In a country like India, where there is so much unemployment; startups prove to be a great idea. While some people are pretty satisfied working for 9 to 5 jobs, or even for longer hours than that, some people want to set up their own business. People often think that there is much capital required in starting a business, but this is not true, you can always start your business either online or offline with low investment.
Even some of the most famous entrepreneurs in the world started their business with very low investment. The best example is that of Facebook, it was started by Mark Zuckerberg and his college friends in a dorm room but is now one of the leading businesses in the world.
Here I have mentioned both low-cost internet based businesses and low-cost offline businesses, so you can choose which suits you the most. These businesses are also the most profitable Indian businesses, according to their start-up cost range.
1. Incense Stick Manufacturing
Incense stick also popularly known as Agarbatti has a unique purpose in our community. It is being burnt in religious as well as social functions from centuries. It is used in Indian homes as a fragrant fumigant and is known to possess insecticidal and antiseptic properties. It is a labor-intensive cottage type of traditional industry. Agarbatti is being used by communities residing in India, Sri Lanka, Burma and by Indians residing abroad. Moreover, it is an export-oriented business. About 90 foreign countries are currently using agarbatti. It requires the use of low-level technology. Hence, it can be easily taken to rural areas, thus, implementing the rural industrialization policy of the government to a large extent.
If you decide to manufacture 2,25,000 packets per month and sell them at a rate of Rs. 2.3 per pack then the minimum investment required would be around Rs. 4,93,113 which includes all the expenses(cost of machinery, working capital, production cost, and other expenses). This would lead you to a net profit of 7.11% with an ROI of 30.94% per annum. This is the reason due to which Incense making is one of the most profitable businesses in India if we consider all the low investment businesses. Most of the raw materials can be acquired from Mysore and Bangalore.
2. Bus Service Website
This is a low-cost internet based business which can make you a millionaire. As 90% of people travel by buses in India and people always prefer to know beforehand the schedule of buses and all the details related to them like ticket rates, bus route, etc. So it can be an extremely profitable business and that too, with a meager investment if you allow people to book buses from your website or an app.
A bus service website like Redbus.in which provides details regarding all this would prove to be very useful. It shall also provide details of the channels from which the ticket can be booked or can earn their commission by booking the tickets themselves. This business requires accurate knowledge of interstate and intercity bus routes. However, it is essential to have excellent IT skills to maintain the website and communicate with the customers. This business entails a minimum investment of Rs. 2,00,000 and the expected gross profit is close to 10%. The minimum interval needed to achieve break-even in this business is five months.
3. Housekeeping Services for Hotels
According to the Federation of Hotel and Restaurant Association of India (FHRAI), India will need 15 million hotel rooms in all categories by 2020. So demand by hotel authorities to keep their rooms sparkling clean is paving the path for this business to grow. To succeed in this domain of the business world, you would require excellent communication and management skills. It calls for a low investment of Rs. 3,00,000 and provides a gross profit of almost 20%.
4. Shoe-Wash Company
In earlier days, people used to clean their shoes on their own, but those were canvas shoes which could be cleaned using old toothbrushes and detergent. Nowadays, people have started using trendy sneakers, and they wish to maintain them properly. Thus, if you are an expert in the field, i.e. possess a fair degree of marketing skills and knowledge of how to use chemicals then this business can turn out to be a great success giving you a gross profit of nearly 40% with a low investment of Rs 2,00,000-3,00,000 for a small scale business. There are a total of 1.25 billion people, and each person in India has one pair of shoe on an average, so this business can also prove to be the most profitable business for you.
5. Property Management
If you have a minimum start-up budget of Rs. 3,00,000, this business can prove to be very profitable. You need to get hold of a proper workplace and be ready to take the responsibility of the detailed documentation procedures and documents of the clients. Thus, saving a lot of their time. The pre-requisite for this business is adequate sales and marketing skills. Moreover, you can expect to achieve a gross profit of around 50% and can attain the status of break-even within a month.