Smart Business Ideas You Can Start with ₹1 Lakh

Starting a business no longer requires massive investments or years of savings. Today, with proper planning, you can explore several business ideas under ₹1 lakh that promise good returns without heavy financial risk. Whether you’re a working professional looking for a side hustle or someone wanting to launch a full-time venture, these low-investment options can help you get started.

Here’s a curated list of practical and profitable businesses in ₹1 lakh that you can launch with minimal overheads.

Cloud Kitchen or Tiffin Service

Food businesses are booming. With the rise of online delivery platforms, a cloud kitchen eliminates the need for a physical dine-in setup, drastically reducing startup costs. It requires only a small cooking space, basic utensils, and tie-ups with delivery apps, eliminating the need for a dine-in setup. 
With an investment of ₹50,000 to ₹80,000 (with a small business loan if required), covering licenses, ingredients, and packaging, you can easily start your business. The growing demand for hygienic, homemade meals and corporate lunch services makes it highly profitable, with an earning potential of ₹50,000 to ₹1 lakh per month.

Freelance Digital Marketing Services

With businesses moving online, the demand for social media marketing, SEO, and content creation is at an all-time high. If you have skills in this area, starting a digital marketing business with ₹1 lakh is highly feasible. 
Freelance digital marketing services are a smart business option as more companies are moving online and seeking social media, SEO, and content expertise. With just a laptop, internet connection, and some training, you can start this business with an investment of ₹30,000–₹50,000 for courses, tools, and branding. 
As you build a client base, the earning potential ranges from ₹30,000 to ₹1 lakh per month. The growing demand for online branding, even among small businesses, makes this a scalable and profitable business under ₹1 lakh.

Dropshipping or E-commerce Store   

If you want to enter the retail space without inventory hassles, dropshipping is a smart choice. You sell products online while a third-party supplier handles stock and shipping.
Dropshipping or an e-commerce store is a cost-effective retail business that eliminates inventory hassles. You sell products online while third-party suppliers manage stock and shipping. With an investment of ₹40,000–₹80,000 for website setup, registrations, and marketing, you can launch on platforms like Shopify or Amazon. 
This model offers flexibility, as it requires no warehousing and can be run from anywhere. With the right product niche and effective promotions, the earning potential can exceed ₹50,000 per month, making it a profitable business idea under ₹1 lakh.

Tutoring and Online Coaching   

Education-based businesses never go out of style. If you have expertise in academics, music, fitness, or language training, you can start tutoring online or offline. 
Tutoring or online coaching is a timeless business idea with low investment and high demand. If you have expertise in academics, music, fitness, or languages, you can start teaching online or offline with just a laptop, webcam, and a structured curriculum. 
With an investment of ₹20,000–₹50,000 for digital tools and marketing, you can easily attract students. As online learning becomes mainstream, this flexible business under ₹1 lakh offers earning potential of ₹30,000 to ₹80,000 per month, making it ideal for skilled professionals or educators.

Mobile Repair or Gadget Service Business   

With rising smartphone usage, mobile repair shops and gadget servicing are in constant demand. With basic technical skills (learnable through short-term courses), repair kits, and a small kiosk or workspace, you can get started easily. An investment of ₹40,000–₹70,000 covers training, tools, and setup costs. 
Given the constant need for quick and reliable gadget repairs, this business offers strong earning potential of ₹40,000–₹90,000 per month, making it a lucrative business idea under ₹1 lakh with steady demand and low competition in many areas.

Pet Grooming Services   

Pet ownership is growing in urban India, and grooming services are becoming popular among pet parents. It’s a fast-growing niche business, driven by the rise in pet ownership in urban areas. With basic grooming skills, training courses, and essential grooming tools, you can start from home or offer mobile services. 
An investment of ₹60,000–₹1,00,000 covers equipment and certifications. This business offers steady demand, loyal repeat customers, and an earning potential of ₹30,000–₹75,000 per month, making it a profitable business idea under ₹1 lakh for animal lovers.

Event Planning for Small Functions   

Event planning for small functions is a lucrative business idea under ₹1 lakh for those with strong organisational and networking skills. Starting with birthdays, baby showers, and small corporate events, you can build experience and credibility. 
An investment corpus of ₹50,000–₹80,000 covers decorations, props, and marketing. With increasing demand for professional planners, this business can earn ₹40,000–₹1 lakh per month, depending on the scale and number of events. It’s a creative, high-potential venture ideal for individuals who enjoy planning and executing memorable occasions.

Homemade Products Business   

From organic soaps and candles to pickles and handicrafts, homemade products are in demand for their authenticity and eco-friendly appeal.
With an investment of ₹30,000–₹70,000 for raw materials, packaging, and branding, you can easily start from home and sell via social media or online marketplaces. This business, priced under ₹1 lakh, offers an initial earning potential of ₹25,000–₹70,000 per month, with significant scope for growth as demand for unique, handmade products continues to rise.

Turning ₹1 Lakh into a Profitable Venture

Starting a business under ₹1 lakh is absolutely practical when combined with smart planning or by taking a small business loan to manage initial expenses. The key lies in selecting a niche that aligns with your skills and market demand. Focus on building a strong online presence, keeping the expenses relatively low, and reinvesting profits into the business to grow gradually. 
With careful execution, even a small business can evolve into a thriving venture over time. If you’ve been waiting to start, now is the perfect time to take that first step toward entrepreneurship.