List of Franchise Under 1 Lakh: Unlock Your Entrepreneurial Dreams
Nowhere can be seen anything like spending a fortune to start a business; franchising has always been a cost-effective way to open doors to the entrepreneurial world with minimal risk.
If you are looking for opportunities franchise under 1 lakh, you have come to the right place as this article has an exhaustive guide on affordable franchises as well as tips for choosing the best and why this is the right amount range for aspiring business owners.
To run any franchise, one has to partner with a brand already in the market and plan a business model with the training and support provided.
There are good franchises below 1 lakh for those who cannot afford it but are still interested in setting up their business and developing their entrepreneurial skills. Most of these franchises are categorized under education, kiosks, small retail chains, health and wellness, or digital services.
Advantages of Low-Investment Franchises
Affordable Entry Point
Franchises under ₹1 lakh are an inexpensive entry-level option to establish a business. It opens the gateway to entrepreneurship for more people.
The more modest upfront costs, in addition, enable individuals with few finances to enter the market without much capital commitment.
Don’t spend on huge infrastructure or equipment, making it ideal for someone starting for the first time, students, or even retirees who want to earn money on the side.
Quickest ROI
Low-investment franchises mostly have smaller operations, thus return on investment would be quicker. Though these brands also boast brand awareness, hence there is not much marketing to attract customers.
Reduced operational costs along with fixed demand also mean that one can expect break-even to come sooner, and hence profits also arrive faster compared to conventional businesses.
Established Brand Recognition
By choosing a franchise comprising less than ₹1 lakh, you avail yourself of an existing brand, which already has a customer base, thereby minimizing the effort of creating brand awareness from scratch, with all that it entails about attracting customers and subsequent revenue generation.
Low Risk of Failure
Become a low-investment franchisee and you will have less risk of failure as it has an established business model to assure you continued assistance coming from the franchisor.
Franchise holders are given display and guidance on marketing plans along with a clear roadmap to success, giving proper scope for avoiding costly errors while crossing over barriers encountered in business.
Easier Financing
Traditional franchisees generally find it easy to come by sources of finance, considering the established nature of the franchise, though it may also be noted that lenders are more willing to extend loans to low-investment franchises as well as financing options being offered by some franchisors toward the start-up of the business.
Things to Consider Before Investing
Market Demand: Investigate whether the product or service is in constant demand locally.
Reputation of the Franchisor: Find out the history, reviews, and current franchisee testimonies for the franchisor.
Profit Margins: Find out the anticipated profit margins and how long it takes to break even.
Hidden Costs: Ensure there are no hidden expenses such as royalties or the requirement of infrastructure to be mandatory.
Support System: Evaluate the training, marketing, and operational support offered by the franchisor.
List of Opportunities Franchise Under 1 Lakh
Here’s a comprehensive list of franchises under 1 lakh spanning various industries. Each option includes details on investment, business model, and why it’s worth considering.
1. Education and Training Franchises
a. SmartSchool Education
Investment Range: ₹50,000 to ₹1,00,000
Description: The futuristic approach to digital education, SmartSchool is offering its e-learning solutions to institutions and students.
Why choose this?: Holding a bright future as the growing demand for digital education is coming up, especially after this pandemic.
b. BrainCarve
Investment Scale: ₹75,000 to ₹1,00,000
Description: This after-school program emphasizes the cognitive skill development of kids; abacus and Vedic math training come as part of the course.
Why choose this?: Well suited to individuals who love teaching but have very little space available for classroom activities.
2. Food and Beverage Franchises
a. Chaat Adda
Investment: ₹70,000
Description: A street food franchise transforming into affordable and tasty chaats.
Reason to Choose This: Because of low operational costs with incredibly popular chaat this option is highly lucrative.
b. Tea Time
Investment: ₹1,00,000
Description: Tea Time serves a variety of tea flavours in a very small kiosk.
Reason to Choose This: This is a fairly popular beverage, and customer rush will always be there.
3. Retail Franchises
a. Khadi India
Investment: Rs. fifty thousand to Rs. one lakh.
Description: The franchise gives support towards Indian handloom and cottage industries through the authentic products of Khadi.
Why Go For This?: Demand for eco-friendly and sustainable products is high.
b. Giani’s Ice Cream (Micro Franchise)
Investment: Rs. Eighty-five thousand
Description: Well-known ice cream brand that provides a micro franchise model with limited products.
Why Go For This?: Trusted brand and a high profit margin in the dessert segment.
4. Digital and Tech Services Franchises
a. InstaZen
Investment: ₹80,000
Description: InstaZen caters for small business owners with their digital marketing services.
Why Choose This?: The increasing need for digital services provides a steady clientele.
b. UrbanClap Partner Franchise
Investment: ₹50,000-75,000
Description: By becoming a franchisee, you become part of a bigger picture, where you provide home services through UrbanClap, such as cleaning, repair, and beauty.
Why Choose This?: The gig economy is rising, and UrbanClap is a name,with much goodwill in the market.
5. Health and Wellness Franchises
a. Patanjali Store (Mini Kiosk Format)
Capital: Rs. 1,00,000
Concept Summary: A small franchise format that sells Ayurvedic products as well as fast-moving consumer goods.
Why Choose This? Owing to the massive visibility of the brand and the increasing use of Ayurvedic medicines.
b. The 98Fit
Capital: 80,000 rupees
Summary of Concept: A franchise that rents out fitness equipment and gives personalized workout plans.
Reasons to Choose This: There has truly been an increase in awareness of health and fitness among the city’s residents.
