Best Small Business Ideas in Bihar: Investment Required, Market Potential & Benefits

source: lawcirca

Bihar holds one of the most rapidly growing economies in India and has witnessed immense growth in various business sectors. The small-scale business sector in Bihar looks very promising and has the potential to grow exponentially in the coming years.

Here is a list of 14 highly profitable small business ideas in Bihar that will guide an aspiring entrepreneur in choosing the most suitable and feasible option.

The following is a list of one of the most feasible and profitable small business ideas in Bihar.

1. Silk Cloth Store

The Bhagalpur district of Bihar is the leading producer of premium quality silk. This provides a golden opportunity for residents of Bihar who can operate a silk cloth store and earn huge figures.

Investment: ₹3 lakhs to ₹5 lakhs

Set-Up Requirements

To set up this business, one must fulfil the following requirements:

• Complete the store registration process.
• Obtain a trading licence.
• Rent a suitable location.
• Buy authentic silk material.
• Hire reliable staff.

Benefits

Below discussed are the benefits of a silk store business:

• Silk is readily available in Bihar, therefore, is comparatively cheaper.
• The demand for silk is ever-increasing.   

Market Potential 

The saree, petticoat and blouse market in India will acquire a market value worth ₹ 228 billion in 2025.Besides, silk sarees have always been in high demand for their smooth texture and vibrant hues. The Indian sericulture market size is expected to reach INR 1,194.5 Billion by 2028, exhibiting a CAGR of 17.7% during 2023-2028.

Profit Margin: 50% - 80%

2. Coaching Centre

source: livemint

The success rate of residents of Bihar scoring the highest in competitive examinations is increasing day by day and coaching centres have played a pivotal role in this. Therefore, a small yet efficient coaching centre is an ideal option for those meritorious individuals who are willing to earn money by delivering knowledge to young minds.

Investment: ₹70000 to ₹1 lakh

Set-Up Requirements 

To start this business, one must fulfil the below-mentioned requirements:

• Rent a suitable location in a convenient place.
• Hire reliable staffs.
• Buy relevant study materials.
• Buy the necessary teaching equipment like a board.

Benefits

Below discussed are the benefits of a coaching centre business:

• It can be operated from one’s house (online coaching).
• Educational equipment and study materials are comparatively cheaper.
• A small group of meritorious and knowledgeable individuals with teaching skills can work together which mitigates investment costs.

Market Potential

The education sector in India has witnessed tremendous growth over the last few years. Students are gradually becoming more dependent on coaching-based teaching techniques and this industry is on its way to generating a revenue of ₹ 133995 crores by 2028. 

The global online coaching market is projected to reach around USD 4567.44 million (₹681490.26) by 2030, expanding at a CAGR of 13.4% during by 2030.

Profit Margin: 10% - 30%

3. Milk Dairy Business

Milk is one of the most important parts of a balanced diet and is consumed by the majority of the Indian population. Therefore, setting up a milk-dairy business can be highly profitable and can be started with minimum investments.

Investment: ₹10 lakhs to ₹20 lakhs

Set-up Requirements

To set up this business, one must fulfil the following requirements:

• Complete the service registration process.
• Obtain FSSAI licence.
• Select and buy suitable breeds of cows or buffaloes.
• Purchase or rent suitable land to shelter them.
• Buy good quality fodder.

Benefits

Below discussed are the benefits of a milk dairy business:

•  Requires low investment. 
• Ghee and other dairy products can be sold. 
• The Cow dung can be sold at decent prices for biogas production. 

Market Potential

The Indian dairy industry acquired a value worth ₹14899 billion in the previous  year. Moreover, it is expected to project a CAGR of 13.2% from 2023-2028.

Profit Margin: 15% - 20%

4. Tailoring

source: wired

This is one of the top low-investment business ideas in Bihar for skilled people who know the intricacies of stitching and embroidery. Even though the ready-made garments industry is gradually progressing, the demand for hand-stitched garments will always be pertinent. 

Investment: ₹12000 to ₹1.5 lakhs

Set-Up Requirements

To start this business, one must fulfil the below-mentioned requirements:

• Complete the necessary registration processes.
• Buy a sewing machine and tools.
• Get necessary training.
• Hire trained staffs.
• Rent a suitable location (if required).

Benefits 

Below discussed are the benefits of a tailoring business:

• Requires minimum investments.
• It can even be done single-handedly or with a small group of staff.
• Tailors can earn money by giving classes to sewing enthusiasts.

Market Potential

The tailoring industry has budding prospects and is swiftly growing at a rate of 12% every year. Apart from this, the Indian tailoring industry is currently valued at ₹27000 crores.

Profit Margin: 10% - 20%

5. Beekeeping Business

The consumption of honey for therapeutic purposes dates back to ancient times. Honey has been an important part of most Indian diets for its health benefits and it is also used as an alternative to sugar. Therefore, a beekeeping business can be a great option for farmers who are looking for low-investment business ideas in Bihar. 

