Some Projects

60 Profitable Small Business Ideas For Small

Towns
Do you live in a small town, village or in a rural area? Are you searching for low-cost small
business ideas that will do good profit in small towns and rural areas? Here in this article, we
have compiled 60 most profitable small business ideas for small Towns.

Small towns or Tier 2 and Tier 3 cities are the emerging markets in India. Small towns are the
biggest potential market for consumer goods and as well as eCommerce. The proof of the rural
growth story is corroborated by most FMCG companies in India, who are now earning a nearly
similar proportion of revenues from both urban and rural markets. In the present scenario, small
towns are surging ahead as hubs of entrepreneurial activity, beating larger cities and even
metropolises.

Related: 30 Business Ideas With Low Investment High Profit

While industrial activity declines in big cities, smaller cities and towns are picking up the slack,
often displaying a preference for manufacturing at the cost of the services sector. Starting a
business in small towns and focusing the mass market is a financially profitable investment
opportunity for the Indian entrepreneurs. Relationship and trust are key drivers of awareness and
purchase in the small cities. It is essential for marketers to actively engage and build
relationships.

List of 60 Profitable Small Business Ideas For Small Towns

#1. Acrylic Buttons Manufacturing
The demand for acrylic buttons is increasing due to increase in consumption of garments used
for domestic use and for exports. The consumption of both these sectors have registered
significant growth in the past and it will continue to show good growth in future years. Read
More…
#2. Agarbatti Making
Any individual can start agarbatti making business as small scale or large scale basis. Agarbatti
is considered as household goods having a great market potential. The burning of agarbatti or
incense in religious and social functions has been practiced in India since early times. Apart from
big brands, local agarbatti companies are doing good in India. Read More…
#3. Air Bubble Packaging Wrapper
Air bubble packaging wrapper is an essential item in packaging field as a convenient and
economical cushioning material. The demand generation of electronic goods and other fragile
items in recent years has left a wide gap to fulfill the packaging need using air bubble film which
has generated a good potential of the project for new entrepreneurs. Read More…
#4. Aluminium Door Window Manufacturing
Aluminium door window manufacturing business is one of the profitable small business
manufacturing opportunity in light engineering industry sector. You can start this business with
small startup capital. Read More…
#5. Aluminium Foil
Aluminium foil is used in different industries in different forms. Such as Pharmaceutical tablets,
bulk & unitized packing of tea and coffee, prepared meals, bakery products, frozen meat, fish,
milk bottle caps, wine, lube oil, greases, powdered milk, confectionery, biscuits, photographic
film, gift wraps, household wraps, butter, margarine and cigarettes. Read More…
#6. ATM Space Renting
The demand for ATM space is high. The banks usually rent the space for the certain amount of
years and the contract is renewed every two or three years. If you are looking forward to a fixed
monthly income, ATM space renting is a good retail business proposition for you. Read More…
#7. Bakery
Bakery is one of the most profitable food processing business opportunity one can initiate by
having owned or rented space. Selecting the right product and proper marketing strategy are the
major deciding factor in getting success in the bakery business. According to the demand and
financial aspect you will need to choose the specific products for your bakery business. Read
More…
#8. Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried under
the sun or in the oven, fried and eaten as snack food or dessert. Additionally, you can sell the
item both in the local and export markets. You can initiate this business as small scale
basis. Read More…
#9. Bedsheet With Pillow Cover
This is a very good consumer product and one of the best business ideas for small towns. You
can start the business with small capital investment. Knowledge in the textile industry is
important. Small, medium and large scale operation is possible. Read More…
#10. Bio-diesel Production
Bio-diesel production unit can be established on a small scale basis at any place where the main
raw material Jatropha oil is easily available. There is a continuous search for renewable sources
of fuels due to the rate of depletion of fossils. The term biofuel is used to define fuels that are
obtainable from plants or animals. Being a renewable source, it is gaining attention all over the
world today. Read More…
#11. Bridal Store
A bridal store focused in specialty wedding attire with allied wedding supplies product is a
profitable retail venture in clothing and fashion industry. Even in a poor economy, brides to be
and their wedding parties spend a lot of money on bridal attire and wedding accessories because
weddings are memorable once-in-a-lifetime events. Read More…
#12. Candle Making
Aromatic decorative candles have a big market. It is used as the gift item also. Candle making
business can be initiated as small scale and part time basis. This is one of the most profitable
small scale business ideas for women entrepreneurs also. Read More…
#13. Canned Rasgulla Making
Any individual can start a canned rasgulla making business with moderate capital investment.
Additionally, revenue wise the business is lucrative and highly profitable. However, you must
ensure a regular supply of fresh milk to your factory. Read More…
#14. Cashew Processing
In cashew processing, the manufacturing activity includes cell cooking, cutting, cashew kernel
drying, peeling, grading and packing. Additionally, you can initiate cashew nut processing as
small scale and also as an export-oriented plant. Furthermore, the business demands simple
