Mumbai is India's commercial and financial capital. In this "city of dreams," aspiring business owners can unleash their full creative potential. Some of Mumbai's most notable industries include retail, healthcare, technology, media, and finance. There is an abundance of possibilities for small enterprises in this city. In this article, we'll look at some of the best small business ideas in Mumbai, with an eye on budding entrepreneurs.
Why start a small business in Mumbai?
Mumbai offers a perfect setting for would-be entrepreneurs because of its cosmopolitan, intellectual vibe, high-end lifestyle, and plenty of industrial tycoons and financial behemoths.
Imagine a big city swarming with people. Narrowing your marketing focus to a single demographic becomes much simpler. With the correct environment, even a little firm in Mumbai can grow substantially. Start ups and small businesses in Mumbai have limitless potential, regardless of their target market, provided they identify and meet the needs of the correct demographic. To reach many people, you need to find your specialty, choose a good spot, and make your presence felt.
Economic growth in Mumbai
In this exciting metropolis, there are a number of low-investment company ideas that might be big hits. The Maharashtra government has long been at the forefront of the state-level Ease of Doing Business initiative, and it continues to strive for annual improvement.
According to Niti Aayog, the GDP of Mumbai is $140 billion and is expected to reach $300 billion by 2030. Banking, insurance and financial services, coupled with consumer packaged products, port-based commerce, information technology services, and the Bollywood film industry are the main drivers of the city's economy.
Companies like Nish Hair and B You Dance Academy, which are now well-known, started off as small businesses in Mumbai.
If you're an ambitious entrepreneur, Mumbai is a great place to fuel business opportunities.
Supportive business policies
As a nation, India celebrates emerging businesses and budding entrepreneurs. Small business ideas get a helping hand from the government in the form of legislations and programs. This can inspire more individuals to put their ideas into action and contribute to economic growth. Here is a list of well-known government initiatives:
1. MUDRA
To help micro-businesses get off the ground, the Indian government has introduced the Pradhan Mantri MUDRA Yojana (PMMY) to provide access to low-interest loans. Startups in many different industries, including commerce, manufacturing, and services, are encouraged to participate and thrive via the program's easy access to capital. https://www.mudra.org.in/
2. Atal Innovation Mission (AIM)
The primary objective of the Atal Innovation Mission is to encourage innovators to pursue self-employment and talent utilization (SETU) as a means to become successful business owners. This program is open to new groups in sectors including transportation, agriculture, education, and health. https://aim.gov.in/
3. Startup India Seed Fund Scheme (SISFS)
On April 1, 2021, the Startup India Seed Fund Scheme was established to provide financial assistance to entrepreneurs. The plan's intended use is to facilitate conceptualization, prototyping, testing, market entrance, and commercialization. https://seedfund.startupindia.gov.in/
National Small Industries Corporation (NSIC): This ISO-certified government project in India is administered by the National Small Industries Corporation (NSIC) and is designed to encourage the expansion of small-scale enterprises and industries. https://www.nsic.co.in/
As a whole, these programs can help every small company in the country with things like marketing, technology, and finance.
Best small business ideas in Mumbai
As an entry point into the entrepreneurial world, starting a small business in Mumbai is highly recommended. Here is a rundown of some of the best low-investment business ideas that might give big profits, whether you're interested in online retail, event planning, or something else entirely.
1. Street food
Amidst Mumbai's lively street food scene, there is a great opportunity for people to sell well-known local delicacies such as vada pav, pav bhaji, and bhel puri. This is one of the most adaptable business opportunities, and if word gets out about your mouthwatering dishes, you can attract customers from all over the city.
2. Interior design
It can be a thrilling chance to start an interior design firm if you love to decorate and design places. Due to the city's multicultural population, these services are in high demand in Mumbai.
3. Events management
Whether it's a wedding or a business party, every event demands careful preparation and perfect execution. With its vibrant social scene and frequent hosting of high-profile parties, extravagant weddings, and corporate events, Mumbai is a great place to start a business in event planning.
4. Pet care services
The demand for pet services including walking, boarding, and grooming has been on the rise in urban cities like Delhi and Mumbai. The city's pet owner population is on the rise, which is great news for those who are concentrating on this industry. Building a loyal client base is possible by consistently providing top-notch pet care.
Image Source: pawpurrfect.co
5. E-Commerce
The e-commerce industry in India hit a staggering 123 billion USD in 2024, and it's just going to keep growing from here. Starting an online shop is a realistic business concept, especially with the advent of e-commerce platforms like Amazon, Flipkart and more. Many low-investment opportunities exist in the e-commerce arena, such as selling high-quality items, providing dropshipping services, or exploring affiliate marketing, which is promoting the products of other companies in exchange for commission.
