Best Profitable Small Business Ideas With Low Investment – Part 1

A small business is an enterprise that is comparatively small in size, operating in a geographically localized area and requires less capital. Small business is playing a vital role in the economic development of the country. Peter Drucker said that small enterprises represent the main catalyst of economic development. They are very important because they create greater employment opportunities and provide a great level of job satisfaction to their employees. It plays the biggest role to fulfill the demands of society in exchange for money. Small businesses are the major sources of innovation in our civilization. In the 20th century, more than half of the major technological advances were initiated with small business ideas.

There are several reasons why people choose to set up a small business:

  • It gives them independence.
  • They are still looking for a job.
  • They don’t want to continue their cubicle job and come out from the rat race.
  • They are very ambitious and passionate about improving human lives.

Starting your own business requires a huge commitment. According to Inc. magazine, 50 % of new businesses fail during their first two years of operation as all of the small business ideas are not adaptable and flexible. In 2020, many businesses were forced to shut down because of the Covid19 pandemic.

Successful entrepreneurs spend their significant time doing market research, developing a realistic business plan and raising capital before launching their product into the market. Technology has made it simple, affordable and feasible to start your business. Everyone needs to understand before entering into an entrepreneurial journey is that one can never become an overnight success. You need to do a lot of hard work. These are three things that need to be considered when starting a business.

  • Choose a business idea that you are knowledgeable and passionate about.
  • You must have a clear picture of why you want to start it.
  • Do proper research about your product whether it is in demand.


Are you looking for the best profitable small business ideas? The good news is that there are so many opportunities to start your business and build innovative products. I have researched small business ideas in different categories which can be started with low investment. You can grab any of them, but I suggest you find creativity and innovation in any of your selected business ideas. Here I am starting with the first category.

FOOD BUSINESS IDEAS

The food industry is an essential part of our lives which provides food for human consumption. It includes a collection of various sectors producing a diverse range of food products such as food supply, cultivation, harvesting, processing, preservation, packaging, transportation, and distribution. India is the largest producer of milk, pulses, sugarcane and tea in the world and the second-largest producer of wheat, rice, fruits and vegetables. The food industry offers various opportunities and we can start it easily with low investment.

As many individuals have started doing this business, the food business has become highly competitive in the market. But if you maintain quality, hygiene, taste and innovation in your product, you can make a profit easily. You will have to take food business licenses and permits in the city and state in which you want to start your business.

Here you can find 16 profitable food business ideas. Keep reading:)

  1. Food Truck or Mobile Food Van
  2. Organic Farming
  3. Bakery
  4. Cloud Kitchen
  5. QSR Restaurant
  6. Tomato Farming
  7. Salad Making
  8. Chocolate Making
  9. Cooking Classes
  10. Catering Services
  11. Tiffin Services
  12. Healthy Snacks Making
  13. Baby Food
  14. Fruit Juice Processing
  15. Food Blogging
  16. Dehydrated Fruits

1) Food Truck or Mobile Food Van:-

The food truck business is one of the most popular and growing food business ideas today, if planned and managed properly. The food trucks are a great alternative to restaurants because of lower startup costs and lower risk of failures. Before opening the food truck, one should study the location, taste and habits of the individuals in that place.

Success Story: “Ramji Chaiwale” in Bangalore is one such story. It was founded by Sumit Joshi in 2015. He entered the industry from a single food truck to become a successful food market leader in Bangalore. “Ramji Chaiwale” has expanded from one café to 12 cafes in two Indian states in just four years.

Minimum Investment: Rs. 5 lakh.

2) Organic Farming:-

The popularity of organic foods has risen enormously in recent years. People who are very health conscious prefer organic foods nowadays. Organic farming showed 50 % more vitamins and nutrients than other methods. It also keeps the environment safe. If you have your land, you can build an organic farm on it which does not use artificial chemicals, pesticides and fertilizers to grow the crop. This industry provides a variety of farm produce including vegetables, fruits, meat and poultry.

Success Story: Satyajit and Ajinka quit their high-paying corporate jobs for organic farming, now making a monthly turnover of Rs. 30 lakh. Their online organic shop, “Amorearth”, was ranked the best store for organic products among Indians.

Minimum Investment: Rs. 20 lakh.

3) Bakery:-

Bakery products are very popular in all parts of the country. Cakes are the most favorable food items, especially during occasions. You can choose to open a bakery if you’re good at making cakes and biscuits. You can either choose a retail shop for your business and can sell baked items from your shop or you can set up a large-scale bakery unit and can sell the products to retailers.

Success Story: “Cakes N’ Craft” is one such story. Jasmine Lulla is a home baker who survived with cancer and continued to work and expand her bakery business “Cakes N Craft” even during her chemotherapy process. She turned her passion into a successful business with annual revenue of Rs 8 Cr by selling 600 cakes a day.

