Bangalore is also termed the Silicon Valley of India with its array of IT companies and the home to growing technology and start-ups.
It is the one city with the most lucrative business opportunities with low investments and higher returns. Bangalore has access to all the resources for an individual to start a business from investment options to a skilled workforce, making it a very good location for a new business in 2024
Why to start a business in Bangalore?
There is an evergreen debate on whether a job is better or a business and both have their own pros and cons but here are some factors that can weigh in as to why starting a new business in Bangalore might be a great idea
- Satisfaction: it is statistically proven that people running a business are more content in their lives than people working jobs. Despite the ups and downs of business more than 3/4th people would rather do a business than do a job.
- Freedom: Owning a business provides a sense of freedom and control that the corporate world does not have. You can control the working hours based on your efficiency and also the targeted market.
- Growth: starting a business provides learning and growing opportunities as one has to build everything from scratch, from building, marketing, and growing your business gives a person various venues where they can step in and learn
- Thrilling: a business is a challenging and demanding venue; it pushes a person to new boundaries challenges the limits and pushes a person out of their comfort zone. It is a guaranteed venue of no slumps and stalled career growth.
If you are planning to start a new venture, now might be the right time considering the government policies for startups and the growing market.
Why choose Bangalore to be the location for a new business?
When opening up a new venture, what location is it based on is a crucial detail that can make or break the business and it really impacts the future of the business
Before discussing what is the best business to start in Bangalore, one should know why choosing Bangalore could be a great idea.
According to the 2019 Startup Genome Project Ranking Bangalore has been listed within the world’s top 20 leading startup cities and it also rated 5th fastest-growing startup city in the world. If you are a resident of Bangalore or an entrepreneur, the city is a great choice to start a new business:
- Great Market: Bangalore is a hub of skilled and job-working technicians and budding students alike with plenty of opportunities to target a specific niche. The population and diversity provide a wide range of customers for small businesses who are most likely to make a loyal customer database and can earn a steady profit through it.
- Network: Bangalore is very culture-rich and full of professionals whose acquaintance would be very helpful to a budding entrepreneur. Having a good network is always helpful for any profession and the city provides ample chances and networking opportunities.
- Skilled Workforce: The educational institutes in Bangalore build students in a variety of fields and they have a high volume of skilled professionals who could provide valuable assets for a new business.
- Infrastructure: Bangalore is a fast-paced city with a pleasant climate and ever-changing infrastructure there are many up-and-coming areas that could flourish as offline business ventures, and it also has many corporate hubs to serve as good office spaces. Bangalore also offers an advantage as it is a working hub, it also has many co-working spaces which can be affordable and easy to access for a new business.
Business Statistics highlighting the importance of small-scale business
India is the third most startup-friendly country in the world preceded by the US and China with a predicted annual growth rate of 12 to 15%.
According to the DPIIT, 40000 startups have been registered from the year 2016 to 2020, with nearly 14000 startups registered by the government.
In 2021,44 startups were recorded to be unicorns i.e. startups with a valuation of $1 billion. In the financial year before 83 unicorns were reported to have a total valuation of $277 billion.
Now, startups contribute to more than half of the country’s GDP. The Make in India movement started by the government of India is also a huge factor in market growth making it a good time to enter the startup ecosystem.
Low-cost high-profit Business Ideas to start in Bangalore in 2024
To answer the question, of which is the best business to start in Bangalore, here are a few low-investment, high-return business ideas that work
1. Mobile Parlor
With the fast-paced city traffic and crowds, it seems a hassle to most people to spend time and money to travel for personal grooming. A mobile parlor with service on-demand business model can be very successful and popular in a city like Bangalore which provides services like grooming, massages, spas, etc.
- Total Investment: 40000 to 50,000
- Resources: Beauty products and equipment like facial kits, manicure and pedicure kits, phone or a mode of communication, transport facilities for employees, GST license and Income tax return filling resources (for a larger business)
- Profit Margin: 8.2% (2% to 17% in most cases)
2. Paying Guest
To start a paying guest service might be the best business to start in Bangalore, the high-end companies and jobs in the city compel many people to move out of their hometowns which creates a demand for housing in the city. If a paying guest service is affordable with basic amenities like clean and comfortable space, and Wi-Fi it would be in demand and be very successful.
- Total Investment: If you already own the place: 1-2 lacs, If you don’t own the place: 10-12 lacs
- Resources: furniture, Wi-Fi services, electricity meter, rent agreement forms, Round-the-clock assistance to residents.
