19 Best Small Business Ideas in Mumbai

Mumbai, being one of the richest cities in India, holds great scope for small businesses to thrive. Not to mention, it is also the most developing city in the country so every day a new technology pops up, thus creating demand in the market.

If you are an entrepreneur looking for an opportunity to start your business, Mumbai might be the best bet for you, as the city of dreams never goes to sleep. Here is a list of small business ideas in Mumbai that comes with a promise of prosperity.

The following list will provide brief descriptions of crucial elements distinctive to the diverse small-scale business ideas in Mumbai.

1. Vlog Channel

Mumbai is a place that people across the globe take great interest in. So, making vlogs to help them know this city better can be one of the best small business ideas in Mumbai. If you can master the art of captivating viewers while meeting their informational needs, your business will only get more rewarding by the day.

• Investment – An initial investment of ₹15000 to ₹20000 is enough.
• Resources – A well-thought-out niche, a confident grasp of the target audience, tools to maintain great audio-visual quality, individuality, accounts across various platforms, software for video, audio, and thumbnail editing, software for keyword research, etc. 
• Market Demand – According to research, from 2016 to 2022, YouTube has seen an average (50%) growth rate of account holders who are earning 5 figures by vlogging. 
• Profit Margin –  The vlogging industry is expected to expand at a (CAGR) of 18.4% from 2021 to 2028.

2. Franchise Business

Getting a franchise of a popular brand or a company is one of the best small business ideas in Mumbai. However, you have to invest comparatively higher to get a franchise that will bring customers automatically. Although you can get franchises with low investment too, in that case, you have to persevere some more to grow.

• Investment – Around ₹50000 to ₹2 lakh 
• Resources – In-depth knowledge about franchising, a firm grasp of the dynamics of the industry, funds, a franchise agreement, a suitable location, etc. 
• Market Demand – According to market experts’ estimate, the franchising sector of India will observe a CAGR of 30% by 2025.   
• Profit Margin – Around 20% 

3. Alternative Therapy Centre

With growing concern about the side effects of conventional medicines on the body, many people are on the lookout for alternative methods of treatment and relief. Alternative therapy consists of several types: acupuncture, homoeopathy, massage, herbal medicine, naturopathy, aromatherapy, etc. Your centre in Mumbai can focus on any one or two of the above. 

• Investment – $2000 or ₹164458 approx. 
• Resources – Advanced training from an accredited school, a business model that fits the needs of the owner, funds, equipment, employees, business registration, permits, licences, etc. 
• Market Demand – In 2022, the complementary and alternative medicine market size was ₹962939 crore (approx.). Experts estimate that it will grow with a CAGR of 25.1% within 2030. 
• Profit Margin – Market analysts expect the total market revenue of this industry to reach ₹2974014 crores (approx.) within 2029.

4. Ola/Uber Partner

Public transport plays a huge role in a city as busy as Mumbai. So, becoming an Uber or Ola partner or a Fleet Operator (with multiple cars of your own) can be one of the most lucrative small business ideas in Mumbai. After attaching with the company, you will receive your daily bookings through the app and start earning. 

• Investment – Initial fee for getting a franchise is ₹23000
• Resources – Basic driving skills and documents like driving licence, car or cars (if applicable), etc. 
• Market Demand – In 2021, the global ride-sharing market size was ₹697680 crore (approx.). With a CAGR of 16.6% market experts expect it to reach ₹1518480 crore (approx.) within 2026. 
• Profit Margin – The profit margin for these services is quite high. For example, UBER's gross profit margin was 30.9% for the year 2022.

5. Room Rental Business

Countless people are always moving into Mumbai with the hope of making something big. While some of these people may have a place to stay, most of them need small accommodations to continue their individual pursuits. So, starting a room rental business can prove to be one of the best small business ideas in Mumbai.

• Investment - ₹50000 to ₹20 lakh
• Resources – Funds, electricity, basic amenities, grocery and other utilities, furniture, management staff (if required), etc.
• Market Demand - In 2021, ₹1038212 crore (approx.) was the size of the global small accommodation market. Within 2030, market researchers expect it to grow at a spectacular CAGR of 16.5%.
• Profit Margin - ₹18000 to ₹20000 per month

6. Digital Marketing Agency

Digital marketing is essential for brands to reach their niche audience. It serves the general and broad purpose of promoting services and products and reaching the target market. However, capturing a wider audience and building a loyal customer base is digital marketing's speciality. As every small business is looking out to build its market base online in the media city, opening a digital marketing agency in Mumbai can be very remunerative.

• Investment – Minimum ₹10 lakh
• Resources – Years of experience in digital marketing, proper niche, an attractive portfolio, a vision and a mission statement, employees, a lucrative pricing model, a list of services, a well-built website, etc.
• Market Demand – In 2021, the global digital marketing agency market size was ₹34776 crore (approx.). Experts estimate it to grow at a CAGR of 14.32% and reach ₹77628 crore (approx.) by 2027.
• Profit Margin – Around 50% to 60%

7. Security and Bouncer Service Business

With the increasing crime rate, more and more institutions are hiring security service providers in Mumbai. Apart from that, many are using these services only to maintain the status quo. Whatever the reason, the demand is real and only on the rise. So, starting a security and bouncer service business is one of the most profitable small business ideas in Mumbai.

