20 Best Businesses to Start with Rs 2 Lakh
20 Best Businesses to Start with Rs. 2 Lakh: Comprehensive Business Plans and Growth Strategies
Starting a business with a small investment of Rs. 2 lakh may seem challenging, but with the right planning, dedication, and execution, it’s possible to turn a small business into a profitable venture. In this blog, we will explore 20 business ideas that can be started with Rs. 2 lakh or less, discuss success strategies, and project their growth over a five-year period. For each business plan, we will also look at things to avoid and common hurdles entrepreneurs face.
1. Home-Based Catering Business
If you have a passion for cooking, a home-based catering business could be a great fit for you. With an initial investment of Rs. 2 lakh, you can start small by catering for small events like birthday parties, corporate lunches, and family gatherings.
Success Plan
- Build a unique menu that differentiates you from competitors.
- Focus on quality and hygiene, which are critical in the food business.
- Use social media marketing to target local customers.
Things to Avoid
- Avoid compromising on quality to save costs.
- Don't over-promise and under-deliver. Set realistic expectations with your clients.
Scope of Growth and Revenue
In the first year, you could expect a revenue of Rs. 4-6 lakh with local event catering. By year 5, with a growing reputation and expanded clientele, annual revenue could exceed Rs. 20-30 lakh.
Biggest Hurdles
- Competition from established caterers.
- Managing food wastage.
- Navigating local food safety regulations.
2. Mobile Phone Repair Business
As mobile phones are ubiquitous in India, a mobile phone repair business has great potential. You can open a small repair shop or offer door-to-door services with an investment of Rs. 2 lakh.
Success Plan
- Train in mobile phone repair skills.
- Offer quick and reliable services at competitive rates.
- Build relationships with wholesalers for parts.
Things to Avoid
- Avoid using counterfeit parts, which can harm your reputation.
- Don't ignore customer complaints; service quality is key.
Scope of Growth and Revenue
You can generate an initial revenue of Rs. 3-5 lakh annually, which can grow to Rs. 15-20 lakh after five years, especially if you expand services to cover a wider geographic area or offer additional services such as mobile accessories sales.
Biggest Hurdles
- Staying updated with constantly changing mobile technology.
- Sourcing quality parts at competitive prices.
- Gaining customer trust in a crowded market.
3. Tiffin Service Business
A tiffin service business is one of the most reliable small business ideas, especially in cities where professionals need homemade food at reasonable rates.
Success Plan
- Deliver fresh and healthy meals daily.
- Focus on the consistency of taste and hygiene.
- Build a solid distribution network for timely delivery.
Things to Avoid
- Avoid delivering late as timeliness is critical.
- Don’t compromise on the quality of ingredients to cut costs.
Scope of Growth and Revenue
In the first year, you may achieve Rs. 3-4 lakh in revenue, which can grow to Rs. 15-20 lakh by year 5 as you expand your customer base.
Biggest Hurdles
- Meeting the demand during peak seasons.
- Managing customer expectations and preferences.
- Maintaining profitability while scaling.
4. Handmade Jewelry Business
Handmade jewelry has a unique appeal, especially among urban customers looking for custom designs. You can start this business with Rs. 2 lakh by investing in raw materials, tools, and marketing.
Success Plan
- Create unique designs that cater to niche markets.
- Sell online through platforms like Etsy, Instagram, and local craft fairs.
- Focus on branding and packaging.
Things to Avoid
- Avoid copying designs from competitors.
- Don’t ignore the importance of branding and online presence.
Scope of Growth and Revenue
With initial success, you could generate Rs. 2-5 lakh in the first year. By year 5, with a strong online presence, your revenue could reach Rs. 10-15 lakh annually.
Biggest Hurdles
- Finding a consistent customer base.
- Competition from mass-produced jewelry.
- Scaling up without losing the "handmade" touch.
5. Custom T-shirt Printing
Custom t-shirt printing is a trendy business idea that appeals to a wide range of customers, from corporate clients to individuals looking for personalized designs.
Success Plan
- Invest in a quality printing machine and blank t-shirts.
- Build an online store to attract both bulk orders and individual customers.
- Offer competitive pricing and quick delivery.
Things to Avoid
- Avoid poor-quality prints that fade or crack after a few washes.
- Don't overstock on designs that may not sell.
Scope of Growth and Revenue
In the first year, you can earn Rs. 3-5 lakh, and with proper marketing and bulk orders, revenue could reach Rs. 10-20 lakh annually by year 5.