Minimum Investment: Rs. 10 lakh.

4) Cloud Kitchen:-

A cloud kitchen, also known as the dark kitchen or satellite kitchen, is a delivery-only restaurant format that offers no dine-in facility. The prepared food will be delivered to the customer’s doorstep who can order it on telephone or food delivery app. Cloud kitchens are considered as a low investment, low risk, yet one of the most profitable food business formats.

Success Story: “Box8” was started in 2012 by two IIT graduates Amit Raj and Anshul Gupta. It’s an online food delivery platform that specializes in Indian cuisine preparation and delivery. “Box8” provides 12,000 meals every day through a network of 60 stores across Mumbai, Pune and Bangalore.

Minimum Investment: Rs. 2 to 5 Lakh.

5) QSR Restaurant:-

The QSR industry is one of the fastest-growing industries in the world. In order to provide quick and inexpensive alternatives, there is an immense opportunities in this sector. It’s one of the most profitable restaurant concepts among all, as the return on investment is very high. You can start a QSR restaurant by taking a franchise business of an already established brand.

Success Story: “Mast Kalandar” is a chain of QSR serving northern Indian vegetarian food which is very healthy, hygienic and affordable. It was founded by young Indian couple Gaurav Jain and his wife Pallavi Gupta, who quit their well paid jobs in a software company in Bangalore in 2006. It has 46 stores in 4 cities –Bangalore, Hyderabad, Chennai and Pune.

Minimum Investment: Rs. 15 to 20 Lakh.

6) Tomato Farming :-

It is one of the most profitable agriculture businesses. Generally, tomatoes are widely consumed in diverse ways. One is fresh in the green salad, cooked food recipes and tomato products such as sauce, juice, puree, ketchup, etc. Tomato farming can be done in open land or greenhouse. A small-scale tomato farm could easily be set up at a low cost. Tomatoes are a fast-growing crop. It will start to ripen, ready for harvest after three months of planting.

Success Story: “Tuzini Farms” is a commercial farming business that specializes in growing tomatoes. It was founded by Zaloumis Maria Zelina. She is a qualified nurse and cardiologist in Australia who quit her medical career to start “Tuzini Farms”. She has been honored as Zambia’s Youngest Female Farmer.

Minimum Investment: – Rs. 10 lakh.

7) Salad Making:-

People are now shifting towards good nutritious food from the same fast-food chain meals. So, in this health-conscious environment, it can be a very unique and profitable business. Salad can be made with simple lettuce to exotic combinations of fruits and vegetables. This business can be started with very low capital.

Success Story: Meghna Bafna started her salad making business in Pune with 3500 rupees from her kitchen and now she earns Rs. 1.25 lakh per month. She started selling salads through online messaging groups as a part-time job.

Minimum Investment: Rs. 50000 to 1 Lakh.

8) Chocolate Making:-

If you love to make chocolates, this idea is best for you. Apart from the children, adults and even seniors love chocolates. You can start this business with very low capital that can be operated from home too. You can also tie-up with retail shops to sell your chocolates. For starting a chocolate business you need to provide the best quality and attractive packaging.

Success Story: “Chococraft” is a 9 year old company, specializing in homemade, tasty, high-quality chocolates. Radhika Mandala founded “ChocoCraft”, a designer and custom-made chocolate in Hyderabad. She started making chocolates for friends and relatives, and encouraged by their positive response, she started taking corporate orders. She makes a healthy profit year-on-year.

Minimum Investment: INR 50000 to 1 Lakh.

9) Cooking Classes:-

Do you love cooking and enjoy teaching? Are you passionate about making some brilliant recipes? You can also open your cooking classes. It is also one of the best profitable business ideas which can be operated from home. It requires a great deal of effort, dedication and most importantly patience.

Success Story: Nita Mehta is a homemaker, a teacher, a celebrity chef, an author and an entrepreneur. She decided to do something different and started ice-cream making classes after researching current trends. From ice-creams, she moved towards cuisines, like Chinese, Mughlai and Continental, on public request. She has written more than 400 cookbooks. Nita Mehta runs a Culinary Academy in New Delhi which was started in 2001.

Minimum Investment: Rs. 0 to 50,000.

10) Catering Services:-

Are you passionate about cooking? Are you always managing people during the family gathering? If the answer is yes, you can provide catering services on a small or large scale. It requires experience, knowledge and managerial skills to start a catering services. People frequently organize parties and you can provide catering to them. It can be a very profitable business and can begin right from your home. Catering is needed at all places, ranging from corporate events, hospitals, schools, colleges, malls, weddings and parties.

