Hyderabad, the capital of Telangana, India, has grown into a major economic center due to its ambitious and imaginative population. Beyond the famous Charminar, Hyderabad is home to many flourishing business sectors across the city. Known as the "City of Pearls", this place is fantastic for aspiring business owners to find promising small business opportunities.
There are many low-investment business ideas for those passionate about starting their own business but don't have the means to spend 1-2 crore. From as low as 50,000 INR (or, more realistically, up to 10 lakhs INR), Hyderabad offers a plethora of options to start a small company.
This article provides a comprehensive overview of all the viable business options. Ranging from creative start ups to small-scale endeavors, many businesses can be launched with an initial investment of less than Rs 10 lakhs.
10 small business ideas in Hyderabad
Businesses that cater to Hyderabadis' tastes and values might find a welcoming environment in the city's thriving local economy and extensive cultural history.
Here are the top 10 small business ideas in Hyderabad that you can start today.
Spice and pickle business
Every Indian household uses pickles and spices in their cooking since they are the foundation of Indian cuisine. You could find your calling in starting a manufacturing firm if you're itching to make a splash via the selling of high-quality spice or pickles.
There is a promising potential for entrepreneurs in the pickle industry as it is projected to reach USD 928.3 million by 2032. Meanwhile, no country can match India in terms of spice use and production.
If the spice and pickle combination works, it might lead to a thriving company that can easily grow to other towns or even nations.
Entrepreneurs in India often launch small-scale pickle and spice businesses out of their homes because of the low starting costs and the fact that a few licenses and permits allow for food production in the house.
Hyderabadi cuisine restaurant
Like the rest of India, Hyderabad has a long history of delicious cuisine. Some standouts among Hyderabad's many delectable cuisines are the world-famous Hyderabadi Biryani, haleem, and kebabs. The need for authentic state food is on the rise. Hence, you may meet it by providing tasty, clean, and traditional local meals. People around the world love these cuisines, not just people in India.
If you have a passion for the food business and live in Hyderabad, opening a small restaurant that serves authentic cuisine can be one of the great business opportunities.
Entrepreneurs looking for a small investment opportunity can capitalize on this trend by starting a food truck business or creating an online food platform that sells Hyderabadi meals. This is especially beneficial for attracting customers who are interested in traditional Hyderabadi food but haven't yet found the perfect place to order from.
Another viable option is to launch a food delivery service in the city. This would allow you to take advantage of the growing demand in the industry.
It has the potential to become a profitable business ideas if your restaurant begins to get the correct attention. Once that happens, there's no turning back!
Traditional clothing boutique
Traditional Indian clothing like ikkat sarees, sherwanis, and khadi dupattas from Hyderabad might entice shoppers seeking regional and traditional styles. In Hyderabad, you can open a boutique store with little startup costs if you have an eye for traditional apparel.
One major perk of this business model is that it doesn't need a huge warehouse, costly machinery, a mountain of raw materials or a large workforce. A single sewing machine is all you need to start a boutique on your own. Word of mouth can be quite effective if you are skilled at making traditional clothing and your work is evident. Customers will be lining up outside your boutique to have their garments tailored for wedding parties and other occasions.
As time goes on, it has the potential to expand into a sizable tailoring business with a huge staff.
Cultural tour services
By providing guided tours of Hyderabad's historic sites, including the Charminar and Golconda Fort (the most visited ASI monument by foreign tourists in fiscal year 2023), as well as the old city's lively markets, you can give tourists a truly immersive cultural experience.
This low investment business idea is perfect for you if you have a strong desire to connect with people and culture.
The common problem is a bounty of local tour operators and guides. This can make it hard for start ups to break through. You may stand out from the crowd by creating an online presence.
Get a domain, build up a user-friendly website, and start advertising it on the web. Travelers interested in cultural tours of Hyderabad are likely to look for tour packages online. Your website's optimization may bring in visitors. These visitors will then be more likely to buy your trip packages and fully experience your offerings.
Related: How to build a website in India?
Music and dance academy
Creating a school for traditional music and dance in Hyderabad is not only one of the most fruitful initiatives, but also a chance to honor and promote the city's illustrious past. Kuchipudi, Bharatanatyam and Carnatic music are all examples of traditional genres that can be taught as a part of professional courses.
Given the city's strong classical heritage, people passionate about the performing arts would tremendously benefit from this kind of academy.
Beyond its core mission of providing music and dance education, the academy may expand its community engagement by hosting cultural events, lectures, and performances.
The profit margin for this business can be high if you lease a building and convert it into a dance school. This is alongside with staffing the school with well-trained dance and music teachers.
With the high expense of music and dance lessons, particularly in major cities, it is possible to make a tidy profit while keeping operational costs like rent and tutor fees low.
Some methods for expanding your reach and elevating your profile as a music and dance academy include forming partnerships with cultural organizations or launching an academy that offers awards & certifications.
Pearl jewelry business
The pearl processing industry is booming in Hyderabad and offers excellent prospects for a new business owner. Hyderabad, well-known as the "City of Pearls", has a long tradition of pearl trade. Hence, it would be an ideal site for a new pearl merchant.
