15 Best Low Investment Business Ideas

Years ago, the availability of huge capital was a regulator for commencing entrepreneurship in India. These days, starting your own business requires a reliable business plan, a small amount of money, and a positive attitude. Many business ideas requiring less capital are still super lucrative to begin in the market today. Today, this is possible because of a strong startup scene and growing interest amongst Indians towards becoming their own boss.

India has over 63 million micro, small, and medium enterprises (MSMEs), according to the Ministry of MSME (2023). These businesses contribute to nearly 30% of India’s GDP. This clearly shows that even small efforts can lead to big results. Whether you're a student, a homemaker, or someone tired of a 9-5 job, you can start your own venture.

Let’s take a look at some of the most successful small business ideas you can begin with a small budget.

Why Choose Business Ideas with Low Investment?

Starting a business with low investment allows aspiring entrepreneurs to minimize financial risk while gaining flexibility and control. In India, many low-cost business ideas can be started from home, without renting a shop or office, and require minimal staff or operational expenses. Additionally, government schemes and support for micro-enterprises make it easier for small businesses to thrive. Choosing low investment and high profit business options not only reduces dependency on heavy loans but also provides a safer way to test ideas before scaling.

1. Minimizing Financial Risk

One of the main reasons to opt for low investment business ideas is the lower financial exposure. Small-scale startups require minimal capital, which reduces the need for borrowing from banks or investors. This also reduces reliance on debt, lowering the pressure of high EMI repayments and interest costs. By starting small, entrepreneurs can safeguard their personal finances while still pursuing business growth.

2. Gaining Flexibility and Control

Low-cost business ideas offer greater flexibility to adapt as market conditions change. Entrepreneurs have more independence and control over operations, making it easier to pivot or test new strategies without significant losses. These businesses allow owners to experiment and validate their ideas, helping identify what works best before committing larger resources.

3. Achieving Financial Benefits

Another advantage of low-risk business ideas is the potential for faster profitability. With lower overheads, businesses can focus on their core value and revenue-generating activities, leading to higher returns in a shorter time. Many small-scale ventures in India, such as online services, home-based food businesses, or niche retail, demonstrate that low investment and high profit business models are not only feasible but highly rewarding.

Also Read: Everything you need to know about Business Loan – A definitive guide

How to Select the Right Low Investment Business Idea in India

Choosing the right business idea in India is crucial to ensure long-term sustainability and profitability, especially when starting with limited capital. With countless business ideas with low investment available, entrepreneurs should evaluate multiple factors before committing resources. Careful consideration of your skills, time availability, location, market demand, competition, scalability, and legal requirements can help identify the most suitable venture.

Key Factors to Consider

1. Skills and Expertise – Choose a low-cost business to start that aligns with your strengths and experience. Leveraging your skills reduces training costs and increases the chances of success.
2. Time and Commitment – Assess the time you can dedicate to the business. Some ventures, such as home-based services, require fewer hours, while others, like retail or manufacturing, may demand full-time attention.
3. Location – Analyze your target market and business location. Certain businesses thrive better in urban areas, while others are suitable for rural or suburban settings.
4. Market Demand – Research if there is a genuine need for the product or service. High-demand niches increase the likelihood of faster returns and customer loyalty.
5. Competition – Study competitors to identify gaps or opportunities. Choosing a niche with limited competition can provide a competitive advantage.
6. Scalability – Consider whether the business can grow over time. Even a small, low-investment venture should have potential for expansion if successful.
7. Legal Requirements – Ensure compliance with local regulations, licenses, and permits. Avoiding legal hurdles at the start saves costs and prevents future disruptions.

Self-Assessment Checklist for Selecting a Low Investment Business Idea

How to Use the Checklist:

• Assign a score from 1 (low) to 5 (high) for each criterion.
• Add up the scores to identify which ideas align best with your goals and resources.
• Focus on ideas with higher scores to maximize success potential while keeping investment low.

By systematically evaluating potential ventures using this approach, you can confidently choose the best business ideas with low investment that suit your skills, resources, and market opportunities.

Top 15 Business Ideas with Low Investment to Start in India (2025)

Here are some of the best and most successful small business ideas suited to the Indian market:

1. Freelance content writing

• If you have a knack for writing, this is for you.
• No office needed — just a laptop and internet.
• Average income – INR 15,000 to INR 1 lakh per month depending on experience.
• Platforms like Upwork and Fiverr can help you get started.

