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Does It Really Take Money To Make Money?

9 min read
Money to make money

We all love to be set free from the limitations of a job. Once in our lifetime, almost every person has thought to pursue his/her dream and become an entrepreneur and watch the idea becoming a reality. However, the one thing that has been a big blockage is Funding. The need for money to run a business and earn profit exists since long.

Questions that have been prominent for ages and most of us believe it to be true; does it really take money to make money?

The general notion is yes, it takes money to make money because you need to invest and only after that your business would offer ROI. Very true, the installation, setup salary and much more costs you in the start but as soon as the business flourishes, you reap the fruit.

But, as per my understanding, the question at the first place is wrong. It is not about, does it really take money to make money? Rather it is about, how much money it really takes to make money.

It is a Give and Takes relationship:

Starting a business is a great idea, especially when you have money to invest. But, the better idea is to invest in a business that demands comparatively lower investments but offers higher returns. You must be thinking, this is what all of us want, but not all of us have the right approach. Business is a give and takes relationship, but with wise planning, you can take much more than what you give.  Right idea, at the right time, may reap you immense profit, without shelling out much.

Wondering how? Follow us down:

Start with Small to Grow Big:

Unless you have accounts stashed with money, you need to be wise in investing your hard-earned money. Starting a business that eats all your savings and then makes you wait for the profits is not a great idea to contemplate.

You must start from something small and wait until you grow big and run a lucrative business. Let us make it clearer.

You are an entrepreneur eager to launch your own business. Opening a restaurant is what you are wondering. Great move, food is a necessity and people love eating outside, especially in today’s era of hectic & fast life.

Now, the basic expenses that you need to make the start of the business would be:

Staff: Rs. 50,000/ month (a crew of 4-5 people including 1 chef, 2 waiters, 1 helper & 1 delivery boy)

Rent: Rs. 65000/ month

Utensils & Equipment: Rs. 2 lakhs

Furniture and another setup: Rs. 1lakhs

Utility bills (electricity, gas, water, etc.1): Rs. 35000 / month

Your total expenses would rest around: Rs. 450,000.

When you start a business you need some pool of money to support your business for at least 3 months.

Assuming the same the expenses now you have to make will be around:

Staff: Rs. 150,000

Rent: Rs. 65000/ month

Utensils & Equipment: Rs. 6 lakhs

Furniture and another setup: Rs. 3lakhs

Utility bills (electricity, gas, water, etc.1): Rs. 105,000 / month

Total expenses: Rs.  1,220,000

This indicates that you need a great pool of money to start your business. But on the other side, have you ever thought why you need a full-fledged business? You can start a delivery service instead.

This would affect the initial investment to a large extent. The cost of the location would be lower; you can run delivery services from anywhere. You can do with a small space and fewer utensils. In fact, you can save on your utility bills as you do not need extra gas or electricity.

The calculation will be now:

Staff: Rs. 150,000

Rent: Rs. 40000/ month

Utensils & Equipment: Rs. 2.5 lakhs

Utility bills (electricity, gas, water, etc.1): Rs. 50,000 / month

Total expenses: Rs.  4, 90,000

A small alteration in the business model and viola, you have a great plan to run ahead. You can trim the investment more if you wish. How? Why don’t you run a delivery business and instead of making your own food, help those who are already established as eatery businesses and looking forward to expanding in delivery? This will reduce your expenses considerably, and with the service in demand, you will earn handsomely.

Staff: Rs. 60,000

Rent: Rs. 15000/ month

Utility bills (electricity, water, etc.): Rs. 20,000 / month

Total expenses: Rs.  95,000

This is just a rough idea and in the real world, the costs are even lower than what we have quoted here. This certainly gives you an idea of how you can make money without investing everything you have. It’s simple you need to keep it small and work hard till it becomes bigger. It will one day, and surely you will earn a lot of money.

There are many ways to make money, the only thing you need is a great business model and an impeccable business plan.  Keeping it small gives you focus and thus you can make money. Making money does not need money but it needs intelligence and smart work.

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