Are you an aspiring entrepreneur yearning to breathe life into your dreams of owning a business? Look no further! Welcome to the realm of possibilities, where the seeds of success are sown with simplicity and passion. In a world bustling with grand ventures, sometimes the smallest seeds bloom into the most magnificent flowers. True greatness often emerges from humble beginnings. Embrace the sentiment of starting small, for it is within these modest ventures that the grandest dreams take flight. Top 10s Only brings to you the Top 10 Best Small Business Ideas With Investment Under 1 Lakh.
Road To Success in Entrepreneurship: Explore The Best Small Business Ideas Under 1 Lakh
Gone are the days when small businesses were overlooked, for now, they thrive as the heart of India’s economy. Both service-based and product-based business enterprises have a strong probability of success. There are numerous business ideas that may be launched with one lakh and have a complete success record across the globe. The current trend is to buy locally from pop-up stands, weekend markets, home-based businesses, and other such small-scale business companies. Due to this, small business organisations have become an essential part of the economy in India and are also contributing greatly to the GDP and overall exports. So for those who have entrepreneurial aspirations and are hesitating to start their business, it’s the perfect time to turn your dreams into reality. In fact, many business ideas can be started with a basic investment of Rs. 1 lakh. Wondering, “Which business ideas can I start with an investment cost of Rs. 1 lakh that has a high success rate”? Read on!
List Of Top 10 Best Small Business Ideas With An Investment Under 1 Lakh
A common misconception among people is that there is a need for a considerably large investment to start a business. You can start your business with a minimal amount, as there are many ideas that need zero or minimal investment. More than the basic investment cost, it is the business ideas and the way they are executed that are the game-changers. With adequate diligence, self-assurance, and creative thinking, you can actually taste success. If you are also seeking small business ideas, this blog has compiled a list of lucrative business ideas that can be started in India for investments under Rs. 1 lakh and yields the best success rate.
1. Pickle Business
Pickles are an essential and integral part of Indian cuisine. An Indian Thali is not complete without a pickle on the side. Traditionally, it was a practise in Indian homes to prepare them in the summer and use them throughout the year. But these days, due to a lack of time and many staying away from their hometowns, market-bought pickles are sought after. If you or someone in your family knows the art of making pickles, then it is a product that is in high demand. It is one of the top 10 best business ideas that can be started with a basic investment cost of Rs. 1 lakh and is a relatively risk-free business with little initial investment and more profits.
Capital Allocation (Investment Cost in Rs.)
This is one of the best business ideas to be started with an investment under Rs. 1 lakh rupees, and the capital allocation would depend on whether you want to start on a small scale or have a manufacturing unit. The best part of this business, if it is done on a small scale, is that there is no need for much equipment. So the fixed capital allocation is very minimal. Depending on whether you are renting a place or doing it at home, additional costs like rent need to be taken into consideration. However, if done at home, the recurring costs are for ingredients, packing, transporting, and labour. Having a basic investment cost of Rs. 20,000 to Rs. 25,000 is enough to start this business.
Raw Materials And Equipment
A pickle business, whether run as a set-up in a small unit or from home, needs the following equipment and materials.
- Cutting machines for cutting vegetables and fruits
- Weighing scale
- Grinder
- Dehydrator
- Utensils
- Pounding machine
- Jars and bottles of many sizes
- Pickle-making ingredients like spices, oils, preservatives, etc.
Licences Required
Below are the licences and registrations needed to start a pickle business in India.
Code IEC is an importer-exporter code that is a mandatory business identification number for import or export in India.
- FSSAI
- Trademark and registration
- MSME registration
- Business licence
- GST registration
Manpower
This is a small-scale business that can be a one-man army. But it is best to have a helper who can follow your instructions and help with the process. Ensure that the staff you employ knows the food safety measures to follow.
Target Customers
Indians love pickles, and hence the target customer base is huge. Professionals living away from their hometowns, students, working couples, hypermarkets, supermarkets, etc. are some of your target customers. You can sell them via social media to get online orders. This business idea has a good rate of success.
Starting a pickle business is simple and can be done from home. If you have the required skills, you can expect a high-profit margin. The key to success is taste and the way you market your products.
