Do you live in a small town, village or in a rural area? Are you searching for low-cost small business ideas that will do good profit in small towns and rural areas? Here in this article, we have compiled 60 most profitable small business ideas for small Towns.
Small towns or Tier 2 and Tier 3 cities are the emerging markets in India. Small towns are the biggest potential market for consumer goods and as well as eCommerce. The proof of the rural growth story is corroborated by most FMCG companies in India.
Most FMCG companies are now earning a nearly similar proportion of revenues, if not more from both urban and rural markets. In the present scenario, small towns are surging ahead as hubs of entrepreneurial activity, beating larger cities and even metropolises.
While industrial activity declines in big cities, smaller cities and towns are picking up the slack, often displaying a preference for manufacturing at the cost of the services sector. Starting a business in small towns and focusing on the mass market is a financially profitable investment opportunity for the Indian entrepreneurs.
Relationship and trust are key drivers of awareness and purchase in the small cities. It is essential for marketers to actively engage and build relationships.
List of 60 Profitable Small Business Ideas For Small Towns
The demand for acrylic buttons is increasing due to increase in consumption of garments used for domestic use and for exports. The consumption of both these sectors have registered significant growth in the past and it will continue to show good growth in future years.
#2. Agarbatti Making
Any individual can start Agarbatti making business on small scale. Agarbatti is considered as household goods having a great market potential. The burning of Agarbatti or incense in religious and social functions has been practiced in India since early times. Local Agarbatti companies are doing good in India.
Air bubble packaging wrapper is an essential item in packaging field as a convenient and economical cushioning material. The demand generation of electronic goods and other fragile items in recent years has left a wide gap to fulfill the packaging need using air bubble film which has generated a good potential of the project for new entrepreneurs.
The aluminum door window manufacturing business is one of the profitable small business manufacturing opportunity in light engineering industry sector. You can start this business with a small startup capital.
#5. Aluminum Foil
Aluminum foil is used in different industries in different forms. It is used in pharmaceutical tablets, bulk & unitized packing of tea and coffee, prepared meals, bakery products, frozen meat, fish, milk bottle caps, wine, lube oil, greases, powdered milk, confectionery, biscuits, photographic film, gift wraps, household wraps, butter, margarine, and cigarettes.
The demand for ATM space is high. The banks usually rent the space for the certain amount of years and the contract is renewed every two or three years. If you are looking forward to a fixed monthly income, ATM space renting is a good retail business proposition for you.
The bakery is one of the most profitable food processing business opportunity one can initiate by having owned or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business. According to the demand and financial aspect you will need to choose the specific products for your bakery business.
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried under the sun or in the oven, fried and eaten as snack food or dessert. Additionally, you can sell the item both in the local and export markets. You can initiate this business on small scale basis.
This is a very good consumer product and one of the best business ideas for small towns. You can start the business with small capital investment. Knowledge in the textile industry is important. Small, medium and large scale operation is possible.
Bio-diesel production unit can be established on a small scale basis at any place where the main raw material Jatropha oil is easily available. There is a continuous search for renewable sources of fuels due to the rate of depletion of fossils. The term biofuel is used to define fuels that are obtainable from plants or animals. Being a renewable source, it is gaining attention all over the world today.
#11. Bridal Store
A bridal store focused in specialty wedding attire with allied wedding supplies product is a profitable retail venture in clothing and fashion industry. Even in a poor economy, brides to be and their wedding parties spend a lot of money on bridal attire and wedding accessories because weddings are memorable once-in-a-lifetime events.
#12. Candle Making
Aromatic decorative candles have a big market. It is used as the gift item also. Candle making business can be initiated as small-scale. Women especially can try this business.
Any individual can start a canned Rasgulla making business with moderate capital investment. Additionally, revenue-wise the business is lucrative and highly profitable. However, you must ensure a regular supply of fresh milk to your factory.
