#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
42 Comments

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

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.

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).

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.

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.

Nikhil Jain

Do the 5LPM business for first 2 years, then do the 1LPM for rest of life.

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.

Nikhil Sachdeva

Life has its own value. Time is precious and only thing cant be returned. So I would chose 5lc per month

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.

Ankur Jain

Did #1 and regretted. Should have chosen#2. Stability matters

Vinit Mohan

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.❤️

Sagar Goyal

OBVIOUSLY 5 lacs per month for 2 years to Invest quick and achieve financial independence.

1 lac per month is the way to a middle class life forever.

Gururaj Rajur

one lakh per month is not bad for lifetime.. it still will have value.. unlike indian economy turns out to be like Zimbabwe..

Sagar Goyal

do understand that after 5-8 years 1 lac will be equal to like 50k because of recession. Its a bad strategy if you ask me

Gururaj Rajur

even the one crore is also of half value..
Now, what is better 5 lakh for short term momentary gain or 1 lakh lifetime?
But , in f you have proven steady 1 lakh per month many will give loan to start business..

5 lac per month for 2 yeras if it's doomed then invest from earned in business 1 lac per month for life time.
So at the end of two years you will have surplus in hand and monthly regular lifetime income.

Lavelesh Sharma

if it's revenue, you might end up saving more in 1 lac deal, depending on your expenses.

Since it's profit, Basic understanding of time value of money will dictate that choosing 1 lac every month is not even an option here.

Meet Shah

Future is uncertain and we all experience it in this pandamic so it's better to take 1st option.

Nahush Gulawani

5 lakhs per month for two years I will pivot after that!!🔥🔥

Jatin Sachdev

Do one lakh per month on my name
And put a friend in 5lakh per month and act as a sleeping partner

Shailendra Mishra

The answer highly depends on whether both businesses are passive or not

Arbab Usmani

None both are static value

Akshay Borate

I will go with 5 lacs per month. That way I'll have the liberty to create another business that will make me 1 lac per month lifetime.

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