Investment: ₹1 lakh to ₹3.50 lakhs

Set-up Requirements

To set up this business, one must fulfil the following requirements:

• Buy honey bees with a nucleus colony.
• Hire qualified staff.
• Buy the necessary beekeeping equipment.
• Buy protective clothing which includes a bee veil, bee suit, gloves, etc.

Benefits

Below discussed are the benefits of the beekeeping business:

• The bees contribute largely to pollination which in turn increases the productivity of the crops.
• The beekeeping business requires minimum investments.
• This business can flourish in a short time.

Market Potential 

The beekeeping sector in India is highly lucrative and has a market value of worth ₹ 23060.5 million. Furthermore, it is expected to grow at CAGR 11.65% from 2023-2028.One may easily earn up to ₹3 crores annually from a successful beekeeping business.

Profit Margin: 50% - 80%

6. Litti Chokha Restaurant

source: googleusercontent

Litti chokha has been a popular Bihari delicacy since ancient times. It is not only delicious but also packed with nutritional components. The popularity of Litti Chokha is ever-increasing, and it can be cited as a perfect example of a highly profitable low-budget business in Bihar.

Investment: ₹1 lakh to ₹2 lakhs

Set-Up Requirements

To start this business, one must fulfil the below-mentioned requirements:

• Obtain the FSSAI licence.
• Complete the GST registration process.
• Rent a suitable location.
• Buy manual Litti-making equipment and other necessary products.
• Hire efficient staff.

Benefits

Below discussed are the benefits of a Litti Chokha business-

• Litti-making equipment is cost-effective.
• The raw material required for litti making is low in price.
• Requires minimum staff and can be entirely done by entrepreneurs with excellent culinary skills.

Market Potential

The street food industry is at its zenith in India where vendors cumulatively earn ₹ 8000 crores everyday.The food service sector in India is currently growing at a CAGR of 11.19% and provides employment to several people across the nation.

Profit Margin: 35% - 50%

7. Bakery Shop

source: sbdcnet

Individuals who have excellent baking skills can embark upon this interesting venture. A bakery store can be highly profitable because most people love devouring freshly prepared bakery products.

Investment: ₹80000 to ₹3 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Complete the store registration process. 
• Obtain the FSSAI licence.
• Buy raw materials.
• Buy baking equipment.
• Invest in marketing. 

Benefits 

Below discussed are the benefits of a bakery store business:

• Low cost of raw materials.
• Can expand the business with creativity.
• It is a sustainable market.

Market Potential

The bakery business has immense potential primarily because freshly prepared bakery food items are in high demand. Besides, the Indian bakery business acquired an approximate market value of ₹ 95000 crores in 2022. Furthermore, it is expected to register a CAGR of 10.8% between 2023- 2028.

Profit Margin: 20% - 40%

8. Fish Supply

source: gov

Bihar is the 4th largest producer of fish in India. There are well-connected road systems that support fish supply inside and outside the state. Therefore, a fish supply business can be the perfect option for people who are looking for small-scale business ideas in Bihar.

Investment: ₹25000 to ₹1 lakh

Set-up Requirements

To set up this business, one must fulfil the following requirements:

• Acquire permission from government authorities.
• Select a suitable location.
• Buy material need for packaging.
• Select the fish breeds.
• Buy necessary disease-preventing chemicals.

Benefits

Below discussed are the benefits of a fish farming business:

• The fishes can be sold at decent prices.
• It is a low-risk business because there is a high demand for fish in almost every Indian state.
• Involves low labour costs.

Market Potential 

Bihar produces close to 6 lakh tonnes of fish every year and the rate of production continues to grow rapidly. A gross value of ₹62 billion was generated by Bihar’s aquaculture industry in the last few years. Besides, the fish market in India is expected to grow at a CAGR of 8.81% from 2023-2028.

Profit Margin: 15% - 20%

9. Organic Fertiliser Business

source: indianchemicalnews

Bihar has an agrarian economy and 25% of the entire economy is contributed by agricultural produce. Premium quality organic fertilisers are in high demand in Bihar and therefore this business is likely to yield high profits.

Investment: ₹1.5 lakhs to ₹2 lakhs

Set-up Requirements

To set up this business, one must fulfil the below-mentioned requirements:

• Register the firm.
• Obtain a trading licence.
• Find a suitable location.
• Buy raw materials.
• Look for a reliable distributor.

Benefits 

Below discussed are the benefits of an organic fertiliser business:

• Organic fertilisers are always in high demand. 
• The popularity of organic fertiliser is increasing every year.

Market Potential

The Indian fertiliser industry is expected to grow at a CAGR 5.7% by 2029 and acquire a value of worth 1460.8 Billion.With the growing population and increase in demand for food, this sector will register exponential growth in coming years.

Profit Margin: 5% - 10%

10. Wheat Processing

source: demandstudios

Wheat processing is considered to be an ideal small-scale business in Bihar that ensures high profits. This is because the wheat industry is one of the primary contributors to the agrarian economy of India. Furthermore, the apt climatic conditions in Bihar make it an ideal place for wheat cultivation.