#14. Cashew Processing
In cashew processing, the manufacturing activity includes cell cooking, cutting, cashew kernel drying, peeling, grading and packing. Additionally, you can initiate cashew nut processing as an export-oriented plant too.
Coconut production plays an important role in Indian economy. The country is the highest producer of coconuts in the world. The total cultivated area is over 1.94 million hectares. Around 90% of the coconut growing area is situated in the four southern states of India, with Kerala occupying about 50% of coconut cultivated area in India. If you stay in a place where coconut is grown in plenty, think of starting a coconut related business.
#16. Costume Jewelry
This is a multi-million dollar industry now. It attracts women of all ages. The major reasons for its popularity are the low price with the highly attractive look. You can start costume jewelry selling from home. You can sell from your own online store. With the innovation of technology, it is easy now.One of the best business ideas for small towns for housewives and women.
#17. Designer Lace Making
With knowledge about lace knitting, any individual can initiate this business from a home location with small startup capital. Nowadays you will find different lace making machines. The commercial lace-making unit is possible by establishing these machines. Designer lace has a very good market demand and is an essential item in designer clothing materials.
Detergent and washing powder are surfactants. And washing powder is an important ingredient for cleaning and washing purpose. Generally, there two different types of manufacturing technologies are available. One is spray dried and another is mixing the raw materials.
#19. Egg Tray
Egg trays are made from scrap paper pulp. The manufacturing process is simple. However, you need at least an area of 400 Sq Ft to run a small scale egg tray manufacturing unit.
#20. Exercise Book Making
The exercise book manufacturing process is simple and any individual can initiate this business with comparatively low startup capital. The demand for exercise book as an office and school stationery item is increasing. According to the demand, several different types of machinery are also available.
#21. Flex Printing
Nowadays, flex is an essential item for outdoor advertising. If you are passionate about starting a small business in the printing industry, you can consider this business. You can start flex and banner printing business by two ways. In both cases, you must have a flex printing business project report in your hand.
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicinal preparations. As instant mixes and spices are becoming more popular, the demand for ginger garlic paste is also increasing. The Production process is simple. The product has an immense market opportunity for export also.
Of course, grape wine production is a highly capital intensive business. However, the business is lucrative too. Any individual can start this business with substantial capital investment. We can say this is a medium to large scale business. In addition, you must have a proper business plan or project report in hand prior to starting this business.
#24. Hair Band Making
Hairband making business is a lucrative and profitable manufacturing idea that can be initiated as large scale or small scale basis. A Hairband is considered as hair accessories and used by girls and boys both. With the up gradation and change of fashion trend, different types of fashionable colorful hair band are now very popular. Broadly hair band comes with two different material.
Ice cream store business with allied products is a profitable retail venture in India. Selecting the right location with the right product is most crucial in this business. This is one of the best retail business ideas for small towns.
Iodized salt is a white crystalline powder salt fortified by Iodine. People can easily avoid the iodine deficiency disorder by consuming a sufficient amount of salt fortified with Iodine. Iodized Salt consumption is directly related to population growth.
#27. Jam Jelly Making
Any individual can initiate jam jelly-making business from home. As your business grows, there are scopes to add similar product line and shifting your project at a convenient premise. jam jelly-making business requires normal machinery and utensils. These are consumable food item and have very good market demand.
#28. Jute Bag Making
Jute is a biodegradable eco-friendly item. Designer jute bad has very good market demand and export potential also. By having simple machinery, you can initiate a jute bag making unit at your home location also. For an eco-friendly character, the demand for jute yarn, jute fabrics, and other jute items is increasing very fast.
Infant garment or kids garment industry is growing very fast in India. You can consider initiating an infant garment manufacturing business of your own. In India, this business also has a very good export potential. In that case, you can also consider starting an export-oriented infant garment manufacturing company.
#30. Leather Belt Making
The leather waist belt is an item of dress used by young to old everyone. It has a functional value besides being a fashion item. The demand for leather belts is increasing in domestic as well as export markets. It is popular among school-going children and youths wearing western dress. It is also popular among the other age groups of men. The raw materials and skilled workers are also available in the country.
