Most Profitable Small-Scale Business Ideas in India

Introduction

Small-scale industries are amongst the most important industries in India as most of the industries are of a small-scale nature and hence a huge chunk of India’s income is derived from small-scale industries. Further, small-scale industries are practicable and significant because most people cannot invest huge amounts of money if they are willing to start a business.

Even though banks and other financial/non-financial institutions may lend a loan, it will not be disproportionate to the existing assets/money which the individual owns. Further, it is not practicable for a person with no business experience to start off on a large scale even if he/she can invest as it would not be easy to manage and their whole investment will be at risk.

Therefore it is always advised that people start off with small-scale industries and expand as and when their businesses grow. There are a variety of best small-scale industries for those interested in starting their businesses.

Cake Baking Business:

Cake-baking businesses at home are becoming extremely popular owing to the fact that there is no hardly any risk in such business and it is also profitable. In cake-baking businesses, orders are received by the baker to make cakes and the baker can then buy the items required for making the cake and charge the client accordingly.

Currently for almost every occasion cakes are sought and pre-ordered, such occasions include birthdays, anniversaries, Christmas, new-year and other office celebrations.

Read More – Bakery Business Plan

However one of the main challenges being the entrepreneurs being able to secure enough orders to make it a desirable venture. Also, owing to the competition citing lack of any barriers, and stiff competition from professional bakers can be a huge challenge. However, the silver lining is that the customer base in this line of business is usually very loyal, a customer preferring your taste would most probably re-order as the product is an occasionally used item, and people usually don’t mind spending a premium for products with emotional significance.

Read More – Bakery Business Plan

Candle-Making Manufacturing Business:

Candles, especially scented candles are becoming increasingly popular and this is a simple industry that is small-scale and can be started from home itself. People have started using candles as pieces of interior decorations for their houses and it is also used for some religious purposes.

The candle-making business can be started at home with a low investment of only Rs. 20,000 to Rs. 30,000. Some of the most important materials that are required for such a business include wax, thread, molds, candleholders, thread, aroma, and oil. 

For any small business ideas, especially candle making, the major challenges in this line of business is the lack of customer base. Although these products are gaining traction in the Indian market, however the large chunk of population may not prefer buying candles unless it is a special occasion. These products may sell at a premium and have a high ticket value as these are great gifting items, however lack of exposure and cheaper alternatives may mean the entrepreneur may have a hard time getting rid of the inventory. 

Pickles:

In India, especially in the southern part of the country, almost every meal includes pickles. Pickles are extremely popular in an Indian household and they are a traditional food item that is in demand. In the past, people used to make pickles at home and store it, however in the current corporate world where almost everyone is working, it becomes almost impossible to have the time to make pickles.

This is the reason ready-made pickles from shops are becoming famous, and if a pickle business is started at home it is welcomed by customers. Home-made pickles are more healthy and more reliable. An average investment of Rs. 20,000 to Rs. 25,000 may be sought for starting a small-scale pickle business at home.

Pickle making is one of those small business ideas in India with low investment with high entrepreneurial participation, and equally large customer base. Due to the sheer demand of the products in this segment, running a profitable venture may not be as difficult as some of the other small businesses. However, high competition may have an impact on brand visibility. However like some other businesses, Pickles venture also has high customer stickiness, and since the product is also used widely, there’s a real chance of the entrepreneur making good and recurring money, if the product quality stands out.

Incense Sticks or Agarbattis and Camphors:

Incense sticks and camphor are traditional and religious needs for most households in India. They are bought regularly and if the quality of the products is good, then customers would buy from the business every time they are in need of camphor or agarbattis. The investment required to start such a business starts from Rs.50,000 for procuring materials including machines to make agarbattis and camphor.

The investment can go higher up depending on the number of products that the business intends to manufacture.

Just like some other fast moving product based businesses, Incense sticks and camphor businesses see a large base of returning customers. Also, citing the fact that the product differentiation in this segment is not huge, and more or less the quality levels and offering are similar irrespective of the brand. Also, considering that these products are widely used for personal purposes and at places of religious significance, smart partnership can help boost distribution. All these factors make incense sticks and camphor making one of the best small business ideas with low investment.

Handmade Chocolates:

Chocolates are among the most favorite consumables for children and for adults. It is commonly consumed and most often bought in bulk for celebrations. Homemade chocolates are one of the best businesses as people love to get different flavored chocolates that are made at home.

An investment of about Rs. 40,000 to Rs. 50,000 would be required for procuring raw materials and for packaging. The advantage of this business is that it can be done at home and can be stored for a long.

