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Best Business To Start In Small Towns In India

Best Business To Start In Small Towns In India

Riya Yadav
February 20, 2025

In India, most of the population lives in small towns and cities, that’s why starting a business in these areas can be a great opportunity with numerous benefits like low operational costs, less competition, and strong demand. From traditional industries to modern services, there are many business ideas you can invest in. With the advancement of technology and awareness, people in these areas are now aware of different modern businesses and with their rising disposable income, they can afford different services for their convenience and comfort, providing many opportunities to entrepreneurs to set up their business in tier 2 and tier 3 cities. In this blog, we will explore some of the best business to start in India, which can generate huge revenue to your investment. Read on to discover more!

Top Business To Start In Small Towns In India

Know About India's Best Business Opportunity For Small Towns

These are the Top Business Ideas we will discuss here:

1. Laundry and Dry Cleaning Business

Nowadays, everyone with a busy lifestyle demands a laundry service for their convenience and comfort. Laundry and dry cleaning businesses are in high demand as no one wants to invest time in laundry like tasks. Laundry business can be a great idea in small towns as there are many benefits like low operation costs, low rental costs, cheap labor, etc. By offering door to door pickup and delivery, online service booking, and a range of services like laundry, dry cleaning, shoe cleaning, carpet cleaning and much more, you can attract many customers. If you want to establish a successful business in less time, then it is better to opt for a franchise like Tumbledry, India’s largest laundry and dry cleaning service chain which offers comprehensive support to their franchisees including marketing, branding, and operational support.

2. Restaurants

Opening a restaurant in small towns can be a great business idea as people always look for a place to eat outside. By offering a diverse menu, welcoming atmosphere, and better customer service, you can establish a successful restaurant. But before setting up a restaurant, always do a survey of people’s choices like what they want to eat. In your nearby area, if people are fond of some Italian or Chinese cuisine, then you must set your menu as per their choice. Besides dining, you can also offer online delivery, catering which will scale up your business like other big brands (McDonald’s, Domino’s, etc), making it a profitable and sustainable business venture in tier 2 and tier 3 cities.

3. Photography

Starting a photography business is a great idea for small towns, especially if you focus on local events like weddings, birthdays, parties, etc. If you are a skilled photographer, then you will have many clients as word of mouth marketing works well in small towns. By offering personalized services like pre wedding shoots, weddings, business events, birthdays, etc, you can generate a great revenue in this business. Apart from photography, you can scale up your business with other complementary services like print sales, photography classes, etc. Coming to cavost, it does not require a heavy amount. You can start photography with a single camera and some lenses, later on, you can purchase more as per the need.

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4. Travel Agency

Travel agencies can be a profitable business in small towns. In vacations, people are likely to go different destinations and for that they need proper planning and bookings. Travel agencies take care of all the planning and booking like arranging tickets, booking hotels, booking tickets for many adventurous activities. By offering personalized travel plans, booking flights and hotels, and organising full package tours, a travel agency can generate good revenue through commission based sales from hotels, restaurants apart from your service fees. With the rise of online booking platforms, travel agencies can standout themselves by providing expert knowledge, personalized itineraries, and exceptional customer service, making them an essential resource for small town travelers and a profitable business for entrepreneurs.

5. Pet Store And Grooming

Pets also need care and grooming. So, If you are in search of a new business idea for small towns, then opening a pet store or pet grooming centre can be a great idea. People who own pets always look for a place that can help with the food, spa, and grooming of their pets. With a wide range of pet food, toys, and accessories, as well as grooming services like nail trimming, bathing, and styling, a pet store can become a one stop solution for pet owners, generating revenue through retail sales and service fees. Apart from these services you can also provide some add on services like pet boarding and training which will create a loyal customer base, making it a unique and profitable business.

6. Gym

Nowadays, exercise and gym have become part of our daily lives. So, If you are thinking of setting up a business, then you must open a gym. Gym business only needs an initial investment and rest you can enjoy the returns. For setting up a gym, firstly you need equipment that could be costly but it will be one time. In this business, you can offer fitness classes, training, nutrition counselling, besides gym membership fees which will attract many health freaks to join your gym. With a relatively high demand for fitness services and limited competition in small towns, a well-equipped and managed gym can be a profitable and sustainable business venture, helping to improve the health and wellbeing of your local community.

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7. Tutoring Business

Tutoring is another business idea you can opt for in small towns. With the advancement of technology and awareness, now people are ready to pay for quality education for their child. Whether a child needs extra attention after school or wants to gain some extra skills, a tutor is a must, that’s why starting a tutoring centre is a wise investment for small town entrepreneurs, capitalizing on the growing demand for personalized education and academic support. By offering one-on-one tutoring services, group classes, or online classes, tutoring businesses can help students of all ages improve their grades and achieve academic success. With a relatively low startup cost and the potential for word-of-mouth referrals, a tutoring business can be a profitable and rewarding venture for small town entrepreneurs who are passionate about education and teaching.

