The Indian government sincerely encourages entrepreneurship among young and ambitious citizens. While an increasing number of people are interested in setting up their businesses, most believe it requires a huge initial investment. Well, that is not always true. There are many businesses you can start in India with just Rs 1 Lakh.
Here, we will suggest the top 10 business ideas under 1 lakh. If you need instant funds, you can get a Business Loan from Hero FinCorp to get money for your startup. Once established, you can finance its expansion with a Business Loan.
Factors to Consider Before Starting a Business
Before embarking on your entrepreneurial journey, several crucial factors can influence your success. Assessing these elements will help you make informed decisions and minimise risks.
- Market Research: Understand your target audience and competitors to identify opportunities.
- Budgeting: Create a detailed financial plan that outlines startup and operational costs.
- Legal Requirements: Familiarise yourself with licenses, permits, and regulations necessary for your business.
- Location: Choose a strategic location that enhances visibility and accessibility.
- Scalability: Consider if your business can grow and adapt to changing market conditions.
Top 10 Best Business Ideas Under 1 Lakh
Are you looking for the best business ideas under 1 lakh in India? Here are some of the most lucrative options with minimal investment:
1. Incense Sticks (Agarbatti)
Making incense sticks involves blending herbs, essential oils, and resins onto bamboo sticks. The key to this business's success lies in creating sticks with various fragrances and effectively packaging them. Sales channels include wellness centres, online marketplaces, and spiritual shops.
Potential:
- Rising demand for organic and natural products.
- Expanding market in wellness and aromatherapy sectors.
- Diverse applications in homes, temples, and events.
Investment: Rs 50,000 – Rs 1 Lakh
Requirements:
- Ample water and electricity supply
- Raw materials like bamboo sticks, essential oils, resins, herbs
- Around 1000 sq. ft. space
Benefits:
- High demand
- Low initial investment
- Multiple sales channels
- High potential for earnings
- Export opportunities
Tips For Success:
- Focus on quality and unique fragrance combinations.
- Utilise social media for marketing and brand awareness.
- Explore partnerships with retailers and online platforms.
- Understand customer preferences to tailor offerings.
Read Also- 10 Best and Easy Business Ideas in India
2. Jute Bags
Manufacturing jute bags means creating eco-friendly bags from biodegradable jute fibre. You can style them for multiple purposes, including fashion, storage, and shopping. It is one of the best small business ideas in India under 1 lakh that requires minimal setup and a sense for functionality and design. Market your business through online platforms, local markets, and eco-friendly shops.
Potential:
- Increasing consumer preference for sustainable products.
- Rising awareness of environmental issues.
- Expanding market in retail, fashion, and promotional items.
- Government initiatives promoting biodegradable materials.
Investment: Rs 30,000 – Rs 70,000
Requirements:
Raw materials like jute fabric, dyes, printing gum, buckles, hooks, packaging materials
Equipment like fabric cutting machine, cottage steamer, side sealing machine, sewing machine
Chemicals and auxiliaries
Benefits:
Cost-effective
Eco-friendly
Goodwill
Scaling opportunities
Tips For Success:
Focus on unique designs and customisation options.
Build an online presence through social media and e-commerce.
Collaborate with retailers and eco-friendly brands.
Stay updated on market trends and consumer preferences.
3. Bakery Products
Bakery products include fresh baked goods like cookies, cakes, and breads. The key to success depends on the distinctiveness of products and the quality of ingredients. Sales channels include local markets, online stores, and farmers' markets. You can also accept custom baking orders for special occasions and events.
Potential:
Rising consumer preference for artisanal and specialty baked goods.
Opportunities in online delivery and catering services.
Expansion of health-conscious products like gluten-free and vegan options.
Continuous growth in the snack and dessert market.
Investment: Rs 80,000 – Rs 3 Lakh
Requirements:
Kitchen equipment like ovens, refrigerators, mixers, utensils
Well-designed display area
FSSAI state license
Benefits:
Tips For Success:
Focus on high-quality ingredients and unique recipes.
