Everyone wants to find some low budget investment ideas which can give good returns. So what’s the safe amount which an average Indian can put on risk to start a business. After brainstorming for hours I came to a conclusion that, Indian per capita income is close to Rupees 100,000. So how much can we afford to risk?
Indian financial mindset is of saving, so Rupees 50,000 sounds safe enough for any average Indian. Today we will discuss and learn some basic businesses which can be started with initial capital of 50,000 Rupees.
What kind of investment ideas we are talking here? any business which requires 50k to become fully functional business. The business can be active or passive. Active business is those which requires direct and active involvement of owner. While passive business is something which does not requires physical presence of owner.
Investment Ideas In India (Active Business)
Here all the investments requires active involvement of business owner. These ideas will require a capital of Rupees 50,000.
1. Sell Your Knowledge
In 21st century knowledge is new currency. If you are good at academics then start a simple coaching center. Which requires 1 white/black board, few benches and you are good to go.
This investment idea can become a big scalable business. Which means starting small and scoring big is new rule of entrepreneurs.
In this competitive business environment putting lots of money blindly in any business is nothing but shooting arrow in dark. Today’s business is marketing domain. What I mean is people tend to do lots of marketing instead of focusing on quality of product.
Marketing will attract potential customers once but its the quality which brings them back, again and again. So start a coaching center of your knowledge domain. Provide them quality education and let your talent be the marketing head. This investment has huge potential with very low risk. Every business is excellent when profit margin is high and risk ratio is low.
So stop chasing top notch venture capitalists to invest in your idea of starting a coaching center, rather start yourself with an initial investment of 50,000.
2. Custom Chocolate Shop
Making custom chocolates are in fashion now and as I say tuning to current trend is smart business approach.
You can open custom chocolate making shop. The customer base for this business is huge as any celebration in India is now incomplete without any kind of chocolate desert. So investing money in opening a chocolate shop sounds good to me.
What expenses you will have?, Take advantage of booming economy and buy some quality accessories required for chocolate making. All the necessity should be completed under 38,000 rupees. Rest of the money can be used to pay the rent for your shop. (Shop rent is considered from mid budget location point)
3. Start A Dosa Shop
If you love making money and don’t feel shy about being on street, then dosa shop can be your way towards next million rupee business.
To start a dosa shop you need to find a location which can attract potential customers with affordable rent (keep rent under 12000).
Once you have finalised your location invest the rest 38,000 in buying Tawa and other dosa making utensils. This business can get started within a week and return on investment can be seen from the very first dosa you will sell. So don’t be shy because money don’t come to shy people.
4. Home-Made Buttermilk
Gujarat’s favourite drink which accompanies every possible meal. Easy to make and tastes good. Try to start a home based business where you prepare quality buttermilk (Chhas) at home and sell it in cap locked cups.
Right now there is very low competition in processed and packed buttermilk. With just Rs. 50,000 you can start a buttermilk business at home. This is an phenomenal investment which can make you some real cash.
5. Shoe Cleaning Business
With rising economy and per-capita income of Indians, purchasing power has also gone high. Costly shoes making companies such as NIKE, GUCCI, LV, etc has increased their shops and sales in India.
As there shoes cost very high and no shoes are dust free, they have to get it cleaned. Cleaning such royal shoes takes time because if you treat them like regular sports or canvas shoes then they get damaged very soon. Hence it requires professional cleaning.
As of my knowledge their is no specific laundry company which cleans such high price shoes. Hence you can start shoe cleaning company. It won’t require more than 50000 rupees investment. It can be done from home and also launch a website to get more exposure.
6. Travel Agency Business
While India is becoming digital, there are lots of Indians who still believes in getting things done in personal. Ticket booking business is very lucrative.
One can start this business with rupees 50000 investment to set things up, you just need a week.
This business can give you profit on regular basis and it is low budget business also. The initial investment required is buying a computer set plus internet connection. Along with this few basic furniture which can be arranged on rent basis until you start making money.
Investment Ideas In India (Passive Business)
7. Buy Mutual Funds
This is less of a business and more of a long term investment. But yet there are mutual funds which offers you limited time investment. The time frequency can be from 7 days to 365 days. You can choose from any range which ever suits your need.
Investing in mutual fund and then making a habit of adding 500 rupees in that for several years can give you huge returns on your investment.
I would suggest you to buy equity mutual funds with Rupees 30,000 and then sip rest of amount on monthly basis once you see noticeable benefit then you can add more money in your sip.
8. Flip IPO (Initial Public Offering)
Buying and selling IPO of any company can give you really great returns. The lock down period of your money can vary from 20 days to 6 months but you can expect huge returns.
As IPO is associated with market risk you can also loose money. But don’t let this hold your inspiration of making money. Take IPO flipping as serious business and tell me which business does not have risk of losing money?
An Examples of IPO Listing and profits you might have made with Rupees 50000.
HUDCO IPO was offered on an average price of Rs. 58 and its listing price was 73.50 (Approx). So if you have bought HUDCO IPO worth Rs. 50000 and then you sold that on the day of listing at 73.50 rupees then your total money would be 63, 365 (Approx) means a total profit of around 14% in just 20 days. Isn’t it a great deal. So learn more about stocks and IPO and start investing and make this as your business.
9. Stocks Investment
Buying and selling stocks has become very common business now. As they are termed as stock traders. While they maximize their earning potential through stocks momentum under a certain time frame. You can make money by investing your money in dividend driven stocks.
Just invest one time in stocks which gives half yearly dividends and enjoy the benefits. This business idea follows basic economics and requires lots of time to give you potential returns if your investment is small. You can not get everything in one bowl. If you don’t want to get involved actively then you will have to give time to make some money.
Conclusion: Business Ideas Under Rs. 50,000 in India
I always tell this to my friends and family that money making is an art. Everybody can learn this but being consistent is the key. No matter in which business idea you invest 50000 rupees make sure you stay actively invested in that. Your passion towards your business is the key which can turn your 50000 rupees business idea into million dollar business concept.