We are living in an era where inflation is outpacing income rapidly. The prices of everything have increased, such as housing, food, healthcare, education, and many other things. In such a scenario, people with regular or fixed income to are facing problems in running the household. Hence, to overcome this problem, they can start their small or home-based business as a side income or just focus on it and earn good money.
30 Best Business Ideas that you can start under 5 Lakhs
Requirements to start a business It is substantial to understand that setting up a business is always easier said than done as it requires a lot of planning, study, and hard work. Here are some of the requirements for starting your own venture:
Adequate money to start the business Skills required in the particular sector Interest in proving your product or service Perseverance to face all the odds till you start earning profit from the business Proper licensing from government authorities
Together with excellent planning, all these things can lead to a successful business online, from home, or with a proper structure as per your venture.
30 Best Business Ideaswith 5 Lakhs Investment
If you do not have huge capital but want to start something of your own, don’t worry. You can do many businesses can by investing a small capital, but the returns are promising. Here are some of the best business ideas with 5 lakhs investment in India-
1. Franchise Stores
There might be a bunch of ideas coming to your mind, but opening a franchise store can be one of the best amongst them. There are a lot of advantages in opening a franchise store, such as:
The significant advantage is that you would get a pre-sold customer base. This means that people who are already aware of the brand and using it will not have to worry much about marketing the brand. There are multiple franchises that can help you starting from pre-opening to complete operation. They also offer free training to the staff members and managerial support. Investment varies from franchise to franchise, but there are a lot of franchises that can be started under 5 lakhs.
2. Incense Sticks Manufacturing Business
Undoubtedly, India is a potential market for this business as incense sticks are used on various occasions. The profit margins are relatively good; for example, if you manufacture 100kg of raw agarbatti in 10 hours with the help of one high-speed machine, you can earn Rs 12 per kg from it. You can start this business as it can be done within Rs.5 lakh easily because the machine costs from Rs 1 lakh to Rs 2Lakh.
3. Online Advertisements
With the increased usage of the internet, online business has seen an enormous boom. Every business wants to make their name and place online to increase the customer base and profit. You can take this advantage and earn money by going on an online adventure. As per the reports, in the year 2019, the online advertisement business made a revenue of around Rs.600 crores, and now you also have a chance to be a part of it. You can start your service-based company with an investment of 1-3 lakhs. But, you would need a strong command of online advertisements, knowledge of how social media works, networking skills, etc. You can earn a decent amount of money in this business if you manage to make your own clients and deliver what they ask for.
4. Disposable Paper Plate and Cup Manufacturing
If you have a great business plan, then manufacturing disposable paper plates and cups can be a profitable business idea under 5 lakhs investment. The demand for these products has increased tremendously since the ban on plastic in India. This can be the best time to enter this business as you would be able to get the advantage because of the high demand. Disposable cups and plates are used in almost all the functions such as birthdays, weddings, anniversaries, get together, corporate events, etc. For starting this business, you would need capital to buy material, purchase machines, and for the workforce. You can do all this for under 5 lakh with one machine. As your business grows, you can expand your business by buying more machines.
5. Food Truck
This is a fancy way of opening a food outlet and is very much in trend these days. It would be best to buy an old automobile and start making and selling food on it. It can be a fantastic idea as people really like it because it is relatively hygienic to an open food stall. The significant advantage of this business is that you can move your truck from one place to another as per your choice. You can go outside the university campus, corporate offices, tourist areas, or anywhere you think the footfall is high. This can be one of the best business ideas with 5 lakhs investment as it is profitable, you need not pay any rent for the place and can work as per your convenience. You need to ensure quality and hygiene; if people love your taste and quality, you have a great scope in this business.
6. Pest Control Business
A couple of decades ago, this business was considered very basic and simple. But, in today’s time, it has changed completely and has become sophisticated, and requires a lot of equipment and pesticides which can effectively remove anything from mice, cockroaches, bed bugs to termites. There are pests not only at homes but also at farms as well where they destroy the fruits and vegetables. Hence, people search for pest control services; you can start this business as it requires less investment. Initially, you would have to invest in small spray machines and chemical sprays; later, you can buy big machines as per your business requirements. The potential customers in this business are hotels, restaurants, corporate offices, housing societies, etc. You can either approach them directly or use other market strategies to make people aware of your business.
7. Water Purification Units
It has become one of the most lucrative business ideas because of the low investment and high profits involved in this business. The primary motive behind this business is to provide clean and potable water to the customers. The investment would be required to set up the water purification plant plus packaging and delivery. If you get certification for your business, it can help you gain more trust and confidence in your brand. As per the demand or area, you can choose your target market such as commercial setups, household, corporate offices, hotel industry, etc.
