For many of us, starting a business is a dream. But we cannot start a business as we do face many barriers and limitations. We are afraid of uncertainty. This is one of a few reasons people cannot start a business in India. Starting small may be a great help for those who do not want to take a big responsibility and risks. These are also suitable for beginners who want to start their business at a low cost. So, here, I have made this post on small scale business ideas in India with preferable resources and analysis. I hope you will find my post resourceful.
Contents of “Small Scale Business Ideas in India”
“Business Ideas in India and how to implement them” will be elaborating the economy of India and how it’s supportive for starting new businesses in India. The title is pretty self-explanatory. The topic has a collection of business ideas which are suitable to implement in India. It will elaborate on the economic advantages of starting a business here. In the next part, it has the SWOT Analysis and the PEST Analysis of India. The business ideas section has a collection of small, medium, and large-sized business ideas. In the later part, this post will explain how to create a strong plan and execute the plan to start a suitable business in India. It also has the legal part which elaborates the legal procedure of commencing a business here.
For Who these Indian Business Niche Ideas are Created For?
This post is prepared for three types of people. For the entrepreneurs, it will give an idea of how to start a business in India. For the people who are thinking of starting new businesses but do not have an idea, will have a bunch of different business ideas. And the last group of people, who already have an existing business organization, will have the idea of the current economic condition and the possible opportunities to expand their businesses.
An Introduction to India’s Economy
Before starting a business in India, you must learn the current economic position of India (which is a macro factor) and the future of it.
India is a country of Southeast Asia. It is the second-largest country by population and seventh largest county by area in the world. India shares six land borders consist of Pakistan, China, Nepal, Bhutan, Myanmar, and Bangladesh. As India is surrounded by these six countries, it gives this country an extra advantage of starting import-export businesses over other countries.
The geographical location of India gives it opportunities to be economically stable. It also has nearness with Sri Lanka and the Maldives. Additionally, India’s Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia. India has the biggest coastline in the world which is about 7516.6 kilometres. The shipping is serviced by 12 major ports. Other 200 ports are notified as minor and intermediate ports.
Advantages of Starting a Business in India
Before discussing the small scale business ideas in India, we will explore the advantages of implementing a business idea in this technologically advanced country.
- India the largest democratic country with 1.2 billion people; therefore the domestic market is huge.
- The stable political environment of India gives any business organization to be functional easily.
- Well established judiciary to enforce the rule of law.
- It has abundant natural resources
- The diverse climatic conditions give great opportunity to do agricultural business in India.
- The economic growth of India will start to outpace China’s within a few years. As a result, India will become the fastest economy with 9 to 10 per cent growth over the next 20-25 years (Morgan Stanley).
- The labour force of India is 530 million nearly. A study (McKinsey) found that the economy of India may grow 5-fold in the time of the next 20 years. The English speaking population is on growing phase. The numbers of online business websites, personal blogs, and affiliate marketing are on the growing phase.
- There is cost competitiveness in India; also, this country has low labour costs. It has a large pool of strong knowledge base population and skilled manpower.
Benefits of Starting a Small-sized Business in India
There are benefits of starting a small business. First, you are starting small and so the risk you are taking is low. This risk can be avoided by following a few simple risk management process steps. But also, you can switch at a low cost if you are in danger. Second, unlike big businesses, you can make unique offers to your customers. Third, you can take care of your customers by yourself. By this, you can provide quality services. Finally, you can keep the money local. The money in a certain area circulates and helps to thrive in that area. So, your business is doing good for the area as well.
Small Business Ideas in India
The post on top rated business ideas are segmented into different groups that consist of money making ideas for home, business ideas on basic needs, internet business ideas, low or no cost business ideas in India.
Home Based Business Ideas in India
Business Plan writing – it is one of the great ideas if you are a business student. Then you already know how to collect information on a specific type of business and write a formal business plan from it. All you need to do is to create an online gateway to reach people, build trust, market your service, and take orders from people.
Freelancing – Freelancing is doing your work without doing a job under a company. You can take work from an individual or a company. In the first idea, we talk about writing business plans. For a business plan, for example, a person needs to collect information from a specific industry in India. Here, you can take the work and deliver it on time.
Buy-Sell Old Products – Everyone knows there is a big market of used products. In India, the market is huge. You can go to an online marketplace, open an account, and start trading. You need to buy the products that are still functional and do not have any internal malfunctions, in the case of smartphones. Trust is a big issue in this type of business. So, you can buy a product at a low price and sell it at a high price. The price gap is your profit.
Content Writing – content writing is getting popularity in India day by day. Because, everybody can do it including teachers, students, housewives, or a full-time job holder. Anyone has a small portion of time in a day can bid for work in Upwork, and do the work in the weekend. It is not a big deal taking work from the online marketplace if you have a good educational background and a strong online profile.
Fashion Consultancy – A great money making ideas that can be started by women.