2. Home bakery or tiffin service

• Food businesses are evergreen. Indian homes love homemade food and sweets.
• Startup cost is aorund INR 5,000 – INR 50,000.
• You can market through WhatsApp, Facebook and Instagram.

3. Mobile repairing and accessories

• Smartphone usage is booming in India.
• The market is huge.
• Training courses available under Skill India initiative.
• Start with INR 20,000 and grow from there.

4. Handmade crafts and jewellery

• Indians love traditional, handmade items.
• You can sell on Etsy, Amazon, and local exhibitions.
• Ideal for housewives and college students.

5. Digital Marketing Agency

• Help small businesses grow online through SEO, social media marketing, and paid ads.
• Startup cost: INR 10,000 – INR 50,000 for basic tools, website, and branding.
• Income depends on client base; can range from INR 20,000 to several lakhs per month.

6. Dropshipping Business

• Sell products online without maintaining inventory; suppliers handle storage and delivery.
• Startup cost: INR 5,000 – INR 20,000 for website setup and marketing.
• Profitable for niche products with high demand.

7. Print-on-Demand Products

• Customize items like T-shirts, mugs, and tote bags with unique designs.
• No inventory required; printing and shipping handled by suppliers.
• Startup cost: INR 5,000 – INR 15,000.
• Platforms: Printful, Printrove, or Teespring.

8. Online Reselling on Marketplaces

• Buy products wholesale or second-hand and sell them on Amazon, Flipkart, or Meesho.
• Startup cost: INR 10,000 – INR 50,000 depending on inventory size.
• Best for fashion, electronics, and daily-use products.

9. Cloud Kitchen

• Operate a food delivery business without a dine-in space.
• Startup cost: INR 50,000 – INR 2 lakh depending on kitchen setup and equipment.
• Leverage delivery apps like Swiggy and Zomato to reach customers.

10. Online Tutoring and Coaching

• Teach academic subjects, languages, or specialized skills online.
• Startup cost: INR 5,000 – INR 20,000 for a laptop, internet, and teaching tools.
• Income can range from INR 10,000 to INR 1 lakh per month depending on students and niche.

11. Consulting Services (Finance, Marketing, HR)

• Provide expert advice to startups or small businesses.
• Startup cost: INR 10,000 – INR 50,000 for branding and marketing.
• High earning potential based on client base and niche expertise.

12. Small-Scale Manufacturing (Soaps, Candles, Spices)

• Produce niche items with strong local or online demand.
• Startup cost: INR 20,000 – INR 1 lakh depending on product type.
• Sell through e-commerce platforms, local markets, or retail stores.

13. Event Planning Services

• Plan birthdays, weddings, corporate events, and other celebrations.
• Startup cost: INR 10,000 – INR 50,000 for marketing and initial setup.
• Income grows with experience, referrals, and the scale of events handled.

14. Eco-Friendly Product Business (Jute Bags, Bamboo Items)

• Tap into the growing demand for sustainable products.
• Startup cost: INR 10,000 – INR 50,000 for initial inventory and marketing.
• Sell online, at local fairs, or supply to retail outlets.

15. Upcycled Furniture

• Convert old or discarded materials into functional and stylish furniture.
• Startup cost: INR 15,000 – INR 50,000 for tools and materials.
• Market as eco-friendly, unique, and sustainable; high-profit potential.

These are some of the small business ideas where profits can be high with minimal starting money.

Also read: Best Online Business Ideas in India for 2025

Legal and Financial Essentials for Low Investment Startups in India

Starting a business idea in India requires careful planning not only in operations but also in legal and financial compliance. Even for low cost business ideas, meeting regulatory requirements ensures smooth operations, avoids penalties, and opens doors to funding opportunities. Key essentials include business registration, tax compliance, licenses, and access to government schemes and business loans.

Compliance and proper documentation also make it easier to avail of MSME registrations, FSSAI approvals, and government-backed loans for micro and small businesses. Understanding the legal framework and financial requirements helps entrepreneurs operate confidently and leverage incentives provided by the Indian government for startups and small businesses.

Key Legal and Financial Essentials

Funding Options: How to Get Capital for Your Low Investment Business

Starting a low cost business often requires capital for setup, inventory, or marketing. Fortunately, India offers a variety of funding options for startups and low investment businesses, from traditional loans to modern crowdfunding platforms. Choosing the right funding source depends on your business type, scale, and financial health.

1. Business Loans in India

Business loans in India are a reliable option for small enterprises looking for capital. Banks and NBFCs offer loans tailored for low investment business ideas, often with flexible repayment terms and competitive interest rates. You can explore options like Business Loan for general business purposes or Business Loan for MSME for micro and small enterprises. These loans may be secured (collateral-based) or unsecured (collateral-free), depending on your eligibility.