Investment: ₹7 lakhs to ₹9 lakhs

Set-Up Requirements

To start this business, one must fulfil the below-mentioned requirements:

• Obtain a trading licence.
• Complete the company registration process.
• Buy wheat milling machines.
• Hire qualified staffs who can work efficiently.
• Buy wheat grains from a trustworthy source.

Benefits 

Below discussed are the benefits of a wheat processing business:

• The additional supply of wheat in Bihar makes this business easily affordable.
• The high demand for wheat in Bihar makes it a profitable business.
• It takes less time for a wheat processing business to flourish owing to its demand in every region of Bihar.

Market Potential 

The growing population of almost every Indian state makes wheat continue to be high in demand. Additionally, a single wheat mill business has the potential of generating a revenue of close to ₹ 15000 crores, and this sector is steadily increasing at CAGR 5% in India. 

Profit Margin: 15% - 20%

11. Jute Bag Business

The usage of jute for environmental purposes is increasing by the day in almost every Indian state. This is mostly because people are switching to environmentally friendly options. Therefore, a jute bag business can be highly profitable, especially in Bihar, as it is the 3rd largest jute producer in the country. 

Investment: ₹50000 to ₹1.5 lakhs

Set-Up Requirements

To start this business, one must fulfil the following requirements:

• Buy an ample amount of jute fabric.
• Hire reliable staff.
• Buy other necessary products like dyes, thread, etc.

Benefits

Below discussed are the benefits of a jute bag-making business:

• Raw materials are available under budget.
• Increasing demand because of its eco-friendliness.
• Require a minimum number of staff.

Market Potential

The jute bag market share in India is about to witness a rapid growth in the next 7-8 years. As per statistics, it is expected to grow at a CAGR of 4.9% from 2022-2032.

Profit Margin: 50% - 80%

12. Candle Making Business

Candles have widespread usage in India and could be a highly profitable business for people who wish to monetise their artistic skills. Good quality and aesthetically appealing candles with pleasant aromas are in high demand and therefore, this business could be highly rewarding.

Investment: ₹25000 to ₹2.5 lakhs

Set-Up Requirements

To set up this business, one must fulfil the following requirements:

• Get a master's degree in the craft.
• Buy necessary raw materials required for candle making.
• Hire skilled staff.

Benefits 

Below discussed are the benefits of candle-making business:

• Candles are easily customisable thus giving you the chance to be creative.
• The craft is easy to learn.
• Raw materials are cost-effective.
• It can be carried from home.

Market Potential

The candle-making business has immense potential in India primarily because of its large-scale usage for religious purposes. It can generate a profit of 40% and is expected to grow further at a CAGR of 4.81% from 2023-2027.

Profit Margin: 30% - 45%

13. Pickle Making Business

source: squarespace

Pickles have been a popular appetiser in Indian households and every meal is incomplete without it. It is not only spicy and delicious but also loaded with beta-carotene and probiotics which makes it a highly demanding product.

Investment: ₹80000 to ₹1 lakh

Set-Up Requirements 

To set up this business, one must fulfil the following requirements:

• Carry the trademark registration process.
• Buy raw materials which include vegetables, fruits, spices, and oil.
• Hire efficient staff or do it single-handedly with the help of family members.
• Buy necessary cutting and mixing machines.
• Buy containers in bulk to store the pickles.
• Benefits 
• Below discussed are the benefits of a pickle business-
• Raw materials are easy to get and not costly.
• Can conveniently set the prices of pickles.
• Can be operated from a home.

Market Potential

The pickle business is a booming sector in India. Delicious and high-quality pickle brands can acquire a 40% gross margin within a short span.From 2022-2027, the pickle making business will grow at CAGR 4.1%.

Profit Margin: 50% - 80%

14. Beauty Parlour

The Beauty Parlour sector can earn good profits because most people spend a considerable amount of money on personal grooming. This is also a feasible option for people who wish to generate profits through the meticulous execution of their skills.

Investment: ₹40000 to ₹50000

Set-Up Requirement

To start this business, one must fulfil the below-mentioned requirements:

• Register under the Shops and Establishments Act.
• Obtain a trading licence.
• Find and rent a suitable location.
• Buy the equipment that is required for various grooming purposes.
• Hire efficient staffs.
• Buy branded beauty products.

Benefits 

Below discussed are the benefits of a beauty parlour business-

• Has huge possibilities of retaining satisfied customers.
• It can be operated even in a well-decorated living room.
• Personal grooming products can be homemade with natural ingredients requiring minimal investments.

Market Potential

The personal grooming sector in India will acquire a value of ₹ 20 lakh crores in 2023. Furthermore,it will grow at a CAGR 3.8% from 2023-2027. 

Profit Margin: 30% - 40%

The above-mentioned list of small business ideas in Bihar will give detailed information on the businesses that are currently popular and earning high profits. Young and aspiring entrepreneurs can gain great insight from this and can choose the best option for themselves. Small businesses require minimum investments and mitigate financial risks.