6. Home-Based Franchises
a. Tupperware
Investment: ₹50,000\
Description: Sell direct-from-home, high-quality kitchen and storage products.
Why Choose This?: Low overhead and a very well-known brand.
b. Amul Preferred Outlet (APO)
Investment: ₹25,000-50,000
Description: Set up a small outlet that could offer dairy and frozen products by Amul.
Why Choose This?: The brand is trusted highly, and the commodity is fast-moving.
7. Specialty and Niche Franchises
a. Services for Courier and Logistics
Brand: Delhivery Partner Model
Investment: ₹50,000
Why Choose This? : From the growing e-commerce demands logistics franchises become even more profitable.
b. Print Venue
Investment: 60,000
Description: A franchise dedicated to custom printing services such as business cards, mugs, T-shirts, etc.
Why This: Personalized gifting is an emerging market booming above fthe orties.
Tips for Success in Low-Investment Franchises
Before everything else, plan, execute, and manage a good franchise along with the other tips below:
Embrace Technology
Make use of social media sites such as Facebook, Instagram, and LinkedIn to advertise your franchise. Create eye-catching posts, use attractive ads, and connect with your audience to develop a loyal customer base toward your franchise. What is more, WhatsApp Business can offer features to help manage customer inquiries.
Customer Experience
Excellent service is a great game changer with even small franchises. Train your staff (if any) to be polite as well as efficient. Listen to customers and make changes based on their input to help develop trust and loyalty.
Location, Location, Location!
A physical presence is required for some franchises, and location must be chosen wisely. One of the best high-traffic placements can be adjacent to a school, office, or residential building.
Adaptability
Adapt according to market trends, customer needs, and franchisor suggestions. For instance, one may focus significantly on digital offerings when a demand for online services arises in the area.
Effective Financial Management
Tough monitoring of all genuinely becomes necessary in the manner of expense to ensure that there is no overstepping of the money. Basic accounting or apps to track profits and manage cash flow will do the trick. Even small expenses can add up and affect your profit.
Branding Orientation
Even if one is a franchisee, much of the outlet’s success relies on how well the brand is promoted. Keep your outlet clean and organized, aligned with the brand guidelines of your franchisor.
Expand Gradually
If the first franchise proves successful, earnings from the same franchise can be used for the opening of further franchises or upgrading existing setups to scale businesses without much overstretching of resources.
Challenges of Franchise Under 1 Lakh
Despite the nature of low-investment franchises being appealing, they still come with several disadvantages:
Restricted Scope
Most low-cost franchises have small niches and territories, limiting the possibility of expansion.
Intense Competition
Most low-cost franchises operate in extremely competitive industries. One has to work extraordinarily well to prove his/her uniqueness in the industry.
Franchisor dependency
Most of the time, a franchisor offers very little support, especially in the case of micro-franchising. So here you will be left alone to solve all your challenges since no one helps you.
Seasonal Demand
Some franchises may not have such an all-time diversity in their customer base throughout the year or the market’s typical tendencies. For example, sales tend to dip during winter for ice cream franchises.
Scaling Limitations
With a relatively lower initial investment in capital, it may take a long to grow your business or upgrade what you are offering.
Marketing Restrictions
There are some restrictions on advertising and promotion practices by certain franchisors.
Infrastructure Costs
The franchise fee may not be more than one lakh but renting space and furniture, as well as the installation of equipment, may add costs adding to the actual overall investment.
10 FAQs About Franchises Under 1 Lakh
What businesses can do under ₹1 lakh?
Most franchising less than Rs. 1 lakh is in the areas of Education, Food Kiosk, Retail, Digital Marketing, and Health & Wellness.
Is it possible to start a successful franchise under ₹1 lakh?
Yes, but the appropriate franchise scheme and effective management, allow one to start and grow a very successful franchise under this capital.
What additional costs do low-investment franchises conceal?
Hidden costs include initial infrastructure, local licenses, salary to staff, and often royalty charges. Before signing any agreement with the franchisor, please clarify these things.
How soon can I break even?
The break-even period depends on factors like the type of franchise, its location and operational efficiency; but generally, it varies between 3 to 12 months for low-investment franchises.
Do I need any previous experience to start a franchise?
Most of them provide training and support to their franchisees and, hence, do not require previous business experience.
Are these franchises home-based or have to have physical locations?
Low-cost franchises can be home-based, while some require a very small kiosk or some little retail area.
Can I manage a very low-cost franchise on a part-time basis?
Most of them can manage for not more than 1 lakh under part-time mode as it depends on the business model.
What kind of assistance should I expect from my franchisors?
Mostly, training, some marketing materials, operating guidance, and in some cases, leads or referrals to customers.
How can I find out which is the best franchise for me under Rs 1 lakh?
You should look into the brand’s reputation and market demand, profit margins, and terms of the franchise agreement before making a decision.
Common types of industries where low-cost franchises are found?
Low-cost franchise types include Food and Beverages, Education and Training, Digital Services, Health and Wellness, and Retail from Home.
Conclusion
Aspiring entrepreneurs with little money can find some real opportunities in starting a franchise for under one lakh. Be it a franchise in elocution training, franchises in food, or even tech services, there is something for everyone. Follow the guidelines and tackle your possible hindrances to maximize your investment chances.
It is rapidly emerging in the world of low-cost franchising, presenting an endless array of options for an ambitious individual willing to put in the effort to establish a flourishing business. Research, analyze, and go for the best options that suit your personal goals and abilities, then start your entrepreneurial journey today!
