Top small business ideas with low investment and high profit

Want to start a business with minimal investment and maximum profit potential? The idea of being your own boss, setting your own working hours, and potentially earning a huge income is a dream shared by many. However, the biggest hurdle for most entrepreneurs is the initial capital investment. After all, not everyone has the financial resources to make a hefty upfront investment. Fortunately, there are several low-cost, high-return small business opportunities that can address this concern. 

Let's look at seven low-investment business ideas that could offer significant profitability in the future. Also, learn how business loans can provide the necessary funding to bring these small business ideas to life.

Before we dive in, please note that these business ideas are only meant to inspire and inform. Profitability and success can depend on various factors, including execution and market conditions. We recommend doing your own research and seeking professional advice where needed. We’re not liable for any risks or losses incurred. 

Boutique/apparel store

This type of business attracts individuals looking to capitalise on the fashion industry's dynamic nature. The setup costs are generally manageable, involving inventory, a small retail space, and basic marketing to create awareness. A quick business loan can help you handle these expenses effortlessly. You can achieve significant profit margins by sourcing garments locally and selling them at a calculated markup.

Laundry services

According to recent data, India's laundry services market was valued at over ₹20,000 crore in 2023 and is projected to grow at a CAGR of 7.5% over the next five years. Hence, starting a laundry service can be a profitable venture. You only need to rent a small and accessible space near high-traffic residential areas. Investing in a few washing machines, good quality detergents, dryers, and ironing equipment is also essential.

This low-investment business can generate great profits, especially in urban areas where many people prefer to outsource their laundry. Offering pick-up and delivery services can further boost customer convenience and allow for premium pricing, which could add more to your profits.

Event planning and management

With weddings, birthdays, religious events, and holidays, India can be considered a land of celebrations. Hence, it would not be wrong to say that event planning and management could be a highly profitable small business idea. 

The primary requirements are venues, decoration materials, tables, chairs, and other event furnishings. With a few successful events under your belt, word-of-mouth referrals would be enough to help your business grow rapidly.

Juice points or smoothie corners

Health awareness is on the rise, with more people understanding the need for a healthy lifestyle. Therefore, a juice point or smoothie corner could be an excellent small business idea. This type of business caters to a broad demographic, from fitness enthusiasts and busy professionals to families looking for quick, nutritious alternatives to traditional fast food.

Food catering business

Food catering is a business that's always in demand. The primary expenses typically involve acquiring commercial space and basic kitchen equipment, such as large pots, pans, and utensils, which are necessary for preparing food in bulk. Catering allows for bulk cooking, which reduces per-unit costs. Also, if you are able to cater multiple events simultaneously, it further enhances profitability.

Retail shop for arts & handicrafts

These products often carry high margins, especially if you source them directly from artisans. A store having unique crafts such as pottery, textiles, and traditional jewellery not only attracts shoppers looking for genuine pieces but also offers support to local artisans. A well-executed marketing plan and an ideal location could make this low-investment business highly profitable. 

Ice cream parlour

Ice cream parlours are a hit because ice cream is universally loved, especially in a warm country like India. You may have to rent a prime location for your parlour, invest in high-quality freezers, and purchase an initial stock of ingredients in bulk to reduce costs. Spending on marketing campaigns can attract customers quickly and give your business a strong start.

How can a business loan help you with small business ideas?

To fund your small business idea, it makes sense to opt for the IndusInd Bank Quick Business Loan. Borrow any amount between ₹2 lakh and ₹20 lakh and cover initial costs like purchasing inventory, equipment, marketing, and more. With a highly affordable interest rate, you can jumpstart your business without worrying about strict or difficult repayment terms. 

Look at the features and USPs of this borrowing option:

No income proof: You don’t have to provide any documents to prove business income, which simplifies the loan application process and makes it more convenient. 

2 years of business continuity/vintage: Unlike most other business loans that require 3 years of operational history, this quick business loan only needs 2 years. 

Disbursal into your existing account: Many banks insist on opening a new current account for loan disbursement. However, with IndusInd Bank, the entire loan amount is directly disbursed to your existing account.  No worries about new account setups and managing multiple accounts.

100% digital process: Submit your application online and enjoy hassle-free disbursal from home.

Lightning-fast disbursal: Once approved, funds can be transferred within 20 minutes, depending on your CIBIL score and other financial details.

Apply for a quick business loan and get started with IndusInd Bank today!

Steps to apply for a business loan to support your small business

By now, you must have understood that you can handle every step of the business loan process online with IndusInd Bank. A phone or laptop with internet access is all you need to apply. After that:

Enter personal and business details: Initiate the application by entering your personal information, such as name, mobile number, email ID, and date of birth, along with your business information, including business name, type, and operational details. This section generally takes about 10 minutes to complete.

Check your eligibility: This quick process takes just 5 minutes and lets you know if you meet the loan criteria based on the information provided.

Complete your video KYC and verification process: In the video KYC session, a bank representative will verify your identity and the accuracy of your submitted details. This step can take anywhere from 15 minutes to up to 48 hours, depending on the specific requirements and complexities of the documents.

Get the loan amount in your bank account: Once your KYC and verification are complete, the loan is sanctioned instantly. With the funds in hand, you can invest in your small business idea right away.

Key takeaways

Starting a small business in India with low investment and high-profit potential is an achievable goal. There are many options, such as event planning, boutique/apparel stores, juice points or smoothie corners, ice-cream parlours, laundry services, etc. Each of these ventures offers distinct opportunities for growth and profitability. 

To bring your entrepreneurial dreams to life, all you need is the right idea, a well-thought-out plan, and the financial backing of a quick business loan.