- Profit margin: 10-20% if you own the place and 2-3% if you don’t own the place
3. IT Services (Niche Targeted)
Bangalore is also termed as the IT hub of India with many IT companies based there, but if you focus on a specified niche and target specific problems it could really boost business as larger companies tend to overlook that. Providing AI services could also be a great endeavor as it is a fast-growing and in-demand technology.
- Total Investment: 1-2 lacs
- Resources: designated work space, good quality technologies, licensed software and digital tools, skilled professionals for specific work
- Profit Margin: 10-20%
4. Grocery Store with Delivery
There can never be a decline in demand for groceries as each and every person requires them and opening a grocery store that holds variety and is easily accessible might be a good business idea. If the store provides delivery too then it is bound to be successful as traveling in Bangalore can be a bit of a chore.
- Total Investments: 20-30 lacs
- Resources: steady supply and a good supplier, a good inventory, a stocked store, a space for the store, helping hand in-store, delivery executive
- Profit margin:1-3%
5. Water Service
Recently, the city has been facing water shortages which are causing a lot of issues to the residents of the city. Starting a fresh drinking water service that is available and affordable to people can save a lot of time and earn a lot of profit as a business.
- Total investment: 15 to 25 lakhs
- Resources: water purifying devices, packaging devices, delivery and retail setups
- Profit margin: 20-30%
6. Day Care
The city has a large workforce and people who go on daily jobs, many of them are parents and it becomes really difficult for them to leave their children and go to work. Starting a daycare might be a good idea and it is one of the best business ideas to start in Bangalore.
- Total Investment: 2-5 lacs
- Resources: a daycare space, interior, childcare training, licensing, helpers (if needed)
- Profit Margin: 25-30%
7. Organic Grocery Shop
With the rise in the healthy food culture and various food trends, the demand for organic food has also risen. Organic food is a very fresh market and it is also a very fast-growing one. An organic food store, with fresh and quality products would be a hit in the city. If one could even provide services like delivery and online ordering, it might be an even greater success.
- Total Investment: 10 lacs
- Resources: deposit on space, supplies, running costs
- Profit margin: 3-10%
8. Fast Food Joint
The new generation is known to be a fan of fast food, living in this fast world the consumers of fast food are growing and there is no stopping this industry. There are always people who are interested in good food and a place to hang out with their friends, A fast food joint with a good enough ambiance and a variety of fast food such as pizza, pasta, burgers, fries, etc. might be a very good business idea.
- Total Investment: 5-10 lacs
- Resources: 200-250 sq ft. space, a chef, raw materials, servers, interiors, cutlery
- Profit margin: 5-8%
9. Tea and Coffee Bar
The corporate culture is fast rising and the people in corporate really enjoy their tea and coffee breaks as it is a pleasant time with colleagues and a refreshing break from work. A good tea or coffee joint in the right area would work great and it is one of the best businesses to start in 2024. You can also serve sides along with the beverages to make it more lucrative.
- Total Investment: 15-20 lacs
- Resources: a cooking area, raw materials like tea, coffee sugar, etc. cutlery
- Profit margin: 50-70%
10. Homecooked Meal Service
Many working people in Bangalore have relocated from their homes to the city and they also complain about the lack of homecooked food. This could be the best business idea for ladies who are stay-at-home moms or housewives. This could be a great way to make income for them.
- Total Investment: 40,000 to 50,000
- Resources: fresh produce, cooking skills, packaging material, delivery supplies
- Profit margin: 30- 40%
11. Digital Marketing Firm
In the digital age, our marketing strategies have also switched to Digital Marketing, many small businesses are turning to external agencies for their marketing demands, and with the right people and minimal resources, one can easily succeed in the industry. If you have the talent and persistence, opening a digital marketing firm might be the right thing for you.
- Total Investment: 10 lacs
- Resources: systems, devices, software and marketing tools, intellectual property protection, GST registrations, etc.
- Profit margin: 30%
12. Real Estate Agency
Bangalore is a big city with many new ventures and companies coming in, many under-utilized areas in the city are now gaining the attention of people. Being a real estate agent and connecting sellers or owners to buyers or renters can be very profitable and successful.
- Investment: 1-5 lacs
- Resources: furniture, infrastructure, facilities, licenses and permits, website and marketing strategy, etc.
