Tag: Low investment ideas

  • 52 Businesses You Can Start With INR 1 Lakh Or Less

    Starting a business in India doesn’t always require a huge investment. With just ₹1 lakh or less, aspiring entrepreneurs can launch profitable ventures with low overhead costs. From digital services to small-scale manufacturing, numerous opportunities exist that cater to various skills and interests.

    Starting a business in India is becoming more accessible, especially for small entrepreneurs. According to the Ministry of Micro, Small & Medium Enterprises (MSME), over 63 million MSMEs operate in India, contributing nearly 30% of the GDP and employing around 110 million people.

    This article explores practical and budget-friendly business ideas that can help you turn a small investment into a steady income.

    Businesses You Can Start With INR 1,00,000 or Less
    Best Businesses to Start with Less Investment

    Businesses You Can Start With INR 1,00,000 or Less

    Cab Fleet

    You can buy a used car or a couple of bikes under INR 1 lakh, and register them with Ola, Uber, Rapido, and other on-demand cab services. You then need to hire some people to drive the cab for you. Even after the necessary deductions like paying the driver’s salary along with the maintenance expenditures, you’ll still end up with a good profit.


    40 Automobile Business Ideas and Car Business Ideas in 2025
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    Home Automation Speech

    Speech recognition devices like Amazon, Alexa, and Google Home have become common in today’s households. With some knowledge of electronics and coding, you can help people pair their home appliances with speech-recognition devices. This would allow them to control the appliances by giving commands to the speech device. One needs to purchase electronic equipment and hire a few talented guys to take care of the programming and configuration aspects.

    T-Shirt Printing

    There’s a constant need for custom-designed uniforms with logos and pictures. As a result, T-shirt printing is a lucrative business one can pursue. You can help customers by printing their required designs and logos on T-shirts. For that, you’ll have to invest in a good T-shirt printing machine. There are many affordable machines in the market, some starting from as low as INR 50,000.

    If it sounds expensive, one may rent the machine from someone every month or longer and once the business turns profitable, the venture owner could buy his or her own machine. With the constant emergence and growth of social media influencers, this business is in high demand at the moment. And there’s no dearth of offline opportunities as well. Many T-Shirt startups are already excelling in this industry.


    Top 10 Print On Demand Companies in India
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    Investment Business

    If you know about trading and investing, you can provide the service of handling people’s money and generating profits for them through the share market. But to take off with this idea, one needs to demonstrate a knack for making successful predictions and trades in the market because people believe only when they see.

    Moreover, it requires immense trust to hand over one’s hard-earned money to someone else. So start by investing money for relatives and friends, turn them into success stories, and then aim for the big fish! You can start your own investment company in the future with this business idea.


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    Stationary Store Startup

    You can open a stationery store and cater to new startups and offices since they require a lot of stationery-related items like pens, paper, markers, etc. Offer them the best quality stationery products at reasonable prices. You can also partner with schools and coaching centers to establish your presence. Subsequently, students will come only to you for stationery needs.

    Connectivity with your main store means a shortage of supplies can be taken care of immediately. You will need to build an effective transport network for connectivity between the main warehouse/store and your franchises to meet urgent delivery requests. A home delivery facility will attract more customers. This business idea can be easily launched with INR 1 lakh and be scaled as a formidable startup if implemented with the best practices.

    Pet Groomer

    Businesses You Can Start With INR 1 Lakh Or Less - Pet Groomer
    Business with 1 lakh Investment – Pet Groomer

    Pet grooming is no longer just popular in Western countries—it is growing fast in India too. As more people keep pets at home, pet grooming is becoming a great business idea for new entrepreneurs.

    To start, you can talk to housing societies and meet their President to offer pet grooming services inside their premises. Many modern townships now have pet wellness zones, which you can use for your services. You can also make a deal with society so that all pets living there are groomed by you. Charging a small fee of INR 500 per pet per month can help you earn good profits.

    Canteens

    Canteens are no less than a necessity in public places such as parks. Even hospitals and office spaces are known for the crowd they bring. You can lease a space in such locations and start a canteen there. Start with limited options like tea, coffee, and biscuits. If there’s a growth in your customer base, you can then increase the options offered. Once the entire business is in motion with windfall profits, you can then think of expanding the canteen chain.

    Dropshipping

    Dropshipping is a new business idea that is growing fast and helping small businesses make big profits. It lets you run an online store without keeping stock or a warehouse.

    You just need to connect with manufacturers or suppliers who sell the products you like. When a customer places an order, you send the details to the supplier, who then ships the product directly to the customer. You simply act as a middleman between the supplier and the buyer.

    You can start this business with as little as INR 10,000 since you don’t need to buy any products. Just use free social media platforms to market your store. By offering good service and fast delivery, you can slowly grow your business.

    Custom Gifts

    According to Asianage, the gifting industry in India was $75.16 billion in 2024 and is expected to reach USD 92.32 billion by 2030 with a CAGR of 3.55%. The millennials have contributed significantly to the rise in gifting culture. Starting a personalized gifting business can prove to be a profitable business.

