In India, the world of business has progressed in leaps and bounds. The expansion of ideas and the acceptance of unconventional strategies and ideologies has been vastly welcomed in the previous decades.
Startups have become the talk of the hour. With a struggling economy and a third world status, the Indian startup culture has managed to earn recognition globally. Bangalore, which is also considered the tech city, is widely known as the hub of the Indian startup scenario.
From high school and college students to the next door neighbor to your MBA graduate – everyone has their own idea of a startup and some eventually manifest those ideas into a successful business.
The startups range from a development of your app to a YouTube channel to a theatre group. Multiple startup ideas are feasible within a small budget. It is eventually not the amount of money you put in, but the creativity and uniqueness of the business proposition that matters. Even startups with a minuscule funding or a rather low budget can be a huge success depending on the business ideas and its execution.
Hence, startups have become a trend among the younger generation today. However, not everybody can support an extravagant idea and needs to start out small. Also, startups come with a huge risk, and it is not always suggested to take high risks when you can take a few affordable ones.
Here are a few ideas that can you can start with a budget of under 2 lakhs and not put a big hole in your pocket while living your entrepreneurial spirit.
Ideas for business
1. Stationery Store
Related: How to Open a Stationery Store
A stationery store can be one of the major business ideas for a beginner. The break-even period for a stationery would be around 1-2 years at the most.
Develop slowly on your collection and always remember to check how it is working out and make changes accordingly. The gross profit percentage estimated for a stationery shop would be 10-15%. There is not much probability of your stationery shop running in complete loss because stationery forms one of the basic necessities. Start out slow and increase the number of things you offer based on the reaction of your customer.
Gross profit margin is close to 10-15%. Information on how to set up a stationary store can be found here.
Pro Tip: Try to be innovative with your collection of stationery to increase your profit percentage. While it is important to concentrate equally on every aspect of your business, the first step to any successful business is settling on a target audience and reaching out to them. In case of a stationery shop, the target audience would mostly include school and college students. With a generation following Tumblr and Pinterest, the use of creative and original ideas with the perfect amalgamation of quirkiness and sass becomes of utmost importance.
2. Seasonal Business:
A seasonal business would be something that you work on and yield profit from based on a period of its requirement annually. For example, kites, firecrackers, rakhi, gulaal, etc. can be good ideas for seasonal businesses. With the income period being only a couple of months annually around the time of its requirement, the gross profit percentage must be made higher than your everyday start-up. Advertising and marketing plays an exceptionally important role in the case of seasonal businesses.
This is the perfect upcoming business idea for individuals who want a small business but aren’t able to offer a year-round commitment. Seasonal businesses mostly target festivals and there is no denying the options offered by India are in abundance.
A seasonal business plan fits perfectly for the student who has a couple of months to spare between college breaks, women who spend a considerable time on home-making and people who aren’t able to give their complete attention to a start-up immediately.
The golden rules for setting up a seasonal business can be found here.
Pro Tip: Your seasonal business can range from selling dry fruit collections and sweets on Diwali to jewelry design and custom-made thalis during Karwa Chauth to cupcakes and other baked goods for Christmas.The idea behind a seasonal business is that the break-even period isn’t long. Your investment yields result immediately.
Related: How to Start a Seasonal Business
3. Provision Store:
This is another one of the most common ideas for a business. A provision store is one of the basic amenities people search for and most people will agree that there can never be too many of these.
The general break-even period for this business is around 2 years with a gross profit margin of 10%.The basic idea behind a provision store is to stack products that are needed in everyday life. To go a step further, judge the area the store has been set up in and include products in the store accordingly. Try to make available all items that would be required by the clientele in your specific area.
The key to any business is to judge the need of your clientele and provide accordingly. Consider delivering to short distances as and when you expand. In a world of instant gratification, nothing enhances marketing and advertising strategies more than home delivery.
Always remember it is absolutely alright to add and remove items from your store based on their sale and profit earned. More information can be found here.
