What are some good businesses to start?

February 10, 2011
Question & Answers (video)

Very first, Rs. 5 crores is not "large capital". It's small-ish money, regarding starting most businesses in Asia today.
Second, I'm not yes what your price is to find the Rs. 5 cr. Must you return it? Will there be a RoI hope for anyone who is giving it to you? have you been getting hired free and obvious with no expectation of any return? Whenever, when, do you need to return it?
Understanding all of this will play a key component in suggesting what forms of companies you can start.
We apologise, this is simply not really an answer to your concern - but i just cannot suggest stuff with no knowledge of and comprehending even more.

Given that there is a clarification in the question, I'll simply take a stab at some form of a remedy.

You are taking an unsecured loan of Rs. 5 cr (US$840, 000), while pay quick interest at 1per cent each month - that is Rs. 5 lakhs (US$8, 400) every month - and also at some period - let's say five years or more from now you must get back the key in complete

Rs. 5 lakhs 30 days in interest expenses alone isn't a small amount, in addition. Additionally you desire some income / make money from this to enhance your wage of Rs. 60, 000 (US$1, 000) a month. Suppose you wish to go up by Rs. 100, 000.

So now the business enterprise must generate profits of Rs. 600, 000 from month 1, on a good investment of Rs. 5 cr.

Wow. Break that straight down - Rs. 20, 000 each and every day (US$335) from thirty days 1. let's hypothetically say your business has many unreasonably large profit margin in the end operating costs. Say, 35%.

This means your online business must create (600, 000/35percent = Rs. 17, 15, 000) in revenues monthly. Or about Rs. 70, 000 per working-day. Or higher Rs. 2 cr in annual revenues on Rs. 5 cr in investment. In annually.

While you're paying fees, you'd must generate Rs. 3 cr, pay ~30percent in fees to be kept with Rs. 2 cr.

A 40% to 60percent IRR, basically were to make use of the term loosely.

And also you wish personal impact from your own financial investment also. Double wow.

And contains to run without your continual input Triple wow.

And contains becoming lasting - for example. after the loan is repaid, it has to nevertheless be a business which aids it self. Quad wow.

Actually, I'm not sure a lot of companies that can perform that. But here are some thought-starters:

1. Beginning a financing business. Micro-finance, or what you would. If you're able to work out how to do risky financing, you might earn 2.5percent to 3.5per cent four weeks - and then total up to that 40percent to 60per cent IRR. But I'm uncertain ways to try this on a hands-off basis, and not suffer periodic reduced money or delinquent consumers.

2. Begin a MLM business. I personally detest ecommerce - and won't offer the financials - i am certain there is it elsewhere online - but it would fit your requirements. But you run the risk of getting arrested or lynched by unsatisfied down-liners. I suppose if you have effective benefactors who can lend you a massive sum with no security at a minimal rate of interest, they are powerful adequate to bail you away.

3. You are able to sell medications. Ditto to your technicals as overhead.

4. Perhaps you can purchase land and develop some type of 60-room resort about it in this quantity (tough but possible) after which charge Rs. 4, 000 or Rs. 5, 000 a-room evening while making the Rs. 17 lakhs monthly on an average of 30per cent inventory fill over the 12 months. Have no idea the personal price etc. here. And I also do not know ways to repeat this hands-off really.

Source: www.quora.com
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