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What business to start in Rs. 5 Lacs.
June 25 2012 , 06:38 PM   #1
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What business to start in Rs. 5 Lacs.

Dear Forum,
Greetings!

I would like to invite your suggestions about starting a business from a capital of Rs. 5,00,000/-.The business would be in a Tier 2 city in Uttar Pradesh.Condition is, It is to be operated from the residence only in a new developed colony.Normally in small towns and newly developing colonies, people generaly go for following Small grocery shops(Kirana) ,Stationary shops, beauty parlours stc.Coz they make 1 or 2 shops on the front part of the plot and rest they construct the house.Plus, its a business run from home.

But, when a colony with 200 houses has 40 small grocery shops, nobody makes money.Its just that, they overheads are low, they keep on dragging the shows.Also, most of them are first timers, so not a great idea of retail

I too evaluated few options:

Stationary shops: It has good margin, but again, even the kirana stores keeps basic stationary.Phone accessories nd recharges are also available everywhere

Travel ticketing:Not, too much business in airtravel as middle class area and train travel offers too less margin.

Dairy : Capital intensive, negative ROI for small scale.

Beauty Parlour - Every second auntyji around is a beautician.

Computer centres cum cybercafes- Not viable.

Coaching centre - Every second bade bhaiya is a tutor.

Medical store - seed capital is too low to start one, also generally stores around hospitals are better off, not in residential colonies.

LIC, Shares- Every second chachaji in the area is a LIC agent and advices in stock also.

Franchise- I dont think 5L can get a franchise, good enough to make sense.


So, all my fellow forum members, plz. let your creative juices flow on this thread. The challenge is to make atleast 15k Per month.

Warm regards,
MTB
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June 25 2012 , 06:43 PM   #2
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1. Sit home and sell stuff on Ebay after sourcing from China and other low cost countries. Also, maybe source stuff that isn't easily available in India (like real Carnouba wax polish for cars) and sell them on Ebay.

2. Invest in a fleet of autos/cycle rickshaws

(not sure about margins in any of the above)
June 25 2012 , 06:46 PM   #3
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Dear Missedthebus
You have started a thread on very crucial topic listing pros and cons of business ideas with Rs 5 lac as seed capital.
Courier agency with facilities of photocopying,computer typing and printing,spiralbinding and lamination is another business which can be considered.
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June 25 2012 , 08:20 PM   #4
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Everyone of us are in different situation with different risk appetite and future goal ... so it is not easy to generalise.

Very first thing ... CAN YOU FAIL and FORGET your investment?

If yes, then just DO IT. Don't waste too much time in deliberation, no amount of theory is enough to get you started. Only a few MBAs are entreprenuors. People learn swimming when they fall in water and they have a strong willing power.

If you can not fail then do an exhaustive SWOT analysis. NOT all business are for all. It is a very simple statement but most of the people never understand this. Kallumal is doing great business in oil does not mean you will ever do the same. That krishna running sumo successfully may be a disaster for you.

If you can not fail then it is a long process. Refer to the Entreprenuor thread for more details

http://www.indianrealestateforum.com...ing-32769.html
June 25 2012 , 10:54 PM   #5
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Quote:
Originally Posted by missedthebus
Dear Forum,
Greetings!

I would like to invite your suggestions about starting a business from a capital of Rs. 5,00,000/-.The business would be in a Tier 2 city in Uttar Pradesh.Condition is, It is to be operated from the residence only in a new developed colony.Normally in small towns and newly developing colonies, people generaly go for following Small grocery shops(Kirana) ,Stationary shops, beauty parlours stc.Coz they make 1 or 2 shops on the front part of the plot and rest they construct the house.Plus, its a business run from home.

But, when a colony with 200 houses has 40 small grocery shops, nobody makes money.Its just that, they overheads are low, they keep on dragging the shows.Also, most of them are first timers, so not a great idea of retail

I too evaluated few options:

Stationary shops: It has good margin, but again, even the kirana stores keeps basic stationary.Phone accessories nd recharges are also available everywhere

Travel ticketing:Not, too much business in airtravel as middle class area and train travel offers too less margin.

Dairy : Capital intensive, negative ROI for small scale.

Beauty Parlour - Every second auntyji around is a beautician.

Computer centres cum cybercafes- Not viable.

Coaching centre - Every second bade bhaiya is a tutor.

Medical store - seed capital is too low to start one, also generally stores around hospitals are better off, not in residential colonies.

LIC, Shares- Every second chachaji in the area is a LIC agent and advices in stock also.

Franchise- I dont think 5L can get a franchise, good enough to make sense.


So, all my fellow forum members, plz. let your creative juices flow on this thread. The challenge is to make atleast 15k Per month.

Warm regards,
MTB
All the options suggested by you are very good options to start with. Yes ofcourse they are very common & every Tom/Dick is doing. But remember

Successful People Dont Do Different Things, They Do The Things Differently...

So have a brain storming at your own level, wherever u have any new idea, explore it, evaluate it & start it.
June 26 2012 , 09:22 PM   #6
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Agreed! with Mohan.

Any business in which there is no entry barrier, you will find every Tom/Dick is doing....

But its all about creating value and niche of your own....

Best,
Charlie


Quote:
Originally Posted by mohanpruthi
All the options suggested by you are very good options to start with. Yes ofcourse they are very common & every Tom/Dick is doing. But remember

Successful People Dont Do Different Things, They Do The Things Differently...

So have a brain storming at your own level, wherever u have any new idea, explore it, evaluate it & start it.
June 26 2012 , 09:46 PM   #7
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You have not reviewd food/Packing/ home delivery Joint .... this business can be started with a small capital and has lot of potential
June 27 2012 , 01:02 PM   #8
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Quote:
Originally Posted by Krazy Yuppie
Dear Missedthebus
You have started a thread on very crucial topic listing pros and cons of business ideas with Rs 5 lac as seed capital.
Courier agency with facilities of photocopying,computer typing and printing,spiralbinding and lamination is another business which can be considered.
Thanks chief!

This tops my list. A 2 terminal cyber cafe, with railway tickets facility, photocopier, binding and lamination, small stationary.
Have to evaluate the power supply issue and its effect on bottomline as power supply is a big pain in ass in UP.

Regards,
MTB
June 27 2012 , 01:25 PM   #9
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I think Medical store is a nice option also, u can sell general items, cosmetics also where margin is gud and recession proof business....
June 27 2012 , 03:11 PM   #10
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Me too thinking on the same lines.. being in IT industry and 100% dependence upon it making me worried for future ...

My ideas would be..

1. A small laundry shop ... you need to contact big laundaries to get work done
2. Ladies tailor shop .. you might need to contact home tailors and get the work done from them

........ will share if find anything else.
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