Pro Tip: Try to stock up on stationery, cosmetics and the most absurd things like cardboard boxes, papers, streamers and small craft items, if the store is set up near a college. If you’re setting up a provisional store near a residential area include more of the home development items.
4. Game Parlour:
What can be better than turning a hobby into a full-fledged business? Youth today are more invested in the online world and turning that into a business can prove to be a masterstroke. The prospect of starting a game parlour is a result of the rapid strides made by technology over the years and with an investment of under 2 lakhs, it is quite possible to set up your own gaming start-up.
The significant portion of the investment would go into hiring a small space and purchasing PCs. It would be wise to purchase second-hand PCs, as they would easily fulfill the core purpose, that is gaming. Regular market research is required to keep yourself updated with the trending games. Networking is important. Attracting customers should also be a major concern. Half of the battle is won, if the gaming café is at a prominent location.
Other methods include in-house contests, social media marketing, etc. Break-even period for this business is 12 months. Expected gross profit margin is 10-15%. If you plan your cards right, a gaming business can be quite a lucrative venture. Check this out!
Pro Tip: The PC’s should have good connectivity with each other, as hitches during gaming is the major cause of gamer dissatisfaction.
5. Custom Gift Making:
Personalized gifts often help the recipients celebrate important dates, memorable moments and joyous occasions. This includes a range of individual ideas, like key-chains and photo frames, to group gifts like commemorative gifts. Custom and personalized gifts can prove to be a viable business option for individuals with creativity and tenacity.
Moreover, it includes a low-budget investment as low as Rs. 2 Lakh, as a significant portion of the money would go into buying tools and material. Renting a commercial space is not needed as this business can be conducted, right from your house. Break-even period for this business is 1 year. Don’t forget to see this!
Pro Tip: Try to consider every option for personalizing gifts. This can include etching, engraving and painting, while createyour own custom gift business.
6. Food Truck:
Lately, food trucks have become quite the norm in the evolving restaurant business. Many young business-minded people consider a food form to be an ideal area for a startup and it provides them with a diverse market, as well as access to multiple locations at an initial capital investment that is much lower than what is needed to open a restaurant. The main form of investment goes into the vehicle.
Most people prefer to use a secondhand vehicle. The dimensions depend upon the cuisine being offered and the vehicle can be remodeled and redesigned. A proper choice of location where there is clear visibility and an absence of competitors around can boost sales. Purchasing kitchen equipment and hiring manpower is the other significant cost that is incurred.
However, the net returns can easily outweigh the investment in quick time. Hence, an investment of 2 lakhs can help you start your own food startup! Here is a simple way in just 10 steps.
Related: How to Start a Food Truck Business?
Ideas for Startups under 2 Lakhs
1. Housekeeping and Cleaning Services
The population is the urban areas of the country are booming by the second. More and more people are flooding into the cities in search of better opportunities, and hence, there is always a need of proper maintenance of the accommodation.
This is one area which young entrepreneurs can exploit. The shortage of skilled labour in this field has led to a significant demand for these services. The trend today amongst employers is that they offer hourly payments to attract as well as retain talent in this sector.
With a basic budget of under 2 lakhs, young business-minded people can start off by hiring 2-3 people for labour and then pitch to other businesses and firms. Find out how.
2. Accountancy Services
The current scenario of the corporate world is much different than what it was a decade ago. An extravagant increase in work pressure has resulted in many organizations leaving their staff overburdened. Moreover, companies nowadays need to put in extra effort for maintaining their accounts and b compliant with regulatory requirements of the Ministry of Corporate Affairs. Quite often, they are understaffed.
This is one avenue where people aspiring to establish a low budget start-up can exploit, as most companies often require a significant number of bookkeepers and accountants. You can easily start off a small accounting firm by hiring an established chartered accountant and 2-3 interns.
You can start as a small accounting start-up that provides low-cost accounting services and builds your way up from there. More information can be found here.
