I am in Nepal and want to start my own business but have limited budget around 10 lakhs. What type of business I can start in Nepal within this budget?

I think opening a bar or restaurant is good.

 Where in Nepal are you Shyam-ji ? kathmandu valley- Pokhara ma ho bhaney there are a lot of options I think haina ra ? What kind of field are you looking for(ali ali research ta gardai hunuhuncha hola ni haina?) 
as said above by Hover_over opening up a bar or restaurant is one,
aajkaal tourism is also picking up re why not invest on that ? 
if you are interested how about starting a farm ? like dairy farm or animal farm or vegetable farm 
if you are in terai how about fish farming ? Nepal ko 60% fish India bata import huncha re .
How about opening up an adventure sports agency (I dont know if 10 lacs will be enough for that though)
or if you are not interested in laborful jobs like farming How about euta pasal kholney basney....

Huna ta dherai thaha chaena but just suggestion matra gareko la ..... Janney bhayo nabhannu hola...

Restaurant sector is highly competitive. These days, there are fancy restaurants all over the Valley and places like Jhamel (Jhamsikhel, Sanepa), Pulchowk have seen a surge in terms of number of restaurants. Also, rents are likely to be significantly high. I know for sure that there are some restaurants that are paying abt 150-300k/ month just for rent.

As such, I reckon 10 lakh might turn out to be a meager sum in that sector. 

Boutique might be a decent idea but then again, you'd need to know the business inside out. How about Spa/Saloon or choodiyon ka dukaan? 

 Any other suggestions for an educated guy. I might open one business out of the valley.

buy a second hand mini truck and do delivery services of any kind. as you gain more knowledge of market, you can then expand your business with more trucks and taxi services.

10 lakhs is a lot of money man

u just need 20k rupees to open makai bhatmas , trust me u will make more than 1k per day  and ur profit sure for 700 plus, u know lots of nepalese walk and they are the buyers and u can open franchise after that.

or else momo pasal , footpatte, they are money maker

for educated, toilet flushing job

u know the technology in usa, u can use air flusher which nepalese hardly have , and there are lots of shit jam, and u will make a lot of money
or plastci collecting and  recycling

 Thanks guys for the information. I am still searching any business in that budget limit. I think sajha has more people who are doing business in Nepal. Just need some suggestions. 

Bamboo business.
grow bamboo in big land.
you can build great houses from bamboo, great furnitures, and a lot more.
bamboo is easy to take care off too and grows really fast.
if you don't have land, rent a land.

"Recycling" is a decent shout. You might end up getting some govt. subsidies if you took approached them with a decent plan. Mno's suggestion is pretty decent, too. 

What about starting a service like grubhub or even something like groupon for that matter? You need to have a good marketing strategy, though albeit having proper connections w/ hoteliers and restauraneurs will come in handy too. 

 I think riddle ra mno ko suggestion is very good too..... 

@mno : tara land rent garera bamboo plantation garna would the land-owner agree??? Nepal ma jagga bhada ma dinasath je pani garna didainan ni jaggadhani haru le..... other than that I like your idea....

@riddle : tyo restaurant business saturate bhaisakeko chana ni haina ra.... if there is something innovative and a new idea is catered to quench the thirst of "Its something different, lets try it " wala feeling then it will work I guess..... I like your second idea a lot... of recycling tara yaha pani government subsidi pauna alik garo cha re achel.... I was looking at a palstic recycle small company in kathmandu's report and they were making decent amount....

Nice ideas.... 

 There's money to be made in food industry, no doubt. I mean, you can open a really great pizzeria or a Greek/Mexican restaurant in Kathmandu that'll lure many Nepalese and foreigners alike but I have high doubts 10 lakh will suffice. That won't even be enough to cover for 6 months rent and when you start a new Restaurant, your venture might take 6-12 months, and in some cases, years before it starts picking up. 

बेतको furniture ko pani ramro business huna sakcha, they are good and durable .. can make kursi, sofa too.. i love them..

when I had a jam in toilet, i have to spend around 5k, over i have seeen a air flusher, they have such power that they can blow anything away, and seen in sewage disposal unit, that can be very profitable bussiness.for sure if one doesnt have local client, they can have hotels, embassy, schools as their client

or one can have movable restroom just like construction ppl used during construction, nepal govn has no fund to make and clean toilets in public area, u can be millionaire if you just put in public area.

plastic recycling is doing awesome making water tank, i dont know which are recyclable and which arn't, but i have seen one near my home , they are doing great and make cheap water tanks and drums.

or one can be saddhu and stand near tourist area and they will take pictures and give money, honestly i have spoken with one sadhu in hot tourist area, he owns lots of cars being used as taxis, his job just stand near tourist and they will take pictures.