Biggest Hurdles
- Maintaining quality with increasing demand.
- Competing with established players in the market.
- Sourcing high-quality t-shirts and printing supplies.
6. Organic Farming
With rising demand for organic produce, organic farming can be a profitable business idea. You can lease land or use a small piece of your own land to start with an investment of Rs. 2 lakh.
Success Plan
- Focus on high-demand crops such as fruits, vegetables, and herbs.
- Leverage organic certification to boost credibility.
- Build partnerships with local grocery stores and restaurants.
Things to Avoid
- Avoid using any synthetic pesticides or fertilizers.
- Don't overlook local demand when selecting crops.
Scope of Growth and Revenue
In the first year, you can expect a revenue of Rs. 3-6 lakh, depending on crop yield. After 5 years, your organic farm could generate Rs. 15-25 lakh annually with expanded acreage.
Biggest Hurdles
- Navigating the organic certification process.
- Dealing with unpredictable weather and pests.
- Managing costs of organic inputs and labor.
7. Event Planning Business
If you enjoy organizing events, an event planning business can be started with Rs. 2 lakh for initial marketing and basic event supplies.
Success Plan
- Start by organizing small local events like birthday parties, corporate events, and weddings.
- Build a network of vendors for services like catering, decoration, and venues.
- Focus on delivering unique experiences to stand out from competitors.
Things to Avoid
- Avoid over-committing beyond your financial or logistical capabilities.
- Don’t compromise on customer satisfaction, even if margins are thin.
Scope of Growth and Revenue
You could generate Rs. 4-8 lakh in the first year, growing to Rs. 20-30 lakh annually by the fifth year as you take on larger events and expand your client base.
Biggest Hurdles
- Competing with well-established event planning companies.
- Managing logistical challenges in large-scale events.
- Handling customer expectations and last-minute changes.
8. Photography Business
If you have a talent for photography, you can turn it into a lucrative business by offering event photography, portraits, or product photography.
Success Plan
- Invest in a good camera and basic photography equipment within the Rs. 2 lakh budget.
- Build a portfolio by offering discounted services initially.
- Promote your business on social media and via word-of-mouth.
Things to Avoid
- Avoid purchasing unnecessary expensive equipment right away.
- Don’t neglect customer service and client communication.
Scope of Growth and Revenue
You could earn Rs. 3-5 lakh in the first year, with potential to earn Rs. 15-25 lakh annually by year 5 as your client base and reputation grow.
Biggest Hurdles
- Competing with other photographers in the market.
- Keeping up with rapidly changing technology and trends.
- Managing the seasonal nature of the photography business.
9. Fitness Trainer/Personal Coach
With more people focusing on health and fitness, becoming a fitness trainer or personal coach can be a profitable business idea. You can start by offering home-based or online training sessions.
Success Plan
- Get certified in fitness training or a specific niche like yoga or weight loss.
- Use social media and local networks to build a client base.
- Offer customized workout and diet plans to your clients.
Things to Avoid
- Avoid promoting unsustainable or unsafe fitness practices.
- Don't neglect personal branding and networking.
Scope of Growth and Revenue
In the first year, you could generate Rs. 3-6 lakh. With a growing reputation and an expanded client base, you could earn Rs. 12-20 lakh by year 5.
Biggest Hurdles
- Staying updated with fitness trends and certifications.
- Managing client expectations and fitness goals.
- Competing with established gyms and trainers.
10. Online Tuition Business
With the growing demand for education and personalized learning, offering online tuition is a great business idea with a low investment of Rs. 2 lakh.
Success Plan
- Focus on high-demand subjects or exams like JEE, NEET, or competitive exams.
- Offer personalized, one-on-one sessions for better learning outcomes.
- Use online platforms like Zoom and Google Meet to conduct classes.
Things to Avoid
- Avoid overloading yourself with too many students initially.
- Don’t rely only on traditional teaching methods; incorporate modern tools.
Scope of Growth and Revenue
In the first year, you could earn Rs. 3-5 lakh. With consistent marketing and good reviews, annual revenue could reach Rs. 12-15 lakh by year 5.
Biggest Hurdles
- Building a steady stream of students.
- Staying up-to-date with educational curriculum changes.
- Competing with established online learning platforms.
11. Beauty Salon
Opening a small beauty salon can be a great business idea, especially in urban areas where personal grooming services are in demand. With Rs. 2 lakh, you can rent a small space, purchase basic equipment, and market your services.