    All you need is creativity and innovation which are reflected in awe-inspiring photo frames, custom coffee mugs, etc. Test your initiative on your acquaintances and see what they think of custom gifting as a customer. You can also distribute samples embellished with your information for promotion and publicity. Closing a deal with corporate offices, especially during the festive season, is also a good idea for marketing.


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    Professional Cameras on Rent

    Social Media platforms like Instagram and Facebook have ushered in a new era, one where everyone’s crazy about selfies and videos. By the time you’d be done reading the previous sentence, hundreds of thousands of pictures must have been uploaded online. People are desperate for good-quality images and videos. They need excellent cameras for that. You can buy a high-end camera that ranges between Rs. 50,000 to 80,000 and rent it to people on an hourly basis.

    If you can invest in a good quality drone with an integrated camera and provide instructions on its usage, nothing like it. You can easily command more than Rs. 1000 per hour as people are willing to pay astronomical amounts for those precious drone clicks! If you are interested, you can also start doing professional photography.

    Xerox and Printing

    Although everything’s online now, requirements like photocopying and scanning will never fade. You can buy a Xerox machine and start a business near a coaching center, college, or office. It is a highly scalable business idea if done right. It is the most profitable business under 1 lakh.


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    Juice Shop

    Juice Shops - Businesses You Can Start With INR 1 Lakh Or Less
    Juice Shops – Business with 1 lakh Investment

    With the millennials (and everyone in general) moving towards a healthier lifestyle, juice shops are the place to go after that intensive workout. Be it fruit juice or protein shakes, juice shops are a favorite for many. Starting a juice shop business near a jogging park, fitness center, or a commercially bustling area offers a good chance to make money. If you cannot find any such place, you can always start with a movable setup like using your car and parking it near a jogger’s area every morning. All you need to start this business is a good juicer, fruits, and the necessary permission for your venture.

    All of the inventories can be bought for less than 50,000 rupees. You can use the other INR 50,000 from your INR 1,00,000 investment to market your shop. You may have to seek police consent and those of the concerned authorities. Target residential societies, if possible. As more and more people throng to your shop, you’ll get an idea and insight into their preferences and thereby come up with even better offerings. It is one of the most promising business ideas you can start with INR 1,00,000.

    Food Corner

    Some eat to live while others live to eat. All in all, a Food Corner has all the ingredients of a profitable business. Aim for affordable meals so that people from all walks of life have something to consume at your joint. Since we’re talking about businesses under INR 1,00,000, start with a stall type of setup. Talk to the Southern meals and MOMO vendors you find on the roads to understand how they work. This is one of the best businesses you can start with INR 1,00,000 or even less as food will never go out of trend.


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    Game Parlour

    The gaming industry is witnessing a boom. The current value of the gaming industry in India is $850 million and it is growing at a rate of 14.3% every year. If you think people in your locality are into mobile or PC gaming, you can buy a few high-end mobile phones and PCs and set up a game parlor. Many people want to play high-performance mobile games but don’t have compatible phones. There’s tremendous opportunity in mobile lending. Apart from the money you make from the games, you can sell snacks in the parlor for some extra cash.

    Used Car Dealership

    Many people prefer to buy used cars in good condition. They buy a used car, drive it for a year or two, sell it, and buy another used car. You can start a used car dealership and find customers easily. All you need is a used car, have it repaired, and find a buyer. If you can add some value to the car through modification, people will be ready to buy it for a higher price. Start your business by scouting for a used car that can be purchased and enhanced in a 1 lakh budget. Many people like to buy used cars and enhance them in a short period.


    How to Start Used Car Dealership Business In India – StartupTalky
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    Driving School

    Driving schools continues to remain in the market. It is still a good business that mints money as the number of driving licenses issued every year grows exponentially. For a driving school, you need a good marketing plan as you cannot target specific people. You will have to use traditional channels of advertising like newspapers and pamphlets. Social media marketing can also assist in acquiring customers.


    Best Transport Business Ideas To Start In 2025
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    Beauty Salon

    Beauty Salon - Businesses You Can Start With INR 1 Lakh Or Less
    Beauty Salon – Business with 1 lakh Investment

    For someone interested in doing hairstyles, makeup, or grooming people, starting a salon can be a nice business. A shop in a good locality is needed, besides many also start it at home. Much heavy investment is not needed, and also one can earn a good amount of profit in this business


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    The above-mentioned are some of the best business ideas that can be started by investing around INR 1,00,000. But if you feel that 1 lakh is not what you can invest right now, there are still other businesses you to start that require very little investment. Let’s have a look at some such business ideas.

    Best Businesses to Start with Less Investment

    Affiliate Marketing

    Affiliate marketing is an easy-to-start yet profitable business that you can start, without any major investment. What you have to do is simply promote other business’s products and services online and earn a commission. You don’t even need to have your website to start affiliate marketing. Just choose the products you would like to promote and register yourself as an affiliate of the company whose products you would like to promote.

    Once authorized to become an affiliate, you receive affiliate links for various products the company is selling. You can now paste these links on your website or promote them through your social media accounts, YouTube channels, online groups or communities, or through email, and start earning commission whenever someone clicks on your link to visit the company’s website and makes any purchase.