machinery. Read More…
#15. Coconut Based Business
Coconut production plays an important role in Indian economy. The country is the highest
producer of coconuts in the world. The total cultivated area is over 1.94 million hectares.
Around 90% of the coconut growing area is situated in the four southern states of India, with
Kerala occupying about 50% of coconut cultivated area in India. Read More…
#16. Costume Jewellery
This is a multi-million dollar industry now. It attracts women of all ages. The major reasons for
its popularity are the low price with the highly attractive look. You can start costume jewellery
selling from home. You can sell from your own online store. With the innovation of technology,
it is easy now.One of the best business ideas for small towns for housewives amd women. Read
More…
#17. Designer Lace Making
With knowledge about lace knitting, any individual can initiate this business from a home
location with small startup capital. Nowadays you will find different lace making machines. The
commercial lace-making unit is possible by establishing these machines. Designer lace has a
very good market demand and is an essential item in designer clothing materials. Read More…
#18. Detergent Powder Manufacturing
Detergent and washing powder are surfactants. And washing powder is an important ingredient
for cleaning and washing purpose. Generally, there two different types manufacturing
technologies are available. One is spray dried and another is mixing the raw materials. Read
More…
#19. Egg Tray
Egg trays are made from scrap paper pulp. You can start this business as the home based also.
The manufacturing process is simple. However, you need at least an area of 400 Sq Ft to run a
small scale egg tray manufacturing unit. Read More…
#20. Exercise Book Making
Exercise book manufacturing process is simple and any individual can initiate this business with
comparatively low startup capital. The demand for exercise book as an office and school
stationery item is increasing. According to the demand, several different machinery is also
available. Read More…
#21. Flex Printing
Nowadays, flex is an essential item for outdoor advertising. If you are passionate about starting a
small business in the printing industry, you can consider this business. You can start flex and
banner printing business by two ways. In both cases, you must have a flex printing business
project report in your hand. Read More…
#22. Ginger Garlic Paste Making
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also
serves as a carminative and gastric stimulant in many medicine preparations. As instant mixes
and spices are becoming more popular, the demand for ginger garlic paste is also increasing. The
Production process is simple. The product has an immense market opportunity for export
also. Read More…
#23. Grape Wine Production
Of course, grape wine production is a highly capital intensive business. However, the business is
lucrative too. Any individual can start this business with substantial capital investment. We can
say this is a medium to large scale business. In addition, you must have a proper business plan or
project report in hand prior starting this business. Read More…
#24. Hair Band Making
Hairband making business is a lucrative and profitable manufacturing idea that can be initiated as
large scale or small scale basis. A Hairband is considered as hair accessories and used by girls
and boys both. With the up gradation and change of fashion trend, different types of fashionable
colourful hair band are now very popular. Broadly hair band comes with two different
material.Read More…
#25. Ice Cream Store Business
Ice cream store business with allied products is a profitable retail venture in India. Selecting the
right location with right product is most crucial in this business. This is one of the best retail
business ideas for small towns. Read More…
#26. Iodized Salt Production
Iodized salt is a white crystalline powder salt fortified by Iodine. People can easily avoid the
iodine deficiency disorder by consuming sufficient amount of salt fortified with Iodine.
Iodized Salt consumption is directly related to population growth. Additionally, any individual
can start iodized salt production as small scale basis also. Read More…
#27. Jam Jelly Making
Any individual can initiate jam jelly-making business from home. As your business grows, there
are scopes to add similar product line and shifting your project at a convenient premise. jam
jelly-making business requires normal machinery and utensils. These are consumable food item
and have very good market demand. Read More…
#28. Jute Bag Making
Jute is a biodegradable eco-friendly item. Designer jute bad has very good market demand and
export potential also. By having simple machinery, you can initiate a jute bag making unit at
your home location also. For an eco-friendly character, the demand for jute yarn, jute fabrics,
and other jute items is increasing very fast. Read More…
#29. Kids Garment Manufacturing
Infant garment or kids garment industry are growing very fast in India. You can consider
initiating an infant garment manufacturing business of your own. In India, this business also has
a very good export potential. In that case, you can also consider starting an export-oriented infant
garment manufacturing company. Read More…
#30. Leather Belt Making
The leather waist belt is an item of dress used by young to old everyone. It has a functional value
besides being a fashion item. The demand for leather belts is increasing in domestic as well as
export markets. It is popular among school-going children and youths wearing western dress. It
is also popular among the other age groups of men. The raw materials and skilled workers are
also available in the country. Read More…
#31. Lemonade Making
Lemonade is actually a lemon flavoured very popular soft drink. The principal raw materials
required are sugar, citric acid, flavor & essence, food color, and sodium benzoate. However,
