7 Most Successful Businesses in Pakistan with great ROI

Well, when it comes to successful business in Pakistan it all boils down to return on investment (ROI) for a given business plus market demand of what it provides as a business, what need, want it fulfills or solution it provides to a given situation.

If a business has great ROI along with great market demand then that business can be called a successful business.

Although great ROI and market demand alone doesn’t make a business successful rather you need to be really smart in daily affairs of your business, by that I mean you need to know how to do marketing, how to set sales commissions, sales targets for your sales team, how to do hiring, firing, training, how to look after financial side of your business etc.

Note: I am using ROI or Return On Investment in a kind of loose way, when I mention ROI, I mean net income for each rupee of total sales. For instance if I say such and such business has ROI between 40-60% then that would mean net income of 0.40 Pkr to 0.60 Pkr for each rupee of total sales in that particular business.

In a nutshell you need to be really hot in marketing, finance, human resource aspects of your business and not only that you really need to be efficiently & effectively creative in connecting all these aspects in a balanced way so to realize great ROI.

Karobaar koi bachoo ka khel nai he! (Business is not kids play!)

Naani yaad ajae gi … lohay k channay khany wali baat he…just kidding ;-d

I am not here to scare you guys but to remind you that its not easy or else everyone would have been an Entrepreneur, khair, still there are ways to overcome these challenges, read this article I want to start business but… this article will help you in overcoming almost all of small business challenges, worries be it marketing side, HR side, finance or any other.

Before going for the 7 most successful businesses part, let me give you couple of more articles that will practically help you in launching your own business, right from your home, with almost no investment, here read Super Easy Way to Manufacture Small Products from Home. If you want to run a small business right from your home, garage just like Steve Jobs, Apple Inc founder did then read the above article.

The last article that I am about to share with you guys before going for the main theme of this article, will not only help you in understanding this current article that you are reading right now, by giving you detailed analysis on each business idea discussed here like ROI, sales force required, initial investment required, monthly required sales, monthly costs etc but will also help you in successfully launching, running each business idea discussed here.

So do check this article: 30 Business Ideas in Pakistan with Incredible ROI

Coming back to 7 most successful business in Pakistan, let’s get to it, aor time waste nai krna appka!

8 Most Successful Businesses in Pakistan

1.      Medicine Business

Because there are all types of food adulteration's (milawaat) going in Pakistan, chai me milawat, dhoodh me milawaat plus there are over 232 million people in Pakistan and almost every third or fourth guy has some kind of disease, illness, which means medicine has tremendous demand and ROI on medicine is around 15%-50% in retail, which means you earn (net income) 0.15 Pkr to 0.50 Pkr for each rupee of total sales; while in wholesale, distribution it varies between 3%-7%.

And in medicine manufacturing you can make anywhere from 30% to over 70%,  though that depends on many things like the type of medicine you produce, market demand, market competition, brand image in target client's, consumer minds, brand value, govt taxes etc.

Thus medicine business can be termed as the most successful, profitable business sector in Pakistan.

Even in a pandemic like corona virus its the best business, this also holds true for war situation, where medicine, food, grocery business remains as essential businesses while almost all other businesses don't make in the essential businesses.

If you are interested in starting medicine on Distribution/Wholesale/Retail etc level than please make sure you start in the location where similar business are, as then you will get customers flowing in way sooner.

2.      Cloth Business

Again 232 million people need clothing, roti kapra maakaan, you must have heard this political slogan… they really nailed it (kal bhi Bhutto zinda tha, ajj bhi mr 10% zinda hey ;d), plus retail cloth business has super ROI just like medicine although that doesn’t mean wholesale, distribution, manufacturing doesn’t offer anything.

ROI for retail, wholesale, distribution, manufacturing cloth business, varies between 5% -60%.

Now this doesn't mean that 5% ROI is less in cloth, this 5% is actually in distribution, wholesale business models, where sales volume is way higher then retail so you earn immensely while in manufacturing minimum ROI is 10-15% means one can even earn a lot more in manufacturing but the problem is, manufacturing requires way way more investment like minimum 80 million Pkr (in 2022).

And if you have like low investment then you should go for retail, where minimum ROI is between 40-60%.

3.      Food Business

Yep, you heard it right, again 232 million people, they need to eat something daily because their survival depends on it and that’s why we have these awesome food streets from namak mandi of Peshawar to monal in Islamabad to food streets in Lahore and Karachi.

Pakistani waisay bhe khao peo geo type lug hain… ;)

ROI varies between 30%-70% for both small outlets like chai walas, burger walas plus larger ones like typical restaurants, savour foods etc.

At small outlets taste sells, at medium outlets quality food plus taste sells and at bigger outlets its all about bling bling, decoration of the outlet plus super cool customer service including quality plus taste.

4.      Property Business

Again 232 million will need a place to settle in, urban growth is another indicator that property sector is doing great in Pakistan, all these immense, huge housing schemes, townships, Bahria towns blah blah towns etc are all good indicators of that.

Normal ROI varies between 25%-150% although remember that you have to wait for the right time to get huge ROI and also you need to consider money devaluation, inflation, economic growth of the region, taking political & security situation etc into the equation.