2. Tailoring Business
In India, the variety of dresses available is mind-blowing. You can find a wide range of popular clothing styles, regardless of whether you live in an upscale metropolis or a traditional town. They have a significant market opportunity thanks to emerging fashion trends. If you possess exceptional tailoring skills and are brimming with innovative style ideas, launching a tailoring business is the perfect venture to showcase your talents. As a skilled tailor, you’ll be crafting and altering garments with finesse, either independently or by building a team of talented individuals. Compared to other business ideas, this requires a very basic investment, and there are high profits to be earned. What’s more, you don’t need office space, and you can start the business at home, making it one of the top 10 small business ideas to be started in India with a basic investment cost of Rs. 1 lakh.
Capital Allocation (Investment Cost in Rs.)
A tailoring or sewing business is one of those business ideas that can be started from home with a very basic investment cost of Rs. 1 lakh. The setup needed includes a good sewing machine and a few other accessories. If you start the business at home, the ongoing expenses include supplies like zippers, threads, etc. and equipment maintenance. If you plan to have someone assist you, the employee’s salary is another ongoing cost. The basic investment cost requirement is around Rs. 25,000 to Rs. 30,000 for this business.
Raw Materials And Equipment
Knowing the tools, equipment, and raw materials needed helps ensure that you have enough funds ready to start the business. Some of the basic raw materials and equipment needed are:
- Sewing machine
- Measuring tape
- Chalk
- Scissors
- Needles
- Seam opener
- Special pressor for hemming
- Threads and supplies
- Electric iron
- Tables, racks, and hangers
Licenses Required
Even to start a tailoring shop business with a basic investment cost as low as Rs. 1 Lakh, one should have proper licences, which include:
- Trademark and registration
- MSME registration
- Business Licence
- GST registration
Manpower
This is not a manpower-intensive business, and you can run the operations single-handedly. Once the business picks up, you can hire 1 or 2 people, depending on your needs. If you have many customers, ensure that at least one of the staff has tailoring expertise, as that reduces the burden on you and ensures delivery on time.
Target Customers
The target customers are people who like to wear trendy, custom-designed clothes. Depending on your niche skills, it can be men or women of all age groups. If you are adept at stitching uniforms, small schools and private companies are also potential customers.
A tailoring shop is essential for men and women alike, as many people want to get their dresses made or altered to fit properly. You can charge for making, altering, or designing clothes, and the profit margins vary as per your niche skills. Stitching festive wear earns you more profits. The key to the success of this less than Rs. 1 lakh budget business idea is in the way you market, create, and deliver on time. Utilise multiple social media networks to raise your chances of success rate in business.
3. Solar Dealership Business
With everyone looking for eco-friendly options for their homes and offices, this next business idea is truly a game-changer! Starting a solar dealership business opens a pathway towards achieving an environmentally friendly, sustainable future and thus requires a place in our top 10 best small business ideas to be started under Rs. 1 lakh list. This innovative concept empowers you to make a positive impact on the environment and society. Partner with reliable solar suppliers, such as Loom Solar, by becoming a dealer or a distributor, and offering high-quality solar products to homes and business establishments. With a basic investment, you can start an “Ecopreneurship,” promoting clean energy adoption and contributing to a better future. Embrace this lucrative opportunity and brighten your entrepreneurial journey with a greener and more sustainable tomorrow.
Capital Allocation (Investment Cost in Rs.)
Aspiring entrepreneurs should initially partner with established solar panel manufacturers in order to get this business idea started. By forming a partnership with such companies, you can become a solar panel dealer without making a significant capital investment. Next, you can either opt to start a shop for this business with a basic investment cost as low as Rs. 1 Lakh or operate from home as your base of operations. Instead of stocking up on solar panels, focus on maintaining a single demo unit to showcase the product’s benefits to potential customers. Your earnings will come through commissions earned for each successful customer acquisition. This lucrative opportunity promises growth potential with minimal initial investment. The initial capital requirement will come up to approx. Rs. 1 lakh, inclusive of the cost of the demo unit, retail space, and staff.
Raw Materials And Equipment
As this is a dealership, there won’t be much equipment required aside from the demo unit and the necessary tools for any installation or repair work.