lemonade making is capital and management intensive business. One of the best summer season
business ideas for small towns. Read More…
#32. Milling Business
Generally, milling business opportunities in India involve wide manufacturing operations.
According to the product and raw material, you can initiate different types of milling business as
small and medium scale industry. In order to enhance the competitive strength of the small scale
sector, the Government of India has introduced several incentive schemes that provide a financial
subsidy to the eligible enterprises. Read More…
#33. Nail Polish Manufacturing
Nowadays, nail polish is a very common beauty and cosmetic item. Generally, the price of the
product varies from Rupees 50 to 1000 in our country. However, you can find more costly
brands in the market. Almost every age group of women use this item regularly. Read More…
#34. Nut Bolt Making
Basically, nuts bolts making business comes under light engineering product manufacturing.
Nuts and bolts are a type of industrial fasteners used in various products, machines, structures
etc. Nuts and bolts consist a major link in the family of industrial fasteners and are used by every
industry. Read More…
#35. Online Perfume Store
To start your own online perfume store business you will definitely need to have an eCommerce
site. And when a software will do every work related to setting up an online perfume store, it will
be quite easy to initiate an online perfume store business with really a small capital investment.
Financially most important aspect is, you need not pay any cost for retail space. Read More…
#36. Online Toy Library
Toys are the most popular item for the kids. Children enjoy playing with toys. In addition, they
learn several things in the childhood days with the help of different activity and educational
toys. However, a single piece of the toy is not sufficient to engage a child for a long period of
time. In fact, children want to have a new toy in almost every alternate days. Read More…
#37. Online T-shirt Store
The t-shirt is a well-known casual wear worldwide. It is popular among the men, women and
kids also. Yes, there are a lot of t-shirt brands in the market. People always look for a beautiful
design, cherishable brand, and a quality product. That’s enough. In starting an online t-shirt
business, you will definitely need to have an eCommerce site where from your clients will buy
your t-shirts. WithShopify, you can start your own online t-shirt business by creating a fully
functioning eCommerce store with very less capital. Read More…
#38. Packaged Drinking Water Production
Increasing awareness of health and scarcity of getting pure drinking water have made an
immense market demand for packaged drinking water. Nowadays people prefer to have
packaged drinking water not only at outside but also in the house. In initiating packaged drinking
water business, it is important to check the PH balance of water where you want to establish the
unit. Read More…
#39. Papad Making
Any individual can initiate papad making business as small scale and home based basis also.
Papad making is one of the most profitable food processing business considering the low startup
capital investment. Papad is a thin wafer-like product and served as fried or roasted. Read
More…
#40. Paper bag Making
A paper bag or paper sack is a preformed container made of paper. It usually comes with an
opening at one end. It can be one layer of paper or multiple layers of paper and other flexible
materials. Paper bags are essential items for packaging and/or carrying items. It’s just same as
packaging design, paper bags are intended to show all the glory of the product inside them. So,
your design needs to be stand out. This is one of the best business ideas for small towns. Read
More…
#41. Paper Cup Making
You can start this business with small capital investment. The demand for this product is
increasing day-by-day. Paper cup making business is one of the most lucrative small scale
manufacturing opportunity in India. In addition, you can produce the paper cup from recycled
paper. Read More…
#42. Pet Bottles Production
Pet jar or pet bottle production is one of the most lucrative and profitable manufacturing
opportunity in plastic and polymer industry. According to experts, polymer consumption by
Indian plastic industry is expected to be double in next 6 years. It means we can expect a figure
of 20 Million metric tons by 2020. A pet bottle production unit with a simple process of injection
moulding and blow moulding is a profitable venture for the entrepreneurs. Read More…
#43. Petrol Pump
Petrol pump is a traditional business of our country. And the business is also lucrative venture
for the small business entrepreneurs. Additionally, the business offers sustained cash at little risk
along with some prestige. Read More…
#44. Plastic Toothpick Production
Another small business idea with low investment high profit. This is a consumer item. The
product has good market potential. You can start production from home. start selling locally. The
manufacturing process is simple. Machine cost is also very less. Raw material is easily
available. Read More…
#45. Preschool
Preschools generally provide early education and care for children aged between three and six
years. However, there are some may be licensed to take children from two years of age.
Preschools are warm and welcoming community hubs for the kids. Read More…
#46. PVC Pipe Manufacturing
The demand for PVC pipe and fittings is related to the consumption of PVC pipes. Due to the
growing trends in the utilization of PVC pipes for a variety of applications, the demand for
fittings is likely to grow substantially. Additionally, you can initiate the manufacturing unit as
small, medium and large scale basis. Read More…
#47. Rain Coat Manufacturing
A wide variety of fabrics suitable for rain gear is currently on the market. The production process
is simple. Generally includes designing, cutting, and sewing. Additionally, you can initiate the
manufacturing unit as home based basis.