Success Story: M.K.M. Pillai has started his catering services near Vadodara of the same company where he worked by taking a contract of providing meals for the 2800 employees. Today he runs his own catering company, “Noida-based PYX Industrial Caterers”, which provides meals to more than 8,000 corporate employees.

Minimum Investment: Rs. 5 lakh.

11) Tiffin Services:-

Tiffin service business is quite simple. You provide fresh and healthy home-cooked meals to people who are staying away from their homes. Your customers would be young working professionals or students. This business idea provides career opportunities for many people, especially for females.

Success Story: Lalita Patil started her journey with small Tiffin services in Thane in 2016 and launched “Gharachi Aathvan”, a restaurant that offers home-style food in July 2019. She provides simple, home-cooked food at very affordable prices. She is offering Tiffin and takeaway services to healthcare workers, students, and professionals.

Minimum Investment: Rs. 0 – 50,000

12) Healthy Snacks Making:-

Snacking is a small portion of food that is consumed between the meals. It can be helpful to improve overall health, decrease cravings, help you lose weight, control mood, and give you the energy you need to require throughout the day. Fried Packaged foods can be delicious and highly convenient, but it is very harmful to your body. That’s why the demand for ready-to-eat healthy snacks is increasing globally. One should pay attention to the creative packaging of the items.

Success Story: “DesiVDesi” was founded by Nidhi Pant in January 2017. It introduces a healthy snacks option which is produced using solar conduction dryers. The product includes Veggie Chips – Spinach Crisps and Beetroot Chips in the savory segment and Fruit Chunks – Chikoo Chips, Pineapple Chunks, Kokum Amla Candy and Muskmelon Chunks in the tangy and sweet category.

Minimum Investment: Rs. 10 lakh.

13) Baby Food :-

Many parents want to deliver the most delicious and nutritious baby food to their children. They are in high demand in our Indian market because of the increasing infant population and rising female working population. This has led to significant growth in this industry. It can be started with very low investment.

Success Story: “BebeBurp” was founded by Shruti Tibrewal in 2017. It provides fresh, organic meal options like oatmeal mix, khichdi mix, millet mix, barley mix, ragi cookies, oats and raisin cookies for babies older than six months. They create high-quality nutrition and health-focused products. “BebeBurp” started with an initial investment of over INR 1 lakh generating an annual revenue of Rs. 35 lakh now.

Minimum Investment: INR 3 to 5 lakh.

14) Fruit Juice Processing:-

The Fruit processing industry offers various segments including fresh , fresh-cut, canned, frozen , dried and convenience products. It is one of the fastest-growing products in the Indian beverage industry. India ranks second in the world when it comes to fruit production. So, it is a very profitable business. It enhances the shelf life of the fruits. Due to its ready-to-eat property, people prefer packaged fruit juice.

Success Story: One such brand is “Yoga Pulp” which was founded by Nitin Gupta. “Yoga Pulp” provides many fruit-based beverages which are made with a combination of aloe vera pulp and fruity flavors.

Minimum Investment: Rs. 20 lakh.

15) Food Blogging:-

Are you a foodie person? Do you want to share your ideas and experiences of food with the entire world? If yes, then it is the best option for you to start a food blog. Food blogging is one of the best niches to get into because you can write about so many different subjects. You can find several popular food bloggers making a good amount of money from their blogs regarding cooking and recipes. You can also start your YouTube channel and share different recipes on it.

Success Story: Devashree Sanghvi is the founder and blogger at Thecrazyindianfoodie. She left her job at a law firm for full-time blogging on food and travel. This 25 year old lawyer has a huge fan following on social media.

Minimum Investment: Rs. 0 – 50,000.

16) Dehydrated Fruits:-

Nowadays, it is being seen that people have increased awareness about their health. People are avoiding junk foods such as processed noodles, potato chips etc. Instead, they are using dried fruits and nuts in their diets. It is an important source of nutrition. Dried fruits can be preserved for much longer than fresh fruits and can be a handy snack, particularly on trips. So, earnings in the dry fruits business are very high if you plan it properly.

Success Story: “Nutty Gritties”, nuts and dry fruits brand located in Delhi, was founded by Dinika Bhatia in Sept 2009. They are offering different flavors like Barbeque Almonds, Thai Chilli Blend, Pepper Cashews, and assorted nuts, berries, and seeds blends. Nutty Gritties reported a turnover of Rs 20 cr in 2020.

Minimum Investment: Rs 3 -5 lakh.

If you are interested to read more about the success stories of small businesses, kindly refer to the following website.

Read More: https://yourstory.com/

Do you know any food business ideas with low investment? Please feel free to share your thoughts and experience in comment section.

Thank you so much for your kind support.

Nirali.

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