Related: Where to source products for your business in India?
6. Organic grocery store
A rising number of health-conscious consumers in Mumbai's metropolitan core are willing to spend money on organic food items. To satisfy the demands of health-conscious shoppers while also promoting sustainability and high-quality products, an organic grocery store might be a good fit for this market segment.
7. Freelance services
One way to get into Mumbai's booming business scene is to provide freelancing services like writing, graphic design, and web development. If you're looking to build your clientele and professional network, consider using platforms like Upwork and LinkedIn.
8. Home-based catering or tiffin services
Starting a home-cooked meal service or daily tiffin delivery could be a great way to meet the growing demand for healthy, homemade food among busy professionals and families in Mumbai. The fast-paced lifestyle of the city creates a constant need for quick, nutritious meal options. This business offers excellent growth potential with minimal initial investment. If you're passionate about cooking and can provide delicious meals, launching a small-scale tiffin service could be a profitable way to make big money.
9. Fitness studio
Launching a fitness studio in Mumbai that provides yoga, pilates, or dance classes can appeal to people seeking accessible exercise choices. By picking a prominent location near residential areas or business places, you could potentially grow and draw a regular flow of new clients.
10. Real estate consultancy
Starting a real estate consultancy in Mumbai is a smart move since the industry is expanding at a fast pace. If you have great sales skills and market expertise, this business idea can be a great fit for you. Tenants and buyers are always on the lookout for real estate advice and investment opportunities.
11. Social media consultancy
Many organizations and big companies are increasingly turning to experts for guidance on how to best manage their online presence. Businesses are feeling the heat to include social media marketing strategies due to the revolutionary impact of social media. Consequently, there is a significant need for social media consulting services. This home-based business requires almost minimal initial investment in terms of both training and materials.
12. T-Shirt business
There is a lot of room for innovation in the apparel industry, especially in the t-shirt market, which appeals to timeless fashion. Anyone can start their own home-based graphic design business with an eye for aesthetics and some affordable pieces of equipment. Launching an online store gives you the chance to expand your consumer base beyond Mumbai and into other markets.
Tips to succeed in your small business in Mumbai
You can start building your small company in Mumbai with the help of these practical tips:
1. Understanding the Market
You must have an in-depth understanding of your target demographic in order to develop a successful business in India. Learn everything you can about their likes, dislikes, requirements, and pain spots.
For instance, If you intend to build a boutique in a neighborhood with few women or where most of the women work as professionals and don't typically dress ethnically, you run the risk of having low sales and losing money. Before making a business choice like this, it's important to think about the local demography and how they purchase things.
Get to know the rules and laws in your area before you start a business in India. Depending on the nature of the small business, certain licenses, permits, or zoning permissions may be necessary. As your company expands, it is crucial that you familiarize yourself with the necessary steps to guarantee complete compliance with all applicable laws.
2. Networking and building connections
Maybe your small company has all it needs to succeed: an outstanding product or service, an original approach to advertising, and an efficient management system. But these components might not get you to success if you're not good at making connections.
Building and maintaining connections is essential for every entrepreneur. Building relationships with potential business associates and customers may lead to exciting new opportunities and help your company soar to new heights.
In this day and age, promoting your business and its products on social media is a smart move. Create captivating content and leverage the power of several channels to reach a wider audience and establish deeper connections with them. Doing so will increase the number of customers and business associates you may work with.
3. Leveraging government schemes for small businesses
With many programs aimed at improving the business climate, providing financial assistance, and training employees, the Indian government has gone a long way in helping small and medium-sized enterprises (SMEs). In addition to boosting the economy, these initiatives have fostered an environment that is rich in innovation and entrepreneurship.
You should seek out such government schemes and incentives to help fund your small company ventures and start ups.
Steps to start your small business in Mumbai
If you want to start a small business in Mumbai, you'll need a good strategy, some early funding and a thorough business plan. Mumbai is a great place to start a small business, but before you do, make sure the venture is a good fit for your interests and skills.
Here are some basic steps to start a small business in Mumbai:
1. Build a business plan
It's possible that your small business idea has tremendous potential. However, you must begin with a strong business plan if you want it to be successful.
A comprehensive business plan will serve as both a guide and a yardstick for your success. Even more importantly, an investor will likely want to see your business plan before they even consider giving you a loan for your small business.
In most cases, a business plan will contain:
- Principal points of the plan.