2. Personal Loans

For businesses in early stages, personal loans can provide quick capital. They are unsecured, but interest rates may be higher than traditional business loans. Personal loans are ideal for very low investment business ideas with minimal setup costs.

3. MSME Loans

Government-backed MSME loans offer low-interest and collateral-free financing to micro, small, and medium enterprises. Schemes like Pradhan Mantri Mudra Yojana (PMMY) and CGTMSE ensure easier access to funds for startups and small businesses while following RBI norms for lending.

4. Microfinance

Microfinance institutions (MFIs) provide small-ticket loans to entrepreneurs, especially in rural or semi-urban areas. These loans usually have flexible repayment options and are designed to support small, home-based, or low investment businesses.

5. Peer-to-Peer (P2P) Lending

P2P lending platforms connect borrowers directly with investors. This alternative financing option is regulated by the RBI and offers competitive interest rates. It is suitable for businesses seeking quick, unsecured loans without going through traditional banks.

6. Angel Investors

Angel investors provide funding in exchange for equity or convertible debt. They are ideal for startups with innovative business ideas and growth potential. Investors often offer mentorship and industry connections along with capital.

7. Crowdfunding

Crowdfunding platforms allow entrepreneurs to raise funds from multiple small investors or supporters. This method is particularly effective for creative, tech, or socially impactful business ideas. Platforms like Ketto, Milaap, and Kickstarter help businesses gather capital without collateral.

Tips for Choosing the Right Funding Option

• Focus on low-interest and collateral-free loans for minimal risk.
• Ensure the lender or platform complies with RBI regulations.
• Prepare a solid business plan and financial projections to increase approval chances.
• Explore government schemes for startups and MSMEs to leverage benefits.

By understanding and evaluating these funding options, entrepreneurs can secure the necessary capital to start and grow low investment business ideas while keeping financial risk low.

What Makes a Business Profitable?

To make the most of business ideas with low investment and ultimately turn it into a high profit venture, you must:

• Pick a product or service that solves a real problem.
• Keep expenses low.
• Focus on good customer service.
• Use digital tools to reach more people.

One of the best business ideas is to sell digital products like e-books or online courses. They need no storage or delivery. Once created, you can sell them again and again.

Some Useful Numbers and Stats

• According to NASSCOM, India had 1,25,000+ tech start-ups by 2024.
• Nearly 50% of new start-ups are in Tier 2 and Tier 3 cities, according to the Economic Survey 2023-24.
• India’s e-commerce market is set to reach INR 8.8 trillion by 2026 (IBEF report, 2024).

All this shows that new business ideas in India have a strong future.

Common Challenges and How to Overcome Them

Starting a low investment and high profit business is exciting, but entrepreneurs often face hurdles that can impact growth. Recognizing common challenges in small business India and having practical strategies to address them can ensure long-term success.

1. Market Competition

Small businesses often compete with established players or other startups.

Solutions:

• Identify a niche market to differentiate your products or services.
• Offer unique value propositions such as quality, affordability, or convenience.
• Leverage digital marketing and social media to reach target customers efficiently.

2. Cash Flow Management

Limited capital can create cash flow gaps, especially in the early stages.

Solutions:

• Maintain a budget and cash flow statement to track inflows and outflows.
• Consider short-term funding options like working capital loans, microfinance, or P2P lending.
• Delay non-essential expenses until revenue stabilizes.

3. Customer Acquisition

Building a loyal customer base can be challenging for new businesses.

Solutions:

• Start with local marketing, referrals, and online promotions.
• Offer discounts, loyalty programs, or trial services to attract initial customers.
• Collect feedback and improve offerings based on customer needs.

4. Scaling the Business

Expanding too quickly can strain resources and operations.

Solutions:

• Scale gradually based on demand and profitability.
• Automate processes and adopt cost-effective technology solutions.
• Train staff and create standard operating procedures to maintain quality.

5. Legal and Regulatory Compliance

Non-compliance can lead to fines or business closure.

Solutions:

• Register your business and obtain necessary licenses, such as GST, FSSAI, Trade License, or MSME registration.
• Stay updated on government schemes and resources for startups.
• Seek guidance from professional consultants or government portals to ensure compliance.

By anticipating these challenges and implementing practical strategies, entrepreneurs can successfully run low risk business ideas while maximizing profitability. Leveraging government resources, proper financial planning, and smart marketing can turn challenges into growth opportunities.