    Blogging

    If you love writing, blogging is an interesting and profitable business that you can start with minimal investment. All you need to spend is on a domain and a good hosting plan. So just with an investment of INR 5000-6000, you are all set for a blogging business. Blogging lets you make money in many ways. You can sign up with Google AdSense to show ads on your website, do affiliate marketing, write sponsored posts, sell e-books, and much more through blogging.


    Top 10 Blogging Tools to Grow Your Blog
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    Writing Services

    Another good service for those who have amazing writing skills is starting a business providing writing services. Writing service providers create various content for clients ranging from resume writing, article writing, short story writing, copywriting, technical writing, editing, and much more. You can start by offering limited services, and once scaled up, you can hire people and broaden the spectrum of your services.


    14 Best AI Writing Tools to Enhance Writing Skills in 2023
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    Homework Help Services and Tutoring

    There are many students who would pay to get some help with their homework. You can start online homework and assignment consultation services. Students can call you to seek help regarding their assignments and you can charge them on an hourly or per assignment basis. You can target hostels and colleges for this business. This is an awesome business idea if you are excellent in studies and require very little money to begin with. The only investment will be in the form of the internet and your device. Tutoring is also a good way to make some money with almost no investment.


    How to Start an Online Tuition at Home in India (8 Simple Steps)
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    Web Designing Services

    If you have relevant knowledge, you can start designing websites for various businesses. In today’s digital world, every business big or small needs a digital presence to grow. By starting a web designing business, you can tap into this trend.


    Best Website Designing Tools for Business
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    Graphic Designer

    Are you a graphic designing expert? Well, this can indeed be a great business option. Graphic designing has a huge scope. From creating logos for companies to designing brochures and marketing materials, making graphical content for social media to designing packages, there is a lot you can offer to your clients and earn a good amount of money.

    Interior Designer

    Interior designing is another great business option. With the required skills and preferably the required certifications, you can easily start an interior designing business. Start by designing the interior for your family, friends, and acquaintances, and build a good portfolio that you can show to attract clients. If your work is good enough, this business will surely take you places.

    Home Decorator

    Being a home decorator is a good business for those who love to decorate beautiful homes. A home decorator is one who decorates the interiors with beautiful furniture, accessories, etc. While you need certification to become an interior designer, no certification is needed for being an interior decorator. All you need to be an interior decorator is creativity.

    Fashion Designer

    If you have a knack for fashion designing, a fashion designing business is something you can start without much investment. Find a niche segment and decide for whom you want to design clothes. Start by offering a few products, and promote your business to your acquaintances as well as through social media. Also, it is good to have your own website where you can showcase your design.

    Starting an online store

    Starting an online store is yet another good business idea. Just choose the products you want to deal in and decide whether you would like to go for drop-shipping or stocking the products you want to sell. As regards creating the e-commerce site, there are many platforms like Zepto, Shopify, and FreKart that will help you in this regard.

    Bookstore

    Bookstore - Business Ideas 50,000 to 100000
    Bookstore – Business with 1 lakh Investment

    Starting a bookshop is an affordable and nice business. One can opt to sell used books also, as they can be procured at a low cost. While there are many these days who prefer to order books online and others who read e-books, there is still that category of readers who like to hold a book in their hands and read it, rather than reading it on a screen.

    So if you can rent a space near educational institutes or in a popular market area, your bookstore will surely earn profit. The coffee shop bookstore is also a cool place that people like to visit. So if you have enough space and required skills, you can also start a coffee shop alongside your bookstore to attract more customers.

    Fashion Store

    If you love to look stylish and have a good fashion sense, you may consider opening a fashion store. To start with find a niche for yourself and start dealing in your niche. For example, you can begin with a kid’s fashion store, and expand later to another niche as well, with an increase in budget. You can also consider establishing your online presence and selling your clothes online.

    Babysitting

    Babysitting is also a business that requires very little investment. If there is space, you can start this business at your home itself. You just need to invest in some good toys, books, etc. to keep the kids busy. Also, healthy food should be made available.


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    Craft Store

    Opening a craft store is a viable business option. You can either create your own piece of art for selling in the shop or procure art and craft items in bulk and sell the same at retail rates. Craft items have a good profit margin when bought in bulk.

    Bakery

    If baking is your passion, a bakery is a good business you can start. To keep the investments on the lower side you can opt to start a home bakery or a cloud kitchen. In home bakery and cloud kitchens, you just need to cook and deliver the food items, without any hassle of making sitting arrangements. Thus your rent is saved.

    Online Advertising

    Online advertising is what many businesses opt for these days, as online advertising is a great way to reach a wide audience. As such starting your own online advertising business is surely a profitable option. As an online advertising company, you can provide services such as website designing, SEO services, PPC advertising, Social media marketing, content marketing, and e-mail marketing.

    Dancing and Music School

    If you are a trained singer or dancer, music and dance classes can be a good business you can start. When started on a very small scale at home, you do not require any registration or licensing. Once you feel confident enough, you can scale up your business.


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    Self Handmade Products

    Handmade products are in demand these days. So you can make and sell handmade soaps, incense sticks, candles, etc. to make a profit. The Government of India offers affordable training courses where you can learn to make these goods. You can sell them online, and as you scale up you can tie up with spas, salons, hotels, etc. for selling the products.