• Investment – Around ₹2 lakh to ₹5 lakh
• Resources – Business registration, contracts with MNCs, schools, hotel chains, banks, government contracts, space for the office, employees, certificates and licences, equipment, etc.
• Market Demand – In 2021, the global security service market was ₹985.86 crore (approx.). Market analysts estimate that it will reach ₹188956 crore (approx.) by 2026, with a CAGR of 13.8%.
• Profit Margin – Around 5%

8. Yoga Studio

The city of Mumbai was always fascinated with fitness. The main reason behind it is its proximity to the film industry. It is now even more so with the growing awareness of healthy living. So, opening a Yoga studio can be one of the most lucrative small business ideas in Mumbai.

• Investment – A good initial investment can start from ₹5 lakh
• Resources – A neat and clean space, equipment, instructors, business registration, permits and licences, proper knowledge about the target market, grasp of the current competitors' services and niches, etc.
• Market Demand – Currently, ₹572600 crore (approx.) is the market value of the health and fitness studio industry. Market experts estimate that it will grow with a CAGR of 11.86% by 2028.
• Profit Margin – Generally, one should at least aim to have a profit margin of 15% to 25%, as that is the average.

9. Zumba Studio

Zumba is an excellent way to stay fit while also getting a chance to participate in a safe and fun group activity. This combo of hip-hop, salsa and mambo has a strong market demand, especially in Mumbai. One can host a session or a class at a studio dedicated to Zumba or any Gym space. So, if you are passionate about Zumba, it is one of the best small business ideas in Mumbai that you can start.

• Investment - ₹12 lakh to ₹14 lakh
• Resources – A proper location, effective business idea, licence and permits, business registration, business insurance, effective marketing strategy, an optimised website, instructors, etc.
• Market Demand - Currently, the health and fitness studio industry holds a market size of ₹572600 crores (approx.). According to market researchers, this market will grow with a CAGR of 11.86% till 2028.
• Profit Margin – Around 20%

10. Travel Agency

There is no denying that Mumbai is an excellent tourist destination. Although people use automated booking systems for every kind of travel need, there is still a strong demand for travel agency services. Mumbai, having a lot to offer to a tourist, demands professionally crafted tour packages be explored properly. So, opening a travel agency is one of the best business ideas in Mumbai with low investment and better prospects.

• Investment – Minimum ₹3 lakh
• Resources – An aesthetically pleasing office, a business structure that suits the owner's needs, a well-thought-out business plan, registration, licences and permits, host agency (if any), employees, etc.
• Market Demand – According to market analysts, the 2022 travel agency market size of ₹3329056 crore (approx.) is going to grow in the upcoming years with a CAGR of 11.5%.
• Profit Margin - Generally, travel agencies have around 10% to 15% profit margin.

11. Event Management

In big and happening cities like Mumbai where there is ample money in a considerable number of people's hands, there is significant scope for growth in the event management sector. It is so due to the increasing tendency of celebrating life's special moments with easy access to grandeur. So, starting an event management agency is a solid small business option in Mumbai.

• Investment - ₹1 lakh to ₹3 lakh per month
• Resources – An effectively designed business plan, comprehensive knowledge about the competition, understanding of customer's needs, office space, office equipment, connections with providers of raw material, a team of managers, pitches for prospective clients, marketing and PR plan, etc.
• Market Demand – Market experts predict that by 2028, the event management market size will reach ₹12686824 crores (approx.) with a CAGR of 11.2%.
• Profit Margin – One can expect a 10% to 30% profit margin from this venture.

12. Printed T-Shirt Business

With the ongoing trend of printing, one's thoughts, famous quotes, or faces, on a T-Shirt and wearing it, this low-investment business in Mumbai definitely holds a lot of promise. You can also turn this business into an online venture and sell your products through popular social media channels and conventional e-commerce platforms.

• Investment - ₹50000 to ₹1 lakh
• Resources – A well-thought-out niche, a grounded understanding of the target market, customer feedback, raw material, equipment, employees, business licences and permits, online presence, etc.
• Market Demand – In 2022, the global custom T-shirt printing market size was ₹354.09 crore (approx.). Market researchers expect it to grow at a CAGR of 11.1% till 2030.
• Profit Margin – Around 30% to 50%

13. Tuition Classes

source: edutopia

At this point, it is pretty evident that the idea of a tuition class can never fail in such a bustling city. However, you can expect to face high competition in the market. Although there is always some demand in the market that stays unsatisfied. So, you have to find that gap and provide your expertise to be of service and generate respectable remuneration from that.

• Investment – ₹60000 to ₹70000 for opening coaching centre
• Resources – Credibility and reputation, space for students to assemble, basic amenities, equipment (for example, projectors, lab equipment, etc.), access to the internet, etc.
• Market Demand – Market researchers expect that the private tutoring market size will grow at a CAGR of 9.4% and reach ₹1015266 crores (approx.) within 2030.
• Profit Margin – The profit margin of private tuition is very high, i.e., as high as 90% mainly because there is a very low operating cost involved.