Build a strong brand identity through packaging and marketing.
Leverage social media to showcase products and promotions.
Offer seasonal items and specials to keep customers interested.
Read Also- Small Business Ideas With Low Investment
4. Spice Mixes & Blends
The business involves producing unique spice mixes and blends for different cooking dishes. Develop flavourful, unique combinations with unique branding and packaging. Gourmet cooks seek these products at online platforms and grocery stores.
Potential:
Increasing global interest in ethnic and regional cuisines.
Growth in the health and wellness sector focusing on natural spices.
Opportunities in online sales and subscription boxes.
Rising trend for ready-to-cook meal solutions.
Investment: Rs 50,000 – Rs 1 Lakh
Requirements:
Benefits:
Tips For Success:
Experiment with unique flavor profiles to attract customers.
Focus on quality sourcing and sustainable practices.
Develop attractive branding and packaging to enhance shelf appeal.
Utilise social media to engage with customers and promote products.
5. Fashion Jewellery Making
If you have an eye for jewellery design, you can start a business of designing and crafting fashion accessories using various materials like metals, stones, and beads. To succeed, keep up with the fashion trends or offer custom designs. Market your business through online marketplaces and local boutiques.
Potential:
Increasing demand for personalised and handmade jewelry.
Opportunities in online platforms and social media marketing.
Growth of fashion trends favoring costume jewelry.
Collaborations with boutiques and fashion influencers.
Investment: Rs 1 Lakh – Rs 2 Lakh
Requirements:
Benefits:
Tips For Success:
Stay updated on the latest fashion trends and consumer preferences.
Build a strong online presence through social media.
Network with other artisans and attend craft fairs.
Focus on quality craftsmanship and customer satisfaction.
Read Also- 15 Business Opportunities in India
6. Customised Phone Covers
Make your business appealing to smartphone users looking for personalised phone covers. You will need digital tools to design these cases and offer fashionable options to your customers. Attract a wide customer base by providing durable, high-quality prints with stylish designs.
Potential:
Rising demand for personalised and unique phone accessories.
Growth in online sales through e-commerce platforms.
Opportunities to collaborate with local artists and designers.
Target various customer segments, including youth and professionals.
Investment: Rs 1 Lakh – Rs 3 Lakh
Requirements:
Raw materials like plastic, leather, silicone, metal, wood
Designing software
Printing machines
Benefits:
Tips For Success:
Utilise social media to showcase unique designs and promotions.
Offer customisation options to attract a broader audience.
Build strong relationships with suppliers for quality materials.
Stay updated on smartphone models to provide relevant products.
7. T-Shirt Printing
T-shirt printing caters to clients looking for customised clothing for personal wear, promotions, or events. Learn and use digital and screen printing techniques to offer high-quality, customised T-shirts to your customers.
Potential:
Increasing demand for personalised apparel in fashion and events.
Opportunities to target niche markets, such as sports teams or events.
Online platforms enable wider reach and direct sales.
Collaborations with local artists can enhance unique offerings.
Investment: Rs 1 Lakh – Rs 5 Lakh
Requirements:
Benefits:
Tips For Success:
Leverage social media and influencer marketing to showcase designs.
Offer limited-time promotions and discounts to attract customers.
Invest in quality materials for durability and customer satisfaction.
Continuously seek customer feedback to improve designs and offerings.
Read Also- Best Small Business Ideas for Rural Areas, Villages, Small Towns in India
8. Event Management (Small-Scale)
A small-scale event management business involves planning and executing birthday parties, intimate weddings, baby showers, and other small events for clients. You will need creativity and organisational skills to handle different aspects of the events.
Potential:
Growing demand for personalised, themed events.
Opportunities for recurring corporate clients.
Popular for weddings, birthdays, and small gatherings.
Networking builds a strong client base.