Licenses And Documents Required
Typically, the following documents/licenses may be required for setting up an authorised Solar dealership in India:
- Msme Certificate
- A copy of the Aadhar card
- A copy of the Pan card
- GST certificate
Manpower
Solar dealerships often do not require many employees. The two main personnel requirements will be a marketing executive and a solar panel installation technician.
Target Customers
Alternate power sources such as Solar and Wind are the future. Target customers will be consumers who are looking for cheaper sources of power that will help cut down on electricity bills.
Investing in a solar dealership is a wise and secure venture. The renewable energy industry is experiencing steady growth, making it a promising market to be part of. With rising awareness and government incentives supporting solar adoption, the demand for solar products is on the rise. As a solar dealership, you are offering a sustainable and cost-effective solution, ensuring a stable customer base. Moreover, by aligning with reputable solar panel manufacturers, you can leverage their expertise and support, further enhancing the safety and profitability of your investment. This business idea will have a guaranteed success rate.
4. Garment Reseller Business
Resellers are people who buy things with the intention of selling them and earning money. A garment reselling business is a fast-growing business that does not need a huge investment. There are some reselling business that need physical office space and stock, and there are others who do it online. There are many garment resellers that are earning huge profits by running their business operations online. Whether you want to start it as a full-time or a part-time business, it is essential to plan and do research before diving in. Here are a few important things to know about it.
Capital Allocation (Investment Cost in Rs.)
This is one of the top 10 business ideas to be started in India under Rs. 1 lakh that needs very minimal capital allocation. The main reason for this is that you are only in the buying and selling business and not in production, where there will be overhead costs of labour, raw material procurement, etc. There is no need to keep an inventory, and it is more or less a zero-investment business.
Raw Materials And Equipment
Since you are not the producer of the garments, there are no raw materials or equipment needed. The only equipment needed is a smartphone or a laptop with a good internet connection.
Licenses Required
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Manpower
This is not a manpower-intensive business, and you can run the operations single-handedly. Once the business picks up, you can hire one to two people, depending on your needs.
Target Customers
To identify the target audience, you should know their clothing preferences. If you are into niche garment reselling, the target customers can be customers outside of India. It can also be tech-savvy professionals, students, and friends in your network. Social media platforms are a great source for your target audience.
A garment reselling business can earn loads of money, as there are many reseller business prospects and platforms like Meesho, Spotify, etc. If you are not keen on manufacturing garments, then a garment reselling business is a great option, as you can set the profit margins. You are in control of the price and decide the final pricing.
5. Jewellery Making Business
Indian men and women are crazy about jewellery, not just gold but also other metals. With the rise in the price of gold and silver and also the emerging trend of wearing cost-effective jewellery, this business has great prospects. Today, there is a huge market demand for it from billions of people. Artificial cost-effective jewellery that is homemade amplifies the style, and with many celebrities sporting them, it is no longer a middle-class preference. This has helped enhance the scope of jewellery-making. If you have the skills, now is the time to follow your passion and start a jewellery-making business in India.
Capital Allocation (Investment Cost in Rs.)
What are some business ideas that can be started with Rs. 1 lakh? If this is the question foremost on your mind, then the Handmade jewellery-making business at home needs very little capital allocation. The scale of your operation determines the seed money. If you are doing it on a small scale, then the budget is well within Rs. 1 lakh as the initial investment. The ongoing costs of running this business will depend on the staff hired, whether the operations are in a rented space and the stock you want to maintain.
Raw Materials And Equipment
Knowing the necessary supplies and raw materials enables you to make sure you have enough money on hand to start your business. Below are the raw materials and equipment needed for starting a jewellery-making business:
- Casting machine
- Scissors
- Needles
- Threads
- Hammers
- Woollen yarns
- Aluminium alloy
- Gemstones
- Jewelry-making kit
Licenses Required
Code IEC is an importer-exporter code that is a mandatory business identification number for import or export in India.
- Trademark and registration
- MSME registration
- Business Licence
- GST registration
Manpower
You can run this business on your own to cut operating costs, or you can hire one or two people to assist you with making jewellery.
Target Customer
There is a huge market for hand-made jewellery that cuts across all age groups and genders. The potential target customers are students, professionals, fashionistas, and celebrities. Create an online presence on various social media platforms to market your services and raise your business’ success rate.