14. House Cleaning Service Centre

There are various circumstances that keep a large section of Mumbaikar from cleaning their households. This makes them hire professional house cleaning services periodically to do the necessary cleaning. So, if you consider the situation, it can be one of the most lucrative small business ideas in Mumbai to open a house cleaning service centre.

• Investment – $8000 to $12000 (₹657797 to ₹986641)
• Resources – Selection of proper niches according to skill sets and availability of funds, a well-thought-out business plan, insurance, licences and permits, business registration, effective marketing strategy, employees, equipment, raw materials, etc.
• Market Demand – Market analysts expect the size of the home cleaning service market to be ₹57508 crores (approx.) in 2023. They also estimate it to grow with a CAGR of 6.5% and reach ₹106801 crore (approx.) by 2033.
• Profit Margin – Around 10% to 28% for beginners and can be more than 50% for more successful businesses

15. Street Food Business

People of Mumbai love street food. Furthermore, many people, due to various occupational or familial circumstances survive solely on street food. However, street food shops tend to be unhygienic and the food tends to be unhealthy. With increasing health consciousness among the general populous it would be a lucrative idea to open a street food business focusing on health.

• Investment – Around ₹1 lakh
• Resources – Comprehensive knowledge of target market and their demographic, proper location, proper planning to ensure hygiene, an attractive menu, necessary licences and permits, cart and equipment, employees, etc.
• Market Demand – According to market analysis, the street vendor market size would reach ₹65724 crore (approx.) with a CAGR of 6%.
• Profit Margin – Around 5%

16. Acting and Dance Studio

Mumbai, being the hometown of Bollywood, makes the idea of starting acting or a dance studio automatically successful. Undoubtedly you have to face hard competition in this city with acting or dance class (or both), however, if you can provide quality, nothing can stop your venture to outshine others. If you have the expertise, do think of these as one of the best small business ideas in Mumbai.

• Investment – $10000 to $50000 (₹822901 to ₹4114505)
• Resources – Expertise in the field, space for the classes at an accessible position, business licences and permits, effective business plan, additional staff (if any), basic amenities, equipment, infrastructure, study material, props, etc. 
• Market Demand – This small business has a high market demand i.e., a CAGR of 5%. The demand in Mumbai is higher compared to most other states in India due to its synonymy with Bollywood.   
• Profit Margin – Profit margins for acting and dance coaches are quite high. For example, a dance teacher can expect to earn ₹650000 per year.

17. Beauty Parlour

The beauty industry's ceaseless growth has been riding a new tailwind with the advent of the internet and the rise of social media. Mumbai being closely related to the glamour world demands special attention to this occupation that is responsible for providing salon services. So, if you have a knack for helping people grab centre stage, in Mumbai, there is no stopping you.

• Investment - ₹50000 to ₹2 lakh
• Resources – A well-defined beauty parlour concept, business registration, well-thought-out business plan, proper location, a grasp on competitor's services, comprehension of the target audience, excellent staff, equipment, utilities, software, etc.
• Market Demand – The makeup market observed a global market size of ₹326996 crore (approx.) in 2021, while market experts predict that it will reach ₹498668 crore (approx.) with a CAGR of 4.9%. 
• Profit Margin – Around 8.2%.

18. Grocery Shop

A grocery shop is a small-scale business in Mumbai that never fails to attain profitability. This business idea is tried and tested enough that one can rely on it easily. However, you have to be careful about the position of the shop, the surrounding market area, competition, etc. Also remember one thing though, having competitors nearby is not always a bad thing.

• Investment - ₹5 lakh to ₹15 lakh
• Resources – A perfect business model crafted according to your investment, knowledge about the target customers, comprehension of the competitors, a space for the shop, staff for operational purposes, connections with product suppliers, online ordering and home delivery facility, etc.
• Market Demand – In 2021, the global market size of the food and grocery retail market was ₹92947392 crore (approx.) and experts estimate that it will continue to grow at a CAGR of 3.0% till 2030.
• Profit Margin – 5% to 20% on average

19. Tiffin Service / Homemade Food Business

Everybody knows the iconic ‘dabbawalas' of Mumbai, who carry Tiffin boxes to individuals who cannot manage to cook for themselves. Mumbai is a city that observes a large number of people who require such services for daily livelihood. So, opening a Tiffin service or homemade food business can be one of the most fruitful small business ideas in Mumbai.

• Investment – A small centre would require around ₹2 lakh to ₹5 lakh of investment.
• Resources – Extensive market and competitor analysis, selection of offerings on the basis of that data, location for the centre, connection with suppliers of ingredients, equipment, chefs, delivery staff, etc.
• Market Demand – The high demand for the Indian food service market clearly shows in its market size. According to research, experts estimate that to be worth ₹552000 crores.
• Profit Margin – Around 20% to 30%