Do you want to start a small business in Chennai? Find here a list of profitable business ideas along with franchise opportunities you can explore in Chennai. Chennai is formerly known as Madras. It is the capital city of the state of Tamilnadu in India.
Chennai has a diversified economic base. The major industrial activity includes automobile, computer, technology, hardware manufacturing, and healthcare sectors. The city is one of the largest exporters of information technology (IT) and business process outsourcing (BPO) services.
According to the Confederation of Indian Industry, Chennai is estimated to grow to a US$100–billion economy, 2.5 times its present size, by the year 2025. Also, the city is home to several malls, due to its status as an IT hub. So, here you can explore huge potential in the retail business.
This list of business ideas in Chennai will help you in making an informed decision in selecting the right one.
30 Small Business Ideas in Chennai
#1. Start Salon Spa
If you are a trained beauty therapist or interested in setting up a beauty business, starting a salon spa business is a good business proposition in Chennai. Opening a beauty salon or spa business requires startup investment. Also, you need to select a good retail location for it.
Generally, the business requires professional training. If you are a beginner, you consider buying a franchise from a reputed company and starting this business.
2. Start an Online Business in Chennai
Chennai boasts an excellent digital infrastructure. Hence, the city offers a wider range of opportunities for aspiring entrepreneurs to establish successful online businesses. Here are some of the best online business ideas in Chennai:
- E-commerce Store
- Dropshipping Business
- Online Grocery Delivery
- Play Online Games
- Virtual Fitness Classes
3. Start a Finance-Related Business
If you have experience in financial activities, consider starting a finance business. There is no shortage of people in Chennai looking for investing money in different asset classes. Some of the finance business ideas in Chennai that can make a good profit are as follows:
- Insurance Business
- Mutual Fund Distributor
- Tax Filing Services
- Loan Agency
- Stock Investment
4. Open a Fast Food Restaurant
Initiating a fast-food restaurant is one of the most lucrative opportunities in the food retail segment. Getting the right location and selecting the right menu are the most crucial aspects of this business. Also, you will need to price the foods in a reasonable manner.
You can select a wide choice of foods under the fast-food segment. The list includes the restaurant, cafeteria, pizza, ice cream, fine-dine restaurant, fast food outlet, juice lounge, sweets store, etc.
5. Courier Service
The Chennai city has a high population density. Also, it is one of the most important cities in South India. And if you want to start a business in the service industry, a courier is a lucrative option for you. Also, it requires a small startup investment and a small retail space. The business doesn’t need any inventory stock also.
Nowadays, the courier is an essential service not only for domestic but also for business purposes. Due to the growth of eCommerce in India, the demand for responsible courier service has grown exponentially.
6. PCD Pharma Franchise Business
PCD stands for Propaganda cum Distribution. It is also popular as franchise marketing. Generally, small pharma companies come under this segment. They have a large base of Stockists & Distributors in the region of their operations.
Healthcare is a recession-proof industry. And the industry has the good potential of fetching a good amount of profits. If you have some previous experience in the healthcare industry, you can consider starting a PCD pharma franchise business with a small startup investment.
7. Kids-Related Business
Do you enjoy spending time with children? If so, you can definitely turn your passion into a profitable business. Just put your effort into offering the products for them and make money. Broadly, you can open a kid’s store in several ways. These are kidswear, baby care products, books & stationary, toys & games, furniture, etc. And in a country like India, every product has good demand thus the potential domestic market.
If you don’t have any experience or you don’t get confidence in inventory procurement, you can consider opening the business as a franchise partner of a reputed brand.
8. Entertainment Business
Chennai is the base for the Tamil film industry, known as Kollywood. Also, the city is the major cultural center of the state of Tamilnadu. So, starting an entertainment-related business is quite a profitable option here. Also, there is a wide list of options available in this category.
Generally, starting an entertainment-related business requires a startup investment. Also, in most cases, you will need to secure a space also. Some of the most profitable options are small screens, gaming lounges, party planning, etc.
9. Start a Travel Business
Chennai is one of the most visited cities in India. The city has a rich presence of beaches and centers of historical and cultural significance, including the UNESCO Heritage Site of Mahabalipuram. Also, the city attracts record numbers of foreign travelers every year. So, starting a travel business is a financially viable option here.
There are so many options you can explore in the travel business. However, starting a travel agency is one of the most profitable ones. Here your primary responsibility includes online ticketing, hotel booking, package tour, site seeing, etc.