8. Mobile Accessories Business
Mobile phones have become an inevitable part of everyone’s life today. Investing in the mobile phone accessory business can be a profitable business idea under 5 lakhs investments. You can make a list of accessories that you would keep, such as phone covers, headphones, earphones, chargers, Bluetooth speakers, etc. Once you decide on the products, you can plan if you wish to start the business online or offline. If you do it offline, choose a place for rent either in a marketplace or a kiosk in a mall. You can contact a local dealer to purchase the products so that you can get the products quickly. You can attract more customers by giving great deals and discounts. Ensure that you do not sell low-quality products as that would lead to customer dissatisfaction. Also Read: Schemes by the Ministry of Food Processing for NGO’s
9. Consulting Agency
There is a lot of scope in this business as these days people need professional advice before starting any business. It is an evergreen business idea as people always prefer taking advice from a consulting agency in various prospects. This can be one of the best business ideas with 5 lakhs investment. all you would need is to rent an office and hire a few employees. As a consulting agency, your role is to advise other people in an area of your specialty. For example, if someone wants to become an engineer, they might ask you about its study, industry, job prospects, salary, and other such questions. You can provide consultation in any field such as education, business, career, personal development, etc.
10. Printing Business
As a startup business, it can be an excellent idea as it is in high demand. Many people need visiting cards to be printed, wedding cards, invitation cards, newspapers, etc. Furthermore, you can also start with flex printing or even xerox as well. For starting this business, all you need is a printing machine and ink, which means it can be started with an investment of less than 5 lakhs. You might need some manpower as well to help you at work. As work increases, you can take more machines and expand your business. The profit margin is outstanding in the printing business; all you need is marketing to get more and more clients to make more money.
11. Optical Frame Manufacturing
This business is flourishing in India for a couple of years as people not only wear shades because of the problem in eyesight, but it has also become a fashion trend now. The manufacturing process of the optical frames is very simple and straightforward. The machinery costs around 3-4 lakh plus you would need space on rent where you can start the manufacturing and a few staff who can help you complete the process. The raw material cost is meager as the plastic is cheap. All in all, the average price of one frame would cost around Rs.150 to Rs.200, including designing and labor charges. You can sell one frame at Rs.250 to Rs.300. It means that the profit margins are good in this business. So, this can be one of the best business ideas with 5 lakhs investment and all you would need is to maintain the frame’s quality so that its demand increases.
12. Catering
The demand for catering stays all year round as people need it for birthdays, marriages, anniversaries, weddings, and other special occasions. For starting this business, you would need kitchen equipment, a great chef, and a catering crew as well. Serving quality food is really important in this business, and if you win the heart of people with your relishing food, then the market is all yours. Initially, you can start this business at a small level, and then you can expand as the demand or clients increase. You can start it by taking a small room on rent or from your home and then gradually you can take it to a large scale business when required. Because of the low investment and great profit, it can be said to be the best business ideas with 5 lakhs investment.
13. Export Business
You can pick any product and export it from India to any part of the world where you have contacts. The government of India has made the export procedure pretty simple and straightforward by offering numerous incentive programs. This can be a profitable business as all you need is to buy products from a manufacturer and sell it in a different country. You can commence export from agricultural products as they are available easily in bulk in India. This business can be easily started under 5 lakh as all you need is to procure products and send them. A few things are required for starting this business, such as a registered company name, import-export code, and a current account in your company’s name.
14. Travel Agency
This business might sound exciting to people who love traveling or have good knowledge of various places in the world. This business is flourishing for a couple of years because numerous people have started traveling now, not just for business but also for vacation. Various people do not prefer booking themselves but hire agencies who can make all the travel bookings. It is a straightforward and easy business; you do not require any special skills or experience to initiate it. People would contact you via phone or visit your office to get the airplane, bus, or train booking. Once you know their traveling dates and other details, all you need to do is get the bookings done for them. You can also make the booking for hotels and taxis as well if the client wants. All you would need for starting this business is an office space, printer, computer, and a few employees. You can surely begin this business under 5 lakh, and you can earn a decent amount of money every month. Also Read: 30 Profit-Making Small Scale Manufacturing Business Ideas
15. Clothing Store
Clothes are not just a basic necessity of life but have become a fashion trend too. Clothing stores are high in demand these days; you can either open a store online or take a space for rent. You can either sell readymade garments or clothing material as per your knowledge or interest. For opening a store, you would need a space for rent, clothes and a few employees. Thus, it is one of the best business ideas to start under 5 lakhs as the investment is low, demand is high, and profit margins are good. It would be best if you made sure that the clothes that you buy should match with the demand of the people where you open the store as people have different choices some people like trendy clothes, a few like simple, while some like flashy, etc. so keep the requirements of your customer in mind to prevent the dead stock.