The idea is to sell pearl jewelry or maybe start processing them. The former needs less funding, whereas the latter can need substantial planning, permits, and funding.
A pearl processing business cleans, grades, and polishes raw pearls into beautiful jewelry. These may be sold to nearby merchants and jewelers. The industry is doing very well and has plenty of room to expand because of the rising demand for pearls throughout the world and Hyderabad's rich tradition of pearl craftsmanship.
The city's reputation and craftsmanship make it an ideal place to turn this aesthetic passion into a successful business. This is regardless whether you're selling processed pearls to jewelry stores or catering directly to people seeking authentic Hyderabadi pearls.
Festive event planning
One of the many small business ideas that can thrive in Hyderabad is festive event planning services. Festivals like Bonalu, Bathukamma, Diwali, Ramzan, and Eid are an integral part of Hyderabadi culture, making the city a great place for new business opportunities for those versed in event planning and management.
When it comes to low-investment company ideas, there is no better fit than capitalizing on festivals. These days, most people opt for a professional event planner who will take care of everything, from sending out invites to organizing the festival or party. Clients seeking to organize unforgettable celebrations, weddings, and community gatherings will be drawn to your business if it prioritizes cultural authenticity and attention to detail.
Profitability in this sector is easily possible with the correct strategy. To more efficiently reach your target audience, you should use smart marketing tactics, such as making use of social media sites or promoting locally through newspapers and pamphlets.
Heritage hotel or homestay
A one-of-a-kind chance to give visitors a taste of Hyderabad's rich cultural and architectural history. This arises when a typical Hyderabadi house is converted into a historic hotel or homestay.
This venture can offer not only a unique accommodation option for tourists. It also provides a special venue for the city's residents looking to celebrate important events at your heritage hotel. By preserving tradition while adapting to the evolving needs of the tourism industry, this business can strike the perfect balance.
However, the cost of starting a real estate business can require a huge investment of up to Rs 10 lakhs. This is on top of expenses for raw materials and marketing strategies.
If you want to start a business in the service sector, combine your idea with Hyderabad’s ancient charm to produce a luxury lodging experience that draws in both tourists and business travelers.
Lac bangles shop
A great approach to tap into the city's rich cultural legacy is to start a company that specializes in the famous Lac bangles of Hyderabad. In fact, the Registrar of Geographical Indications in Chennai has recognized two products from Hyderabad—Haleem and lac bangles—with the famous Geographical Indication (GI) tag.
The skill of making lac bangles in Hyderabad has been passed down through many generations. The result is a history of exquisite craftsmanship that dates back more than 500 years.
More than being a beloved bridal item in India, these lac bangles have now become an essential gift for visitors. These magnificent, time-honored works of art are made by melting resin in a furnace, shaping it into a circle, and then decorating it with crystals, jewels, or mirrors.
If you specialize in this kind of work, plan to hire a craftsman, or want to source these bangles and start a business, it can turn into a very lucrative business model.
Handicrafts store
With its long history of artisanal production, Hyderabad is a great place to start a company selling handicrafts. Handicrafts from Telangana are unique because of the traditional workmanship that has been practiced there for many years.
You may delve into a variety of exquisite handicrafts, such as Banjara embroidery, hand embroidery, Dokra, Bidri craft, and glassblowing.
The time is right to launch a business focused on original handicrafts and contribute to the growing global market for traditional arts and crafts since demand for these items is skyrocketing.
Customers from all over the globe who appreciate craftsmanship will be drawn to your exquisite handicrafts whether you showcase them in offline or online stores.
Related: How much does it cost to start a business in India in 2024?
How to get aid from the Telangana government?
Getting the required capital is the next critical step after deciding on profitable business ideas. Luckily, small business ideas in Hyderabad can get a lot of help in this aspect.
The administration of Telangana is very pro-business, and the government in Hyderabad is quite friendly. As part of its efforts to encourage innovation and entrepreneurship, the government of Telangana has launched a number of programs that have the full backing of Hyderabad's burgeoning startup ecosystem.
To encourage company growth and success, they also provide many incentives, such as tax cuts and subsidies. In order to launch or grow their businesses, eligible entrepreneurs can apply for loans from the state government and even use collateral, such as a building or land, to secure the loans. Click here to read more.
Starting a business in India: a starter guide
Ready to get started with bringing one of these small business ideas in Hyderabad to life? We got you covered!
Whether you're looking to start small or go big, you should always look to decide on a name for your business and register your domain name.
Here are some resources to help you brainstorm for your business name and register for a domain:
Get started with these small business ideas in Hyderabad
With its abundance of business prospects and encouraging atmosphere, Hyderabad is a great place for entrepreneurs to work on a small idea and turn it into a successful business. This city is perfect for those who want to create their own businesses, whether it's a music academy, an authentic restaurant, or a small boutique. Keep quality high, know your customer base inside and out, and use smart marketing tactics to thrive.
There has never been a better moment to launch your own business in Telangana's capital. With a vibrant entrepreneurial scene and an ever-changing market in the city, this can help your company thrive. Get thinking about the small business ideas in Hyderabad that you want to explore, and start your business today!
