You wanted to start a business that ensures good ROI. However, you’re pretty overwhelmed with the overloaded information and quite confused about choosing the high profit margin small businesses. If you’re looking for the best high profit margin small businesses, you’ll love this article.
In this article, you’ll discover 15 high profit margin small businesses in detail. The specialty of these businesses is they require minimal investment and ensure significant profits within a few months. So, are you curious to know more?
Let’s get started!.
15 High Profit Margin Small Businesses to Start in 2022
Here are the 15 high profit margin small businesses that you should know. Keep reading.
1. Start Incense Stick Manufacturing
Who wouldn’t love the soothing incense stick fragrance? Incense stick, also known as Agarbatti, has a special significance in India both religiously and socially. In earlier days, Agarbattis were used widely. Primarily, the incense sticks are used in India and its neighboring countries like Sri Lanka and Burma. In addition, over 90 foreign countries are using these fragrance sticks. Hence, it’s also a well-renowned export business industry.
The minimum investment in manufacturing 2,25,500 packers of incense sticks is around 4,93,114 INR. At the same time, you can sell each packet for over 2.3 INR. The annual net profit and ROI of the business are 7.11% and 30.94%, respectively. Usually, the investment costs include machinery tools, production costs, and other minor expenses. If you’re searching for a minimal investment business that yields a high-profit margin, incense stick business is an ideal choice. Primarily, the manufacturers collect raw materials from Mysore, Bangalore, or other parts of Karnataka.
2. Set Up a Bus Service Website
This is another high profit margin small business to consider in 2022. Like the incense stick business, it also requires low investment to design and maintain a bus booking website. Usually, this website requires a robust internet connection that makes you a crorepati within no time. Did you know over 90% of Indians use the bus as a primary means of transportation?
While most teenagers and adults search for bus routes, schedule buses, and opt for advance bookings through various portals. Hence, starting a bus service website or an app is the best way to enjoy a significant return on investment. For reference, you can take RedBus.in which provides detailed information about the bus services.
It provides complete details about bus routes, stops, and offers huge discounts on bus fares. That’s why to start a bus service website; you should have keen knowledge about various local and non-local routes. The minimum investment for establishing a bus service website is around 2,00,000 INR, whereas the profit margin is about 10%.
3. Scrap Collection Business On-Demand
Yeah, you heard it, right? The scrap collection business is also in high demand. The scrap collection is generally shared by the rag pickers, intermediaries, recycling industries, and companies. At each level of scrap collection, the intermediaries receive their commission. There are several multi-million businesses involved in the scrap collection from scratch.
The minimum investment required to start scrap collection is about 3,00,000 INR. To start a scrap business, you should initially contact a large business or company to make a deal. After that, buy the bulk material at much lower prices from the company they don’t use. Finally, sell it into the market at regular prices.
Suppose you found iron rods as crap for the business that you made a deal with. Now, buy the iron rod for 10 INR from manufacturers. Usually, the market rate is 35 INR. So, you can sell it at a much cheaper rate of 25 INR. You get high-quality products at cheaper rates, but the lower prices also attract more customers. Scrap collection is one of the high profit margin small businesses that you shouldn’t neglect.
4. Fitness Businesses
Although the fitness industry struggled in the COVID era, it’s one of the best small businesses to consider. Since everyone shows a huge interest in shaping their body, building muscles, or losing weight, this industry experiences substantial growth. Several fitness coaches opt for online training sessions and train thousands of people. Whether the people have thick or lean skin, everyone looks for a fitness center for appropriate health guidance.
Mindbody is one of the best examples of virtual fitness sessions. Surprisingly, virtual sessions are getting huge responses even after the completion of a pandemic. So, become a personal trainer and offer individual training sessions. Or else, you can hire gym practitioners to teach a bunch of students either part-time or full-time. In both ways, the fitness industry ensures abundant opportunities and massive revenue.
5. Electronics Repair
It’s no surprise to say that Indians are highly obsessed with the usage of electronics, from the latest smartphones to high-performance PCs. Have you ever checked your mobile phone as soon as you wake up? How many times did you unlock your mobile or PC? How often do you use electronic devices such as headphones, ear pods, vacuum tubes, printers, robot vacuums, food processors, or other electronic devices?
Since there is a huge necessity for electronic devices from household to office work, electronic repair is one of the ultimate high profit margin small businesses. Start your electronic repairing services by hiring a bunch of technicians. If you don’t have enough budget, you can start by doing it yourself or partnering with other technicians. Also, you can leverage home services where your customers can avoid waiting for a longer period to get the work done.
6. Run Food Trucks
Have you ever observed food trucks on roads near your home or office? Over the past few years, food trucks have become the best business idea and ensure high profit margins. All you need to do is prepare delicious food and serve the huge masses. The food trucks are incredibly growing every year and serving millions of users. It’s also one of the best high profit margin small businesses in India.
If you don’t want to invest huge bucks in building a store, food trucks are an ideal choice. Moreover, it’s the best low-investment business idea that garners good ROI. Numerous food truck owners are selling mouth-watering street dosa, Pizza, or Chinese foods. The food truck is your solution to start a business with low investment.
To enjoy the best rewards, make sure you perform business activities in metropolitan cities like Hyderabad, Pune, Delhi, Bangalore, Mumbai, etc. In addition, understand and follow specific local rules and regulations while setting up the business.
