What Are the Best Businesses to Start in Tier 3 Cities?

Tier 3 cities are the small towns where the population is less than one million. To start a business in these cities, you must have good knowledge of the lifestyle. It will help if you focus on business areas that are in demand in these cities. That way, you will earn a profit while serving a need. With determination and hard work, you can earn an easy buck with these small-town business ideas. Let’s discuss these business ideas:

1. Opening an Ice Cream Shop

You can start an ice cream shop and sell quality ice creams. But before you start this business, take a look at the existing ice cream parlours in your neighbourhood. Choose a place where there are no good quality ice cream parlours. You need to make sure that you will serve quality ice cream, which is essential to boost customer satisfaction. Quality matters a lot. If it is not up to the mark, you are out of business. Find out what ice cream flavours are successful, and also try to add unique flavours to your menu.

2. Grocery shop / Kirana Store with Doorstep Delivery

One of the best businesses in a small town is a grocery business. As an entrepreneur, you can start your digital business by developing your website and an application where people can easily buy groceries from your shop online. And you would need to deliver those groceries to their doorsteps. This is a small business idea that will take off in small towns easily. With the COVID-19 pandemic, there is a huge demand for groceries that can be delivered at home. You can start immediately. You may need 2 or 3 helpers to deliver the groceries.

3. Coaching Centre

Whether it is small towns or metropolitan cities, education is paramount in every student’s life. Many students have to migrate from small towns to bigger cities to prepare for entrance exams such as banking exams, medical and engineering exams, and management exams. If you want to inspire, guide, and motivate students, you can start your coaching center. It is a profitable business idea for those who have a keen interest in teaching. You can also appoint experienced faculties in your coaching center and start helping aspiring candidates. You only need to invest around 1 lakh Rs to start this business.

4. Beauty Parlour

The beauty parlour business is always a profitable and successful small-town business idea. Ladies visit a beauty parlour for various purposes, such as hair cut, manicure, pedicure, hair spa, threading, etc. It is a very successful business idea if there is no competitive beauty parlour in your locality. To start this business, you only need to invest 2 lakhs to 3 lakhs for rent, to buy beauty equipment, furniture, various products, and training staff, etc.

5. Poultry Farming

Poultry Farming or raising livestock is a profitable business idea as you will get high returns in a short period. A commercial hen starts laying eggs in around 12 weeks. To understand the associated risks and benefits, at first, you can start this business with a few animals and birds without any license or registration in India. When you start making profits, you may convert it into a commercial venture and start selling products like meat, egg, whole bird/animal and milk, etc.

6. Bike/Car Servicing Centre

Small towns are generally not well connected with public transports. Hence, bikes and cars are essential means for transportation for them. And all these vehicles need servicing at one point in time. You can start a franchise of an existing brand and start servicing the vehicles of that particular brand. This is a very unique and profitable business idea, but before you start this business, you should gain some knowledge and seek advice from people who have expertise in this business area.

7. Clothing Store

Many times people living in small towns need to travel long distances to buy clothes for occasions. Although online shopping is available, people love to buy them from offline stores where they can try them out before buying. If you think that you can provide the latest designs, good quality, and a lot of variety, then you can start a clothing store in the nearby market area.

8. Flower Farming

Flower farming or floriculture for commercial purposes is a flourishing new business idea. You can start a flower farming business with a little bit of hard work for export-oriented purposes. Flowers such as tuberose, rose, jasmine, marigold, and hibiscus can easily be grown in Indian farms, greenhouses, and poly houses. Fresh flowers have a huge demand within India to offer in temples and at homes. And dried flowers are generally exported to foreign countries.

Wrapping-Up

In this competitive world, it is difficult for an entrepreneur to establish a good business in a small town. They need to face many challenges before starting a business. Lack of proper business ideas may lead to business loss. With the best business in a small town listed above, you can start your entrepreneurial journey.

Also Read:

1) Is meal delivery a good business idea?
2) What are the best small business ideas in big cities?
3) Can I open a current account for a home-run business?
4) OkCredit: All you need to know about OkCredit & how it works.

FAQs

Q. What business can I start in a tier 3 city by investing around 2 lakhs?

Ans. You can start a beauty parlour business, clothing store business, or customised gifts business in a tier 3 city by investing around 2 lakhs.

Q. What business can I start from my home in a tier 3 city?

Ans. You can start a coaching center business from your home in a tier 3 city.

Q. What type of shop is most profitable in a tier 3 city?

Ans. A grocery shop and clothing store business are the most profitable businesses in a tier 3 city.

Q. In starting what type of business, the entrepreneur needs to have prior experience?

Ans. To start a microfinance business, car or bike servicing business, and flower farming business, the entrepreneur needs to have prior experience.

Q. Which business idea can give an entrepreneur instant profit?

Ans. Poultry farming is a type of business idea where an entrepreneur can earn an instant profit.