Investment: Rs 50,000 – Rs 5 Lakh
Requirements:
Benefits:
Set your own work schedule
Create a network of vendors and industry professionals
Repeat customers and referrals
Tips For Success:
Focus on niche events like themed parties.
Build a portfolio of past events to showcase expertise.
Maintain strong vendor relationships for competitive pricing.
Provide unique customer experiences for referrals.
9. Upcycled Furniture
By setting up an upcycled furniture business, you can refurbish discarded furniture into functional pieces. You will need creative and restoration skills to create desirable home items. Selling channels include interior design shops, social media, flea markets, etc.
Potential:
High demand for eco-friendly, unique designs.
Cost-effective production.
Popular among urban customers.
Promotes sustainability.
Investment: Rs 70,000 – Rs 1.5 Lakh
Requirements:
Raw materials like wood, metal, textiles, glass, ceramics
Repurposed wood insulation
Carpentry tools
Benefits:
Tips For Success:
Focus on vintage or rustic designs.
Market through eco-conscious platforms.
Offer customisation services.
Use social media to showcase before-and-after pieces.
Read Also- How to Start a Business - A Step-by-Step Guide
10. Handmade Candles
With this business option, you can craft candles with materials like essential oils, colour dyes, and natural waxes. Many local boutiques, online platforms, and craft stores demand these candles for their aesthetic appeal and fragrance.
Potential:
High demand for scented candles.
Customisation for special occasions.
Popular for gifting.
Growing interest in eco-friendly products.
Investment: Rs 20,000 – Rs 1.5 Lakh
Requirements:
Raw materials like wax, dyes, fragrance oils, moulds, wicks
Equipment like double boiler, weighing scale, thermometer
Packaging materials
Benefits:
Low investment
Easy to sell
Scalability
Space for creativity
Tips For Success:
Focus on unique scents and designs.
Build a strong online presence.
Offer bulk discounts for events.
Collaborate with local gift shops.
How Business Loans Can Help You Expand a Business in India?
Here is how a Business Loan from Hero FinCorp can help you expand your business in India:
Ample loan amount of up to Rs 40 Lakh
Competitive interest rates
Flexible repayment terms of up to 60 months
Online loan process
Quick approvals and fast disbursals
No collateral requirement
Read Also: What is the Maximum Loan Amount for a Startup Business?
How to Apply for Business Loan Online?
Follow these steps to apply for an online Business Loan at Hero FinCorp:
Visit the Business Loan page on the Hero FinCorp website and click ‘Apply Now’.
Complete the required fields and upload the necessary documents.
Enter the desired loan amount and tenure.
If you meet the criteria, you will receive a reference number.
A representative will contact you for further details.
After verification, you’ll receive a personalised loan offer.
Once you accept, the loan amount will be disbursed to your bank account.
Read Also: How to Get 10 Lakh Business Loan?
Conclusion
These business ideas under 1 lakh are suitable for people with varying requirements and inclinations. You can choose one based on your passion and financial situation. Once you establish your business, you can apply for a Business Loan from Hero FinCorp and expand your operations.
Frequently Asked Questions
1. Which business is 100% profitable?
Out of these business ideas under 1 lakh in India, the incense sticks business is quite profitable due to its high demand and low initial investment needs.
2. Can I start a business under Rs 1 lakh without prior experience?
While prior experience will help you succeed in the business, you can still make a start without it. Take expert advice, learn from your mistakes, and do your best to succeed.
3. Is Rs 1 lakh enough to start a profitable business?
Rs 1 Lakh is enough to start any of the abovementioned small business ideas in India under 1 lakh.
4. What legal formalities are required to start a business under Rs 1 lakh?
GST registration and proper licensing are necessary to start any of these business ideas under 1 lakh. You will also need an FSSAI state license if your business involves a food product.
5. What are the potential risks of starting a business with Rs 1 lakh?
Risks include limited financial resources, market fluctuations, and stiff competition from larger players.
6. What are the potential challenges of running a low-investment business?
Challenges include managing cash flow, building brand recognition, and competing with established businesses.
