#AskPS
Pankaj Vijayvargiya .

Given a choice, would you rather prefer to do a business with 5 Lacs per month profit but almost sure the business model will be doomed after 2 years.

OR

A business with 1 Lac per month profit but a general notion that it will run for the lifetime without any major abruption.

You can only do one at a time.

Originally Posted Here
21 Comments

Anuratti Vidyarrthi

Slow and steady wins the race

Saurav

2 years is ample time to invest those 5L/m earning to somewhere else

Gireesh Likhyani

5 Lacs per month for 2 years - coz we are talking about a business and not a brand. I can run multiple such businesses throughout my life

Generating more money from first and investing and re-investing in others, but I've to look at the bigger picture here

Also, this post made me realise a lot of things.

Thanks

Burhan Bharmal

Gireesh can't you save up from 1 lac and invest and re-invest in your business, and keep running the normal 1 lac job/business as is without any lose?

If I talk about myself if I'm earning 1 lac a month I can easily save up to 60% of the income and invest it to my side projects 😅

Sorry it's just my thought.

Gireesh Likhyani

Burhan Bharmal Can be done - personal preference.

But it becomes very difficult to save and invest THAN scaling and investing

We are just considering it as a business, and businesses collapse

If you are talking about your brand, then YES, that is what should be done

Also, unpopular opinion: When you have a sense of stability and security - say 1 lac per month for a lifetime you tend to get lazier AF there is a very thin chance of saving and investing

(Example - Most of the people who are doing jobs) Nothing against them, but then this is what the truth is by and large

Burhan Bharmal

That's true. And depends on person to person.

I am doing job and I always find ways to invest by savings and get something out of it on margin basis.

PS: I am not lazy :P

Gireesh Likhyani

Burhan Bharmal <3

Most people bola bhai :P

you aren't most people

Abhishek Mittal

5 lac per month will generate 1cr+ in 2 years almost a very good amount to invest and generate another 5lac per month after those 2 years

Jai Acharya

I will do 1st one and after 1 year 2nd one on my parent's name (since as you said one at a time).

Pulkit Agarwal

kuch bhi likho, konsa asli ma aisa kuch hona ha :P

Shivam Malhotra

well generally its not about how long you're in but about how big you're when you come out.I'll earn a decent amount for those 2 years and side by side start planning for what I've to do after those 2 years get over.With the 5x profit,I'd have enough money as savings (to take care of expenses of while launching something new) and enough money to invest in launching something new.

2 saal mai 1.2 cr or 10 saal mai 1.2 cr.what would you choose? until and unless you're not very financially conservative (which is ok) you wont spend 8 more years doing the same thing to create wealth which you could've created in 2 years.

Shivam Malhotra

and tbh lifetime kuch nahi hota.har business ka end kabhi na kabhi hota hai.

raashan ki dukaan ko grocery app khaa gaye,kal ko grocery app walo ko koi aur khaa jaaega.raashan ki dukaan se better lifelong kaam varna kaunsa tha?

same example insurance agents ka lelo,insurance platforms inki lifelong commissions khaane ko bethi hai abhi.

Deakin Daney

Five lac a month generates 1.2 crore in two year gross profit. With that money I can scale my business or reinvent my business model or do something associated with my business. Lastly I would take my profit and sell my business for 3x valuation. He he

Amit Savargaonkar

The fun fact is - what kind of business it is which will keep ripping off profits till 24 months if you are so sure that it is gonna get doomed. Business always has slow deaths.

If you are able to generate 5L profit for 2 years consistently - your business is never gonna doomed.

Vinit Mohan

Pankaj Vijayvargiya,

5L * 12= 60L

60L * 2= 1.2 Cr

Average Taxable income- 30-32L for both year.

Net profit = 88-90Lakhs in 2 years.

Now second scenario,

1L * 12= 12L p.a.

Suppose you have 30 remaining years-

12L * 30= 36Cr

Taxable Income per year= 75000/-

(After deducting 80G,C and such misc. even thoda or kam ho jayega if we put our CA mind.)

NET yearly income= 1125000/-

Suppose you are investing in ELSS (80C) you will also get good returns in your retirement.

- The only game in the life is consistent earnings.

The other benefits of consistent earnings-

1. Peace in life.

2. A lot of time for new experiments.

3. Good for Investing

4. And much more...

Long term wins over Short term. ❤️

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