Success Plan
- Offer essential services like haircuts, facials, and manicures.
- Build a loyal customer base by providing excellent customer service.
- Promote your salon on social media and through local advertisements.
Things to Avoid
- Avoid investing too heavily in high-end products initially.
- Don’t compromise on hygiene or cleanliness.
Scope of Growth and Revenue
In the first year, you could earn Rs. 4-6 lakh, with potential to reach Rs. 15-25 lakh annually after 5 years as your reputation and client base grow.
Biggest Hurdles
- Competing with larger, established salons.
- Managing client expectations.
- Ensuring consistent service quality.
12. Boutique Clothing Business
If you have a passion for fashion, opening a boutique clothing business can be a great fit. With Rs. 2 lakh, you can start a small boutique offering unique, stylish clothing.
Success Plan
- Focus on offering unique designs or handmade garments.
- Build a loyal customer base by offering personalized service.
- Promote your boutique through local events and online platforms.
Things to Avoid
- Avoid overstocking on inventory.
- Don’t ignore fashion trends and customer preferences.
Scope of Growth and Revenue
In the first year, you may generate Rs. 4-6 lakh, which can grow to Rs. 12-20 lakh annually after 5 years if you expand your product range and increase your marketing efforts.
Biggest Hurdles
- Competing with online and larger retail stores.
- Managing inventory and unsold stock.
- Staying on top of fashion trends.
13. Daycare/Childcare Business
With a growing number of working parents, the demand for quality childcare services is on the rise. You can start a small daycare with an investment of Rs. 2 lakh, focusing on providing a safe and nurturing environment for children.
Success Plan
- Ensure that the space is child-friendly, safe, and hygienic.
- Offer personalized care and activities to keep the children engaged.
- Build trust with parents by providing regular updates on their child's progress.
Things to Avoid
- Avoid overcrowding the daycare with too many children.
- Don’t neglect safety measures and legal requirements.
Scope of Growth and Revenue
In the first year, you could earn Rs. 4-6 lakh, with potential to grow to Rs. 15-20 lakh annually after 5 years as you build a reputation and expand your services.
Biggest Hurdles
- Gaining the trust of parents.
- Managing the safety and well-being of children.
- Adhering to government regulations.
14. Grocery Delivery Service
A grocery delivery service is a great business idea, especially in urban areas where people may not have time to shop in person. You can start this business with Rs. 2 lakh, focusing on sourcing groceries and building a delivery network.
Success Plan
- Partner with local grocery stores and suppliers.
- Ensure timely delivery and competitive pricing.
- Use an app or website to make the ordering process simple and convenient.
Things to Avoid
- Avoid over-promising on delivery times.
- Don’t compromise on the quality of groceries delivered.
Scope of Growth and Revenue
You can generate Rs. 3-5 lakh in the first year, with potential to grow to Rs. 12-18 lakh annually by year 5, especially if you expand your delivery area and improve your logistics.
Biggest Hurdles
- Managing delivery logistics efficiently.
- Competing with established grocery delivery services.
- Maintaining customer satisfaction.
15. Content Writing Business
Content writing is a low-investment business that can be started with Rs. 2 lakh or less. As businesses increasingly need content for websites, blogs, and social media, the demand for quality content writers is rising.
Success Plan
- Build a portfolio of writing samples to showcase your skills.
- Network with clients through freelance platforms and social media.
- Specialize in a niche, such as SEO content or technical writing, to stand out.
Things to Avoid
- Avoid taking on too many clients at once.
- Don’t compromise on the quality of your writing.
Scope of Growth and Revenue
You can earn Rs. 3-5 lakh in the first year, with potential to earn Rs. 10-15 lakh annually after 5 years as you build a strong client base and reputation.
Biggest Hurdles
- Managing client deadlines and expectations.
- Staying up-to-date with writing trends and SEO best practices.
- Competing with a large pool of content writers.
16. Car Washing Business
With the increasing number of cars on the road, a car washing business can be a profitable venture. You can start a mobile or fixed car wash service with Rs. 2 lakh.
Success Plan
- Offer door-to-door car washing services for convenience.
- Use high-quality cleaning products and equipment.
- Build a loyal customer base by offering competitive pricing.
Things to Avoid
- Avoid using low-quality products that may damage vehicles.
- Don’t underestimate the importance of good customer service.