Hand-made jewellery is a perfect alternative to costly metals, as they are cheaper and yet look stylish. While there is a huge demand and a great market for these products, you should stay up-to-date on the latest trends and cater to the customers’ needs. There are great profits to be had if you can gain the customer’s trust.
6. Customized Home Decor
Everyone desires to have a well-anointed and aesthetically pleasing home. Home decor is the one that sets the ambience, whether it is a balcony, bedroom, or living room. But choosing the right home decor is a tough job. If you are someone who is passionate about it or has years of experience in this domain, then starting a customised home decor business is ideal. This is a business that is unlike others, as these items are customised as per the customers’ needs and hence needs lots of creativity and experience. But before you start it, you must have all the necessary information about it. Read below to know more about this less than Rs. 1 lakh investment business in India.
Capital Allocation (Investment Cost in Rs.)
The capital allocation needed to start this business is less than Rs. 1 lakh and includes the supplies, the machinery needed to make the products, rent (if not using your home), and staff salary if you hire people to assist you. The other costs to include are the cost of developing a website to sell products and the cost of shipping products to customers.
Raw Materials And Equipment
Home decor includes a variety of items, ranging from kitchen accessories to personal notice boards to wall accents and more. So depending on your niche skills, you may need to purchase raw materials and other machinery.
Licenses Required
Code IEC is an importer-exporter code that is a mandatory business identification number for import or export in India.
- Trademark and registration
- MSME registration
- Business Licence
- GST registration
Manpower
You can run this business on your own to cut operating costs, or you can hire one or two people to assist you with making customised home decor.
Target Customer
The target market is huge, and there is a need for good marketing to make this business successful. You can find your target customers on social media platforms like Facebook, Instagram, TikTok, and more to improve the success rate of this business idea. You can also collaborate with interior designers for referrals.
Home decoration and decor is a fast-growing market, and there is great potential in this business. Through effective marketing and unique customised designs, this business can be quite successful with very little investment. It is an excellent return on investment, where you can make a profit of about 20% based on the items you make.
7. T-Shirt/Mug Making Business
If you want to start a business with an investment of less than Rs. 1 lakh, then a T-shirt printing or mug printing business is a great choice. There are many opportunities for these two business ideas, as there are many companies or other businesses that want custom-made T-shirts or logos. T-shirts or mugs with customised prints or photos are also popular, and there are endless possibilities in this business. However, it is a business idea that suits cities as they follow the latest trends.
Capital Allocation (Investment Cost in Rs.)
This is one of the best profitable business ideas that can start with a basic investment cost of Rs. 1 lakh. The main cost will be for an investment of machinery, and that is dependent on the printing method used, which can be the heat transfer method, direct-to-garment printing, vinyl printing, screen printing, etc. The other ongoing costs will be for renting a space, procuring materials, paying staff salaries, and paying electricity bills.
Raw Materials And Equipment
Making sure you have enough money available to start your business is made easier by being aware of the necessary tools, machinery, and raw materials. The equipment needed for T-shirt or mug printing are:
- Heat transfer paper
- Sublimation paper
- Heat press machine
- Computer sets
- Photoshop software for graphic design
- Raw materials like mugs, T-shirts
Licenses Required
- Business name registration
- Trademark registration
- MSME registration
- Business Licence
- GST registration
Manpower
You can run this business on your own to cut operating costs if you know the technicalities of printing T-shirts and mugs and are a graphic designer. If not, you will need to hire a person who is adept at it and knows the latest trends in printing.
Target Customer
People of all ages and genders enjoy wearing t-shirts and drinking from mugs. But the style and designs vary based on age and cultural backgrounds. The target audience can be kids, teenagers, or adults. If you can handle bulk orders, you can also target event management companies, private companies, and more.
A T-shirt or mug-making business can be one of the most profitable business ideas to be started in India with a minimum investment of Rs. 1 lakh if you have the right marketing strategies and can reach the target audience. The designs should be creative so that they strike a chord with the customers, and the pricing should be affordable to reach all age groups. Add diversity to the business to make it more profitable, and also have the right technical knowledge to make the most out of this small investment business idea. You can use a variety of social media sites to boost the success rate of such business ideas.
