Trading business ideas are a low investment and, depending on one’s skill, quite lucrative. Hence, they have been popular for a long time. Trading companies buy goods from multiple manufacturers or wholesalers and sell them to end customers or retailers. They do that by storing their own stock in a warehouse or by ordering items based on orders from customers.
Trading business ideas are flourishing today. Scroll further to know a few steps you may take if you are considering entering or expanding your trading business.
Steps to Take Before Starting a Trading Business are:
If you choose trading business as your path, you need to strategize and plan well. It would be wise to have a detailed trade business plan. After you have done that, it is important to go over the below steps:
- Researching on competitors and the market.
- Select your target market - local, domestic, international.
- Next, choose between an online, offline or mixed business operation model
- Detail out the product pricing. Ensure that you factor in all your expenses as well as the prices offered by competitors and then fix a price accordingly.
- Network with product suppliers.
- Create a revenue model and projections.
- Work out your capital requirements as well as your operating expenses (including manpower) until the break-even point.
- Finally, once you have crystallized all these points, apply for the license, regulatory filings, GST number, etc.
Must Read: Most Profitable Wholesale Business Ideas in India
Top 5 Trading Businesses to Start in India:
- Selling T-Shirts
One of the simplest ways to begin a trading business is buying and selling t-shirts. There are many manufacturing units in India that supply the best brands across the world. You can place the minimum order, choose the color, include your designs and also embed your logo. Some of these units will also assist you with packaging the t-shirts.
You can either store these packaged t-shirts in a small storage space or rely on marketplaces to store the t-shirts in their warehouse. You can use popular online tools to promote your brand and sell these t-shirts over renowned marketplaces.
- FMCG Trading
FMCG trading is another lucrative business idea. This is an evergreen and consistently growing area which offers diverse business opportunities. You can either be a stockist, distributor, or wholesaler. To keep your costs low, you can rent out a small godown to store your items.
- Jewelry Trading
Jewelry market is garnering a lot of interest. People are interested in the latest designs and they like exploring new trends. If you have a keen eye for design, you can purchase jewellery in bulk from credible jewellery suppliers. To keep your costs low, you can start the business from home itself. You do not need to stock the jewelry separately in a warehouse.
The market of customized jewelry in India is also picking up and growing significantly. Due to the rise in buying power, more people can afford jewelry. Your jewellery brand can be promoted extensively over online marketing platforms.
- Stock Market Trading
Stock market trading business ideas are also a popular business option. You can start this business from your home. This isn’t capital intensive nor do you need storage space. However, what you will need is an expansive knowledge of the way markets function, as well as the products you will be trading in - such as equity stocks, options, futures, derivatives, currencies, commodities, etc.
Moreover, a knowledge of the way various industries pertaining to the financial products you will be dealing in will also be an excellent asset - such as telcom, pharma, etc. A knowledge of using tools to create data models and algorithms for trading would be a definite plus. If you don’t have the requisite skills, you may look into hiring others with the required skill sets. As a stock market trader, you would need to keep trading frequently to earn a handsome income. It is a high-risk business, so it is important to understand the way stock markets work
- Customized Gifts
Gifting is something that comes to us naturally at all times. People love exploring unique gifts, customized gifts, and trendy gifts occasion after occasion. Buying power has given a huge impetus in this market.
Trading in customized gifts can be done online in a big way. You may require a storage space to store your inventory. You need to mainly find good suppliers and offer consistency in servicing for your product.
Must Read: 5 Tips for Women to Start a Business in India
Get a Business Loan from Fullerton India
Fullerton India business loans are here to bridge the gap that is stopping you from taking the business step of your life. Fullerton India business loans are completely collateral-free. There are many other special features of Fullerton India business loans.
Fullerton India provides unsecured business loans up to INR 50 lakhs (subject to eligibility), which helps you in fulfilling your business plans easily. You can choose a flexible repayment tenure from 12 months to 60 months. This helps you in planning your subsequent steps efficiently.
Small business loans can even receive approval in 24 hours, subject to successful verification of business loan documents and as per Fullerton India’s policy at the time of loan application.
Fullerton India business loan Interest rates start at 17% p.a. depending on many factors like location, net income, business stability, collaterals, current monthly loans, etc.
Please note that business loans are usually granted to applicants who have a good track record of managing a business and who’s existing business has a history of stable profits for the past 2 years at least. If you need funds to start a small business from scratch and are salaried, you can consider taking a personal loan instead.
Business Loan EMI Calculator
Fullerton India business loan EMI calculator is an effective and easy-to-use tool. It assists you in planning your future expenses. It lets you estimate the monthly EMI for a given loan amount and interest rate by varying the repayment tenure, thereby enabling you to select a tenure so that the monthly EMI is within your budget.