Starting a business in Nepal with a budget of under 1 lakh (NPR 100,000) is a practical and promising venture in 2025. Nepal’s growing economy, expanding internet access, and rising consumer demand create opportunities for small-scale businesses. This article explores profitable business ideas that require minimal investment, are scalable, and align with Nepal’s market needs.
Why Start a Business Under 1 Lakh in Nepal?
Nepal’s economy is on an upward trajectory, with urban centers like Kathmandu, Pokhara, and Biratnagar witnessing increased spending. The rise of e-commerce platforms like Daraz and Sastodeal, combined with over 90% mobile internet penetration as of 2024, has opened new markets. Low-investment businesses are ideal because they:
- Require minimal capital (under NPR 100,000).
- Have low operational costs.
- Can operate from home or small spaces.
- Address local needs like affordable food, clothing, or education.
Thorough research and planning are essential to succeed in Nepal’s competitive market. Below are seven business ideas tailored for a budget of 1 lakh, with practical steps to start and grow.
1. Tea Shop Near Colleges or Offices
Why It Works
Tea shops are a cornerstone of Nepali culture, thriving in high-traffic areas like colleges, government offices, or markets. Adding services like photocopy, printing, scanning, or a small photo studio can boost revenue, especially near offices where such services are in demand.
How to Start
- Location: Rent a small space (NPR 10,000–20,000/month) near a college or office.
- Equipment: Purchase a stove, utensils, tables, and chairs (NPR 20,000–30,000).
- Additional Services: Invest in a second-hand photocopier (NPR 15,000), printer (NPR 10,000), and camera for photos (NPR 20,000).
- Menu: Serve tea, coffee, cold drinks, and snacks like momos or biscuits.
- Total Cost: NPR 70,000–90,000.
Growth Tips
- Offer free Wi-Fi to attract students.
- Promote daily specials on social media.
- Partner with local bakeries for fresh snacks.
- Provide discounts for bulk printing or photocopying.
Challenges
- High competition in busy areas.
- Long working hours.
- Seasonal dips, such as during college holidays.
2. T-Shirt Printing and Online Selling
Why It Works
Customized T-shirts are popular in Nepal for events, gifts, and personal style. Selling online via platforms like Daraz or social media eliminates the need for a physical store, keeping costs low. This business taps into the growing e-commerce trend in Nepal.
How to Start
- Equipment: Buy a heat press machine (NPR 30,000), sublimation printer (NPR 30,000), and sublimation paper/ink (NPR 10,000).
- Inventory: Purchase blank T-shirts (NPR 100–150 each, start with 50 pieces).
- Design Software: Use free tools like Canva or learn Photoshop.
- Online Presence: Create a free Facebook or Instagram page or list on Daraz (small commission fee).
- Total Cost: NPR 80,000–95,000.
Growth Tips
- Design T-shirts inspired by Nepali culture, festivals, or youth trends.
- Collaborate with schools or organizations for bulk orders.
- Use print-on-demand services like Nepalaya Group to reduce inventory costs.
- Market through TikTok videos showcasing designs.
Challenges
- High-quality printing is essential to compete.
- Sublimation printing limits options to light-colored fabrics.
- Requires marketing skills for online sales.
3. Poultry Business (Organic Local Chicken or Mutton)
Why It Works
Nepal’s meat market is strong, with urban consumers seeking high-quality, organic options. Raising free-range local chickens or selling mutton taps into the growing demand for locally sourced, non-commercial meat, which commands premium prices.
How to Start
- Setup: Rent a small shop or use a home-based space (NPR 10,000–15,000).
- Stock: Purchase 50–100 local chickens (NPR 500–800 each) or partner with farmers.
- Equipment: Buy tools for slaughtering and storage (NPR 10,000).
- Licensing: Obtain a local business license (NPR 5,000–10,000).
- Total Cost: NPR 60,000–90,000.
Growth Tips
- Market your meat as organic and locally sourced.
- Supply restaurants or hotels for consistent income.
- Offer home delivery via WhatsApp or Facebook.
- Expand into processed products like sausages later.
Challenges
- Risks like disease or mortality with live animals.
- Requires poultry care knowledge.
- Strict hygiene standards to maintain trust.
4. Online Education Platform
Why It Works
With increased internet access and a shift to online learning post-COVID, there’s demand for affordable education platforms in Nepal. Courses for exams like SEE, +2, or skills like coding or English are particularly popular among students and professionals.
How to Start
- Platform: Use free tools like Google Classroom or Zoom for classes.
- Content: Create video tutorials in subjects you excel at (e.g., math, English, coding).