8. Gardening Business

Starting a gardening business is a perfect opportunity for those entrepreneurs who have keen interest in plants and have a passion in transforming your boring spaces to beautiful and welcoming. In this business, you can offer beautiful garden design, planting, maintenance, and landscaping. Gardening businesses can help residents and businesses enhance their properties, while also generating revenue through garden-related products and workshops. With a relatively low startup cost and the potential for word-of-mouth referrals, a gardening business can be a successful and profitable venture for small town entrepreneurs who are passionate about gardening and committed to helping their community grow.

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9. Real Estate Agency

Real estate agency helps people who want to buy or sell a property. With the rising income, people are likely to invest in property but it is difficult to search for a suitable property for people who are busy enough, here a real estate agency comes into play which helps sellers and buyers. To start a real estate agency, you need a proper research of the local market, then only you can offer services to people as it needs a strong network of contacts, earning a great amount of money through commission based sales. Also, this business does not require startup cost but only needs a strong network in market and healthy relations with clients. So, If you have the same then you can opt for this business, helping people to sell or buy their house.

10. Bakery

Nowadays, we see cakes in almost each and every party. Opening a bakery can be a great idea in small towns. By offering personalized cakes, pastries, and other bakery items, you can earn a great amount. Also, With proper marketing and services, you can set up a good bakery business. When you have a large customer base, you can open one or two franchises in your city or another city. With the ability to source high-quality ingredients from local farmers and suppliers, bakeries can showcase the town’s culinary heritage with unique taste, making it a rewarding and profitable business venture for small town entrepreneurs.

11. Beauty And Wellness Store

Beauty and wellness centres are very much popular in urban cities and now are gaining popularity in small towns as well. Services such as haircuts, facials, spa, massage, are no longer considered as luxury nowadays but are a part of our daily lifestyles. Setting these centres in tier 2 and tier 3 cities can be an advantage as there are lower cost of operations and comparatively cheaper labours which makes it a great business idea to start in small towns. If you want to take this business on a higher scale, you can also choose a franchise from a recognized brand like VLCC, Lakme, etc to pull more customers.

12. Food truck

Operating a food truck can be a lucrative business idea for small towns and cities, offering a unique and flexible way to serve delicious food to local people. By offering a specialized menu that showcases local flavors and ingredients, food trucks can quickly build a loyal following and generate significant revenue through sales at popular events, festivals, and busy street corners. With lower startup costs compared to traditional restaurants, food trucks provide an attractive opportunity for entrepreneurs to test their culinary concepts, build a brand, and establish a successful business in a small town setting.

13. Grocery Store

14. Education Centre

With the rising awareness, parents are willing to spend on the education of their child for quality education. So, If you are looking for a business idea to set up in small cities, then you can consider an education centre or a play school. Nowadays, Playschool are in high demand as both parents are working and they look for a place so that they leave their child to a secure place where a child can learn, play, and eat. Before opening an education centre it is advisable to do research as it requires a startup cost. By offering a range of services such as tuition classes, language courses, computer training, etc, education centres can attract students of all ages and backgrounds. With a team of qualified teachers and a well-structured curriculum, education centres can build a reputation for excellence, generating revenue through course fees and many workshops.

15. Organic Farming

Organic farming is now very popular as people are becoming health conscious, especially after covid 19 which made healthy and hygienic food a necessity. Opening an organic farming store in small towns can be a beneficial startup. It allows you to cultivate and sell fresh, chemical-free produce to local customers. By leveraging the growing demand for organic products, entrepreneurs can establish a thriving farm-to-table business, generating revenue through direct-to-consumer sales, and partnerships with local restaurants and grocery stores. With the potential for government incentives, tax breaks, and certifications, organic farming can be a lucrative and fulfilling business venture for small town entrepreneurs passionate about sustainable agriculture and community development.

16. Dropshipping

Dropshipping is another business idea which is in demand. If you look for a business that can be started with a low startup cost then you should opt for drop shipping. Setting up a dropshipping business has a benefit that it does not require an inventory to hold. By partnering with suppliers and leveraging social media, online marketplaces, or e-commerce websites, you can reach a global customer base, offer a wide range of products, and generate revenue without the burden of inventory management. With minimal startup costs and the ability to work from anywhere, dropshipping provides a flexible and scalable business venture for small town entrepreneurs.

17. Blogging

If you have a keen interest in writing and want to earn money with your writing, blogging is a great idea. Blogging is basically writing for companies, brands, and products. In the comfort of your own home, you can earn a great amount of money. By focusing on niche topics such as local history, outdoor adventures, food scenes, or community events, bloggers can attract a dedicated audience, build brand partnerships, and generate revenue through advertising, sponsored content, and affiliate marketing. With minimal startup costs and the ability to work remotely, blogging provides a low-risk and high-potential business venture for small town entrepreneurs looking to share their voice, showcase their community, and earn an income.

