What investment for small business will workout and How?

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 What are the investment for starting a small business?

1. Building for unit
2. Machineries for production
3. Raw material for making finished goods
4. Other expenses for 6 months time period 

Investment should be based on your :

1. Potential volume of sales
2. Return of investment flow
3. your expected Profitability 

• Potential volume of sales:

Example: 

If your base market is able to consume 4 lakh sales of your product per month, then we can expect the sale of 20 lakh per month around 300 kms away circle, but out of that it is tough to expand your sales volume within small business.

If your base market is able to consume only 2 lakh sales of your product per month, then we can expect the sale of 10 lakh per month around 200 kms away circle, but out of that it is tough to expand your sales volume within small business

Base market consume is 4 lakh per month - you can invest up to 20 lakhs 

Base market consume is 2 lakh per month - you can invest up to 10 lakhs

• Return of investment flow:

Example:

As start-up business have tough times initially on selling products they will face struggles to meet their expenses and purchasing working capitals. If you have invested more than 20 lakh on a single product your working capital, Interest, EMI get you down from performance in the mean time you will do more expense on marketing that further more increase your burden.

• Your expected profitability:

Example:

Invest 10 lakhs

If you are young before getting in to job starting a new business, expect your owner's hand fund limited to what at present you will get as salary into a job, if fresher salary is Rs. 10,000/ month expect the same in your start-up.

This descent expectation will give a growth of increment 50 to 100 % in the next year 

Invest 20 lakhs

If you are employed more than 5 years then you will having experience of observing, slow and steady skill to manage the business, If you are getting more than 50,000/ month expect the same in your start-up for 1 year time period.

This descent expectation will give a growth of increment 25 to 50 % in the next year.  

SMALL BUSINESS GROWTH FROM YOUR STAR-UP !

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