Other important things that can make a piece of property sell like a hot cake is facility of electricity, gas, road, drinking water, security, hospital nearby, quality school/college nearby, airport nearby, public park nearby,  minimum time access to main highway or motorway, NOC from government etc.

If these things are available in a given piece of property then you should invest in it, you will be happy that you did after 2-6 months.

These things should be in your checklist, you should only invest in particular property business when you are absolutely sure that most of these things are coming in the given property.

5.      Retail, Wholesale, Distribution Mix (Grocery)

From selling shampoos, bath soaps to cooking oils, vegetables, cigarettes in your outlet at bulk, retail price etc can also provide a good opportunity to have a stable and continuous source of income without much risk.

Again, take the basic needs of 232 million people into perspective, although (quite obviously) you will not get all the 232 million coming to your outlet only but you can, well, gauge the demand of the items, services you should be offering at your retail store, general store etc.

Success in this business is almost entirely dependent on customer flow to the outlet, so make sure you launch such a business at some really hot place, the more customer flow, the more opportunities to sale consequently the more profit.

Plus you should have all the variety, products under the Sun, at your outlet, to make healty ROI here.

ROI varies between 10%-50%.

6.      Automobiles Business

People in Pakistan have been earning quite good in recent times, purchasing power has increased quite rapidly and so do the affordability of various “luxurious” items.

Once there was time when few or just couple of people used to have a car in the whole village or town (talking about 60’s,70’s,80’s) now you see 100’s in each small town or village.

ROI here varies between 10%-35%.

Since most buyers (60%) in Pakistan prefer buying from company outlets instead of car bargains, so if you have like amount to book like 9 lakh rupees car at company outlet and that car will arrive after 4 months, that means you can earn minimum of 5-10%  by selling a car that you booked 4 months prior as the new buyer don't want to wait for that long (for 4 months).

So if you have investment cycle where you get a new car each month from company outlet and each car cost for instance 9 lakh rupees, that means you will be earning 45 to 90 thousand rupees each month according to 5-10% ROI.

7.      Smart Phones Business

Although constant technological disruption or change makes it a lot hard for majority of people to get some real money out of this business sector but once you get your hand in the right spot you can really make some serious money in this sector.

Demand for smartphones is huge, ROI is quite healthy and sales are immense all you need is a right location, right investment, right time, right approach, right management to reap some serious ROI.

ROI here varies between 5%-30%.

Beside average life span of a smart phone is 4.7 years and there are around 4 caror smart phone users in Pakistan, using 3G/4G. So you can imagine the demand!

One more thing if you are wondering about what is the best business in Pakistan and why, like the best business out of all businesses in Pakistan then read this post What is the most successful business in Pakistan and why ?

8.        Amazon Based Business in Pakistan

Amazon Inc. is a huge online retail company (worth over 911 billion dollars in 2022) like Daraz that is headquartered  in America and operates in Australia, Germany, UAE, UK, France etc.

Running Amazon business has proven to be very successful for many Pakistanis, because this perhaps is the only business in Pakistan where you earn your profit in dollars instead of Pkr or Pakistani rupees and thus the earnings people are making in this business are huge like lakho, caroro mei 😍.

There are different business models in Amazon, like in one business model you can start business with almost zero investment and then there are business models where you are required to make investments.

I will discuss each business model here with required investment and per item profit potential in dollars.

So let's get to it ;-)

Now lets discuss each business model in detail

Amazon Affiliate Marketing:

In this business model type all you need is a professional website and good grip on SEO, SEO means Search Engine Optimization, this is a skill that you can learn in about 2-6 months, free courses are available all over the internet.

SEO is basically learning how Google ranks websites and how you can bring your website on google search first page and then once your website is on google first page, from there you put amazon affiliate program links (product links) on that website and when somebody buys a product from Amazon while going through your website link, you earn profit and if the same buyer buys anything else in the next 24 hours from Amazon you will earn even more.

This is the least investment model you can launch successfully from Pakistan on Amazon.

If you want to start this business, want to create a cool looking professional website, then let me know I will do it for you in the above mentioned amount 😊 and the rest like SEO, you will learn it yourself, once you learn it, you will need to add content constantly to your website and viola you will start earning after 6 to 8 months of constant effort with just 100 dollars investment.

And if you want me to do SEO for your site than I am glad to do that too, as in that case you will be just sitting and looking after things only and the rest I will do, just inbox me and we will discuss it further. ;-)

You can scale this business any level you want, like if you invest in it $2000 you will earn more than the one who has invested just $100, the more you invest in it, the more you will earn, now if you want to know, how to do that, where to do that, when to do that ? just hit me up with a message through contact page of this website or through my email.

Amazon Drop Shipping:

Amazon Drop Shipping means where you make seller account on Amazon and select items that you want to sell (on Amazon) and then when order is placed with you, you make purchase at any other platform like Amazon like Walmart, Target etc where that item is available for lesser price and you ship that product on the customer details (that were provided to you on your Amazon seller account) from there and you make your buck, this is drop shipping in nutshell.

