The product is priced at Rs. 200 per unit. Out of which Rs.50 are straightaway yours and Rs 25 goes to the person(shopkeeper) who sells the product. the remaining goes to making of product, labour, shipping, other bills and some profit for the company
Thus you would be buying the product at Rs.125. It means for your profit on one lakh there is investment of 250000.
Opps many people won't have that kind of money to spare or the heart to take risk although there is neighlegible risk, your mind may not simply allow you. What can you do ? Ask for your local bank for a loan, bring a friend as partner or if you have money invest.
If you are taking a loan you should do the following.
Of the profits keep only 20000 with you, with the rest repay your loan
you should be away with your loan with 4-5 months.
Those
Tip- The amount of investment you'll make also will depend on the area population. For example mumbai area has lot of potential. A semi urban place like Dahanu has less.
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