Top 10 Best Small Business Ideas With Investment Under 5 Lakhs

Starting a business can be a daunting task, especially when you have limited resources. However, with the right mindset, determination, and a solid plan, you can turn your dreams into a reality. Investing under 5 lakhs may seem like a small amount, but it can be enough to kickstart a successful venture. Whether you’re a first-time entrepreneur or a seasoned business owner, the possibilities are endless. Top 10s Only brings you a comprehensive list of the Top 10 Best Small Business Ideas With Investment Under 5 Lakhs. We hope this will help you decide on the right business idea for you.

List Of Top 10 Best Small Business Ideas With Investment Under 5 Lakhs

Small business plays a big role in generating employment and revenue for society. It is flexible, adaptable, and makes use of local resources. It promotes the development and growth of the particular region where the business operates, in turn contributing to the country’s development. Taxes generated through these businesses can be used for the upliftment services such as education, healthcare, defence, etc.

A business idea with around 5 lakhs investment is a good start. But with a lot of ideas out there, you may get confused as to what to go for. Every potential entrepreneur is on the lookout for low-cost business ideas with high profits. Listed below are some of the best small business ideas under 5 lakhs.

1. Home-made Food Tiffin Service

The demand and need for good food are never-ending. If you enjoy cooking and serving people, then this is a business model for you. Most people live away from home due to work or education. You can deliver them fresh, home-cooked meals. The tiffin service model is highly profitable and simple. This is because, in today’s time, there is demand not just for delicious food but for healthy and hygienic food as well. Hence, people are looking for credible and reliable sources of food. The Covid-19 pandemic has seen a surge in such businesses rising and running successfully. This is an especially low-budget business idea for women. So if cooking and serving food is your passion, give this field a go.

Capital Allocation

This is a suitable best small business idea for home-based entrepreneurs under 5 lakhs. Your main investment would be the kitchen setup – cooking utensils, ovens, stoves, racks, etc. Buying groceries and gas would be a recurring cost. You would also need to allocate funds to the delivery system and marketing.

Raw Materials And Equipment Required

Your final product will depend upon the raw materials you pick, so take care to choose quality products. Your raw materials will depend on the menu you set. From cooking oils to vegetables and flour, you’ll need to set up the groceries needed to prepare the dishes according to the menu.

The equipment you’ll require includes:

  • Tiffin boxes
  • Saucepans and ladles
  • Pressure cooker
  • Mixing bowls
  • Refrigerator
  • Freezer
  • Food processor
  • Chopper
  • Flour kneader

Licenses Required

  • FSSAI License
  • Trade Licence
  • Police Department Licence
  • No Objection Licence from Society
  • No Objection Certificate from Fire Department
  • Establishment and Shop License

Manpower

You’ll need 2-3 well-trained culinary helpers who’ll help with the cooking, packing, and scheduling of the delivery of tiffins. Delivery can be outsourced if you prefer. Make sure your staff is well-versed in food safety measures.

Target Customers

Students and professionals living away from home, working couples, offices with no canteen services, hospitals, etc… are some of your target customers.

2. House Cleaning Service

Cleaning is now almost always outsourced, even in households, as everyone is strapped for time. If you have an eye for cleanliness and know well how to get the job done, then this is an area for you. According to the area you plan to start the business in, check up on the certification and training rules regarding starting a cleaning service business. With all set, this can turn out to be a good small business idea with low investment for you.

Capital Allocation

A house cleaning service is the best small business idea with low investment, under 5 lakhs in India. Your main investment would be the cleaning tools and a place to store these tools. Recurring costs would be the cleaning solutions, the wage of helpers, etc. The more services you offer, the more money you would invest. You can also consider renting the cleaning equipment, which would make the rent amount a recurring cost.

Equipment Required

Here’s an overview of the equipment you’ll need to start a house/office cleaning service.

