Licenses Required
There are many licenses and registrations needed to run a bakery business. These are
- FSSAI license
- Bakery permit
- Business registration
- Trademark registration
- GST registration
- Trade licence
- Health licence
- Fire licence
Business Location Considerations
A good location is an essential prerequisite for starting a bakery in India. It has to be in a prominent location like well-known marketplaces, shopping malls, business centres, etc., where there is high footfall. It is best to have a bakery on the ground floor which is easily noticeable and accessible so that you can display your items.
When it comes to a bakery business, the profit margins depend on the products sold, the location of the business and the size of the bakery.
7. Tissue Paper Manufacturing Business
The demand for tissue napkins has witnessed a significant rise in India in recent times. You can see that malls, cafes, restaurants, etc., generously use them. It is also a staple as a car accessory. Even common people prefer to use this instead of a cloth napkin as it is easy to dispose of after a single use. A tissue napkin is considered a safer choice compared to handkerchiefs as they are not exposed to bacteria. Additionally, these tissue papers can be recycled, making them a popular choice. If you are an entrepreneur looking for business ideas, tissue paper manufacturing is one of the Top ten best entrepreneurial ideas with a 10-20 lakhs investment.
Raw materials and equipment required
The main raw materials needed for making tissues are
- Core paper
- Paper reels or rolls
- Wrapping paper
- Cellophane
- Water
- Glue
The equipment and machinery needed depend on the business volume. But the main equipment needed is:
- Machine for embossing and printing
- Paper-folding size machine
- Befitting machine
Capital Allocations – Fixed vs. Recurring
The working capital that is needed is based on the scale of the business operation. If you operate from home and have a small scale, then you make need a total of Rs 10 to 12 lakhs fixed investment. Then there will be recurring costs of hiring staff, purchase of raw materials, electricity and water bills, and transportation charges.
Registrations And Licenses Required
The mandatory license and registrations to start the tissue manufacturing business are
- Company or business registration
- GST registration
- NOC from the pollution control board
- Trade license from the local municipal corporation
- Sales tax registration
- Factory license
- ICE Code (Import/Export Code) if you export products
Business Location Considerations
If you are setting up a small-scale operation, then ensure there is enough water connectivity as it is water intensive. If you are building a commercial unit, then choose a location that has accessibility, proper water and electric connectivity and is easy to commute to.
A strong marketing strategy is required for a tissue manufacturing venture. You also need a good distribution network so that the products can be delivered to various parts of your locality. Create a plan to attract customers and boost your business and generate profits.
8. Daycare Centre
A daycare centre is a facility that provides care for children during the day while their parents are at work or otherwise unavailable. These services are provided for a scheduled time and include food and structured activities for kids. While many think that a daycare centre and a babysitter are the same. It is not. Babysitting is the care of a child or children for a few hours, typically in the child’s home, and does not require a license. In contrast to a nanny or babysitter, who can care for a smaller number of children in their own home, daycare centres can accommodate more children and are required to be licensed by the state. It is one of the best investment ideas for small businesses in India for more than 10 lakhs but under 20 lakh rupees as it is a necessity for working parents.
Equipment Required
The main requirement for running a daycare is to have a spacious and airy place for the children to have a safe and fun stay. Some of the assets needed to run a daycare are:
- Furniture like cribs, tables and chairs
- Kids’ toys and puzzles
- TV
- Fridge
- AC
- Microwave oven
- CCTV camera
Capital Allocations – Fixed vs. Recurring
The cost of setting up a daycare centre depends on the size and location of the business venture. The major cost is the space for daycare, followed by the equipment, which can be in the range of 15 to 20 lakhs. Then there are the recurring costs of utility bills, rent, and staff salaries.
Manpower Needed
It is a bonus if you have a certification in childcare. If not, you need to hire professionals who have a degree in this domain. Depending on the number of kids you plan to intake, you would need 2 teachers and 2 or 3 helpers.
Registrations And Licenses Required
Visit your local municipal corporation to register your business. When it comes to licensing, different states have different laws, so approach relevant local bodies to know more.
Business Location Considerations
If you are running a daycare from your home, then it is straightforward. But if not, you should look for a clean and calm place where the kids can have a safe stay. You can choose residential areas or a place where there are many offices as your business location.