8. Customised Greeting Card Business
Birthdays, Valentine’s Day, Christmas, and Graduation Day—the events that call for greeting cards are endless. If you are under the impression that greeting cards are a thing of the past, then you are mistaken. The greeting card industry is worth more than Rs. 250 crore. Also, since the pandemic and working from home for individuals, there has been an upsurge in the customised greeting card market. If you are an artist, a graphic designer, or have the flair to make greeting cards, then you can start this at home with very minimal investment.
Capital Allocation (Investment Cost in Rs.)
It is one of the top 10 most profitable business ideas that can start in India with low investment, as the initial cost for a customised greeting card business is much less than Rs. 1 lakh and can be as minimum as Rs. 1000. The initial investment includes investing in hardware and software for making the cards and also upskilling on the latest trends and skills. In terms of ongoing costs, there is not much, as you can start this business at home.
Raw Materials And Equipment
You can make sure you have enough money set aside to start the business by being aware of the necessary equipment, machinery, and raw supplies.
The equipment needed for starting a customised greeting card business is:
- A computer
- Inkjet printer
- Printing Software subscription
- Photoshop software for graphic design
- Raw materials like paper and arts and crafts supplies
Licenses Required
- Business name registration
- Trademark registration
- MSME registration
- Business Licence
- GST registration
Manpower
If you are a graphic designer or a creative person who is adept at using the latest technology, you can run this business on your own. Once the business picks up and there are more orders than you can handle, you can add one or two people to your team.
Target Customer
Making customised greeting cards is one of the market’s trendiest industries, and now is a fantastic moment to launch it as a side hustle. The main target audience for this business is students, teenagers, and young boys and girls. You can also take orders from retail outlets or sell them to local shops where there is a demand for such cards. These can also be sold in online marketplaces or on a social media page or website.
This is an ideal business to start where you can hope to make great profits with a low investment. But for that, you should ensure that the cards are attractive in terms of design and price. Once you gain recognition, the sales can climb, and you can expand your business and make tidy profits as the making costs are low.
9. Cloud Kitchen
The food sector is a thriving industry where there is always demand and opportunities galore. If you have the ambition of starting a restaurant but do not have the risk appetite or the high investment needed for that, you can get into the cloud kitchen business. It is a trend that is popular among many people, and the idea behind it is to offer tasty and hygienic food delivered to the doorstep. This business idea needs very little investment as you do it at home, and the kitchen setup is already available.
Capital Allocation (Investment Cost in Rs.)
The cloud kitchen business attracts many people and is among the first choices as a small business idea as it has high profit margins and low investment. The capital allocation needed can be as minimal as Rs. 10,000, as a working kitchen setup is already available at your home. The only ongoing costs are for cooking raw materials, staff salaries, and utility bills. Since the initial startup costs are low, it is one of the top 10 business ideas in India to start with a low investment. If you don’t have enough money, you can borrow money from friends or take out a personal loan to start this business.
Raw Materials And Equipment
The equipment and raw materials needed depend on the kind of food you specialise in. The most common are:
- A mixer-grinder
- Pots and Pans
- Kitchen knives
- Cooking Range
- Raw materials for cooking meals
Licenses Required
- Business name registration
- FSSAI
- Trademark registration
- MSME registration
- Business Licence
- GST registration
Manpower
If you are starting in a small way, then all you need is a helper who can do the side work and also help in cleaning the kitchen and utensils. Once you have more subscribers, you can then add a few more chefs who can independently work to get the cooking done and deliver on time.
Target Customer
The target audience can be varied and depends on the demographics you target. For instance, you can cater to school kids by offering a healthy lunch box, elders who want a balanced but limited meal, young gym-goers who want protein-rich food, etc. Depending on your niche skill, you can target one or more of these categories. In order to increase your business’s success rate, you can make use of various social media platforms.
Establishing a cloud kitchen is one of the most profitable top 10 small business ideas one can start in India with a basic investment cost of Rs. 1 lakh, especially among people who are health conscious but don’t have enough time to prepare meals. So if you can provide healthy, nutritious, and tasty food, you are sure to make huge profits. Also, since it is a subscription meal with a planned menu, there is more predictability for you in terms of orders. Once you create a brand for yourself, you can provide your kitchen services to small private companies and other such clients, or even start a small bistro restaurant.