    Other than this, you can also consider selling homemade jams, pickles, chocolates, etc. Homemade stuff can also be sold through sites like Etsy.com.

    Consulting Business

    Consulting services can be offered in various fields such as accounting, auditing, insurance, career, taxes, business, and more. You just need to spot your area of expertise and start your consultancy accordingly. Try to get initial customers from your acquaintances and give them the best services so that you can benefit from word-of-mouth publicity.

    Real Estate Agency

    If you have interest and knowledge about real estate, you can become a real estate agent. You can choose from dealing in residential properties, commercial properties, or plot investments to start with. Get the required licensing, gather the required information and knowledge about the property you are dealing with, and promote yourself well so that you can reach out to your target customers.

    Travel Agency

    With the boom in the travel and tourism industry in India, starting a travel agency is a great business idea. You can choose to deal in anything: air ticket booking, hotel booking, selling travel packages, or all of them.


    How to Start a Travel Agency?
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    Web Maintenance Services

    With every business going online, there is a rising need for web maintenance services. Website maintenance is required to keep a website error-free, up-to-date user friendly, and safe. In current times, web maintenance services can be a profitable business to start.

    Event Management Services

    Do you feel that you have what it takes to organize an event successfully? If yes, an event management company is something you should start. With the boom in the event management segment in India and worldwide, event management surely is the right place to be. To start with, you can manage events for family and friends to get exposure and also do some thorough research on managing successful events.

    Being a first-timer, you may find it overwhelming to provide all the event management-related services. So you may start by offering one or two services like visitor management services, flower decorations, press and publicity services, etc. to big event management companies. Once you are confident enough, you can take the plunge to start your own full-fledged event management company.


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    Amazon Seller

    Becoming an Amazon seller is a lucrative and profitable initiative. Currently, there are over 5 lakh sellers registered with Amazon India. The best part about being a seller with Amazon is that you can reach out to a wide customer base not only within India but globally; Amazon takes care of everything from delivering the products to the customers to transferring money to your account.

    YouTuber

    Not just money, YouTube can turn you into a celebrity. If you choose to be a YouTuber, you can make money through various streams. You can earn money by becoming a YouTube partner, selling your merchandise through your YouTube Channel, or creating sponsored content. There are options where your fans can pay you directly. If you are a viral content creator, you can even make money by letting media houses use your content and get paid in return.

    Podcasting

    Looking at its popularity, podcasting can be a good business too. There are many ways in which a podcaster makes money. Some businesses sponsor podcasts and that means a good source of revenue. Podcasters also earn from donations and crowdfunding by selling their own products and services, or through affiliate marketing.


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    E-book Writing

    With all the craze around e-books, being an e-book writer can also prove to be a profitable business. Before diving into writing an e-book, you need to find your area of expertise and interest and write something that will create value for your readers. Once written, it’s important to extensively promote your e-book to the relevant audience to generate more sales. You can sell your e-book through your website, on Amazon’s Kindle Direct Publishing (KDP) platform, or through other publishers.


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    Laundry Shop

    Laundry Shop - Business with 1 lakh Investment in Hyderabad
    Laundry Shop – Business with 1 lakh Investment

    Services that make household chores easy are gaining popularity fast. Laundry service is one such lifesaver for the millennials. A well-managed laundry business is something you can start and earn profit from. You would need a staff to take care of washing, ironing, etc. Regarding marketing, targeting young people, working professionals, and tying up with co-living space providers can help significantly.

    Tailoring

    Tailoring is one of those businesses which can be started with low investment. Depending on your budget and skills, you can start tailoring at a small level from your home with a sewing machine and once budget and experience permit, you can launch a boutique. Upon expansion, you may buy a pico machine, interlock machine, embroidery machine, etc., and diversify your specialties in tailoring.

    Home Cleaning or Corporate Cleaning Services

    Cleaning is an essential service that individuals, organizations, and others cannot live without. With the uptick in the number of corporate offices, co-working spaces, co-living areas, and serviced apartments, the demand for home cleaning and corporate cleaning facilities has surged. Hence, starting a business in this domain is certainly a good idea.


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    Home Repair and Maintenance

    There is a lot to do when it comes to home repair and maintenance. From electrical work to painting, plumbing, carpentry, or roofing, many chores need to be taken care of. Considering the huge demand, a home maintenance and repairing business can surely turn out to be a profitable one if executed right.

    Catering Business

    If cooking and feeding people make you happy, then the catering business is for you. All you need to invest in is cooking utensils, ingredients that will be required for cooking, and some helpers. Once your setup is in place, you can start taking orders and supply food for parties, functions, and other events.

    Grocery Shop

    A grocery shop does not require much investment. The most important factor you need to keep in mind is that the shop should be in a good location. Try to provide the variety of goods that people demand, be open to home delivery facilities, and watch as you gain loyal customers.


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    Mobile Repair Shop

    As reported by market research firm techARC, India had 502.2 million smartphone users in 2019, and the number is ever-increasing. Given the scenario, a mobile repair shop can undoubtedly be a profitable business you may consider. Besides repairing, you can also sell accessories and provide mobile recharge facilities in your shop.