  • Vacuum cleaner
  • Mop
  • Buckets
  • Disinfectant solutions
  • Face masks
  • Rubber gloves
  • Rags, towels, etc.
  • Glass cleaner
  • Toilet cleaner
  • Trash bags

Licenses Required

  • GST Registration
  • Trademark registration
  • Trade License
  •  ISO Certification

Manpower

The staff you hire should be well-trained in handling cleaning supplies and solutions. You might need to supervise or hire one to supervise their work in order to ensure the quality of work done.

Target Customers

Homeowners, renters, landlords, etc., are all your potential target customers.

3. Disposable Paper Plate And Cup Manufacturing

With the rising vigilance towards climate change, single-use plastic items are being overlooked and people are more into using disposable paper plates and cups. Countries like India have banned the use of single-use plastic, which has become a boon for the paper plates and cups manufacturing industry. Moreover, it is a profitable best small business idea with limited investment. Other requirements you need to have are licencing, land (roughly 250–500 sq ft), machinery, electricity, and workers. With a budget of around 5 lakhs, you should be able to pull this off easily.

Capital Allocation

Investment mainly depends on the scale of production, but this is one of the top 10 profitable small-scale business ideas for low investment. You’ll need to invest in the machinery, maybe rent out a place to set it up, and hire workers. The recurring costs would be electricity, water, wages, etc.

Raw materials And Equipment Required

Kraft paper, sitting plates, and lamination sheets are some of the raw materials required in disposable plates and cup manufacturing. The paper plate and cup machine is the most important equipment that you need to invest in. According to the capacity, the price may vary.

Licenses Required

  • GST Registration
  • Udyam Registration
  • No objection by Pollution Control Board
  • MSME Registration

Manpower

You’ll need a minimum of 2 skilled workers to handle the machinery and help with packaging, scheduling delivery, etc.

4. Home Baker Services

If you are into the art of baking and decorating, this field is for you. Your main costs would be licensing, marketing, delivery, machinery, packaging, and ingredients. All this would come to under 5 lakhs. If you are a self-taught baker, it would still be a bonus to get a certification in baking. If there are already home bakers in your area, you can check their price listings and accordingly price your products. It will be an opportunity for you to offer better and more unique products too. Overall this is one of the most successful small business ideas under 5 lakhs running in many regions now. Once you become adept at this, you can even move forward and start your bakery, and this process has been looked at in our article that lists the top 10 business ideas that require an investment of rupees 10 to 20 lakhs.

Capital Allocation

This is a great top 10 small business ideas for women with limited investment. Your main investments would be ovens, decorating equipment, racks, and refrigerator(s). Recurring costs would be the groceries, delivery system rent, cost of paper boxes, plates, etc.

Raw Materials And Equipment Required

Raw materials that are required in a baking business include the following:

  • Eggs
  • Sugar
  • Milk
  • Butter
  •  Flour
  • Fruits

The required equipment:

  • Ovens
  • Refrigerator
  • Freezer
  • Racks
  • Decorating equipment
  • Paper plates
  • Cakes boxes

Licenses Required

  • FSSAI license
  • Trade License
  • Trademark registration
  • GST registration

Manpower

Most home bakers are sole workers who manage to do it all themselves, but you could enlist the help of  1 or 2 persons to expand your business, plus help you with ease in delivery, taking orders, etc…

Target Customers

Households in your locality are your main target customers. Some bakeries also agree to sell home-baked cakes.

5. Wedding Equipment Rental

No matter where you are from, weddings never go out of season. So why not start a business centred around weddings? Wedding equipment rental is for those who want money-making small business ideas. All you need is a space to store the pieces of equipment that will not be rented. Just choose your choice of wedding equipment you want to start a business with and go ahead. From the wedding attire of the groom and bride, to jewellery, tents, carpets, furniture, and chair covers, you can choose anything. Make sure you have details about your competitors and price your services accordingly. You can provide special add-on services to attract new clients and keep your existing clients.

Capital Allocation

This is one of the best business ideas for beginners with Rs. 5 lakh Investment. The main investment would go to renting out a place to set up your rental wedding equipment. Next is the investment in your choice of wedding equipment itself. Recurring costs would be the rent, electricity, water, wage of workers, cleaning supplies, etc…

Licenses Required

  • Business tax permit registration
  • Trade Registration
  • Tax ID permit
  • GST registration

Manpower

You’ll require at least one person to help you manage this business.