10 weird reasons to start your business in Nepal now

Posted on January 10, 2012

Here are my 10 weird reasons for you to start a business in Nepal now.

1. Overwhelming majority of educated people opt for a non-profit or government or private sector ‘jobs’. (leaving the race wide open for you). Go and start a company without competition, attract all these smart people to work for you.
    
2. There are crisis all around (electricity, water, fuel, communication, inflation). Remember crisis is an opportunity for an entrepreneur, and for you to become a billionaire while serving fellow Nepalese.
    
3. High unemployment rate (45%) (and perhaps more among youths) means you can build a team around motivated youths looking to stay employed. Plus, you get their goodwill and loyalty to build a sustainable company for the long run.
    
4. Rest of Nepal is still beautiful and now awaits you, thanks to everyone moving to big cities like Kathmandu. Now go, build an opportunity around this while making an impact by serving in rural areas discarded by most.
    
5. Youths are leaving for work abroad,(560,000 in the last 11 months), which means less competition for you to implement your ideas.
    
6. Workers abroad (2.5 million or more) send back more than US $3.5 Billion a year. Find out how to make a good business catering to them or their families. The market of the poor is huge! Serve these billion dollar customers!
    
7. Many of your competitors might be taking the short-cut to success by being corrupt. Take advantage of this unique situation. Learn that they can never compete against you in terms of transparency, honesty (and probably quality also). Win business from honest customers by showing your good track record and intention! If your corrupt rivals try to out- maneuver you, challenge them to open their accounts, and get the sensation hungry media on them or the government watchdogs to inspect them! (For example Open a good hygienic ‘gudpak’ or sweets shops to out-compete with corrupt, shady ones that exist today. You would win! )
    
8. We are fast becoming a consumer driven nation. We buy a lot and throw away a lot. From cloths to recycling there is opportunity. Why do you think there are 1000′s of families dedicated to recycling our trash? Why do you think shops after shops are opening in Malls? Serve our consumer driven nation with quality, affordable price and superior service!
    
9. Industries built right after civil strife or wars can last for a long time as proved by the industries that opened after the Second World War in much of Europe and US. So start now when there is less competition. And we just stopped killing each-other i.e we got out of the civil war.
    
10. No one cares. The old system is crumbling and there is no more of the strict societal bias against entrepreneurship. “Making profit is good” mentality is on the rise. Time for you to quietly shine!

I think I came across it on THT or myrepublica sometime last year, MNO. I don't agree with the notion that the "race is open". There's a significant competition in a number of sectors. Innovation is the key. If you bring new stuffs, knowing exactly what you're doing will come in pretty handy. 

Bear in mind, due to lack of strict laws in regards to copyrigt, patent etc, people are likely to copy whatever you do and start doing it in no time. Remember Pashmina, Pool/Snooker Halls, VHS/CD/VCD/DVD stores? So much so, you'd see a pool hall in every galli. There were CDs and DVDs being sold in Kirana pasals everywhere. The entire Pashmina market collapsed due to same reason. Everybody started showing interest, knock-off items started replacing the real product. Some people actually lost a ton of money on their investment. 

You could look into small-scale industries in neighboring countries like India, Sri Lanka and Bangladesh and get some ideas on profitable businesses. 

mno, You haven't mentioned a very important point which is government's role. We don't expect government to involve in business but they should create a friendly environment for entrepreneurs. Can you count how many politics parties in Nepal. King. Maoist. congress and list goes on. No business can survive if environment is not good.

Just provide the stable environment, business will grow automatically.

 sajhamitra, he didn't write it. It was nicked from some other magazine/website (not sure if he intended to 'nick' it and/or why he forgot to cite his source). 

you have to be expert like microsoft to be copycat and thrive. Else if you are doing something which you have skills and knowledge of nobody can exactly copy your idea and customer service. Still there are pasmina, garment and carpet industry in Nepal. The people who tried to copycat did not last. But who have skills and knowledge are thriving to date in any industry like waiwai (many chau chau sprouted and vanished), bhatbateni (lots of sprouted competitors) etc etc.

Look at those travel agencies sprouting in Nepal. Some thrive some don't. Who have great customer service can attaract, others die.

All human being should know teachers give everyone in the class same lecture and homework but not all the student come first.

You do not have to look at other countries for small business, there are lot of examples in our own country.

If you think about all the hurdles, you are better off not doing business. 100% security not guranteed anywhere in the world.

 Too many smileys, there, Mno. Did you nick your post from somewhere else? Jokes aside. I concur.