- Overview of your company's operations and activities
- Analysis of the market and its approach
- Leadership, employees and other team information
- Various financial records
- Other business information
2. Get a domain
After you have a solid business plan and a clear notion of how to proceed with your idea, it's time to move on to the next phase, which is to get a domain name for your company and make your idea a reality online.
A domain is something that visitors enter to access your website.
You typically have two options when it comes to getting a domain name: either via your website builder or web hosting partner or through a domain registrar.
Take GoDaddy, for example, you can get a personalized domain name at an affordable price.
In most cases, a .com extension is the common option. However, if you are planning for your business to serve primarily customers in India, you might want to consider the .in domain extension. There are a lot of thriving companies that go with more modern domain extensions, such as .me or .info. So, you can choose from various domain extensions that are suitable for your business.
3. Build a website
After getting your domain, the next crucial step is building a website. To be visible in the digital world, every company needs a website.
From providing services or selling items to sharing information, websites can serve many purposes. Some common types of websites are Blogs, Personal websites, and Business websites.
While every company's website has its own distinct voice and style, here are a few essentials to get you started:
Homepage: This is an introductory page that describes your company, its services, and what makes it unique.
Menu/Services: Make it simple for clients to do business with your company by providing an online shop, a menu, and a list of services in one place.
About Page: To engage your audience, share the background and purpose of your company.
Contact Page: Make sure to include all necessary contact information, such as physical address, business hours, email, phone number, social media connections, and more on this page.
Image Source: nishhair.com
Blog: Update your website with new information that is relevant to your company, industry, or community. Additionally, a blog contributes to increasing your search engine rating.
To learn more about building your own website, here are some starter guides:
If you are new to website building, fret not! With GoDaddy Airo, you will be able to get your website up and running simply by answering a few questions.
Reach out to potential customers as soon as your company's website is up. Let your social media followers know about your online store, and maybe even provide a special deal to the first few people who buy from you. Another option is to compile your client list and use it to create an email newsletter. The options for promoting your website are unlimited once it is up.
4. Register your business
It is mandatory to register your company before starting your business in Mumbai. How you go about registering your business will differ depending on whether you want to run it as a partnership, limited liability corporation, or sole proprietorship. Here are the main procedures:
- One must first get a DSC or digital signature certificate.
- Get DIN (Director Identification Number).
- Create an account by going to mca.gov.in and clicking on "New User Registration."
- Fill out the application for company registration.
Your company will be officially recognized and set up to run after you finish these processes.
Note: The Central Registration Centre (CRC) processes all paperless filings, including business registration in Mumbai, so the entire process can be done online through the MCA website.
Frequently Asked Questions (FAQs) about starting a small business in Mumbai
1. How much does it cost to start a small business in Mumbai?
Starting a small company in India typically costs between 50,000 and 2 lakh Indian rupees (INR), however, this may vary greatly by what sector you choose and its level of operation.
2. How to secure a business loan in Mumbai?
You need to be between the ages of 21 and 65 to qualify for a loan. If your business is already up and running, it has to be at least a year old. On top of that, you need to have a good turnover and three years of continuous profitable operation. Last but not least, you can't be considered without a CIBIL score of 650.
Note: There is no universal set of requirements that all banks use before approving a loan to a company.
3. What are the legal requirements for starting a business in Mumbai?
When you want to start a small company in Mumbai, there are some specified legal requirements that you must comply with:
Name Approval: Submit your proposed business name to the Registrar of Companies for approval.
Digital Signatures: File the necessary paperwork for digital signatures for shareholders and directors.
Submission of Documents: To set up a private limited company, you must submit an application and the appropriate paperwork to the Registrar of Companies (RoC), together with the applicable costs.
Open Bank Account: The last step is to set up a business account with an initial capital.
4. How to promote your business in Mumbai through social media and online platforms?
Social media and online advertising are vast fields, but once you crack them, there’s no looking back. Here are some of the best ways to promote your business in Mumbai using social media and other online channels:
- Using the data analytics provided by social media platforms can really help small business owners in fine-tuning their marketing strategies by understanding patterns in consumer behavior. It allows for a cost-effective outreach via more focused ads and more engaging content than traditional marketing tactics.
- If budget allows, you can hire a social media advertising agency to help you reach more people and clients as they use location-based targeting.
- Share something that's pertinent to Mumbai, such as upcoming music festivals or community events. This makes it easier to show how your brand is involved with well-known events.
- Sign up for your area's business organization on social media or professional networking sites. Build connections and get your name out there by interacting with other companies on LinkedIn and Facebook.
- Start researching several social media platforms to see which one would provide the most return on investment (ROI) for your company.