YouTube – a strong source of online earning. You can make videos on different subjects and then publish it through your YouTube channels. The only earning option available is Google Adsense.
Computer Training – There will always be a demand for technical knowledge and skills. Different types of training, for example, MS Office has demand. People want to learn this type of things. What you need to do are to purchase computers, hire a room for a training centre, and small promotional activities in your area.
Gardening Advice – Gardening became a strong hobby in the city area of India. Many people want to start their home gardens in balcony or rooftop. You can offer continuous guidelines on this. You can also offer physical help. An online earning method like Adsense may bring help also.
Aquarium/Ornamental Fish – This is a common yet demanding product in the market. Gatliff Street Pet Market is one of the markets in India. Setting up a physical market might need a large investment. You can work as a supplier of aquarium water and chemical supplier. You can also breed different ornamental fish in your home and sell it to the retailers.
Pigeon Farming – for breeders, it is the best business idea in India. If you have affection for pigeons and want to start money earning source as a student, you can start this pigeon farming business.
Best Small Scale Business Ideas in India on Basic Needs
Tea/Coffee Shop – Tea and coffee shops have a demand in this subcontinent. It is a small business idea that can be implemented with a small amount of money needed. But you need to add some unique features with this business. It will be better if you add some more space and set up a book library where people will come and read books.
Desert Shop – health-conscious people like a desert. Also, these types of foods are becoming popular. You need to set up a shop in a public place where a flow of people occurs at a certain time of day.
Food Truck – same as desert shop. It can be a good idea if you want to establish a food brand. Also, you can supply foods to the office area where generally foods are difficult to be found.
Ice-cream parlour – this is a narrow business idea. You only sell different types of ice cream here. Day by day your reputation will be increased and the customers will be increased as well.
Juice Bar – same as a food truck or ice-cream bar. This has a good profit margin. Just make sure that you provide fresh juice to the public. All you need to do is to wait for couples of weeks. If your products are good, people will automatically feel attracted to your fruit juice.
Organic Foods – Organic foods are those foods that are naturally growing. You do no use any breeding formula to grow and modify genetically.
Dieting Charts – Consult with people and give them solution by providing dieting chart for individuals.
Blogging – on restaurants and introduction of new places through your blog.
Travelling Guide – this can be a very feasible idea if you want to market an area where you are currently living. You should offer a consultancy service online to give guidelines to the travellers who are interested in the area. You can offer this service online via Skype, Whatsapp, or Viber.
Online Business Ideas for Tech Geeks in India
Blogging – anyone can start personal blogging. It offers a nice opportunity to offer knowledge sharing staying at home. You may have a strong knowledge base on mother care, relationship building, or teaching.
Affiliate Marketing – Affiliate marketing is spreading rapidly in India. The main reason is the availability of cheap technology. the guidelines are available on the internet and surprising fact is, most of them are free. So, you can use those free resources to start your affiliate marketing site in your country, India.
SEO Consultancy – local businesses are booming in India. Some of these businesses are already maintaining online websites to deliver information about their products and services. Rest of them will be online soon as the competition has been spreading on the internet. As a result, the demand for search engine optimization will be increasing. So, there is a high potentiality of the career SEO consultants.
Website Selling – many people want to start their blogs. But, the main problem is that many people lack technical knowledge of developing and launching a website or blog. You can offer a service websites for them and charge an amount in return. You can do the same for the local business owners as well.
Content Writing – with the increasing number of web publishers, the demand for content writers have been increasing as well. The number of personal blogs and websites are growing. You can start as a content writer and offer writing services to bloggers.
Sell your Researched Keywords – KW research is a part of niche research. It’s time-consuming work to do. People who are maintaining multiple websites, blogs, or affiliated websites do not have much time for the research. You can offer this service to them.
Business Ideas with Low or No Investment and High Profit
There are a few businesses or money-making ideas that can be implemented without or very log investment. These are knowledge and skill dependent businesses. I have made a list and discussed those businesses in the above idealist. Some of the ideas are personal blogging, affiliate marketing, SEO consultancy, or social marketing.
About Business Alternatives, Plans, Strategies, and Implementation
Which Business Idea Should You Start in India?
Choosing a small business idea in India is the most crucial part. If you can do it wisely, you will be able to be run the business successfully.
First, check your knowledge base in the case of personal blogging. Suppose you have studied in public health. You can start your blog on dieting perhaps. Second, make a list of the things that will require money. Make a budget within your capabilities. Always, keep a portion of your capital for future use. Finally, make a business plan that you will need when you implement your idea.
Performing SWOT analysis for the competitors in India
If you have strong competition in the area where you are planning to start your business, you need to conduct a SWOT Analysis. It will let you know the strengths, weaknesses, threats, and opportunities for the competitors. Also, do the SWOT for the industry as well.