9. Laundry Services
Washing clothes is a time-consuming and boring chore, and people try to avoid it as much as possible. Moreover, if not done properly, especially expensive and delicate items may become damaged. Certain garments are best washed by professionals, and that is where laundry services come into the picture. The laundry services of dry cleaning have been around for some time, but only of late due to lack of time and hectic schedules, people are entrusting their clothes with them. It is in great demand in India and is one of the rupees 10 lakhs to 20 lakhs investment business opportunities in India.
Equipment Required
The equipment needed to set up a laundry service in India are:
- Washing machines
- Dryers
- Coin machines
- Steam boilers
- Steamers
- Detergent vending machines
- Ironing machines
- Laundry Carts
- Cleaning chemicals
- Detergents and soaps
- Gloves
Manpower required
Depending on the size of the business, you may need 4 to 5 washers, an accountant and a few delivery people.
Capital Allocations – Fixed vs. Recurring
You can start a laundry services business with a modest investment, and it is one of the best Indian small business ideas with moderate capital of 20 lakhs or less. The recurring costs of running this business include the cost of procuring chemicals, rent, utility bills, and staff salaries.
Registrations And Licenses Required
The licenses needed to run a laundry service are:
- Business registration
- GST registration
- MSME registration
- License from the health department
Business Location Considerations
If you plan to run a small operation, you can do it out of your home. But it is best to choose a commercial space with a specific water line and plumbing. When it comes to choosing a location, students, bachelors and elders form a major client base. So choose a location where there are many apartments or close by to college campuses, dorms and hostels.
Many people are choosing laundry services as their go-to choice for washing and ironing their clothes. If you are planning to start this venture, do thorough research on your customers and their requirements and come up with a plan. The laundry services have great potential, provided you can make the best use of it with your business plan and strategy.
10. Beauty Salon
The past few decades have seen rapid growth in the beauty industry, catering to bother women and men of all age groups. There are various factors that have contributed to the growth of the beauty industry and including urbanisation, rising income, and an increase in the working population. The beauty salon business offers great opportunities and is not affected by the eCommerce trend as it is a localised and personal service. If you too have plans of starting a beauty salon, then don’t hesitate! This is one of the top 10 highly profitable business ideas with low investment in India, with capital less than 20 lakhs.
Equipment Required
Based on the type of service you plan to provide in your parlour, you will have to invest in equipment. When it comes to products like gels or creams, ensure that it is branded and all the equipment is of premium quality so that there are no accidents.
Manpower
This too is based on the type of services on offer. If you plan to set up a small-scale salon with limited services, you can make do by hiring 1 skilled professional along with you as the main salonist. However, if you plan to have a medium-scale salon, then you will need to hire 2 or 3 professionals with niche skills.
Capital Allocations – Fixed vs. Recurring
Depending on the type of services on offer, this is one best business opportunities with 10-20 lakhs capital in India. It includes the cost of rent, equipment, beauty products and staff salaries. Among them, there is a recurring cost incurred for rent, utility bills, and salaries.
Registrations And Licenses Required
To run a salon, you need the following:
- Trade license
- GST registration
- Business registration
- MSME registration
- Fire licence
- NOC from appropriate authorities
Business Location Considerations
Choose your salon location carefully, as it is one of the prime factors for success. Look for an area where there are many potential customers and not many salons, as it increases competition. Also, the investment you have to make depends on the location that you opt for.
Starting a beauty salon is a profitable business and has seen great growth in the market, But there are a few key things like the location, services and pieces and the quality of services that determines the success.
Welcome To Entrepreneurship: Starting A Medium-Sized Business
So the above are the top 10 investment-friendly business ideas for entrepreneurs in India. Once you have picked a business idea from the above, the next step is an analysis of the market. A careful study of the target audience is essential to make a solid business strategy. Post that, the necessary paperwork is essential. For smooth operations, there is a need for a solid administration to be implemented. When starting something new, there is no time like Now. With proper implementation, you may be the next superstar in the business world.
If you are an experienced entrepreneur looking for more innovative business ideas, take a look at our article that lists the Top 10 best business ideas with investment from 20 lakhs To 30 lakhs. If your budget is 20 lakhs, then the business ideas listed in this article might be more suitable.