Have you been wanting to be an entrepreneur and wish to start your own business venture? If you have Rs 5 lakhs available as initial capital, there are several smart business options you can consider.
With careful planning, the right business model and quality execution, even a modest amount of Rs 5 lakhs can be turned into a successful, profitable business. In this article, we will discuss the best business to start in India with 5 lakhs.
What Business Can I Start With 5 Lakhs?
The best businesses to start with 5 lakhs capital in India are:
Home-Based Bakery
Bakery products are loved by people of all ages and a decent business to start with 5 lakh. Set up a home-based bakery with approximately Rs 2-3 lakhs of initial investment. Gradually build up your catalogue starting with customised cakes, cookies, pies, tarts, muffins, cupcakes etc.
You can find a cost-effective commercial baking setup for a bakery business including an oven, mixer, cake decorating supplies etc. Offer innovative flavours, visually appealing designs and leverate social media smartly to grow your brand. Home delivery and participation in flea markets can also help scale up.
Tuition Centre
The coaching and tuition industry is a good business to start with 5 lakh and has been booming in India as education becomes more competitive. With an initial budget of Rs 3-5 lakhs you can rent and set up classroom space, purchase books/teaching materials, promote your services and hire teachers.
Focus on a niche like specific exams such as JEE, GRE, GMAT etc. or subjects like Mathematics, Science, English etc. Offer a free trial class, competitive fee packages and leverage technology to attract students.
Food Truck
Food trucks offer affordable business to start with 5 lakh with delicious and quick meals on the go for time-pressed consumers. They have become quite popular in metro cities. With an initial investment of approx Rs 5 lakhs you can obtain permits, purchase/rent a vehicle, kitchen equipment and customise an attractive food truck.
Develop a unique, targeted menu – try fusion food, dietary specific or regional cuisine. Take part in office parking areas, events and food truck parks. Offer discounts, loyalty rewards and use social media creatively to attract customers.
Handyman Services
Offering household repair, installation and handyman services can be an excellent business opportunity. This business to start with 5 lakh costs are low – just tools, equipment and a vehicle for transportation.
Services you can offer plumbing, electrical work, woodwork, painting, furniture assembly, fixture installation, lawn care etc. Market your services through directories, hardware shops and online platforms. Offer promotions like discounts on first-time services. Expand your services once the business picks up steam.
Pet Care Services
Pets are family for most urban households today. Pet-related services like grooming, walking, training, boarding etc. are in demand. You can start a pet care business with an investment of approx Rs 1-3 lakhs.
Obtain certification, set up a small facility or converted garage space, purchase equipment and supplies. Offer services like bathing, haircuts, nail trimming, pet sitting, dog walking etc. You can also sell pet care products. Market your services through vets, pet stores and online pet enthusiast groups.
Documentary Production
If you wish to pursue your passion for filmmaking, starting a documentary production company can be financially lucrative. With an initial investment of approx Rs 2-5 lakhs you can purchase basic equipment – camera, lights, mics, laptop for editing etc. and register your production company.
Start with making documentary films focused on important social issues, nature, wildlife, adventure, health, science, culture etc. and market them to YouTube, OTT platforms and film submission platforms.
Mobile Food Cart
A great, low-investment business to start with 5 lakh to enter the F&B space is to start a mobile food cart. With Rs 2-3 lakhs you can purchase or construct a sturdy food cart, obtain permits, buy supplies and ingredients.
Locate high-footfall spots like office areas, college campuses or markets to station your cart. Build a small but appealing menu – try out popular street foods, beverages and snacks. Offer meals combo deals and whether permitting, provide a few seats for customers. This can be scaled up to multiple carts later.
Travel Agency
India’s travel and tourism industry has witnessed a boom in the last decade along with a rise in disposable incomes and greater connectivity.
You can tap into this growing market by starting a travel agency with an initial budget of approx Rs 5 lakhs. Obtain certification, set up your office space, develop a user-friendly website, partner with service providers and launch marketing campaigns. Offer customised holiday packages, discounted deals, loyalty benefits and top-notch customer service.
Ice Cream Cart
Everyone loves ice cream! An ice cream cart business allows you to tap into this demand with minimal startup costs. For approx Rs 1-2 lakhs you can purchase and outfit a sturdy pushcart, obtain permits, buy ingredients and supplies.
Locate in crowded public places and offer innovative flavours like avocado, cappuccino, rose, litchi etc. apart from popular options. Partner with local stores to create customised ice cream sandwiches. Offer loyalty cards for repeat customers. This business has excellent future expansion potential.
Online Coaching
The availability of high-speed internet has enabled the education sector to go online in a big way. You can capitalise on this opportunity by starting your own e-coaching classes. With as little as Rs 1 lakh you can create your website, buy subscriptions to software needed, promote your classes and develop video content.
Choose niche areas for this business to start with 5 lakh like coding, design, public speaking, language learning etc. Offer flexible batch timings, 1-1 sessions and discounted packages. This allows you to reach students globally.
Corporate Training
With growing competition, corporates are investing heavily in training programs for their employees. You can tap into this demand by starting your own corporate training venture, focused on communication, leadership, sales, customer service etc.
Invest approx Rs 3.5-5 lakhs towards creating training content, renting a space for workshops, obtaining any required certifications and marketing your services. Offer customised modules as per company requirements and target SMEs, startups and corporates in your city.
Interior Design
Next business to start with 5 lakh comes interior design. With Indians investing heavily in real estate and demand for beautifully designed homes surging, interior design is a profitable venture. Invest around Rs 3-5 lakhs to complete a course in interior design, set up a small office space, purchase software and equipment and market your services.
Offer services right from design concepts to furnishings, decor and execution. Post projects on social media to attract clients and partner with architects and real estate developers.
Bicycle Rentals
Eco-friendly mobility solutions are the need of the hour and are the trending business to start with 5 lakh. Start a bicycle rental service with an initial investment of around Rs 3-5 lakhs. Obtain relevant licences and permits, purchase good quality bicycles, set up docking stations and get insurance cover.
Offer convenient mobile app booking, hourly/daily/monthly rentals plans and loyalty bonuses. Strategically place docking stations near metro stations, tourist attractions, colleges etc. Partner with hotels to attract tourists looking for an eco-friendly way to explore the city.
Final Words
To summarise, while you may want your business to start with 5 lakh, you can generate big returns by doing proper research, planning and executing the right business idea. If you want to know how to start a business with 5 lakhs, simply evaluate your strengths, skills and interests, understand consumer demand and identify a scalable business model.
Many of the ideas discussed offer the potential to grow into larger, more profitable ventures with time by reinvesting your earnings. Be thorough with planning, maintain quality, use technology strategically and provide excellent customer service to grow your business.
FAQs
What are some promising business ideas that can be started with an investment of 5 lakhs?
Online selling, catering, tutoring, freelancing, handyman services, pet care, home bakery, food trucks are promising with 5 lakhs.
How feasible is it to start a business with 5 lakhs as initial capital in today’s market?
It is very feasible with right idea, lean operations and marketing. Execution is important.
What are the key factors to consider when deciding on a business to start with a budget of 5 lakhs?
Factors include demand, target market, cost structure, competition, scalability.
What services does StartupFino offer to entrepreneurs and startup businesses?
We offer all services for startup incorporation, compliance, funding.
How can StartupFino assist entrepreneurs with company name selection and registration process?
StartupFino provides expert assistance with unique name ideation and smooth company registration.
Does StartupFino provide guidance on business incorporation, legal compliance, and regulatory requirements?
Yes, we provide complete support for business incorporation, legal and regulatory compliance.
