7 Food Business Ideas With Small Capital

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What is the one thing that connects everyone irrespective of caste, creed, race, gender, or religion? What is the one thing that will always be in demand irrespective of the condition of the economy? The answer to both these questions is same and yes, you guessed it right, it is FOOD.

And if you are looking to start a business but are short on capital, this is exactly the kind of business you should be considering. Food businesses do not require a huge initial investment, but they do require a good amount of planning and license such as Shop Act and FSSAI.You need to do a feasibility study before you start and if the outcome is favourable, you need to do the appropriate registrations. You also need to market your business properly and keep track of the accounts.

Also read: – Profitable fast food restaurant business plan

Food Business Ideas With Small Capital

Once you do decide to start a food-related business, the next step is to pin down the exact kind. Here are some food business ideas that require a small capital:

1.   Homemade Snacks

This is one of the easiest businesses to start. You can make food items like namkeens, sweets  eg shev,chaklis,chivda,laddus,barfis,etc , . These are all things you would have made at home at some point or the other. You only need to make it in larger quantities.

You don’t even require any additional equipment to make them. All you need are some specific cooking utensils and some mixing bowls.  You can make it, pack it, and store it . Further,you can sell it either directly to customers, or to another shop or even set up an online store.   

2. Homemade Food Cooking and Delivery Service

Many people have very hectic schedules nowadays and find no time to cook a proper meal. This is why a homemade food delivery business has a huge potential especially in urban areas & metros. All you need to do is cook a wholesome meal and deliver it to the customers.

Since it involves cooking for a lot of people, you may need to buy some big utensils and extra gas cylinders. You would also need containers/tiffins for the food and a delivery system. These will cost you a maximum of INR 10,000. A two-wheeler with a box attached to the back side would also be needed for this task. Costs such as raw materials like vegetables, grains, spices & packaging required would add as recurring costs depending upon the level of turnover.

This is a perfect food business idea with a low investment that can be run from home and the whole family can participate.

3. Juice Shop

In a country like India where the climate is hot for the majority of the year, juice shops are like life-savers to people. Unlike the two business ideas mentioned above, this one will definitely need you to rent or buy a place for the shop.

You will require a good juicer, raw material such as fruits, a refrigerator box, glasses (that can be either use & through or for permanent use), and a counter to display the fruits for your juice shop. These will cost you around INR 65,000.

You can also get good quality fruits directly from the wholesale sellers at a reasonable price. The price of the shop space is another major cost and it will vary depending on the kind of space you get.

Running a juice shop all by yourself is a very difficult task, hence it is a good idea to get help. You can either get your family involved or hire one or two employees. With this business, you also have multiple options for locations – near schools, colleges, offices, or a crowded marketplace; basically, any place that attracts a lot of people.

4. Baked Goods Business

Who doesn’t love delicious cookies, brownies, and cakes? These items can brighten up anybody’s day.

This is another business you can run from your home. You can also supply to other shops/outlets or sell online. Quirky and fun baked items are  in trend and anything Instagrammable will get you loads of customers. So, pay close attention to the looks of the product /items as well as the taste of your baked goodies.

A good oven and a mixer will be the backbone of your business and these can cost you around INR 40,000. You also need various baking trays, cake tins, cupcake moulds, etc. depending on what you want to bake. Then there is the cost of raw materials like flour, sugar, butter, cream, flavouring agents, colouring agents, chocolate chips, dry fruits and nuts, etc. Considering all these costs, approximately the total cost goes to INR50,000 to start a baked goods business.

  1. Tea and Coffee Shop

A hot cup of coffee or tea is the perfect pick-me-up to start a day and also to re-energise after a long day. Set-up a tea shop anywhere and it is likely to become a success. It is also a good idea to have some snacks to go along with it like samosas, bajjhis,pakodas, puffs, and even some biscuits.

This business will also require a proper store. Depending on the capital you have, you can either open a small stall or a tea centre for people to sit. Since the cost of the store space is a major expense, you will need to choose a location that will attract the maximum number of customers. For example, nearby any college, or office is ideal.

The main initial cost involved will be the cost of the gas cylinders, the utensils, raw materials like milk, tea leaves, coffee powder, etc., a stove, and a display case for the snacks. The cost of all these should come to around INR 15,000 (excluding the deposit required for the shop which depends upon the area) for a small stall.

6. Jams and Preserves

Jams are the perfect way to preserve fruits. Bread and jam are many a times preferred for breakfast. Most people realise that a good homemade jam is far better than the commercial ones, nutritionally and taste-wise. It is also not very difficult to prepare jams at home.

The initial investment for Jams & Preserves business includes cost of Sterilised Jars, Preserving Pans, Specific Utensils etc. approximately INR 15000

The cost of fruits, other raw materials, etc.  are the recurring expenses and would depend upon the level of turnover.

You can easily sell these online or from your home. Pop-up markets such as exhibitions/melas, which are small markets that only exist for a few days and keep rotating from place to place.

7. Chocolate Making

Chocolates are always in demand and they are also easy to prepare. However, the quality of the end product depends on the quality of the raw materials used. Hence it is important that you use fine quality of cocoa nibs followed by other ingredients such as cocoa butter, sugar, etc. to get the desired output. You can also u nuts, dry fruits, crispies, etc. to make different types of chocolates. You can also use different   moulds to make different shapes.

To make chocolate from scratch, there are two pieces of equipment that you can’t do without – a heavy-duty juicer and a melanger. The juicer will help you get cocoa liquor from the cocoa nibs. The melanger will blend the liquor with the cocoa butter, sugar, and other items to give you the smooth chocolate that will become your final product.

You can also offer special gift wrapping and packaging suited for various occasions such as birthdays, anniversaries, etc. Chocolate making is another business that doesn’t necessarily require a separate store. You can sell from home, or supply to different bakeries around the town, set-up stalls in pop-up markets or even sell online. read more

Start Your Food Business Today!

Starting a business, even a small one, is by no means a small task. You need to do market research, find funding, get licenses, and analyse the performance of your business from time to time. This is where deAsra will guide & help you. There is no excuse for not following your dreams and starting your own food business when someone is there to help you at every step.

Author Bio:

Guest post by – Ekta Shah is a part of the content & marketing team at the deAsra Foundation. She records the experiences of emerging entrepreneurs at deAsra.

small capital food business ideas contributed by deAsra foundation

deAsra has published an all inclusive guide for starting a food business. Find it here.

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