    Paper Bag, Cloth Bag, or Jute Bag Making

    With the buzz around the danger of using plastic, manufacturing cloth bags, jute bags, and paper bags is an eco-friendly way of making money. With proper marketing and the fabrication of reliable bags, you will end up with a pretty solid business. It is the best business under 1 lakh in village.


    How to Successfully Start a Paper Bag Manufacturing Company?
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    Conclusion

    These business ideas might seem small as they only need an investment of INR 1 lakh or less. But the sky’s the limit when it comes to profits. Once you establish your foot with these initiatives, you can easily scale your business to the next level. Focus on marketing and correctly executing your business model. You may not see overnight results, so hold your horses and be patient. Are you aware of some other business ideas that can be started with a low monetary investment? Do comment.


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    FAQs

    Is it really possible to start a business with just INR 1 lakh?

    Yes, many viable businesses can be launched with limited capital, especially in the service, online, and home-based sectors.

    What are the key factors to consider when choosing a business?

    Consider your skills, interests, market demand, competition, and potential for growth.

    How can I minimize startup costs?

    Utilize free or low-cost online tools, start from home, leverage social media for marketing, and purchase second-hand equipment if needed.

    What are the business ideas under 1 lakh?

    Business ideas under ₹1 lakh include dropshipping, tiffin service, home bakery, mobile repair, digital marketing, pet grooming, handmade jewelry, photography, cloud kitchen, and fitness training. Low investment and smart marketing can help you grow fast!

    What business can I start with 100k in India?

    With INR 1 lakh, you can start a small business like dropshipping, home baking, tiffin service, handmade jewelry, digital marketing services, pet grooming, or a mobile repair shop. You can also start a YouTube channel, tuition classes, or a blogging business with low investment. Focus on online marketing and good service to grow fast!

    What are the Business Ideas 50,000 to 100000 rupees?

    With ₹50,000 to ₹1 lakh, you can start a tiffin service, digital marketing, dropshipping, pet grooming, mobile repair, handmade crafts, photography, fitness training, or reselling business. You can also open a small café, cloud kitchen, or printing business. Focus on low-cost marketing and quality service to grow!

  • How does Crowdfunding Work to Raise Money for Startup | How Crowdfunding Works in India?

    The concept of crowdfunding has just started to gain momentum in India. ‘Funding’ is the first problem new people, entering the world of business for the first time, find it difficult.

    Startups have to turn to institutions and angel investors because there is a lack of funds for bootstrapping or a lack of help from friends or family. But banks tend to refuse business loans for first-time entrepreneurs and often ask for huge collateral. Sometimes, it’s difficult to convince investors also. That crowdfunding platforms can play a key role in helping entrepreneurs make the most of their ideas.

    Crowdfunding is defined as a pooling of resources by a group of people for a common goal. In this concept, common mass is approached to raise funds for your idea execution, project, startup, or cause.

    According to a survey conducted, less than 2% of the companies end up raising funds from professional investors. This is large because of reasons ranging from non-scalable businesses to the lack of exits. The rest 98% still need to raise funds to take their startup to the next level.

    Some of the popular crowdfunding sites in India are Kickstarter, Wishberry, Indiegogo, FuelADream, Fundable, Ketto, Catapooolt, and Milaap which not only help Startups or individuals to launch a product but also test the acceptance of the product in the market.

    If we compare the crowdfunding market in India to that of the United States, we are still considerably smaller. However, if estimates are to be believed, this can soon change.

    Let’s see how does crowdfunding works in India for businesses and startups and its benefits.

    How Does Crowdfunding Work?
    How to Build a Crowdfunding Website or Platform in India?
    Benefits of Crowdfunding
    How to Raise Funds from Crowdfunding in India?

    How Does Crowdfunding Work?

    Donation Model

    In the donation model, individuals make a financial contribution to a project without any expectations of financial benefits.

    Lending Model

    In this model, individuals will lend money to the project with the expectation of being repaid under the terms and conditions agreed.

    Reward-Based Crowdfunding

    In reward-based crowdfunding, people contribute to your campaign and you give them a reward in return. The reward could be a DVD of the Film, The Gadget, etc. Equity cannot be given as a Reward.

    Investment Model

    In the Investment model of crowdfunding, the investor receives an equity stake in the project. Equity-based crowdfunding is not so common in India. Crowdfunding is becoming a lifeline for new entrepreneurs and small businesses as it helps them in many ways without losing much equity. Let’s see how crowdfunding helps startups and businesses in India.

    How to Build a Crowdfunding Website or Platform in India?

    Easy Steps to Create a Crowdfunding website or platform:

    Find a Crowdfunding Niche

    Choosing a niche helps to classify your site from others, and can also provide value to your campaign creators and sponsors. Every new crowdfunding website or platform is dedicated to a niche. That means that the website will host crowdfunding campaigns for one particular matter or kind of product.

    This is due to the big platforms that are available to crowdfunding creators. There is no use in trying to compete with the bigger crowdfunding platforms on the internet because you will likely lose.

