Becoming an Entrepreneur is the best decision anyone could have taken for their career. There used to be a time when government employees were considered the most eligible bachelors by parents of prospective bridegrooms because they had job security. That was a time when the Indian economy was a socialist economy and jobs were scarce. It was the era of the License Raj in which every business needed a license from the government before it could start operations.
The Indian economy started opening up with the Reforms of the 1990s under the leadership of then Finance Minister Manmohan Singh. The economy which was dominated by the public sector until then saw the slow emergence of private sector players who provided better products and services. Soon within a short period of time, the competition had overtaken PSU’s who were left biting the dust. A good example of this phenomenon was BSNL which had a 100% market share until early 2000. Now it has only 8% of the market share for mobile markets and most of its fixed-line business is stagnant.
A new breed of companies has now caught the imagination of policymakers and entrepreneurs. Startups differ from traditional companies because they use new technology to disrupt existing markets and are constantly innovating. A startup is usually focused on gaining clients rather than making a profit. Many startups like WhatsApp were able to get billion-dollar valuations despite having negligible revenues mainly on the basis of their large user base. WhatsApp had a user base of more than 1 billion active users as of January 2016.
If you are looking to startup, here are some hot sectors that are witnessing the maximum innovation and churn among all sectors. You can start your business with an investment ranging from Rs 2 – 5 Lakh in the capital. Later on, once you scale up your business you can solicit investments from Private Equity Investment Firms, Seed Investors, and Business Incubators.
6 Startup Ideas for 2-5 Lakhs
1. Housekeeping and Cleaning Services
Cleaning and maintenance services are in high demand across urban areas of India because of the shortage of skilled labor who can perform these tasks. Employers are now offering payments by the hour to attract and retain new talent in this sector. With a minimum investment of Rs 1 Lakh, you can hire 2-3 employees and pitch your services to small businesses.
2. Accountancy Services
Companies nowadays need to work extra hard to maintain their accounts and be compliant with the regulatory requirements of the Ministry of Corporate Affairs. For this, they need legions of accountants and bookkeepers. You could start a small accountancy firm by hiring 2-3 interns and work with a chartered accountant to provide low-cost accounting services.
3. Mobile / Computer Servicing and Repair Services
Nowadays everybody has a mobile or laptop in their homes. Some homes have dozens of gadgets that are used by all family members. Eventually, some of them require maintenance or their software re-installed. You can start this business with Rs 3 Lakh investment as you will need to buy the testing tools and also rent out a commercial space for your shop.
4. Food Truck
Food trucks provide high-quality food which is tasty and economical. Owning a food truck is expensive and requires a minimum investment of Rs 5 Lakh to purchase a second-hand vehicle and modify it. Popular food trucks usually sell fries and burgers. This trend is slowly catching up in India.
5. Dog Breeder
Quality Dog Breeders earn supernormal profits in their business. A dog breeder in Bangalore recently imported a pair of Korean mastiff puppies priced at Rs 2 Crore. He now intends to breed them and sell their pups online to make a handsome profit for years to come. You will require at least Rs 10 Lakh investment to become a successful dog breeder. You also require access to a large farmhouse where you can house these dogs comfortably. This business is definitely for dog lovers who have the passion to make a profit.