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List of small scale business ideas you can start under Rs 5 Lakhs in India with great potential for profits and sustainability.
INTRODUCTION
Starting a small scale business is a great idea for those individuals who choose to give up the notion of working endlessly for an employer in a 9 to 5 setup. But before you commence this journey of entrepreneurship, I would like to caution you that you have great deal of patience, persistence and resolve to stay on your business.
What small scale business idea to start under Rs 5 lakhs in India?
In this article, we list you some of really good small scale business ideas which you can start with under Rs 5 lakh in India. These businesses are simple to start and run and can be easily funded with minimum investments from own self capital or seeking loans from banks and other financial institutions. Take time to read the ideas listed below carefully and conduct your own thorough research to evaluate each and every idea. Always be careful and conduct your own independent assessments before investing money in any business.
Here is the list of 7 small scale business ideas that you can start right away under Rs 5 Lakhs.
1) Start a small scale business of Language Training School or Institute
Starting a language training school is a great small scale business idea to begin with under Rs 5 lakh. There is a great demand among students and working professional for language training courses to improve their language skills. Lets, look at some frequently asked questions about this business
1.1) How much does it cost to start a language training institute?
The cost of starting a small language training school can be between ₹3 lakhs to ₹3.5 lakhs depending on the scale of your business. If you decide to hire more staff and teachers and rent a large commercial unit with multiple coaching units then the cost of starting such a big language training academy would be around ₹5.5 Lakhs to ₹ 6.75 Lakhs.
1.2) How to become a certified Foreign Language Trainer?
Hiring a certified language trainer is really important for your business. A certification not only helps in building trust but also credibility.
You can become a certified language trainer by taking online Diploma certification courses in foreign languages which are 3 to 6 months in duration.
You can also seek admission in local or foreign universities to pursue Bachelor’s or Master’s Degree in desired foreign or vernacular language.
1.3) Which foreign language has good scope and great demand in India?
English of course, by and large English is the single most highly demanded and popular foreign language in India. Other foreign which are in demand are French, German, Spanish, Chinese-Mandarin, Arabic and Japanese.
1.4) How much money can you make from language training institute?
The average turnover generated by small scale local language training centre would be around ₹ 5.5 to ₹ 7.5 Lakhs annually. A bigger foreign language training centre in major city can easily generate gross revenues anywhere between ₹ 9 Lakhs to ₹ 15 lakhs per annum.
2) Start a small scale business of Mobile Phone Repairing and Service Centre .
Smartphones are quite popular now and a basic necessity of modern life, usually one has to get it repaired at least once in their lifespan. Unavoidable breakdowns of mobile phones and sky high cost of new cell phone devices has largely contributed to the rise in numbers of mobile phone repair shops also known popularly known as Mobile service Centre business. Of lately, there has been growing demand for Mobile repair shops in towns and villages as smartphone devices sales has increased many folds in rural parts of India as well.
2.1) How profitable is the mobile phone repairing business?
Yes, Mobile phone repair is profitable business. Smartphones are very sophisticated devices they contain some very fine technology which can get damaged due to various reasons. Most of the parts of mobile devices have to be changed as they are not repairable. Service Charges for repairing mobile devices are usually high and one can make really good profits.
Data recovery in some cases are as expensive as mobile repairing itself. Some people have important data stored in their cell phones and would pay you a premium to extract such data.
2.2) How much does it cost to start small scale business idea of a mobile repair shop in India?
The cost of starting a mobile repair business in India can be between ₹ 2.5 Lakhs to ₹ 3 Lakhs. The start up cost may vary depending on the scale of business you operate if you decide to sell new mobile devices and mobile accessories as well then, your starup cost would increase as you have to maintain certain level of inventory.
Capital required to start a full scale mobile repair and mobile retail shop would be around ₹ 3.75 Lakhs to ₹ 4.25 Lakhs depending on the stocks of mobile phone and mobile accessories you maintain.
2.3) How much can you make from a mobile repair business in India?
Earning from a Mobile repairing business may vary greatly depending on locations and expertise in the field. Repairing smartphones are usually costly affair and one can earn good profits. One can easily keep margin as high as 50% on replacement parts and service charges additionally.
An average Mobile repair shop situated in a decent location can earn anywhere between ₹ 25,000 to ₹ 35,000 / month in mobile repairs itself. Additionally, if you sell new mobile devices and mobile accessories along with mobile repairing services your total revenue could well be between ₹ 50,000 to ₹ 75,000 / month.
2.4) How to learn Mobile Repairing?
There are number of both online courses and offline training institute to learn mobile repairing. One can take practical training in institutes and study online materials. There are number of government training schools as well as private training institutes offering short term courses in mobile repairing.
3) Start a small scale business of Car rental service with Ola or Uber platform
Car rental business have existed for a very long time tourist vehicles, intercity taxi services and local cab services have long dominated the market. With the arrival of Ola and Uber cab aggregator platforms the car rental business has emerges as good profit generating business. With increased dependency of people on cab rental for commuting to working and personal travel this is business has emerged quite a popular business under Rs 5 lakh.
3.1) How much does it cost to start an Ola or Uber like Car rental business in India?
The basic cost of starting a car rental services business like Ola or Uber will be around ₹ 6.5 to ₹ 8 lakhs in India. The cost will include a brand new car Sedan or Hatchback car with CNG fitting, Gaumasta License, taxi permit, Smartphone, internet and Ola or Uber registration fees.
If you are new to the field then start your car rental business by purchasing used cars this way the cost of starting the business will be much lesser around ₹ 1.8 lakhs to ₹ 2.5 lakhs.
If you plan to finance your car through car loan from banks then the startup cost will be much lesser. Incase of bank finance the start up cost of business will be around ₹1.5 lakhs to ₹ 2 lakhs.