- Profit Margin: 20%
13. Textile Manufacturing
Bangalore has a traditional textile industry one of the highly regarded being the Bhagalpur silk. The textile industry of the city has its origin in the historical period, thus representing the cultural and economic value of the region.
Although the information given is quite limited, it underlines the role of silk production in Bhagalpur and thus it may be ascertained that textiles are potentially an important sector in Bangalore.
The use of the word ‘strong tradition’ is suggestive of the fact that the craft of textile making has been inherited from generations past and is perhaps a reason why Bangalore’s textile products are so special. This industry may be one of the significant industries for the city’s economy and culture.
- Resources: Availability of local talent and availability of raw materials.
- Market Demand: Market demand for traditional textiles within the country and across the globe.
- Potential for Growth: Exporting provides a great potential for growth in sales.
- Budget: Moderate to high investment needed.
- Tips: Invest in modern machinery and marketing to scale the business.
14. Renewable Energy Solutions
Of all the opportunities that are available for entrepreneurs in Bangalore, renewable energy is one of the best opportunities. With the increasing awareness of environmental impacts, there is a need to establish an efficient source of power that will not pollute the environment.
Given this perspective, Bangalore is poised to take advantage of this trend given its rich natural resources. A startup in this sector could focus on one or many of the renewable resources available including solar, wind, biomass, or small-scale hydropower.
These technologies will be useful in meeting the energy demands of the city without compromising on the conservation of the environment. The Bangalore-based startup that focuses on cleantech could serve a burgeoning demand for renewable energy solutions while stimulating employment and sustainable development in the city.
This sector has the opportunity to bring considerable revenues at the same time as it does not harm the environment.
- Resources: Availability of solar panels, wind turbines as well as other devices for generating renewable power.
- Market Demand: Growth in the need for sustainable power products and services.
- Potential for Growth: High potential because of government encouragement and the growing energy demand.
- Budget: High investment, with potential for government subsidies.
- Tips: Focus on providing affordable and efficient solutions to attract customers.
15. Healthcare Services
The city of Bangalore is witnessing an increasing need for better health services because of the increase in population and the improvement of health standards. Healthcare has generally been a problem area in the city and the city has lacked adequate healthcare facilities, trained medical personnel, and health care services, especially for rural and underprivileged regions and people and there is a gradual trend toward changing this scenario.
The possibilities are existent for private and public sectors to invest in the construction of hospitals, clinics, telemedicine services, and pharmaceutical networks. Hence, it is a potential field of investment and growth in Bangalore to make it one of the most important goals to offer quality, accessible, and efficient healthcare services to the people of Bangalore, thereby helping to enhance their quality of life.
- Resources: Doctors, (or other health care workers), tools, and a proper environment.
- Market Demand: Increased need for healthcare services in developed and developing countries as well as in rural areas.
- Potential for Growth: Massive opportunity because of growth in the population and increased need for healthcare services.
- Budget: High risk, but with high potential to get more returns.
- Tips: Ensure that health care services are within the reach of the common person in society.
To sum up
Bangalore is a very fast-growing and fast-developing city with many avenues open for business, if you are planning to start a business Bangalore can be a good location for it.
It is a city that has vast resources and a work culture that can be highly motivating and encouraging. It has prospects for many businesses like fashion assistance, daycare, pet care, renting housing services, etc. Which makes the city a great place to open a business
Bangalore can provide a good market and ideal working conditions but a business only thrives if hard work is put into it and it is run with passion and dedication. Its success may depend on many factors but its existence depends on good morals and dedication.
Frequently Asked Questions
1. A business that can be started with 5 lakhs in Bangalore?
There are many startups like homecooked meal services, and mobile parlors which can be very profitable even at low-cost investments. Small-scale grocery stores can also be opened under 5 lakhs in a cheaper area.
2. What are the best business ideas for ladies in Bangalore?
Women can excel in any of the given business ideas but if stay-at-home moms or housewives a daycare or a homecooked meal business might be very good for them.
3. Which business is the most profitable in Bangalore?
There can be many businesses that can give profit based on the market size and growth, but a service-providing agency or a digital marketing agency might be a great option.
4. What is the best business in Bangalore?
There is no best business but the food and garment industry are an ever-growing market due to population growth and cultural shifts.
5. Best business to start in Bangalore with low investment?
Many options have a low investment and give good profits like cleaning services, daycare services, pet care services, and a lot more, there are other options too but sometimes circumstances may lead to investing more money.
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