Amazon drop shipping is a big thing in Pakistan these days, people are making tons of money in it, 20 something year olds are making millions in it these days but there is a catch.

It is very risky business model too unless you do it by the book and rules of Amazon, which most Pakistanis aren't doing and thus they are making tons of money while also losing tons of money when Amazon bans their accounts and hold their earnings permanently.

There are two types of Amazon Drop Shipping.

1. The Legal Amazon Drop Shipping

2. The Illegal Amazon Drop Shipping

The legal Amazon drop shipping is where you follow Amazon drop shipping rules and do your business while the illegal is where you don't follow Amazon rules and want to make a quick big buck.

Remember that following the illegal route although it will make you quick big buck but it has greater risk of account suspension/loss etc and Amazon seller accounts are precious.

The investment in this business is used purchasing and drop shipping nothing else.

Internet, youtube has tons of free courses available on this business model, you can learn it in just about couple of months.

Amazon Retail Arbitrage:

In this business model you purchase items that are cheaper in price than on Amazon and then send these items to either Amazon warehouse or your own warehouse and once order from a customer is placed with you on your Amazon seller account, you ship your item to the customer and earn your profit.

This business model is safer than Amazon Drop Shipping, the account suspension risk is lower than Amazon Drop Shipping and plus you don't have competition in it as the items or products you are dealing into are one time offers which are not widely available with other sellers on Amazon and so you make a healthy buck here.

The whole investment in this business model goes into purchasing products and buying product research tools that can cost you upto 20 dollars a month.

Amazon FBA/FBM Wholesale:

Now this is where Amazon gets serious, if you want a reasonably good successful business, this where you should start on Amazon.

FBA means Fulfilled By Amazon and FBM means Fulfilled By Merchant, which basically means when you as a seller want to sell products on Amazon you have two options of selling, one is FBA where Amazon take care of everything from getting orders, to shipping, return, replacement etc you just need to worry about making sure ample amount of product inventory is in Amazon warehouse that's it.

While in case of FBM you will not only need to worry about buying and arranging ample amount of inventory in your own warehouse but you will also be liable for efficient and effective order placement, delivery and return thus it is called Fulfilled By Merchant.

The whole investment for this business model goes into the following things.

1. Professional Amazon Seller account which is 40 dollars per month.

2. A limited Liability Company or LLC which can cost upto 800 dollars.

3. Professional looking website for 100 dollars.

4. Product and Brand Hunting tools 30 dollars a month.

5. The rest of investment goes into purchasing winning items and some cash is kept in your Amazon account just in case of returns.

This is the whole business model in a nutshell, if you want to launch this business model successfully, I can help you here in all these steps, for further discussion, details, hit me in inbox ;-)

Amazon Micro PL or MPL:

Now this where big money game comes in, if you want a super cool big business, brand with no worries then this is where you need to start on Amazon.

MPL means Micro Private Label, in other words it means having your own little or micro brand on Amazon where you are the only seller with no competitors, with no worries of profit being cut due to price wars, where you command the price, where you charge what you think is fair price and nobody complains about anything.

MPL is actually where you patent your item in USA and manufacture it in China and then ship it to USA, to Amazon Warehouse and there you start selling it under your registered LLC on Amazon.

The investment here goes into the following things.

1. Product Research

2. Patent, Copyrights,Trade Mark etc Registration/license

3. R&D

4. Beta Launch & Manufacturing in China

5. Full fledged Manufacturing in China

6. LLC or Limited Liability Company

7. Maintaining reasonable inventory in Warehouse, en route via sea from China

8. Cash in China to keep manufacturing.

9. For PPC campaigns, marketing to rank your brand/product on Amazon first page.

10. Paying VA's their monthly salary

This business model requires some serious study before you start investing in it, means you will need to learn loads of things before you can invest in it, now investors here would be wondering like why should I learn why can't I hire someone who just do the job while I provide investment plus salary to that guy.

Well the thing is, until and unless you don't learn this whole trade you won't be able to know or understand how this business model works and how you need to supervise in it while being the owner thus you need to learn it too.

I would recommend Extreme Ecommerce Platform, on this platform you can learn in detail about this business model with all your questions queries being answered.

They are offering a one year program where you as an investor learn the whole thing and then afterwards you will be able to successfully launch this business.

If you need my services for like LLC creation, professional website creation etc in the process, you are always welcome ;-)

Amazon PL:

Now Amazon PL is just like Amazon MPL; the only difference is product type, in MPL you go for small items while in PL you go for high ticket, big items with extreme sales volume per month.

The investment here goes into the same things that are mentioned in MPL.

That's it for Amazon Business in Pakistan, hope you have learned everything about it. ;-):-)

Note: I have written many more articles on business ideas in Pakistan, some of those ideas are completely new, which means having very low competition and high demand in the market, thus making them the most lucrative businesses in Pakistan. To check those ideas out, click on this link: Business Ideas In Pakistan

That’s it, if you want more practical, actionable tips, suggestions, help on small business, startups, marketing, branding, financing your business, hiring firing procedures, policy etc if that is your goal, to learn practical stuff not just bookish theory blah blah then subscribe to this kick-ass website right now!

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