    Use Crowdfunding Technology

    Search for the right technology that you want to use for your Crowdfunding website. Not all technology is paid, but when it comes to running a successful Crowdfunding platform, you want to be sure that there are no faults so users have a great experience on your website.

    You get what you pay for, if you use free Crowdfunding software, do not be surprised when something goes wrong with your website. Choosing a SaaS (Software as a Service) product can provide you with real-time support. This way you can get your site up and running fast, with as few issues as possible. And if there is a problem on the site, you are not left to your own to fix the issue.

    Connect The Payment Gateway

    It is usually best to open up a new bank account for the Crowdfunding platform if you are serious about taking a transaction fee on the donations to the website. If you were not already known, most Crowdfunding websites are taking a transaction fee on each donation to the campaigns on the site.

    This is a great way to generate an income on the side, by utilizing Crowdfunding. Depending on the usage of the platform, a bank account can be set up and connected to the payment gateway to receive a transaction fee.

    Add The Content

    Once you are finished choosing the niche, platform, and connecting your payment solution to your bank account, next, is the most time-consuming step, adding the content to your platform. You should have access to the front-end source code, to manipulate the User Interface (UI) to your standards.

    You will be restricted by the default UI and features from the product if you do not have access to the front-end source code. It is best practice to create all of the content, and have all of the images/videos ready before adding the content to the site. This can save a lot of time by simply copying and pasting the content onto the site.

    Launch The Platform

    Once the platform is all set up, the next step is to launch the platform. Before launching the platform, however, it is recommended to have Crowdfunding campaigns ready to host their campaign on your platform before launching.

    The first handful of campaigns on your new platform is likely going to be from friends and family. If those campaigns are not available, you need to start searching for campaigns by joining online communities in your niche, and in the Crowdfunding industry.

    Market The Platform

    The website is finally created and launched on the internet. The last step is to market the platform. The whole idea is to market the Crowdfunding platform successfully so that many campaign creators are approaching you to create a campaign on your platform. This way, you do not have to do any work to make money. This can be a great solution for those that want to generate monthly revenue by simply approving or disapproving Crowdfunding campaigns.


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    Benefits of Crowdfunding

    Crowdfunding Lowers Risk

    Starting up a company is a very risky and challenging journey. Launching a crowdfunding campaign hedges these risks and serves as a valuable learning experience. Crowdfunding as it is today allows an entrepreneur to gain market validation and avoid giving up equity before going all out and taking a product concept to market.

    Crowdfunding Saves Equity

    Crowdfunding is a great alternative way to fund a venture and it can be done without giving up equity or accumulating debt.

    Crowdfunding As Marketing Tool

    An active crowdfunding campaign is a good way to introduce a venture’s overall mission and vision to the market, as it is a free and easy way to reach numerous channels.

    Crowdfunding Proves The Concept

    Showing investors and convincing yourself that your venture has received sufficient market validation at an early stage is hard. Crowdfunding makes this possible as people get to know about your product and show their response.

    Crowdfunding Helps to Brainstorm Ideas

    One of the biggest challenges for small businesses and entrepreneurs is to be able to cover all the holes that a venture might have at an early stage. By having a crowdfunding campaign, the entrepreneur has the ability to engage the crowd and receive comments, feedback, and ideas.

    Crowdfunding Introduces Prospective Loyal Customers

    People who view the entrepreneur’s campaign and decide to contribute are ones that believe in the success of the company in the long run. In essence, these people are early adopters. Early adopters are very important to every business, as they will help spread the initial word without asking for anything in return. Such people care about the venture’s brand and message and are likely to be loyal customers throughout their life.

    Crowdfunding is Easier Than Traditional Applications

    Applying for a loan or pursuing other capital investments are two of the most painful processes that every entrepreneur has to go through, especially during the early stages of the company.

    Crowdfunding is Free PR

    The momentum created by successful crowdfunding campaigns attracts potential investment from traditional channels and attention from media outlets. Success stories make for interesting reading, and reporters are always hungry for them.

    Crowdfunding Provides The Opportunity of Pre-selling

    Launching a crowdfunding campaign gives an entrepreneur the ability to pre-sell a product or concept that they haven’t yet taken to market. This is a good way to gauge user reaction and analyze the market in order to decide whether to pursue or pivot on a given concept.

    Crowdfunding is Free to Launch

    Launching a crowdfunding campaign on some of the platforms is absolutely free. You will be charged a minimal fee when you raise funds.


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    Top 5 Kickstarter campaigns with their videos

    How to Raise Funds from Crowdfunding in India?

    Choose the Right Crowdfunding Platform

    This is the major step where most of the crowdfunding projects fail in India and the project creator never realizes it. As crowdfunding is a very niche stage in India, it is very important for crowdfunding platforms to help project creators in creating projects and help them to shape their projects for an Indian audience. Choose your crowdfunding portal wisely.

    Every crowdfunding platform in India takes a different approach to projects. Do little research on all the portals. Talk with some platforms, regarding your project and find out which crowdfunding platform fits perfectly for you.