16. Delivery Services
You can start this business by just investing Rs.50, 000 to Rs. 1, 00, 000. Delivery services have become a part of life, and it is not just a constraint to food anymore but many other things such as groceries, gifts, flowers, and whatnot. There is a massive demand for them today, and people outsource this from the other companies. You can either give delivery men to other companies for delivery services, or you can deliver their products and charge commission on that. The growth prospects in this business are high because everything has become online these days, and people love getting things delivered to their homes as it saves their time and money. Hence, you can start with the delivery services business as it has high growth prospects and revenue.
17. Content Writing Agency
Because of the increase in India’s online business, quality content of highly in demand, you can take this advantage by opening your content writing agency to keep writers who are creative and possess a good command of the English language. Content is not only required for the website but also online marketing as well. People want a distinctive type of content such as educational, technical, housing-related, e-books, and much more. You can hire writers from different academic backgrounds so that they can write in distinct areas. For starting this business, you would require to get the firm registered and complete some basic formalities. Initially, you can keep five writers and then hire more as per the requirement and work. This is a profitable business as the investment is pretty less; hence, it can be the best business ideas with 5 lakh investment.
18. Café
Sound interesting, isn’t it? Cafés have become very popular today as people love going there and spending time with their friends, family, colleagues or sometimes alone. Hence, you can open a small café, and you can effortlessly start it with 5 lakh investment. Location is significant if you plan to open a café as you should open it either at a marketplace, near offices, or close to universities where students can spend time after college. You can sell tea, coffee, sandwiches, mocktails, etc., in your café. Another vital thing to keep in mind is the environment, ambiance, and branding of your café. The interior of the café should be different and such that people get attracted towards it. Also, decorate it well so that people feel welcomed and want to visit it again and again. Also Read: How to Make Money through Affiliate Marketing
19. Wedding Equipment Rental
Are you hearing about this business for the first time? Yes, this is a profitable business, and a lot of people are already into this business. You can earn a lot of money during the wedding season. In this business, you would need to buy wedding equipment and rent them to different event organizers. You can purchase chairs, tables, lamps and lights, wires, artificial flowers, clothes for decoration, wire, etc. You can buy these materials in bulk at a lower price and give them on rent at a higher price. You can cover your cost in just a couple of weddings, and the rest is all your profit.
20. Spa Services
The spa is an excellent method to relax mentally and physically. In today’s time, people have become really busy with their tight work schedule, long traveling from work to home, balancing between work and family, etc. Because of all this stress, people these days love going to a spa as it makes them feel relaxed and at peace. You can offer various services to your clients, such as full body massage, foot massage, head massage, facials, manicure, pedicure, hydrotherapy, aromatherapy, and much more. It is one of the best business ideas with 5 lakhs investment as the demand for it is growing and the profits are also decent. While opening the spa, you need to ensure that the location you choose should be good, and do not forget to create a peaceful environment and soothing ambiance for this business.
21. Shoe Laundry Business
Have you heard about this business before? Various people are not aware of this business as this is a unique business, and there are very few people who offer these services. You can take the benefit and open a shoe laundry business that requires less investment, and its demand is growing because many shoes cannot be washed or repaired at home. People are concerned about their hygiene and health; hence they want their shoes to get cleaned and repaired. There is a good scope for you in this business as people do not have enough time to do this, plus they are not aware of the right procedure. To start this business, you would need a small shop on rent and equipment to clean the shoes plus manpower to help you do this. Ensure that you provide good services to your customers only then they would revisit your store.
22. Photography Business
People these days are going crazy for photography of their marriage, kids, pre-wedding, pregnancy shoot, birthdays, and much more. They want to capture every moment of their life, and for that, they are ready to spend an ample amount of money. You need to possess professional skills to be a good photographer; not everyone can do it. You must have seen multiple photo studios where people get the photos clicked for ID, work, or personal use but professional photography is much more than this. Wedding photography is a profitable business in India as people are ready to spend a massive amount of money on their wedding, especially in their pictures and videos. For starting this business, you would have to make a studio, and for that, you would need to make space for rent. You would also need good cameras, lenses, lights, tripods, and a few talented photographers in your team. Also Read: Top 20 Online Shopping Sites for Discounted Products in India
23. Departmental Stores
This can be a great option if you are willing to give time to your business as here you would have to spend time from 10 in the morning to till 8 in the evening. In a departmental store, people can do multiple things in one place, such as groceries, personal care products, branded food, confectionery items, and much more. These stores have become very popular these days because people like shopping here because they get everything in one place plus all the items are on display which makes shopping easy. Owning a departmental store requires a good investment, but it has tremendous returns. For marketing your store, initially, you can provide excellent offers and discounts so that more and more people get attracted to it. If you provide good quality products, then these customers would come back to your store again for sure.
