Hello,
Tier 2 cities possess a great potential for various reasons.
1- Spending potential is comparatively higher given high disposable income.
2- A wide range of options are not available to customers.
3- A personal touch exists between Seller and Buyer.

Now the question arises what kind of business should be started under such circumstances.
Tier 2 cities gives you the flexibility to choose among wide gamut of Product based businesses. Also services such as Broadband connections, Couriers, Financial services etc can be rolled out easily.
A one stop solution shop for Startups and existing businesses is available in the form of ‘Business Suvidha Kendra’ Franchise from FranTiger. You can setup under ₹1 Lakh in your Pincode.
In all, the budget you have chosen gives you room to choose. Enjoy the journey of entrepreneurship.