#31. Lemonade Making
Lemonade is actually a lemon flavored very popular soft drink. The principal raw materials required are sugar, citric acid, flavor & essence, food color, and sodium benzoate. However, lemonade-making is capital and management intensive business. One of the best summer season business ideas for small towns.
#32. Milling Business
Generally, milling business opportunities in India involve wide manufacturing operations. According to the product and raw material, you can initiate different types of milling business as small and medium scale industry. In order to enhance the competitive strength of the small-scale sector, the Government of India has introduced several incentive schemes that provide a financial subsidy to the eligible enterprises.
Nowadays, nail polish is a very common beauty and cosmetic item. Generally, the price of the product varies from Rupees 50 to 1000 in our country. However, you can find more costly brands in the market. Almost every age group of women use this item regularly.
#34. Nut Bolt Making
Basically, nuts bolts making business comes under light engineering product manufacturing. Nuts and bolts are a type of industrial fasteners used in various products, machines, structures etc. Nuts and bolts consist of a major link in the family of industrial fasteners and are used by every industry.
#35. Online Perfume Store
To start your own online perfume store business you will definitely need to have an eCommerce site. And when a software will do every work related to setting up an online perfume store, it will be quite easy to initiate an online perfume store business with really a small capital investment. Financially most important aspect is, you need not pay any cost for retail space.
#36. Online Toy Library
Toys are the most popular item for the kids. Children enjoy playing with toys. In addition, they learn several things in the childhood days with the help of different activity and educational toys. However, a single piece of the toy is not sufficient to engage a child for a long period of time. In fact, children want to have a new toy for almost every alternate days.
#37. Online T-shirt Store
The t-shirt is a well-known casual wear worldwide. It is popular among the men, women, and kids also. Yes, there are a lot of t-shirt brands on the market. People always look for a beautiful design, cherishable brand, and a quality product. That’s enough.
In starting an online t-shirt business, you will definitely need to have an eCommerce site where from your clients will buy your t-shirts. with Shopify, you can start your own online t-shirt business by creating a fully functioning eCommerce store with very less capital.
Increasing awareness of health and scarcity of getting pure drinking water have made an immense market demand for packaged drinking water. Nowadays people prefer to have packaged drinking water not only outside but also in the house. In initiating packaged drinking water business, it is important to check the PH balance of water where you want to establish the unit.
#39. Papad Making
Any individual can initiate papad making business on small scale. Papad making is one of the most profitable food processing business considering the low startup capital investment. Papad is a thin wafer-like product and served as fried or roasted.
#40. Paper bag Making
A paper bag or paper sack is a preformed container made of paper. It usually comes with an opening at one end. It can be one layer of paper or multiple layers of paper and other flexible materials. Paper bags are essential items for packaging and/or carrying items. It’s just the same as packaging design, paper bags are intended to show all the glory of the product inside them. So, your design needs to be stand out. This is one of the best business ideas for small towns.
#41. Paper Cup Making
You can start this business with a small capital investment. The demand for this product is increasing day-by-day. Paper cup making business is one of the most lucrative small-scale manufacturing opportunity for small towns. You can produce the paper cup from recycled paper.
Pet jar or pet bottle production is one of the most lucrative and profitable manufacturing opportunity in plastic and polymer industry. According to experts, polymer consumption by Indian plastic industry is expected to be double in next 6 years. It means we can expect a figure of 20 Million metric tons by 2020. A pet bottle production unit with a simple process of injection molding and blow molding is a profitable venture for the entrepreneurs.
#43. Shrimp Farming
If you are staying in villages or rural areas, shrimp farming is a profitable business idea. However, you need to go through some training on how to farm shrimps before you start this business.
Another small business idea with low investment high profit. This is a consumer item. The product has good market potential. You can start production at home too. The manufacturing process is simple. Machine cost is also very less. The raw material is easily available.