Scope of Growth and Revenue
In the first year, you could generate Rs. 3-5 lakh, with potential to grow to Rs. 10-15 lakh annually after 5 years as you expand your services and customer base.
Biggest Hurdles
- Competing with established car wash businesses.
- Managing water and equipment costs.
- Maintaining service quality during peak demand.
17. Homemade Food Products Business
If you enjoy making jams, pickles, or other homemade food products, this business can be started with a low investment of Rs. 2 lakh. Focus on providing high-quality, organic, or artisanal food products.
Success Plan
- Use quality ingredients and ensure proper packaging.
- Sell your products at local markets or online.
- Focus on building a brand around your homemade food items.
Things to Avoid
- Avoid using artificial preservatives.
- Don’t ignore local regulations on food production and labeling.
Scope of Growth and Revenue
You could generate Rs. 3-6 lakh in the first year, with potential to reach Rs. 12-20 lakh annually after 5 years as your brand grows and you expand distribution.
Biggest Hurdles
- Managing the consistency of product quality.
- Competing with larger food brands.
- Complying with food safety regulations.
18. Pet Grooming Business
The pet grooming industry is growing rapidly, and with an investment of Rs. 2 lakh, you can start a small grooming service for pets. You can offer services at your location or operate as a mobile pet groomer.
Success Plan
- Focus on providing excellent grooming services for dogs and cats.
- Build a loyal customer base by offering personalized care for pets.
- Market your services on social media and through local pet stores.
Things to Avoid
- Avoid overbooking appointments, leading to rushed or poor service.
- Don’t ignore the importance of cleanliness and hygiene.
Scope of Growth and Revenue
You could generate Rs. 4-6 lakh in the first year, with potential to grow to Rs. 15-25 lakh annually after 5 years as your business and customer base expand.
Biggest Hurdles
- Competing with established pet grooming services.
- Managing pet behavior and grooming challenges.
- Keeping up with grooming trends and techniques.
19. Home Cleaning Services
With more people working from home and requiring professional cleaning services, starting a home cleaning business with Rs. 2 lakh is a good option. You can focus on residential cleaning, targeting busy professionals and families.
Success Plan
- Offer reliable and thorough cleaning services.
- Build a team of trustworthy and trained staff.
- Promote your business through word-of-mouth and social media.
Things to Avoid
- Avoid overcharging or under-delivering.
- Don’t neglect the quality of cleaning materials.
Scope of Growth and Revenue
You can generate Rs. 4-6 lakh in the first year, with potential to grow to Rs. 12-18 lakh annually after 5 years as your reputation spreads and you expand your client base.
Biggest Hurdles
- Managing staff and scheduling.
- Competing with well-established cleaning companies.
- Meeting customer expectations consistently.
20. Bicycle Rental Business
With the growing trend of fitness and eco-friendly transportation, starting a bicycle rental service can be a lucrative business. You can purchase a few bicycles and rent them out in tourist areas or city centers with Rs. 2 lakh.
Success Plan
- Offer well-maintained bicycles and accessories.
- Partner with local hotels or tourist spots for promotions.
- Focus on customer convenience and pricing.
Things to Avoid
- Avoid neglecting bicycle maintenance.
- Don’t ignore safety and insurance for your bikes.
Scope of Growth and Revenue
You can generate Rs. 3-5 lakh in the first year, with potential to grow to Rs. 10-15 lakh annually after 5 years as you expand your fleet and customer base.
Biggest Hurdles
- Competing with established rental services.
- Managing maintenance costs.
- Ensuring customer satisfaction and safety.
Conclusion
Starting a business with an investment of Rs. 2 lakh may seem challenging, but with the right planning and execution, it can be highly rewarding. Each business idea presented here offers significant potential for growth, provided that entrepreneurs focus on building a strong foundation, offering value to customers, and staying adaptable to market changes. The key to long-term success lies in careful financial management, effective marketing, and constant innovation. While each business comes with its own set of challenges, with dedication and smart planning, these businesses can thrive in the competitive market and achieve impressive growth within five years.
Starting a business with Rs. 2 lakh can provide ample opportunities for growth if planned strategically. Each of the businesses mentioned here offers good potential for success if managed correctly. Entrepreneurs should focus on building their brand, delivering value to customers, and staying adaptable to market trends. While there are challenges, with the right mindset and business plan, significant growth can be achieved within five years. Careful financial management, networking, and dedication are the keys to long-term success.