10. Tutoring Services
Do you love teaching? Then offering tutoring services is a business concept that could be very successful. Not just that, if you have a flair for teaching, you can contribute to children’s education and also guide them to success. You can be a stay-at-home parent, a student, or a teacher. It can serve as a good source of income if you have many students coming in. Starting a tutoring services business is also a worthwhile and rewarding experience, as you can use your experience and skills to help students gain academic success.
For someone new to the field, a service-based business is the easiest to launch. Any business in which services are sold qualifies as a service business. Tutoring services are a good example of a service-based business with a high possibility of success.
Capital Allocation (Investment Cost in Rs.)
A tutoring services enterprise is one of the most successful business ideas in India, where the initial startup cost is also less. You can start this business based on service at home with close to nothing but a few chairs and tables, and there are virtually no ongoing costs involved. So it is a risk-free business idea that can earn you huge profits as well as a good reputation if you can teach well.
Raw Materials And Equipment
There are very few things needed to set up this service-based business idea, which include:
- Chairs and tables
- A blackboard
- Computer
- Projector
Licenses Required
NA
Manpower
This is a service-oriented business idea where you can start as a lone tutor, depending on your subject expertise. If you plan to expand and teach more than a few subjects, you may want to include one or two teachers, depending on the requirements.
Target Customer
The target audience depends on your expertise. You can target young children from the age of 4 and above. If you are a trained middle-school, high-school, or above teacher, you can target students in classes 5 and above, depending on your niche skill.
Tutoring as a profession is highly rewarding, not just in terms of money but also in terms of quality of life. You can create your schedule and also get vacations when the students are on vacation. It also allows you to network with different people and increases the chances of referral. It is a low-investment business that enriches your life with high returns. Make use of different social media connections in order to improve your rate of success in business.
Advice To Novice Entrepreneurs Seeking Success: Start Small, Aim Big!
Want to be your own boss? Now is the time to do it. Remember, starting small doesn’t mean thinking small. Plus, if you choose from the above list of ideas, you don’t have to break the bank either! Start a pilot programme or only provide a small number of your products or services. Sharpen your skills, create a robust plan, and do your research on how to start a low-budget business in India with a basic investment cost of Rs. 1 lakh and go on to build a business with a promising rate of success.
If you have a budget of Rs. 5 lakhs, we recommend taking a quick look at the business ideas listed in our article that give a comprehensive account of business ideas that can start with an investment under Rs. 5 lakhs.
Frequently Asked Questions About Business Ideas That Budding Entrepreneurs Can Start With Rs. 1 Lakh Investment And Achieve Success
1. Are there any business ideas in India that can be started with just Rs. 100,000 or 1 lakh?
Yes. You can start a business with a basic investment cost of 1 lakh rupees in India. There is a misconception that to start a business, you will need a huge amount of money. But the fact is that there are many business ideas today that can be started with a capital of less than 1 lakh rupees.
2. Which business ideas can be started with Rs. 1 lakh in India?
An idea for a business that can be used to make money is typically focused on products or services that can be sold for money. There are many small business ideas that a budding businessperson can start with less than 1 lakh rupees in India. Some of these are tutoring businesses, garment reselling business ideas, greeting card-making businesses, cloud kitchens, jewellery-making business ideas, and more.
3. How do I start a business with 1 lakh in India?
To fulfill your dream of becoming a business owner, first, identify ideas for business firms that you can start with a basic investment cost of Rs. 1 lakh. After finalising the idea, create a business plan, identify the target market, create a business strategy, secure financing, register your business and apply for licences, hire competent staff, and start marketing your business. Additionally, using social media channels to connect with customers will increase the success rate of your business ideas.
4. What can I do with 1 lakh in India?
You can start a small business with a basic investment cost of Rs. 1 lakh in India. Some of the business ideas that a novice entrepreneur can start are pickle business, tailoring business, garment reseller business, cloud kitchen t-shirt and mug printing business establishments, etc.
5. Is India a good business place?
India is a beneficial place to start a business as there is a huge consumer market. It has a large middle-class population that is ready to spend on consumer products. Additionally, the government is giving incentives to startups and businesses of all sizes, and the labour costs are also low, making India a great business place.