Target Customers

Event management teams, wedding planners, and family weddings are all your target customers.

6. Soap Manufacturing

Soap falls under the category of biodegradable products. With the rising issue of climate change and pollution, people are shifting more and more to natural and safe options. Soaps are one such product, especially the ones made naturally without added chemicals. This is one of the profitable home business ideas already flourishing in many regions. In India, the organic and homemade soap industry has a huge opportunity to be explored. Hence, this can be a new business idea with a 5 lakh for Indian entrepreneurs. All one needs to do is obtain the necessary licenses, acquire the necessary raw materials, manpower, and equipment, and start!

Capital Allocation

This is a trending small business idea with low investment. You’ll need to invest in machinery for soap making like the plodder, miller, sap stamping, and soap cutting machines. Next, you’ll need to think about a place to set up these machines. You can choose to do it at your home if you have extra space, or you can rent out a place. Other investments include workers, delivery partners, and marketing. Recurring costs would be raw materials, electricity, water, wages, packaging items, etc…

Raw Materials Required

Raw materials required in soap making are:

  • Mineral oils
  • Solvents
  • Essential oils
  • Pigments
  • Emulsifiers
  • Surfactants
  • Thickeners
  • Stabilizers
  • Foaming substances
  • Preservatives

Equipment

You’ll need to invest in machinery for soap making like the plodder, miller, sap stamping, and soap cutting machines.

Licenses Required

  • Drug Control Board Clearance
  • No objection from Pollution Control Board
  • Trade License
  • Trademark registration
  • MSME Registration

Manpower

To make soap, you’ll need people to handle the equipment like plodders, millers, sap stampers, and cutters for soap. You will need to hire as per the scale of your business, and usually, a minimum of five people are hired for this small-scale business.

7. Organic Food Shop

With the growing concern about healthy living among people nowadays, more and more people are turning to organic food. There is an increasing scope of organic and healthy food options. This is the best business idea to make money in India, as it is agricultural land. You need to find a shop space where supplies can be provided unhindered to customers. Consider your competitors and price your products accordingly. You should also know about seasonal produce and its rates. Don’t forget about licencing and registration. If done right, this is a business that’ll provide you with good returns.

Capital Allocation

One of the best low-cost business ideas for entrepreneurs in India, your major investment would be renting out a space to set up the shop. Recurring costs would be the rent, supplier costs, water, electricity, delivery costs, etc.

Licenses Required

  • Company structure registration
  • GST Registration
  • FSSAI Registration
  • Organic Food Certification
  • Trade License

Manpower

You’ll need to employ 1 or 2 people in the shop to adhere to the customers and take care of their needs,

Target Customers

Many people nowadays are moving toward organic and healthy food. The demand for organic food is growing, and so is the target customer base.

8. Lawn Care And Landscaping Services

If you are into gardening and all the fun that comes with it, this field could be for you. People love to keep their gardens looking prim and proper. With busy lifestyles, they are not able to do it themselves, so they outsource the job, and this is where you come in. This is a quick money small business idea, as the returns on this business are high. You need to get your licencing, registration, and insurance in order. Choose your business model, i.e., whether you’ll go solo, in a partnership, or as a company. Get your equipment and make your price list. Hire workers, and you are set to go.

Capital Allocation

This is one of the top ten small business ideas to start in India with low investment. Your main investment decision would be whether to buy lawn care and landscape equipment or rent them out. Buying can increase the investment amount. You might also need a place to store the equipment. Accordingly, your recurring costs would be determined. Rent, wages for workers, electricity, water, and servicing the equipment are some of the recurring costs you’ll incur.

Equipment Required

These are some of the equipment you’ll need to start:

  • Landscaping gloves
  •  Lawnmower
  •  Leafcutter
  • Leaf blower
  • Tiller
  • Pruning shears
  • Safety goggles
  • Shovels
  • Wheelbarrow
  •  Hedge trimmer

Licenses Required

  • Horticulture Professional Services license
  • Commercial Applicators license
  • GST Registration
  • Trade Registration
  • Shop & Establishment Act Registration

Manpower

You’ll need to employ two or more employees who are skilled in operating the gardening tools.