#48. Rakhi Making

The season is coming for rakhi. It is a very popular seasonal product in India. Almost every
Indian woman tie a rakhi on her brother’s wrist. Rakhi making business doesn’t demand
machinery cost. You only need to have some tools and equipment. Start selling locally. One of
the best low-cost business ideas for small towns. Read More…
#49. Restaurant
The food and beverages industry is one of the fastest growing industries in India. Additionally,
the restaurant business is one of the most profitable and lucrative retail opportunities. One of the
best food service business ideas for small towns. Read More…
#50. Rubber Floor Mat Making
Rubber floor mats are popular as industrial rubber mat, anti-static mat, anti-vibration mat, anti-
fatigue mat, rubber mats for use at home, entrance mats, interior mats, car floor mats and so on.
The manufacturing process is not complex. Additionally, you can start the manufacturing unit as
small scale basis. Read More…
#51. Solar Business
India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is
incident over India’s land area with most parts receiving 4-7 kWh per sq. m per day. Hence, both
technology routes for conversion of solar radiation into heat and electricity, namely, solar
thermal and solar photovoltaics, can effectively be harnessed providing huge scalability for solar
in India. This is one of the best business ideas for small towns. Read More…
#52. Spectacle Frames
The spectacle frame manufacturing business demands simple machinery and equipment. In
addition, you can start the business as a home based and small scale basis. The major required
raw material is cellulose acetate. The most fashionable business ideas for small towns.