7. Bookkeeping and Accounting
Accounting is essential for all businesses, from micro to large companies. It helps organize the financial data, maintains taxes, and prevents legal implications of the business. Similarly, bookkeeping is also unavoidable and tracks and manages the daily expenses or the ins and outs of the company.
As many business owners lack adequate knowledge about taxes, legal procedures, or other financial laws, the necessity of bookkeeping and accounting has skyrocketed. Moreover, a good bookkeeper tracks cash flows, files taxes, and generates balance sheets.
In a nutshell, this business forms the crux of the company irrespective of its size. The estimated net profit margin of bookkeeping and accounting services is about 19.8%. Hence, it’s undoubtedly considered as one of the few high-profit margin small businesses.
8. Delivery Businesses
Have you ever thought of a delivery business similar to that of Zomato or Swiggy? Due to the bustling lifestyle and busy schedules, everyone is looking for the simplest possible ways to make life comfortable and convenient. Delivery Business is one of the best choices to earn colossal ROI. All you need to do is deliver the products, food, or other goods on time.
One of the primary reasons for the success of this industry is it’s safe and delivers anything you want at your doorstep. Also, the rapid increase in online purchases results in the necessity of delivery partners. That’s why it’s recognized as one of the best small businesses worldwide. Even after the COVID pandemic, this industry is expected to rise without a hitch.
9. Virtual Assistant
This is also one of the high profit margin small businesses that you shouldn’t neglect. Since most business owners will be pretty busy, they hire virtual assistants for all digital works, from maintaining social media accounts, assigning tasks, managing meetings, booking travel tickets, scheduling emails, and other related tasks.
Virtual assistants save colossal time for small to large business owners by managing basic daily tasks to completely dedicate their time to business growth. Usually, entrepreneurs, large business owners, and chief executives hire either part-time or full-time virtual assistants. It’s one of the less known profitable businesses to earn a few bucks for performing minor tasks.
10. App Development Business
The COVID-19 pandemic learned colossal life lessons. One such lesson includes the significance of digital presence to find out ideal customers. Smartphones have especially become a part of life. According to App Annie, almost 33 billion apps were downloaded in 3/4th of 2020. Moreover, the money spent on developing apps is around $28 billion, which increased by 20% compared to 2019.
If you’re highly interested in app development or related business, it’s an ideal choice to generate revenue. Establish a strong digital footprint to attract, engage, and nurture ideal customers. Another best feature of app development is it neither requires certification nor physical location. So, it has fewer barriers to kick-start the app development business.
11. Sell Home Decor or Home Improvement Equipment
The home decor or home improvement industry is booming these days because of its cool features. It ensures attractive surroundings, elegant designs, and a mind-soothing environment. This is the reason most people are looking for the best home decor products or home improvement tools. The home decor or improvement tools are best for redesigning rental property without actually damaging the original design.
Also, you find thousands of customers buying home decors such as wall arts, artificial plants, pots, stools, and colorful decorating items. Meanwhile, there are also tons of people buying green grass, lawn tools, or other home improvement equipment to enhance the interior of their homes. So, establishing a dedicated store for home decor and home improvement equipment reaps huge bucks within no time due to the huge market demand.
Bonus: Additional List Of High Profit Margin Small Businesses
Below are additional high profit margin small businesses to consider to reap ultimate profits. Whether you’d like to work from home or in the office, the below-mentioned businesses are a great choice.
12. Travel Agency Business
Did you know, based on the reports of WTCC(aka World Travel and Tourism Council), India is listed #10 in the travel industry? The travel industry has been one of the booming sectors in India for over a decade. You can either set up a home-based or office-based business.
If you’ve no idea where to start, use Dukaa to set up your travel agency and make handsome profits. For an easier start, you can tie up with the hosting agencies. Moreover, it’s one of the minimal investment businesses that hardly cost you about 10,000. Numerous travel agencies earn great commissions without any aggressive sales.
13. Get Started with Online Bakery
Who wouldn’t love to eat delicious pastries, lip-smacking muffins, or energizing chocolates? If you’re interested in cooking and selling bakery items, an online bakery is an ultimate choice. You can sell all baked items from bread to cakes to sweet pancakes.
Moreover, it takes a little investment of about a few thousand. As you grow your business, you can get started with Zomato, Swiggy, and other online food delivery services so that your customers can easily find you.
14. Start an Organic Farm
As more people are moving towards organic foods due to major health concerns, this is one of the great business choices. Usually, organic food is free from chemicals, pesticides, and other toxic substances. You can leverage both social media and offline advertising to increase your brand awareness and grow your business. Organic farming is highly suitable for people interested in agriculture or food services.
15. Offer Interior Designing Services
The interior designing industry is one of the high profit margin small businesses. Since most people love to have personalized interior design, this industry has a huge scope and is expected to grow incredibly soon. With extreme urbanization, people crave great interior design in minimal space. So, if you’re an established interior designer, start offering interior design services integrating with the best technology like IoT.
Key Takeaways
Most people say the healthcare, finance, or technology industries are highly profitable. However, what most people forget is its competition. Although these industries are profitable, they are highly competitive, and businesses that are just starting out perhaps drown in the ocean of the business rat race.
So, make sure you choose the best high profit margin small businesses from the above list. A few high profit margin small businesses include the following:
- Incense stick production
- Fitness business
- Scrap collection
- Delivery business
- App development
- Travel agency business
- Setting up an online bakery
- Selling home improvement or home decor equipment
- Organic farming
- Interior designing services
These are the few small businesses you can start right now with minimal investment. Also, to know more about them, read the above article and draw insightful data.