18. Ice Cream Parlor

Ice cream parlours can be a great idea for small towns. In summer, people crave for ice cream and are spotted in ice cream shops. With a unique flavor profile and cozy atmosphere, entrepreneurs can create a beloved gathering spot, perfect for warm weather, family outings, and community events. By sourcing ingredients from local farms and suppliers, ice cream shops can generate revenue through sales and catering services, making it a cool and profitable business venture for small town entrepreneurs.

19. Home Cleaning

Cleaning is the basic need that every house needs but now people don’t have time to clean their house as everyone is doing work. Offering home cleaning services is a practical and in-demand business idea for small towns, catering to busy professionals, seniors, and families seeking reliable and trustworthy cleaning solutions. With minimal startup costs and flexible scheduling, entrepreneurs can provide customized cleaning services, from one time service to regular maintenance cleanings. By building relationships with clients and providing better customer service, home cleaning businesses can establish a loyal customer base, generate steady income, and contribute to the overall well-being and appearance of the community.

20. Event Planning

Event management is another unique business idea for small towns in India that can offer great revenue and growth. India is a land of festivals and occasions but sometimes we cannot enjoy it fully due to hectic planning and preparations of these events and occasions. That’s why we seek an event planner or manager who organizes the whole event smoothly. With the rising disposable income, people are willing to spend on events. So, If you are looking for a business to run in small towns, then you can opt for an event planning business. Event planning and management is highly popular in urban cities and now also getting popular in tier 2 and tier 3 cities, making it a rewarding opportunity to invest.

21. Art Gallery

Owning an art gallery can be a smart business idea in small towns and cities. Art galleries can be seen in many places in urban areas and now it can be seen in small towns as well. Many people are fond of unique art and craft and here comes the art galleries, showcasing the unique work of local artisans. Entrepreneurs can offer exhibitions, host cultural events, workshops, and attract many customers. With a focus on promoting hidden talents of local or regional artists, collaborating with other businesses, an art gallery can become a beloved hub of people who love creativity and unique artworks, generating revenue through art sales and events.

22. Daycare

Daycare is another business idea that can work great for small towns. Nowadays, father and mother both are working and they need a safe and secure place to leave their child while going to the office and pick them up in the evening after their working hours. In daycare business, it is to ensure that the children are being taken care of and meanwhile educates and engages them in fun activities. So, when we think of a business that will be in high demand in upcoming years, daycare is one of them. With the right planning and effective management, it can be a profitable business in India.

23. Affiliate Marketing

You must have heard about affiliate marketing but do you know what affiliate marketing is? Affiliate marketing is promoting another person or brand’s products or services in exchange for a commission. Basically affiliates earn a profit from each sale they make. In small towns, if you are thinking of considering a unique and trending business idea, then you can opt for affiliate marketing. To start this business, you need a strong online presence and awareness of consumer needs then only you can make people buy what you are suggesting to them. By collaborating with companies which resonate with your knowledge, you can earn a good amount of money, all working from the comfort of your own home.

24. Freelance Writer

Freelance writing is now a trending and unique business idea that many writers are opting for in metro cities and now writers in small towns are getting aware of this business. Freelance writing is basically for clients rather than an employer. Freelance writing includes blog posts, articles, web pages, newsletters, reports, and much more. Freelance writers can work according to their own schedule, time and most important from anywhere they want. So, If you want a successful venture and a business which is sustainable then you can opt for freelance writing. Writing business has one special benefit that it can be done from anywhere. So, If you are a good writer and want to earn money with your creative writing, you should opt for freelance writing as your career.

25. Candle Making Business

Last but not the least, candle making can also be an ideal business for small towns, offering great revenue to your investment. You can start this business with basic equipment and essentials through which you can craft different types of candles with various scents, shapes, and colours. With so many festivals and occasions in India, people use candles for different purposes like lighting, home decor, and for gifting as well. By using local resources like essential oils, beeswax, etc and by partnering with other local businesses, labours, etc you can create a loyal customer base and can generate revenue through both online and offline.

Conclusion

Here above, we have mentioned top business ideas to start in India, especially in small towns. Businesses like laundry and dry cleaning, food, dropshipping, freelancing, seems like a great venture that can offer great returns and can be taken up to a large scale. On the other hand, businesses like daycare, organic farming, art gallery, etc will give you enough money to bear your healthy expenses. So, If you are also thinking of considering a new business, you can also take help from this blog and can choose one from above mentioned business ideas.

Disclaimer: The opinions expressed in this article are those of the author. They do not necessarily purport to reflect the values or views of Tumbledry.

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