10. Launch a Computer Training Institute
Chennai ranks second among Indian metropolitan city centers with a 90.33 percent literacy rate. So, people are very conscious of the need for proper education here. In the current digital era, computer education is a basic need for every individual.
Also, specialized courses have huge job potential. Some of the popular job-oriented courses are animation, digital marketing, web designing, graphic designing, etc.
11. Gym or Fitness Center
Due to the rapid growth of lifestyle diseases, people are becoming more health-conscious than ever before. It enhances the potential of the gym and fitness industry in India. Generally, a fitness center is also popular as a gym or health spa, or fitness club. However, they have fine differences in fixing the target and activities.
Opening this type of business requires a medium to large space and startup investment. Also, the business demands specific skills, expertise, and business planning. If you are a beginner, you can consider buying a fitness franchise.
12. Car Wash
Chennai ranks third in the automobile industry in India. So, the vehicle population density is very high here. These days, the car wash has gained much prominence these days including smaller cities, metros, and big cities. Hence, it is a lucrative opportunity for new entrepreneurs.
13. IT Services and Consulting
Chennai is a major IT hub and boasts a thriving IT industry. You can start an IT consulting company and provide IT solutions, consulting, and software development services to businesses.
14. Mobile App Development
With the rise of smartphones in Chennai, there is a growing demand for mobile app development services.
15. Digital Marketing Agency
There are plenty of small businesses In Chennai looking for digital marketing professionals. You can help those businesses in Chennai establish their online presence and reach their target audience through digital marketing strategies.
16. Food Delivery Service
Another business in Chennai that is in demand is the food delivery service. You can launch a food delivery platform to cater to the busy urban population in Chennai.
17. Education and Coaching
If you have teaching experience, consider providing coaching classes or tutoring services for students in Chennai in various subjects.
18. Real Estate Development
If you have surplus money to invest, consider investing in real estate development projects in Chennai to meet the growing demand for residential and commercial properties.
19. Event Management
Events and festivals happen in Chennai around the year. You can start an event planning company and organize and manage corporate events, weddings, and parties for clients.
20. Fashion Boutique
You can open a boutique offering trendy and fashionable clothing and accessories for locals and tourists in Chennai.
21. Pet Care Services
If you are a lover of pets and enjoy spending time with them, think of starting a pet-relate business. You can provide pet grooming, boarding, and training services for pet owners.
22. Interior Design and Decoration
If you have the necessary experience, offer interior design services to homes and commercial spaces.
23. Solar Energy Solutions
The demand for solar energy solutions is rising in the city. You can provide solar energy solutions for residential and commercial buildings.
24. Recruitment Agency
Small and big businesses are always on the lookout for efficient recruiters. You can help companies in Chennai find the right talent by running a recruitment agency.
25. Handicrafts and Art Gallery
You can help handicraft industry owners by showcasing and selling traditional handicrafts and art pieces and thereby make a good profit.
26. Waste Management and Recycling
Waste management is a big challenge in the city of Chennai. You can contribute to a cleaner environment by offering waste management and recycling services.
27. Food Truck
There has been a significant rise in the number of food trucks here in this city. You can launch a food truck that offers delicious and unique food items.
28. Home Cleaning Services
There is a big demand for cleaning professionals in Chennai city. You can offer professional home cleaning services for busy homeowners.
29. Language Translation Services
If you know multiple languages, there is a good scope of making good money by providing translation services for businesses dealing with multi-lingual customers.
30. Car Rental Business
There is a good demand for car rental services in Chennai. You can offer a fleet of well-maintained vehicles for short-term and long-term rentals to locals and tourists. customers. Consider, collaborating with hotels, travel agencies, and event organizers to expand your customer base and increase visibility in the market.
Frequently Asked Questions
What are the legal requirements to start a business in Chennai?
To start a business in Chennai, you need to register your business entity with the appropriate authorities, obtain necessary licenses and permits, and comply with tax regulations. You can visit the official site of the single window Tamilnadu single window portal and learn more about legal requirements.
Is Chennai a suitable place for tech startups?
Yes, Chennai is a favorable location for tech startups due to its well-established IT infrastructure and skilled workforce.
What are the funding options available for new businesses in Chennai?
Startups in Chennai can explore funding options like venture capital, angel investors, bank loans, or government schemes.
How important is networking for business success in Chennai?
Networking is crucial for business success in Chennai, as it helps you build relationships, gain referrals, and find potential partners and customers.
Is there a demand for eco-friendly and sustainable businesses in Chennai?
Yes, there is an increasing demand for eco-friendly and sustainable businesses in Chennai as people become more environmentally conscious.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.