#53. Spice Powder Making

Spice grinding and packaging is one of the most profitable food processing businesses.
Additionally, you can start the business as small and medium scale. Spice is an essential item in
cooking and food processing. Additionally, it comes as a tastemaker. Apart from individual spice
powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more
profitable. Some of the most popular items are meat masala, curry powder, chat masala etc. Read
More…
#54. Tissue Paper Making
Household paper products recently have seen a huge demand. tissue paper, facial tissues, paper
towels can be produced by simple machinery. These are the consumable item. You can initiate
the project concentrating one or two allied products. As your business grows, you can make an
addition. Household paper product making is one of the most profitable and trending paper
business ideas for small towns nowadays. Read more…
#55. Tomato Processing
Tomato is a wide available item and processed tomato products are also very popular. Most
popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing, you
can also produce tomato pulp for other small scale industries. Additionally, the business
demands simple machinery and equipment. One of the great business ideas for small towns.
Read More…
#56. Tracksuit Manufacturing
The tracksuit is a popular item among the every age group of people. Additionally, men, women,
and kids all use this item as sportswear or as a casual wear. The dress is hugely comfortable and
functional. The item comes in different colors, sizes, patterns, and designs. Additionally, there
are different tracksuits for men and women. Read More…
#57. Tyre Retreading
Tyre retreading is a new technology. After applying this method the old tyres become
serviceable and usable. The part of the tyre that comes in contact with the surface of the road is
known as the tread. The tread is an integral part of the tyre and is responsible for providing
traction. Technology wise this is one of the most trending business ideas for small towns. Read
More…
#58. Washing Blue Manufacturing
Washing blue or laundry blue is an essential household item. The manufacturing process is
simple. Additionally, any individual can initiate this business with moderate startup capital
investment. Read More…
#59. Woodworking
Woodworking business is a very good and profitable opportunity for those individuals who are
really looking for a home based manufacturing idea with small startup capital. You will find
many technically upgraded machinery for woodworking. However, you must select the right
product. Additionally, focusing in the right niche is important in this business. Read More…
#60. Yoga Studio
Yoga studio business in India is a profitable and lucrative retail venture opportunity in health and
wellness industry. The increasing awareness of consumers from remedial care to a preventive
care approach has created an enormous potential of initiating a yoga studio for the entrepreneurs.
Additionally, this is one of the most lucrative business ideas for small towns. Read More…
Success parameters in small business hugely depends on location. Source of raw materials,
available infrastructure and local market play important role. This list of 60 small business ideas
for small towns will definitely help you in taking informed decision.

Paper carry bags making-

In recent times, it is another worthwhile business idea as the entire world is
looking forward to ‘go green’. The paper bag making industry is enhancing
more now- a- days. If you have interest, skills and setup of your own, then you
may try this business in rural areas. You need to register your business and
invest on purchasing equipment and machines for cutting, printing and folding
paper bags. This business is very profitable to start in villages and small
towns because of low labor cost.

Jute bags making-

One of the best eco- friendly business ideas is jute bag production. Jute or
‘the golden fiber’ is grown by farmers of rural areas and is bio- degradable
along with high cash value. If you buy raw jute from the peasants and start
business, then it will bring profit to them as well as you. You need to invest on
acquiring technical skill, get government registration, purchase equipment,
man- power, etc. Read more in details

Drinking water treatment plant-

Inhabitants of rural areas usually suffer from water- borne disease like
typhoid, diarrhea, etc. To gift them top- notch drinking water after treating
them in treatment plants will not only help them avoid such disease but also
bring you huge profit. A maximum fraction of your investment will be for
enlisting man power, machineries, etc.

Organic farming-
Usually organic farming business was practiced on small and family- run
farms. But, the demand of organically grown foods and are increasing and
thus people are finding an interest to invest in large lands for carrying out
organic farming. Even you may choose this idea as the growth and success
rate of this business are growing steadily.

Rice export within India or other countries

Rice being the staple food of India is one of the highly needed food items. You
may start a business of exporting rice within and outside the country. For this,
you must contract export vendors of neighboring cities. You will get a sound
profit and return on your startup investment.
It will be easier for you to start business in small towns and villages as you will
require a bit smaller capital than the cities. Organizing your business will be
easier in rural areas is easy where individuals know one another.