Target Customers

Both in industrialized and developing regions, there is a rapid increase in the need for landscape professionals. Your potential clients include both business and residential property owners.

9. Printing Business Or Xerox Or DTP Centre

This is one of the best small business ideas for small towns. From photocopying to making visiting cards, visiting a printing centre is something a citizen often does. They rely on the printing centre for printing certificates, making copies, laminating, etc. Starting such a business in a small town is highly profitable. A modest store is enough to set up the whole thing. You only need to invest in the necessary equipment, and you are good to go. If you have a competitor in the area, try to fill in the gap they are not able to provide. Target markets like schools, hospitals, offices, government agencies, etc. As your business flourishes, you can add more types of equipment and even hire more workers.

Capital Allocation

This is the best profitable business idea within Rs.5 lakhs, especially in town areas. Your main investment would be an office setup and the required office machinery like photocopiers, scanners, computers, etc. Recurring costs would be the rent, electricity, water, wages, stationery, and servicing of the equipment.

Equipment Required

  • Photocopy machine
  • Lamination machine
  • Colour printer
  • Spiral binding machine
  • Computer system
  • Different sizes of papers
  • Software like Microsoft, photoshop, Zintego, etc.
  • Wi-Fi connection

Licenses Required

  • Shop and Establishment Registration
  • Trade Registration
  • Shop Rental Agreement
  • GST Registration

Manpower

You don’t need any staff if you’re opening a small shop. You might need 1 to 2 employees for a medium-sized shop.

Target Customers

Schools, colleges, business centres, hospitals, etc., are your target customers.

10. Personalised Gifts Business

Personalised gifts make the recipient feel special and celebrated. Online personalised gift business is a fast-growing business in the current market. This is a very good online small business idea from home on a low budget. According to one’s creativity, personalised gifts can range from photo frames to key chains, bracelets, engravings, paintings, etc. Your main investment would be in raw materials and supplies. You can choose to do this at home and find a separate space to do your work. Create buzz around your business, especially in your locality. Think wedding planners, event managers, etc. They can bring you bulk orders.

Capital Allocation

One of the top business ideas with a budget of 5 lakhs, your main investment would be your choice of art and stationery supplies, machinery if required, and a place to do the artwork. Recurring costs would be the raw materials, stationery supplies, wages of workers, if any, electricity, water, etc.

Equipment Required

According to the art field you choose, the equipment would vary but some of the items you’ll need are paintbrushes, embroidery thread, paint, glass, fabric, etc…

Licenses Required

  • Business license and Permit
  • Sales Tax Permit
  • Trade License
  • Contract Documents

Manpower

You may or may not need a helping hand for this kind of business. It all depends on the volume of work.

Target Customers

Take companies, wedding planners, and event planners into consideration. Also, potential customers include individuals looking for special treasured gifts for memorable events, such as Valentine’s Day, birthdays, anniversaries, International Women’s Day, etc.

As a bonus tip, do not forget that marketing your business is the key to a successful business. Make use of social media to spread your message across the world. Use beautiful logos and catchy taglines to attract would-be customers.

Entrepreneurship Awaits: Start With Low-Cost Business Ideas

Here ends our list of the best small businesses to start with 5 lakhs capital investment. Starting a venture from the ground up may be scary, but it might be the best turnaround for you and your family. Just because you don’t have a lot of money doesn’t mean you can’t start a business. With the technology and resources available today, things have become easier. You can start a business right from your house if you are willing to put in the hard work and effort. We hope our list of the top 10 best small business ideas in India gave you a push in the right direction as to what to choose as your business niche.

If you have more than 5 lakhs in hand, why not take a look at our article that lists the top 10 business ideas that will need investment from approximately 5 Lakhs to 10 Lakh rupees? Also, if you’re looking for high investment business ideas, check out our article that lists the top 10 best business ideas with investment from 20 lakhs To 30 lakhs.

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