    Create the Perfect Pitch Video for your Crowdfunding Project

    This is the most important factor which most of the people in India forget. Most people see Kickstarter and create crowdfunding projects, thinking that they’ll get millions overnight, which is never true.

    Entrepreneurs need to understand the mentality and psychology of Indians, compared to other nations. Indians love giving. We give millions and billions of rupees every year in temples and charity but when it comes to lending a hundred rupees to some person we think thousand times. That is where your crowdfunding video and description play a vital role in raising funds from them.

    Most people judge a crowdfunding project by just looking at the video. Make your crowdfunding video short and simple. Don’t add fancy 3D imaging graphics or VFX in the video. Nor add too much animation to it. Keep it to the point, make it clear.

    Remember, your end result from this video is money, not entertainment. Show your product, show yourself, your team, your workspace, your past work, and tell why someone should fund you or what change your project is going to make in society. This helps to build trust for the contributor.

    Project Description

    Write a detailed description but add attractive graphics along with it. In observation, it was found that most of the people in India write 2-3 lines or 1-2 paragraphs without graphics in their description. Writing only 2-3 lines shows that you are not serious about your product.

    A dedicated investor would never be investing in your project without knowing in detail about it. It is suggested to keep long description, as the one who is going to give a large amount of money to a stranger will surely want to read everything.

    Create a graphic picture that shows your product, your rewards, your timeline when you’ll deliver me rewards, and most importantly, your product specification.

    Rewards

    You need to understand that in India, most of the target audience is the middle class. Nobody will be willing to give more than 5% of their monthly salary unless you’re giving them something cool in return.

    Only rich people will give your project above Rs 5-10K and that if you’re giving them a customized product or something special in return. You need to consider giving a special reward gift in return which provides them emotional value. For example, you can give them your product with a celebrity’s signature or better, help them meet the celebrity.

    PR (Public Relation)

    Most of the people in India are unaware of crowdfunding. So, it is very important for the project creator to get the right reach of the right audience. Once your crowdfunding project is ready, you need to decide your communication strategy before making the project live.

    Create a mailer list, from your school friends to current enemies. Tell them all about your project and ask them to fund it once the project is live. Don’t be ashamed, be straightforward in asking to fund your project. If they don’t fund it, at least ask them to share a word of mouth or a small post on their social media. It will help you to raise a little fund. Then, it’s time for PR.

    Get in touch with all your press contacts and tell them about your crowdfunding project. If you don’t have any contacts, hire a PR agency. If you can’t hire a PR agency, ask your crowdfunding portal to do PR on your behalf.

    Some of the crowdfunding platforms in India help with that too. PR or Public relations are a crucial factor in any business. You need to have credibility in writing to prove your genuineness and potential in your PR.

    News articles will help you to achieve this and act as a backbone. It’ll also help you to get strangers to know about your project and in some cases, raise funds from them.

    Get in touch with bloggers who write articles regarding your project field. Let them know about your project and ask them to write an article on your project. Choose a blog with good reach and engagement.

    Social Media and Follow-up

    Build a social media strategy and create some unique campaigns surrounding your project. Social Media will help you to get that boost for making your project a success. A creative campaign will help your project go viral and even to reach the audience who’ll fund it.

    • Do Facebook posts thrice a day.
    • Interact with strangers on Twitter by tweeting, hourly.
    • Tell every possible person on the internet about your project.
    • Send emails to all your contacts regarding your project, weekly.
    • Take a follow-up via email or phone with the people who said they’ll fund your project or showed their interest.  
    • Connect with writers who wrote about your project in news articles or blogs. Ask them to update their articles about your new achievement.

    Put yourself in the investor’s shoes and see what you will want to see if someone asks for money from you.


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    Conclusion

    Crowdfunding is a good option for new startups with people and investors getting aware of it. It is a platform to show your product to investors if you do not have many contacts in the business world. The main advantage of crowdfunding is that you do not necessarily have to lose equity while raising funds. However, the Indian crowdfunding system does work in that way a lot.

    There might be some people who will fund you without equity but you will get the majority of the funds from professional investors who will demand equity in your company. It’s your job to choose the right crowdfunding option.

    FAQs

    What is crowdfunding and how does it work?

    In its simplest form, crowdfunding is getting others to finance the creation of a product, project, business, or work of art. It’s extremely advantageous for entrepreneurs and eliminates the overbearing upfront costs that stop most startups before they begin. It uses a web-based platform or social networking sites to solicit funds for the fundraiser by showcasing the story to potential donors or investors.

    What are some of the benefits of crowdfunding?

    Crowdfunding can be a fast way to raise finance with no upfront fees in businesses. Pitching a project or business through the online platform can be a valuable form of marketing and result in media attention. By sharing your idea, you can often get feedback and expert guidance on how to improve it, etc.

    Kickstarter, Wishberry, Indiegogo, FuelADream, Fundable, Ketto, Catapooolt, and Milaap are some of the popular crowdfunding sites in India.

    What is an example of crowdfunding?

    An example of a successful crowdfunding project is The Veronica Mars Movie Project. Fundraiser Rob Thomas used crowdfunding to fund the movie. The project was a great success surpassing their $2 million goals by an additional $3 million. The crowdfunding project also gained international reach.