Relevant government schemes for low-investment businesses

If you are worried about funds, don’t stress. Here are some schemes that help:

Pradhan Mantri MUDRA Yojana (PMMY)

The PMMY scheme provides loans up to INR 10 lakh for micro and small businesses, especially those in the non-farm sector. The loans are categorized into Shishu (up to INR 50,000), Kishor (INR 50,001–5 lakh), and Tarun (INR 5–10 lakh).

How it helps:

• Provides low-interest, collateral-free funding for startups and small ventures.
• Encourages self-employment and entrepreneurship across urban and rural areas.
• Ideal for businesses like home-based services, retail shops, and small-scale manufacturing.

Startup India Seed Fund Scheme (SISFS)

The SISFS supports startups by providing seed capital for innovative ideas, product development, and market entry.

How it helps:

• Offers financial support to early-stage startups for prototyping, testing, and commercialization.
• Reduces dependency on personal savings or high-interest loans.
• Encourages innovation in technology, services, and manufacturing sectors.

Stand-Up India Scheme

The Stand-Up India Scheme targets SC/ST and women entrepreneurs, providing financial support for setting up greenfield enterprises in non-farm sectors. Loans range from INR 10 lakh to INR 1 crore.

How it helps:

• Promotes inclusive entrepreneurship among underrepresented groups.
• Provides guidance on business planning, funding, and operational setup.
• Supports small businesses in retail, services, and manufacturing with easy access to loans.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The CGTMSE scheme provides collateral-free credit to micro and small enterprises. Both term loans and working capital loans are covered.

How it helps:

• Enables small businesses to access loans without pledging property.
• Reduces risk for banks and financial institutions, improving approval chances.
• Encourages growth of MSMEs and low-investment startups.

Prime Minister's Employment Generation Programme (PMEGP)

The PMEGP scheme provides a subsidy of up to 35% in rural areas and 25% in urban areas for setting up new micro-enterprises.

How it helps:

• Reduces upfront investment burden for entrepreneurs.
• Supports employment generation in both rural and urban areas.
• Ideal for small-scale manufacturing, service businesses, and handicraft units.

National Small Industries Corporation (NSIC) Subsidies

The NSIC supports MSMEs through financial assistance, marketing support, and technology upgradation. Subsidies are offered for participation in trade fairs, ISO certifications, and purchase of machinery.

How it helps:

• Reduces operational costs for low investment businesses.
• Helps startups market products and expand their customer base.
• Supports modernization and scaling without heavy financial burden.

Also Read: Top 6 Government Loan Schemes for Women Entrepreneurs in 2025

The Bottom Line

You don’t need INR 50 lakh to start a good business. You actually require a good idea, an effective plan, and courage to start. India is home to many new business ideas that do not need huge amounts of capital.

If you desire to run a kitchen-based food company, provide services online or open a handcraft store - there is space for anyone. Furthermore, thanks to digitalization today, it is possible for one’s cottage industry to grow into an enterprise. You can grow from a small shop to a big brand, all from your home.

Looking to launch your own venture? Find the right support and start building your future today. Apply for a Loan and take your first step towards success!

Moreover, you can also use an Business Loan EMI Calculator to calculate all your EMIs accurately without any hassles and plan your financial goals accordingly!

FAQs

Q.1. Which business is best to do with a low investment?

A. For low-investment business ideas in Bengaluru, consider leveraging your skills through freelancing. You can provide services like writing, design, marketing, etc. These can be home-based businesses and can also involve businesses like a bakery or starting a tiffin service, all of which require minimal upfront investment.

Q.2. What is the most successful small business?

A. Some consistently profitable and in-demand businesses include online ones such as content writing, providing digital services, catering to local needs.

Q.3. How to start business with INR 50,000?

A. To start something with an investment of INR 50,000, you can look at some small business ideas that operate digitally, require low investment costs and are required locally. These can include starting businesses in tiffin providing, pottery, tutoring, writing, installing food stalls, etc.

Q.4. How to start a startup?

A. Begin with a solid business idea, conduct thorough market research, develop a comprehensive business plan, secure funding, build a strong team, and establish a strong online presence to market your business. Throughout the process, you must also focus on innovation and building and nurturing customer relationships.

Q.5. What is a zero-investment business?

A. Various strategies can help you make money without an investment in business. Start by identifying your skills or hobbies that can be monetized, such as writing, designing, or social media management. You can build a portfolio and monetize your work on freelance platforms later.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com