8 profitable online small businesses ideas to start with as low as Rs 25,000

Starting a business may seem like a mammoth task, especially when the capital is limited. Thoughts like managing inventory, logistics, marketing etc., often shake a beginner’s confidence. 

Building a successful business is a long journey. However, when the plans are right, it reaps benefits for the founders, stakeholders, and several others who depend on it for their livelihood. 

Today, starting a business in the online medium with a small investment is not hard. SMBStory has made a list of eight profitable online businesses ideas, which can be started with a minimum investment of as low as Rs 25,000.

Artificial jewellery

Jewellery never goes out of style neither does its demand. Even during the COVID-19 lockdown, when most businesses were shut down, the demand for artificial minimalist jewellery pieces remained. 

Setting up an artificial jewellery business is doable with an investment as low as Rs 25,000. Chinu Kala, Founder of Rubans — a Bengaluru-based jewellery brand — says launching an imitation jewellery business is a great idea, and suggests one can invest between Rs 15,000 and Rs 20,000 in buying products in bulk.

“There are portals like TradeIndia, where people can get connected to good manufacturers for procuring jewellery and selling by setting up an online shop,” Chinu says.

She adds that the first customers of the business can also be friends and family who can endorse the products in their circle and urge them to buy online. 

Home bakery

Setting up a basic home bakery business doesn’t require a hefty investment but a strong intent to bake and a handful of money to procure an oven and buy ingredients for baking. 

Mariam Mohuideen, Founder of Baker’s Treat, Mangalore, started from a small bakery set built out of passion. She says baking is a craft, and to set up a business in this industry, “one has to think out of the box to succeed.” 

“There’s no need of doing branding when starting from a small scale, but focus on the quality and delivering a flavour that customers would relish,” she adds.

A home bakery can be started with an investment between Rs 15,000 and Rs 25,000.

Homemade candles

In the last few years, people are taking to buying more candles, especially scented candles, to enhance their home interiors and for gifting purposes.

One can start a candle business with a minimal investment either by making it at home or procuring it from a third party.

The raw materials used to start the business include wax, wick, moulds, thread, aroma oils, and more. 

Besides, you also need to have some candle-making equipment, which includes a melting pot, thermometer, pour pot, weighing scale, hammer, and an oven (to melt wax).

Many beginner candle-makers can start by listing their products on Itsy Bitsy — a one-stop shop for art and craft manufacturing to retail to D2C stack in the country.

It has 26 stores across the country, including Mumbai, Bengaluru, Hyderabad, Chennai, Pune, Panjim, Ahmedabad, Mysore, Shimoga, and Delhi.

Bedsheets

Starting an online bedsheet business is quite pocket-friendly for founders as the products can be bought in bulk and at a cheaper cost from manufacturers.

Entrepreneurs can connect with manufacturers through Indiamart or can directly buy from cities like Panipat, Jaipur, Delhi, Surat, and Kolkata, which are famous for their bedsheets. 

Jabalpur-based entrepreneur Rekha Sabharwal said she started a bedsheet business from home by sourcing products from Delhi’s Sadar Bazaar. 

She started selling via WhatsApp groups, and today, she is running a successful business, selling in and around Jabalpur.

Papad

A papad business can be profitable, owing to the small investment required. One can start the business at a micro-level by making papad at home or can collaborate with papad manufacturers in Amritsar, Guruvayoor, and Bikaner to get started. 

Papads come in many varieties — from rice papad, urad dal papad, moong dal papad, aalu papad, or phool papad — one can select the SKU basis the demand prevalent in the region. 

Ludhiana-based entrepreneur S. Amanpreet Thind’s grandfather started the Amritsari papad business in 1937 with Rs 100. Today, if one wants to start the business, a minimum investment of Rs 25,000 is sufficient to source papads and start selling online through social media channels or on ecommerce. 

Disposable cutlery 

From plastic, areca to bamboo spoons, bowls, and plates, the market for disposable cutlery has a constant demand in India, especially from Quick Service Restaurants (QSRs), retail, and from customers for several occasions. 

The disposable cutlery business is a low investment and a high-profit business, given the items procured are from local wholesalers or manufacturers. 

Spices

India is a big market for spices, with major demand coming from across the country. Earlier, we used to use fresh spices made at home, and continue to do so. Many spices, including garam masala, jeera masala, paratha masala, etc., are made at home and there is a constant demand for them.

Mother-daughter duo Urmila and Aarti Samant started Masala Tokri, a Mumbai-based spices brand, which they started by selling in their circle of family and friends. 

In a span of a little over two years, the duo now aims to touch the turnover of Rs 1 crore. 

The business is profitable and requires a small investment for procuring raw materials. 

The masalas are carefully curated by Urmila. Aarti says that their background of running a family business of masala chakkis helped them connect to premium raw material vendors from across the country. 

Buttons

Either in menswear, kidswear, or womenswear, buttons always enhanced the elegance of an outfit. The button business requires bare minimum investment and can be started from home to set up an online shop for selling.

From plastic to fabric and steel buttons, there are various categories in this niche that you can select depending upon your choice of business.

For selling purposes, creating a local group online on social media channels or messengers can be an initial step. SMB entrepreneurs can also set up their personalised online store within minutes on the MyEasyStore platform.