Preschools generally provide early education and care for children aged between three and six years. However, there are some may be licensed to take children from two years of age.
The demand for PVC pipe and fittings is related to the consumption of PVC pipes. Due to the growing trends in the utilization of PVC pipes for a variety of applications, the demand for fittings is likely to grow substantially.
#47. Rain Coat Manufacturing
A wide variety of fabrics suitable for rain gear is currently on the market. The production process is simple. Generally includes designing, cutting, and sewing.
#48. Rakhi Making
The season is coming for rakhi. It is a very popular seasonal product in India. Almost every Indian woman tie a rakhi on her brother’s wrist. Rakhi making business doesn’t demand machinery cost. You only need to have some tools and equipment. Start selling locally. One of the best low-cost business ideas for small towns.
The food and beverages industry is one of the fastest growing industries in India. Additionally, the restaurant business is one of the most profitable and lucrative retail opportunities. One of the best food service business ideas for small towns.
Rubber floor mats are popular as industrial rubber mat, anti-static mat, anti-vibration mat, anti-fatigue mat, rubber mats for use at home, entrance mats, interior mats, car floor mats and so on. The manufacturing process is not complex.
#51. Solar Business
India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is incident over India’s land area with most parts receiving 4-7 kWh per sq. m per day. Hence, both technology routes for conversion of solar radiation into heat and electricity, namely, solar thermal and solar photovoltaics, can effectively be harnessed providing huge scalability for solar in India. This is one of the best business ideas for small towns.
#52. Spectacle Frames
The spectacle frame manufacturing business demands simple machinery and equipment. The major required raw material is cellulose acetate. The most fashionable business ideas for small towns.
#53. Spice Powder Making
Spice grinding and packaging is one of the most profitable food processing businesses. Additionally, you can start the business on small and medium scale. Spice is an essential item in cooking and food processing. Additionally, it comes as a tastemaker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala etc.
#54. Tissue Paper Making
Household paper products recently have seen a huge demand. tissue paper, facial tissues, paper towels can be produced by simple machinery. These are the consumable item. You can initiate the project concentrating on one or two allied products. As your business grows, you can make an addition. Household paper product making is one of the most profitable and trending paper business ideas for small towns nowadays.
#55. Tomato Processing
Tomato is a widely available item and processed tomato products are also very popular. Most popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing, you can also produce tomato pulp for other small-scale industries. Additionally, the business demands simple machinery and equipment. One of the great business ideas for small towns.
The tracksuit is a popular item among the every age group of people. Additionally, men, women, and kids all use this item as sportswear or as a casual wear. The dress is hugely comfortable and functional. The item comes in different colors, sizes, patterns, and designs. Additionally, there are different tracksuits for men and women.
#57. Tyre Retreading
Tyre retreading is a new technology. After applying this method the old tyres become serviceable and usable. The part of the tyre that comes in contact with the surface of the road is known as the tread. The tread is an integral part of the tyre and is responsible for providing traction. Technology wise this is one of the most trending business ideas for small towns.
Washing blue or laundry blue is an essential household item. The manufacturing process is simple. Additionally, any individual can initiate this business with moderate startup capital investment.
Woodworking business is a very good and profitable opportunity for those individuals who are really looking for a home based manufacturing idea with small startup capital. You will find many technically upgraded machinery for woodworking. However, you must select the right product. Additionally, focusing on the right niche is important in this business.
#60. Yoga Studio
Yoga studio business in India is a profitable and lucrative retail venture opportunity in the health and wellness industry. The increasing awareness of consumers from remedial care to a preventive care approach has created an enormous potential of initiating a yoga studio for the entrepreneurs. Additionally, this is one of the most lucrative business ideas for small towns.
Success parameters in small business hugely depend on location. Source of raw materials, available infrastructure, and local market play an important role. This list of 60 small business ideas for small towns will definitely help you in making an informed decision.