Trading business is one of the most common career choices. There is no doubt that trading businesses can be immensely profitable but you must not ignore the aspect of losses. In this post, let’s take a look at 15 Best Small Trading Business Ideas in India.
Before starting any trade business in India, you must understand the fundamentals of business, develop a plan for trade business, and know-how to start a trade business. Through this article, we cover all these topics along with the trade business name ideas.
Table of Contents
What is trade business?
Before surfing the trade business ideas, it is important to understand what business trading is all about. Trading implies buying goods or items to sell at a higher cost to earn profits. Trade business in India does not involve manufacturing of the goods but purchasing the goods from another source.
While there are several offline trading businesses prevalent, you can find the boom of online trading business in India now. Understanding trade business meaning is the first step to set up your own trade business.
How to start a small trading business?
Before surfing our small trading business ideas, you must chalk out your trade business plan to clearly understand the roadmap to successful trade business.
1. Analyze and Decide Market Segment: Before starting a small trading business, it is essential to surf through the available options and then deciding which market segment suits you best. You may check out several trade business examples before making the final decision about the business for you.
2. Market Research on the Product: Once you have decided on the market segment, you must check out the pricing, quality, and demand of the specific product. You must create a list of suppliers or wholesalers and compare the proposed pricing.
3. Competitor Analysis: It is essential to understand your competitors’ strategies if you want to succeed in your business. Conduct competitor analysis to gain important insights about the market, demand, and pain points of the industry.
4. Paperwork: You have to carry out the paperwork such as license, shop registration, GST registration, etc. to officially set up your small trading business.
5. Marketing: The sole purpose of a trading business is to drive sales and that can be possible only if you have an effective marketing strategy.
How to start online trading business?
To set up a trade business online, you must follow these steps.
1. Create Digital Presence: Creating a website or profile on social media platforms is the first step of building an online trading business.
2. Digital Marketing: Boosting the visibility of your online trading business can be possible only through digital marketing. It involves optimizing your business site through SEO to gain a higher Google rank and better visibility to a wider target audience.
3. Social Media Marketing: Content marketing through social media platforms serves as a great boost to sales.
15 Trade Business Ideas in India for 2021
1. Clothing Trading
Clothing or garment trading is one of the best business that you can start with moderate investment. With the boom of online garment selling, you can start up this small trading business from your home. As there are numerous competitors in this market segment, you must strategize well to make your products stand out. Also, you must conduct a thorough search for finding wholesalers dealing with your target products. You must focus on marketing well to build your brand and boost sales.
2. Mobile Phone Trading
Cellphones have become a constant part of our life. With the aspect of obsolescence, mobile phones get replaced after 3-4 years of use. If you know about mobile companies, mobile models, and features, you can always start a mobile phone business. However, it requires substantial capital at the initial stage and a physical store. However, once you have created a good clientele, you can take your trade business online.
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3. Customized Gifts
Gifting is an inherited custom in India and even all over the world. With the increase in buying power, common people have been inclined to more personal gifts. Trading in customized gifts is a great online trade business option. Moreover, you can start it with zero investment. All you have to focus on is finding suppliers and marketing your product.
4. IT Hardware Trading
IT industry has shown excellent expansion in the last few decades. Moreover, most people have become dependent on laptops and desktops for their work during the pandemic. Therefore, IT Hardware trading is one of the best trading businesses that have excellent growth potential. Starting with desktops, laptops to the wireless mouse and other peripheral accessories, the demand for IT hardware is never-ending. You can easily start your IT hardware trading if you have substantial capital. Additionally, you require to lease or buy a space to create your store.
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5. Books Trading
Even with the age of digitalization, the requirement for books has always been in demand. Additionally, you can tie up with schools for providing school books. You can use this small trading business through online transactions as well. Moreover, if you are a bookworm, you can start with selective popular books at a lower investment and grow your business eventually.
6. Hardware & Sanitary Trading
Hardware & Sanitary trading is one of the best trading business ideas that provides a high-profit margin and requires high investment as well. Additionally, you require a large space to set up your store with displays. However, it is a good trading business idea as hardware and sanitary ware are required in every household as well as in several real estate developments.
7. FMCG Trading
FMCG Trading is a booming trading business idea that offers a scope of exponential growth. In this best trading business idea, you need to approach multiple suppliers or wholesalers. Additionally, you must keep yourself updated about the market trends and available FMCG products. The best way to start this business is to store up from reputed brands such as ITC, Hindustan Unilever, and Cadbury, etc.
8. Grocery Trading
Grocery is essential to every household and thus serves as a great trading business in India. You can start with a small retail shop or an online store with delivery. It is a trading business idea that involves lower risk and high-profit margins
9. Bakery Items Trading
Cakes, pastries, and biscuits are part of our life. You order cakes for various celebrations such as birthdays, anniversaries, retirement, etc. You can start bakery trading by collaborating with local bakers or start by franchising with brands like Mio Amore, Just Baked, etc. It requires a substantial investment for starting this trade business and may also suffer daily losses at the initial stage. However, it has the potential of growth in the Indian market.
10. Spice Trading
India is a land of spice and there is hardly any food in India that does not require spice. Moreover, the demand for spice is not only limited to India as you can find a great market for spices abroad as well. Trading Indian spices such as cumin, turmeric, coriander, black pepper, chili, etc. have a scope of flourishing and even exporting. With so many established spice brands, it is better to start with franchising or commission basis trading at the initial stage.
11. Customized Jewelry
If you have a keen interest in fashion and jewelry, trading with customized jewelry can be the best trading business idea for you. It is no secret that jewelry never goes out of trend and this trading line has exhibited significant growth in the last decade as everyone wants to become a trendsetter in their circle. The main areas of focus in this business are updating your style with trends and marketing, especially through social media. You can start a customized jewelry business at a low investment and even from home.
12. Chemical & Pesticide Trading
Apart from farmers, many millennials have started home gardening. Thus, the need for chemicals and pesticides has never decreased. However, this business is vast and is highly segmented. You need to have deep knowledge about plants, social, and chemicals when trading in this industry. Additionally, setting up a chemical and pesticide trading business idea requires a lot of paperwork. It is recommended not to stock up at the initial phase and work on an order basis until your business settles.
13. Pet Food & Accessories Trading
It has now become fashionable to keep domesticated animals as pets, some even include animals as part of their family. So, starting an animal feed & accessories trading is an evergreen business option. Pet food & accessories is a big industry and you can start up this business from your home. Later you can take your business online as per the customer’s demand. This business also gives you the satisfaction of helping people make better choices of healthy food for their animals.
14. Automobile Accessories Trading
With the rising number of automobiles on the streets, the demand for automobile accessories never falls. Automobile accessories trading is a great trading option if you know about the automobile. You can also start trading for the items such as tyres, tubes, gears, gear parts, the demand for these items is never-ending. You can start this business with moderate investment.
15. Stock Market Trading
Share trading business is one of the most unconventional trading ideas due to the risk involved. It can make or break one’s life. A stock market trading is an evergreen business option. Of course, you need to have a keen interest in the stock market, understand the stock market and make an informed decision if you want to earn a high profit through share trading.
Final Thoughts
Trading business is a lucrative career option if you have adequate planning and patience. We have assimilated the best trading business ideas to help you out to choose one that suits you best. Hopefully, our article has helped you out with a discreet guide on how to do trade business.
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