Conducting Business Research
Before making a business plan, collect all of the necessary data related to your business. Also, you should conduct market research. You can survey to have an idea about the demand of the products. A case study of a company from a similar industry may help you to understand the business better. You can also talk with the businesspersons who have been doing business in your industry.
Process of Business Planning
This is a very important work for you, making a business plan. A business plan includes the detail of your product, your financial budget for the business, idea of future earning, current condition of the industry, SWOT & PESTLE analysis, you target customers, financial profit-making idea, future sale forecast, business CANVAS, and marketing strategies.
How to start a Business in India [Legal]
This is a legal procedure. You need to fulfil many formalities to start a business in India. For online businesses, for example, personal blogging, the requirements may below.
You need to obtain several things such as PAN Number from Income Tax Deptt, a Current Account, Register For Service Tax & VAT/ Sales Tax, Shop & Establishment Act, File Entrepreneurship Memorandum at DIC, Find State Specific Guidelines & Procedures, Employees State Insurance (ESI) Scheme, and Employee’s Provident Fund.
The requirements above are applicable for a sole proprietorship. We have taken the data from Smallb. Please visit for detail information.
Additional Readings on Indian Economy Analysis to Implement a Money Making Idea:
SWOT Analysis of the Indian Economy: is it suitable for small business ideas for India?
This SWOT analysis is made from the information available in the year 2015; therefore it will lose relevance gradually in time as the economic variables change. We do not ensure 100% accuracy of the analysis. I recommend you to conduct SWOT on your own before starting your own business.
Strength of Indian Economy
- Agricultural land – Cultivable land nearly 57%; low-cost lands.
- A large number of English spoken people; the literacy rate is high,
- The high growth rate of the economy
- The rapid growth of the IT sector; IT literacy is high
- Plenty of natural resources
Weakness of Indian Economy
- Poor infrastructure facilities
- The low capability of utilizing cultivable land; contribution to the GDP is only 17%
- Scarcity of some resources as a result of high population
- Unequal distribution of resources/wealth
- Literacy is very low in some of the areas
Opportunities for Indian Economy
- Scope of entering too many sectors of the businesses; the entry barrier is low.
- High possibilities of increasing Foreign Direct Investment(FDI)
- Infrastructure will be developed
- Huge population and huge buyers; the domestic market is huge
- Huge agricultural resources allow starting a business in the rural area
- A large number of Indian is living in foreign countries; therefore money inflow is at high growth
- Low labour cost
Threats for Indian Economy
- The global recession may affect easily
- High trade deficit
- Population growth is high
- Agricultural production is heavily dependent on monsoon.
PEST Analysis of the Economy of India
PEST analysis is a marketing principle and should be used while researching small startup business ideas in India.
The PEST analysis of India is elaborated below. You must understand each of these factors and their contribution properly before starting your own business.
Political – it relates to what extent the Indian government provide good policies for business and its growth. The taxation is business-friendly.
Economic – the economy of India has been stable for a long period now. It has been providing loans at a low interest rate. It is very friendly for business growth. Also, the inflation rate in India fell recently. A piece of news by Forbes said that “India’s Inflation Rate Isn’t A Worry”
Social – to consider the social factor India’s 70% people fall in the ages between 15 and 65. Many people are going to retire. That will cost a large sum of money which will be bored by the government.
Technological – new technologies create new products and services. India welcomes innovative and tech-dependent products. There is a large number of innovators in this country.
Bottom Line
An idea can change your life. In my post small business ideas in India, I have added the SWOT analysis and PEST analysis of India. It will help you to understand the business environment of India and therefore, will give you a clear picture. These analysis will be helpful to implement these ideas as these work as an advantage to understand the current business field and economic condition. Then I have created three lists of different business ideas that can be started as small business in India. These are also scalable businesses. And at the last, I have included a few points on business planning and legal requirements of business start.
Related: Advantages of Foreign Direct Investment
Sources
- https://en.wikipedia.org/wiki/Economy_of_India
- https://en.wikipedia.org/wiki/India
- http://www.daytodaygk.com/major-ports-in-india-complete-list/
- http://www.slideshare.net/anushatuke1/swot-analysis-of-indian-economy-25909639 [swot]
- http://pestleanalysis.com/pestle-analysis-india/ [PEST]
- http://indiainbusiness.nic.in/newdesign/index.php?param=advantage/162
- https://smallb.sidbi.in/%20/policies-regulations/guidelines-procedures-starting-new-business-india?field_company_type_tid=426&field_industry_type_tid=425
- https://www.forbes.com/sites/mikekappel/2016/11/21/the-big-benefits-of-small-business-saturday/#15798bfe4284
Sheikh Faizul Haque is an internet entrepreneur and the founder of The Strategy Watch; Graduated from North South University with a double major in Accounting & Finance in Bangladesh.
With a strong interest in developing and improving Business Strategy and to Conduct Business Analysis.