Best Small Startup Business To Invest In 2020

10 Best Small Startup Business to Invest in 2022


Last Updated on 02/03/2022 by Deepak Singla

You must be aware that the pandemic has affected businesses in a massive way. Many have been forced to shut down as well. So, a lot of investors are looking forward to investing in new startups businesses that will become successful soon. This article lists the top 10 startup businesses for investment. Keep reading to find out!

Best startups Business to invest in 2021?

Here are the top 10 best Business to invest your money to grow your wealth

1. Online Education

With the onset of the coronavirus induced lockdown, students have had to resort to online measures for education.

covid 19 impact on education

Ever since then, online education platforms have witnessed a massive increase in users. Online education has made it possible for students to learn anything from anywhere. Anybody can enroll for any course regardless of their age, gender, and educational background. This has resulted in a huge expansion of online education platforms. It will be much beneficial if you design courses that teach in-demand courses and other digital skills. So, now is the right time to start an online education business as the future is in favour of this startup.

2. Dried fruits business

dried fruits business

The dry fruits manufacturing industry in India does not have many players. The country has become a lot more health-conscious currently and people are preferring dried fruits as snacks over chips and junk food now. You can expect a profit margin of around 5% to 10% in this sector and hence you see this franchise will prove to be very lucrative in India.

3. Toy Manufacturing Startup

toy manufacturing startup

India has been importing toys mostly from China. In the years to come, toy manufacturing is going to increase massively in India, and importing toys from China will decrease considerably. The China-India import/ export relations have gone sour now and so this is a great opportunity for Indian toy businesses to flourish.

4. Chatbot Services

chatbot services

Nowadays, almost every website has an online chatbot to help the audience with their queries 24×7. A lot of websites and companies are looking for people who could build a chatbot service for them. So, companies and individuals that provide chatbots as per the requirement of the client will yield profits soon.

5. Plastic products manufacturing startup

Plastic products manufacturing

It’s known to all that a massive portion of the plastic utensils used in India is imported from China. So, an Indian plastic product manufacturing business will do massively great in the upcoming years. These plastic products could be anything from storage boxes, buckets, phone covers, kitchen utensils, chopping boards, covers for various items, and more.

6. Mattress startup

from mattress manufacturing business

Mattresses are something that everybody needs. But do we need mattresses frequently? No, and still, mattress stores sell a lot and can earn you one of the highest profit margins in retail. Everybody needs a comfortable small to twin mattress as per requirements to sleep peacefully so, this is going to be a long-term successful and sustainable business. Also there are many sizes available in the market from Standard Queen, Olympic Queen, California Queen, Standard King, to California King Mattress as per customer demands. Mattress businesses make a profit in the 40% to 50% range. In addition to that, the investment required for a foam mattress startup is extremely low. The warehouse required is also generally small. Besides, the complaint rate, returns, and repairs for mattresses are minimal to nil.

7. Warehouse for e-commerce

Warehouse for e-commerce business

Managing inventory is a big deal for any business. This business model involves storing the products on the behalf of the e-commerce company. You just need to provide space to the eCommerce companies to store their products.  Ever since Coronavirus, online shopping has surged exponentially. So, this business Idea scheme is making and will be making good money in the future too.

8. Bike and Car Accessories

car and bike accessories

Social distancing norms have become common and normal now. So, people want to avoid public transport as much as possible. Due to the same reason, people are keen on purchasing bikes and cars for day to day commute. The import of automobile accessories like seat cover, lights, helmet, etc. from China is decreasing by the day and so, this sector will witness a surge in the coming future.

9. Courier Service startup

courier services

The online e-commerce market has seen massive sales in the last few months. New businesses are opening every other day that need delivery services. Hence, it is a good time to start a courier or delivery service that involves picking up parcels and delivering them to the customers. The profit margin of this startup business is around 5% to 20%.

10. Chocolate Manufacturing

chocolate manufacturing growth

India is one of the top consumers of chocolate and there are not many players in this industry. As per Mordor Intelligence, the chocolate market in India is witnessing a CAGR 12.8% in India. Everybody loves chocolates and they are required to prepare several other food items as well. No celebration can be complete without chocolates. People have grown to become health conscious and prefer dark chocolate because of its health benefits like burning fat, antioxidant properties, and releasing stress. So, this business will prove to be very profitable in the coming years.


  1. Which startups are most profitable?

Ans. The most profitable startups in 2021 are those involved in online education, courses, the garment industry, food sector, candle making, bag manufacturing, and so on.

       2. Is investing in startups a good idea?

Ans. Startup business for investment could be both risky and rewarding if the business performs well later on. You might receive huge returns if the startup grows to be a successful one. The main reason people invest in startups is that the returns are higher than other investment types and can easily beat inflation.

3. How do I choose a startup company to invest in?

Ans. You need to judge well enough before choosing the best startup business to invest in, to avoid losses. Look for the following key points in a startup:

  1. Check if the business model has potential or not, i.e. it can grow its revenues quickly or not.
  2. Study the management team, see if the members of the startup have enough expertise in the sector or not to make the business a successful one.
  3. The product or service provided is in-demand and will continue to be in the future as well.
  4. Check if the business is sustainable or not.
  5. Try to identify businesses that are not much likely to produce returns.

4. What is the best startup business for 2021?

Ans. Several such business ideas could be profitable in 2021. For example, Online Education, food manufacturing, Mattress Manufacturing, delivery service, e-commerce, app development, and so on.

5. Which industry is best for startups?

Ans. A lot of industries are growing quickly in 2021 such as e-commerce, app sector, digital services providing companies, food and beverages, and so on.

6. What is the best tech stock to buy now?

Ans. Some of the best tech stocks you could consider buying now are as follows:

  1. L&T Technology
  2. Vakrangee
  3. Tata Elxsi
  4. Tanla Solutions
  5. Nucleus Softwar
  6. Sonata
  7. Ramco System
  8. Birlasoft
  9. eClerx Services
  10. Take Solutions

7. How do you start a startup in 2021?

Ans. Follow the given steps to launch a startup in India 2021:

  1. Come up with an idea for the startup (you could refer to our list of top 10 startup business for investment)
  2. Hire a team.
  3. Purchase the machines, tools, furniture, etc. needed for the startup.
  4. Register the startup with Startup India:
  • Incorporate your business as a Private Limited Corporation, Partnership firm, etc.
  • Log in to the official website of Startup India.
  • Upload the documents required.
  • Agree to the conditions and fill in the tax details.
  • Receive a recognition number then and there.