- Equipment: Buy a second-hand laptop (NPR 30,000) and reliable internet (NPR 1,000/month).
- Marketing: Promote via social media or WhatsApp groups (free).
- Total Cost: NPR 40,000–60,000.
Growth Tips
- Offer free trial classes to build trust.
- Focus on niche areas like exam prep or digital skills.
- Partner with local teachers to expand courses.
- Record classes for passive income via subscriptions.
Challenges
- Requires teaching and marketing expertise.
- Competition from free YouTube tutorials.
- Slow initial student acquisition.
5. Affordable Healthy Lunch Service
Why It Works
Urban professionals in cities like Kathmandu need convenient, nutritious meals. A healthy lunch service offering affordable, home-cooked food appeals to the working, middle, and upper-middle classes, especially those with busy schedules.
How to Start
- Kitchen Setup: Use a home kitchen or rent a small space (NPR 10,000).
- Ingredients: Source local, organic vegetables and grains (NPR 20,000/month).
- Packaging: Buy eco-friendly containers (NPR 10,000 for initial stock).
- Delivery: Use a bicycle or motorbike for local deliveries (NPR 10,000 second-hand).
- Total Cost: NPR 50,000–80,000.
Growth Tips
- Offer subscription plans for daily or weekly meals.
- Promote on Instagram with vibrant dish photos.
- Cater to dietary needs like vegetarian or gluten-free.
- Partner with offices for bulk orders.
Challenges
- Food safety and hygiene are critical.
- Competition from local eateries.
- Complex delivery logistics.
6. Online Clothing Brand
Why It Works
Nepal’s e-commerce boom makes an online clothing brand a lucrative option. Platforms like Daraz and social media allow you to sell trendy or traditional clothing without a physical store. Clothing remains a high-demand category in Nepal.
How to Start
- Inventory: Source affordable clothing from wholesalers in Kathmandu or India (NPR 30,000 for 50–100 pieces).
- Branding: Create a logo and social media pages using Canva (free).
- Photography: Use a smartphone for product photos (NPR 0).
- Shipping: Partner with local couriers (NPR 100–200 per order).
- Total Cost: NPR 40,000–70,000.
Growth Tips
- Focus on niches like traditional Nepali attire or youth fashion.
- Offer festival discounts during Dashain or Tihar.
- Use Instagram Reels to showcase outfits.
- Expand into accessories like scarves or jewelry.
Challenges
- High competition from established brands.
- Requires consistent marketing.
- Inventory management can be complex.
7. Footpath Stall or Mobile Shop
Why It Works
Footpath stalls or mobile shops are low-cost and flexible, ideal for selling snacks, accessories, or small goods in busy markets or bus stops. They require minimal setup and can be relocated easily to follow demand.
How to Start
- Setup: Buy a cart or portable stall (NPR 20,000–30,000).
- Inventory: Stock snacks, phone accessories, or cosmetics (NPR 20,000).
- Location: Secure a spot in a busy market (NPR 5,000–10,000/month).
- Total Cost: NPR 50,000–70,000.
Growth Tips
- Sell trending items like phone cases or street food.
- Keep prices competitive to attract customers.
- Build rapport with regular buyers for loyalty.
- Expand to multiple stalls as profits grow.
Challenges
- Weather impacts outdoor stalls.
- Local regulations may restrict locations.
- High competition in popular areas.
Key Considerations Before Starting
- Market Research: Study local needs and competition to identify gaps in the market.
- Skills and Interests: Choose a business that aligns with your skills or passion, such as tech for online platforms or cooking for a lunch service.
- Planning: Create a simple business plan and start small to test viability.
- Budget Management: Use second-hand equipment or home-based setups to stay within budget. Reserve funds for unexpected costs.
- Marketing: Leverage free tools like TikTok, Instagram, or WhatsApp to reach customers, especially Nepal’s youth.
Challenges of Starting a Business Under 1 Lakh
- High Failure Rate: Many startups fail due to poor planning or competition. Persistence is key.
- Limited Capital: A small budget restricts inventory or location options.
- Competition: Popular sectors like tea shops or clothing require unique selling points.
- Skill Gaps: You may need to learn skills like digital marketing or bookkeeping.
Conclusion
Launching a business under 1 lakh in Nepal in 2025 is a viable path for aspiring entrepreneurs. From tea shops and T-shirt printing to online education and healthy lunch services, these ideas tap into Nepal’s growing digital and urban markets. Success hinges on thorough research, careful budgeting, and creative marketing. Identify a local need, start small, and scale with dedication. With Nepal’s evolving economy, your low-investment venture can grow into a thriving business.