24. Setting up Online Stores
E-commerce has become one of the most growing sectors in the 21st Several people think that setting up an online store would require a lot of investment, but that is not right. It has various benefits, such as affordable and convenient to set up, so it is said to be the best business ideas with 5 lakh investment. For starting this business, you would need to consult a website development company and get your website and online store created. You can select any product you are interested in, such as clothes, footwear, accessories, jewelry, home décor, furniture, etc. The best thing about it is that you need not set any physical store, and you can work at your convenience. Ensure that you sell high-grade products and deliver them on the date mentioned so that people can totally rely on your website.
25. Gym
People have become fitness freak these days and have become more inclined towards healthy living and eating. These are some of the reasons why opening a gym can be a great business idea. In India, people have a diet that comprises carbohydrates and fat. We also include a lot of oil in cooking which creates extra body fat. People have an unhealthy lifestyle because of long working hours and a stressful environment; all these factors together push people to work out and go to the gym. You can open a small gym with an investment of 5 lakh and can expand or increase the machines as more and more people join the gym. You would require a big space plus basic exercise equipment, AC, and a music system for starting the gym. Also Read: 25 Profitable Small Scale Manufacturing Business Ideas in India
26. Home-made Sweets and Sauces
Many people love to try different recipes and are super good at making them. India is a vast market for sweets and sauces. If you are aware of some traditional recipes for making them, you can start this business on a small scale initially, and as people like its taste, you can expand it. This business is one of the best business ideas with 5 lakhs investment as it can be started with an investment of less than Rs. 50 000 and all you need is some raw material to prepare the sweets, sauces, jams, and savories. You can pick any snack, sweet, or sauce in which you are an expert. As people have become health conscious, they like picking food that is home-made and hygienic. Ensure that you consistently provide good quality stuff so that people come back to you again, plus recommend it to their friends and family as well.
27. Home Maintenance Solution
Be it a commercial property or household, and both need maintenance and servicing after a while. You can start this business and include all sorts of services such as plumbing, repairing, cleaning, dry cleaning, electrical, pest control, and much more. People would love it when they get all the services in one place. You can keep various offers and discounts or charge them either for one visit or take an annual fee, and they can contact you whenever required. This business needs less investment, but you can earn well as you can charge a reasonable amount from your clients for every single visit.
28. Organic Food Store
Organic food is costly; in fact, it is double the non-organic products’ price. To stay fit and eat healthily, people are changing their food habits and food products as well. Especially in big cities where people have become more aware of the chemicals used in food products, they switch to organic food. The demand for these food items has increased for a couple of years, and it seems that it is a never-ending business. You can also open a small grocery store where you can offer all the organic stuff. You can also keep other items such as grains, pulses, pickles, sauces, etc., which are organic. For starting this business, you would need to take a small space on rent, contact a dealer who can supply all these products, and a refrigerator where you can store all these things as they are all perishable items.
29. Manufacturing of Toys
This business really needs creativity as you should be able to create toys that kids love. There are various kinds of toys available in the market: stuff toys made of plastic or wood. You can choose the type per your choice and knowledge or make the entire range of toys. Making toys is an art; hence, you need to ensure that you create such toys with which children can relate and enjoy playing with them. The investment in this business would depend on the type of toys you make and how many machines you set up. If you wish to set up a small-scale toy manufacturing business, it can be done efficiently in 5 lakh. You would need machinery, space for rent, plus a few employees working for you for this business.
30. Soap and Detergent Manufacturing
Both soap and detergent can be manufactured easily with man and machines’ help. You can also make exotic soaps as people like using different kinds of soaps. For starting a soap manufacturing business, you would need raw material, molds, and specialized vessels to boil the mixtures and a few employees. These are daily-use items, so the demand for these products always remains constant. In fact, handmade or herbal soaps are much in demand as people prefer using them over chemical soaps. Good quality products will ensure your success, so try and use an eco-friendly formula so that a lot of customers get attracted to your products. Recommended: 10 Best Long Term Investment Options in India These were some of the best business ideas with 5 lakhs investment. You can start with less capital at the initial stage and then expand it by doing hard work. Using these business ideas would be beneficial and supportive enough to help you set up your business at less cost. Make the most of your money by doing research and planning well.