3.2) Is it profitable to start a car rental business like Ola or Uber in India?
Yes, it is still profitable to start a car rental service in major cities like Mumbai, Delhi, Bangalore etc. or even in smaller cities and town as more and more people are becoming accustomed to hiring cabs for work and personal trips.
If you attach your car to online cab aggregators like Uber or Ola etc. then you are sure to receive good business on daily basis along with bonuses and incentives.
It is advisable to be owner cum driver rather than hiring drivers which are expensive to pay and manage if you want to maximise the profits earned on investments.
3.3) How much money does one make in Ola or Uber car rental business?
Earning can vary greatly in car rental businesses as it depends on factors like daily trips, hours of operation, location, average cost per trips etc.
However, on average you can earn anywhere between ₹1500 to ₹ 4000 daily as an Ola or Uber partner driver. The net income after deducting variables and cost of fuel you can easily earn around ₹30,000 to ₹ 60,000 / month.
If you operate as a tourist cab driver or outstation driver then you can earn anywhere between ₹25,000 to ₹ 40,000/ month.
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4) Start a small scale business of Stationery supplies and Photocopy Centre
Starting a Stationery shop or photocopy centre is a very good idea if you start this business in area close to school, colleges and offices. Stationery items are used by wide range of people like students, employees, businesses etc. Photocopies are widely demanded in area like universities, courts premises, industrial areas etc. Although this business is quite profitable but the real challenge is to beat stiff competitions.
4.1) How much money is required to start a small Stationery shop cum Photocopy centre?
The cost of starting a small stationery shop cum photocopy (xerox) centre in India would be around ₹3.5 lakhs to ₹ 5 lakhs for small shop with limited stock of stationery items, 1 copier machine and 1 or 2 employees.
A bigger shop with 2 to 3 Copier machines, 3 to 4 employees and large stock of stationery items will require a capital investment of around ₹ 10 to ₹ 12 lakhs.
However, it is advisable that if you are new to this business then you should start with a small investment and then scale it gradually over a period of time.
4.2) Is starting a small scale business of Stationery and photocopy profitable in India?
Yes, Stationery shop is a profitable business with good return on investment of about 15% to 20%. One has to identify the right location and target big offices, universities and corporates for regular business. Offer lower pricing then your competitions and give them timely service and regular discounts to keep competitors at bay and attract new customers
Stationery business is a great small scale business with huge potential in smaller cities and towns as more schools, colleges and offices are opening in smaller cities and the demand for stationery items have gradually increased.
4.3) What is the profit margin and earning in a Stationery business in India?
The profit margins on stationery products may vary greatly from 5% to 50% on different items. But generally accepted margin in stationery business is around 25-30% on most of Branded products like notebooks, pens, pencils, crayons, colours, bonded papers etc.
For, non-branded items like Diary, registers, scrab books, Origami sheets etc margins are as high as 50% or more.
4.4) How much money does one make in Stationery Business in India?
Revenue or earning from stationery business widely depends on number of factors like location, investments, scale, margins etc. However, most small to medium size Stationery shops in India post an annual turnover anywhere in the range of between ₹18 lakhs to ₹30 lakhs per annum.
5) Start a small scale business of Pest control Services
Pest infestation has a nuisance factor involved in it with obvious health hazard like allergies, bites, diseases etc. With pest increasingly invading residential houses and commercial spaces the demand for a comprehensive pest control solution is on the rise. As more people are becoming aware of the health hazard caused by pest, they are increasingly looking towards complete pest control solutions.
Starting a small Pest control business is easy and with some basic knowledge and training you would be able to run your own business with the help of a small dedicated team.
5.1) How much does it cost to start a Pest control business in India?
The cost of starting pest control business in India will depend upon the location of the business and scale of operation. Generally, the startup cost of small pest control business run with a team of 2 to 3 persons, a small office and basic equipment’s with pest control chemicals etc., should start with capital investment of about ₹2.8 lakhs to ₹3.5 lakhs.
If you wish to start as a Pest control franchisee based business then he startup cost could be around ₹4.2 Lakhs to ₹ 5 lakhs as you would need bigger space, uptown location and additionally pay for franchisee fees, security deposits and royalties etc.
5.2) How much profitable is Pest control business in India?
Yes, Pest control business is a profitable business with good returns on investments and high profits margins. Most pest control companies offer AMC (Annual Maintenance Contract) to their customers for long term sustainable business.
The Pest control business is both sustainable and profitable in both cities and towns in long term if you can deliver timely solutions with good pricing. You should look for long term engagement with clients offer discounts, free pest check-ups, trials, AMC etc. Have a website and social media profiles to continuously engage with your customers.
5.3) What are the profit margins in Pest control Business?
The profits in Pest control business squarely depends upon the area of specialisations. However, most pest control business yields profit of around 12% to 33%. Certain highly specialised Pest control businesses like biological pest control, large fields fumigation, pest extermination etc may earn profits as high as 85%. With a CAGR of 15 to 18% per annum.
5.4) How much money does one make or generate revenue in Pest control Business?
On an average a small scale business start-up Pest control company can generate revenues around ₹ 8 Lakhs to ₹ 10.5 Lakhs per annum in turnover depending on scale of operation.
A medium scale pest control business with more than 8 years of experience and team of 8 to 10 people can generate gross revenue of around ₹ 30 Lakh to ₹ 50Lakhs per annum depending on scale of operations. PEST CONTROL INDIA (PCI) LTD is the largest integrated pest control service provider in India with an annual turnover of ₹500 crore.
So here are the few small scale business ideas you can start under Rs 5 lakhs with great potential for future to build it into a long term business. These small scale businesses have great potential to generate profitability in the long run.