3. Mobile / Computer Servicing and Repair Services
The workforce to be hired can be low, as even one capable person would be enough for functioning. A major part of the investments would be used in purchasing tools and a commercial space to set up the start-up. This page will help you out.
4. Trip Planner
This is not among the conventional ideas for a start-up. Multiple opinions goes against the idea of this particular start-up. However, if done properly, a trip planning business has a break-even period of 1-2 years. There is not much of an investment as there is research and marketing involved in this.
The trick is to know what you’re up against. There are multiple apps available on the iStore and Google Play that plan the trip for you. You aim is to provide a human touch to the entire deal and come up with innovative plans and ideas. Try unconventional methods and pick out unique ideas to attract the client.
Similar to all businesses, it helps to know your client base. With trip planning, you are bound to target clientele across generations. It is important to understand the expectations and needs of all and not to compromise on customer satisfaction.
Try to keep apart people with opposite interests and since a major part of your work is dealing with people, try to master the art of communication before all else. Here is a guide to help you out.
5. Content writing agency
Content writing forms the very foundation of the field of journalism today. It is an up coming business idea that can go two very different ways depending on how you handle the business – it may yield a good profit percent or cause you a pretty decent loss.
Content writing is basically providing write ups to clients on a wide array of topics ranging from blog posts to product descriptions, based on their specific need. It is of utmost importance that you have a dedicated team of writers as well as editors for our business to take off.
Start small and begin to incorporate writers and more clients as and when you expand. Most websites are dire need of these particular businesses.
While customer satisfaction plays a very important role, employee satisfaction plays a gigantic role in the mix. Content writing can yield a gross profit percentage of 10-15% which is quite large. This Forbes article can help you out.
6. Android App Development
It is noticeable that a significant majority of mobile users prefer utilising the Android platform and hence, it has become mandatory for businesses to develop an Android App in order to connect with its target audience easily.
More than the development of the app, the real pressure lies in need to stand apart from the rest of the crowd and develop an app that is capable distinguishing the developers from most of the bigger names in the app development market.Mobile applications, when developed and run the right way, can reap huge benefits, as it is the easiest and the most efficient way to cater to the millennial generation and keep them interested in the business and its products.
In such a scenario, setting up a start-up that caters to the application-based needs of various can be a very profitable idea.
Youngsters today are investing in this idea and a large number of start-ups have emerged in this field. This investment is also quite low, easily under two lakhs, as large-scale investments such as commercial space and a large number of employees can be avoided. A well-experienced team of 3-4 members is enough to setup this start-up and alongside proper marketing, a steady influx of projects can easily result in quick profits.
The app development team must first have a thorough understanding of the business, and it’s target audience before it starts executing their business application development plan.
They must be able to learn from the mistakes of their competitors and the other businesses while they developed their mobile applications so that they avoid repeating the same. Find out how to start an android app development business here.
A start-up can be quite time-consuming and hectic with regard to its planning. However, once you are able to establish it, your hard work truly pays off. Some start-ups require a longer break-even period when compared to the others. It is of utmost importance to stay patient and keep working towards those. However, it is also important for an individual engaging in a start-up to know when it is time to stop investing. The entire idea, much like most businesses is to be resilient but also know when a business may be failing and try something new.
Another trick to a successful start-up is to ensure the complete satisfaction of the client and the employees at the same time. It is also essential to establish workplace ethics and a friendly atmosphere. Another essential point is to develop commendable communication skills. More often than not, communication becomes pivotal to the development of any start-up, especially ones dealing directly with clients.
Most of the above-mentioned start-ups are achievable within limited means.
However, they also demand a formidable amount of dedication and commitment from the individual.
Remember to be flexible about your ideas and never back down from constructive criticism. The key to turning your start-up into a successful business is to have the correct attitude and investing into your start-up with all you have.With the correct amount of planning and the ability to remain focused and flexible, you will be able to establish the business you have aspired for.