Just like some other businesses in the edible space, a venture on homemade chocolates has potential to do really well in India However, the challenge being the lack of trusting customers, especially when there are numerous alternatives being offered by some of the biggest fast moving consumer goods brands. Along with the huge variety of offerings offered by these brands, can make this business very difficult to survive. However, considering a small business setup, the clear advantage of homemade chocolates is the customizability on offer, and the sense of comfort regarding quality of materials used to prepare the same. With a small business setup, the entrepreneur can tailor-make the offering which most suits the occasion, giving it an edge over the big players.

Papad and Other Roasted/Fried Snacks:

Papad and other roasted/fried snacks such as chips and fryums have high demand in the country. This demand is due to the fact that rice is a major part of the meal we consume and such fried snacks taste well with any form of rice. Ingredients including wheat, oil, flour, and spices are generally required for starting such a business.

The investment for such a business ranges from Rs. 30,000 to Rs. 40,000. This business can be done at home, making it advantageous to entrepreneurs.

The easy availability of raw materials with a potential of entrepreneurs being able to secure them at a lower price makes the setup and operation of the business really easy and sustainable. However, the major challenge in this segment is the lack of customer trust. To bridge this trust gap, the entrepreneur should also focus on making a brand name for themselves, investing in a better packaging, and ensuring a decent distribution channel to keep the product visibility high for the potential customers. By doing this the business owner should be able to overcome challenges related to customer trust and make good money as the demand and consumption of such products is really good in India.

Jute Bags:

Jute bags are biodegradable and reusable making them highly beneficial for people on a daily basis. Especially in the present situation where plastic bags are discouraged and people are seeking to use environment-friendly products, jute bags are in demand. Apart from their necessity for shopping and storing products, they are also priced according to their designs – the more fashionable the bags, the more price people are ready to pay for the product. Making jute bags and selling them can hence be a profitable business.

A capital investment of approximately Rs. 50,000 to 1 lakh could be required to start the business.

It is one of the best low investment creative small business ideas with a bright outlook. The only challenge here is that the customers may not be willing to pay a premium for a bag as these are comparatively costlier to produce and buy. To overcome this, the entrepreneur can partner-up and establish a distribution channel with the bigger chain of stores like grocery stores, as along with other high ticket expenses, the customers usually don’t mind paying extra for a jute bag to carry back the essentials. Jute bags and sustainable clothing and material have a bright future in the small business industry owing to the fact that these products will have a demand with a constant upward trajectory.

Organic Soaps:

Organic soaps are highly in demand today because of their uniqueness and because they have good skin benefits. These soaps are acquiring a new place in the market due to their demand and it is one of the best small businesses to start. Raw materials such as oil, microwave oven, molds, herbs, etc. to make an organic business.

An investment of about Rs. 1.5 lakh to Rs. 2 lahks would be required for a production that is scaled.

With customers realizing the harm that chemicals pose on the skin, and a rise in demand for sustainable and natural products, there is a huge scope for products like organic soaps, and natural face masks, etc. The only challenge can be the customer’s hesitance since people are very careful of the products they’d use on their skin, as it should not pose any side effects. To overcome these challenges, the entrepreneur can invest to get the products clinically tested, and clearly call out the benefits of natural / organic products. Some online campaigns can also help along with the conventional marketing strategies to make such business ideas a success. Organic soap making is such a small scale business idea which can be turned into a big one in no time!

Nursery/Garden Products:

Nursery and Garden products are almost always in demand, and in recent times, plants have also become pieces of décor apart from being kept on the balcony. There are several indoor plants that people demand and there are even small areas on the terrace/outside the house that people desire to turn into a small garden. This is the reason nursery and plant businesses can be amongst the best small businesses. A person would require things like pots, mud, etc. to start such a business.

Handicraft Sellers:

Handicrafts are an art that is cherished and loved by many. Most people love to own and display hand-made products as they exhibit a sense of originality and craftsmanship making the products they make unique. Not much investment is required for the handicraft business, and many handicraft products such as photo frames, pots, wall-hangings, etc. can be made with low investment.

Also, people who are truly interested in handicrafts are willing to buy such products at a price much higher than those that are machine-made. Many business opportunities are available in the present day due to the number of products and the amount of population in the country.

Starting a business, even a small one, is not only nice in the sense that an entrepreneur gets to control his/her work, but it is also an opportunity to explore and venture into selling those products or services that one has a passion for. Several online businesses have been established during the pandemic and it has become a good way to be engaged and make money by sitting at home as most of the small businesses can be started from home.

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