  • Tips to Attract Investors To Your Business

    Fundraising is a tough nut to crack for many startups. But with a growing startup ecosystem, networks connecting the investors and the entrepreneurs are increasing exponentially.

    According to a report, 65% of entrepreneurs admit they were not fully confident they had enough money to start their business. Here are some practical tips from various investors and successful entrepreneurs which might attract investors to your business. It can help you raise investments to scale your business.

    Have An Effective Business Plan Ready
    Make Yourself Available On Online Portals
    Establish Your Network
    Present With Confidence
    FAQs

    Have An Effective Business Plan Ready

    Business Plan to Attract Investors To Your Business
    Business Plan to Attract Investors To Your Business

    An investor is always interested in the business plan apart from an idea. An idea might be unique or innovative but a business plan is what makes it effective. Your business plan must include details about your target audience, sales forecast for coming years, a problem which you are going to solve, go-to-market strategy and your plan for scaling the business. A most important factor to keep in mind is the uniqueness of your product. In other words, how different is your product and what are the existing problems it is catering to?

    Presenting your business model through figures and block diagrams might prove fruitful and productive. One suggestion which many people from the ecosystem advice is, to keep things simple and not to complicate them. Keep your business model realistic, logical and rational. You can also take the help of analytics to derive conclusions about specific grey areas where your product can actually bring a positive impact.

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    Make Yourself Available On Online Portals

    In this age of internet and digital era, having a virtual reach proves to be more productive. Create an account on different social media platforms to maximize your reach. An account on platforms like LinkedIn, Indian Angel network, Quora might also prove useful. If possible maintain a blog, in which your experiences, data, analysis, viewpoints can be published, this would help connect more people with value adding benefits. You can also entertain guest posts from experienced industry people. This might help to attract investors to your business. Whenever a potential investor visits your profile and sends you a connection, accept it and take no time to initiate a conversation with him. The biggest advantage of these sites is, you can follow investors who invested in companies similar to yours and can also track your rival companies. On the other side of the coin, if not handled properly, it might deter your image in a few seconds.

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    Establish Your Network

    Build Network to Attract Investors To Your Business
    Build Network to Attract Investors To Your Business

    “Your network decides your net worth”, a popular saying in the startup world. Before approaching an investor, it is always advised to note down at least 40-50 potential VCs and AVs. To start this, interact with other fellow entrepreneurs who work in the same domain as yours. Interact with successful businessmen and entrepreneurs to know their strategies, mistakes, and experiences. Discuss your idea briefly, business model and finance with them, if any suggestions come from their side, accept it gracefully. Ask them for further contacts, discuss with those contacts and build a network around you. This type of interaction will surely help you in finding potential customers, partners, co-founders, and investors.

    Draft a basic email which can be used for contacting different investors via email. Don’t shy away from emailing or contacting. Don’t depress or demotivate on listening to a ‘NO’, because being an entrepreneur one must be immune to rejections.

    Present your business idea to your close friends and family. Let them try out your product (if there) and note down their suggestions and reactions. After launching a product or a service, tell your close acquaintances to refer it in their vicinity. Initially, the conversion rate might be very low but marketing is the key. Generally, mouth to mouth marketing is more effective than door to door. If any consumer mails or messages you, reply to him/her and thank them for using your product. Nowadays, building a virtual network is more important than building a physical one.

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    Present With Confidence

    Confidence is one ingredient which defines or defies a person from success. While presenting your idea and business model it is advised to keep cool and calm. Before presenting in front of an investor, do proper research on that investor. Catching up with mutual contacts or acquaintances also might prove useful.

    Moreover, check his previous investments for their respective domains and ideas along with the total investment committed and the amount of stake asked in return.

    Some points which will contribute to your confidence:

    • Emphasizing on why one should invest in your startup along with your short and long term visions will help to grab the attention of investors.
    • Always focus on short and crisp PPTs, well illuminated with pictures, diagrams, charts, tables and bullet points. Refrain from copying and focus more on originality.
    • Another point to be noted is, always be proud of your idea and never ever doubt yourself, your team or the idea.
    • Be more optimistic and don’t get panicky.
    • Answer all the questions in a simple manner, don’t let your one answer counter another. Stick to the basics, your idea, your vision, and your current scenario.
    • Don’t bluff or speak unwanted things.
    • Keep yourself open to suggestions and don’t be afraid to speak up if any suggestion or advice overlaps with your ideology or ethics.

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    FAQs

    What does an investor want in return?

    Generally, investors want to see an expected return on their investment. Investors want to get their money back with an annualized internal rate of return. Investors are interested to invest money into growing businesses so that they can make money.

    How do investors get paid?

    Investors get paid according to a preferred way which is settled between the startup and investors. They can be repaid on a straight schedule, they can be paid back based upon their percentage of ownership, or they can be paid back at a preferred rate of return.

    Conclusion

    Finding investor is not that tough job if you know about pitching. If you can show better, they will invest better. However, each and every investor have his own way of dealing with entrepreneurs. Some invest in the startup idea, some invest in the business plan, whereas some invest in the team. So, you either need to get better in all the aspect or pitch to the investor which suits you the most.