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Can The Profits Of That Business Sustain You? - Business - Nairaland

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Can The Profits Of That Business Sustain You? by BunmiAkintola(f): 2:01am On May 22, 2022
Before you consider any business, can you just consider the amount of profits it generates and whether that level of profit can sustain you?

Example: You are a father of 4 who used to work in a bank and lost your job.
Let's assume you have 2 million in savings and you need to start a business.

Then you wake up one day and say you want to start a provision store.
If your children were in a private school where you pay about 250k each term for all 4 kids - you cannot afford that fee with this provision business.

You have automatically signed up for hard times because the margins are very small.
There are several other businesses that you can do and make enough to match your former banking lifestyle, even with that same 2million Naira capital.
An ex-banker I know learnt how to source jobs on Upwork and now does online advisory services for consumer loans.
He earns $200 per hour and does an average of 5 hours a week. He spent 50k to get that training.

My point is simple.
The amount of profit you can make is not necessarily about how much capital you started with - it is mostly about how much knowledge you started out with.
Mr A and Mr B can both be given 2million Naira to start whatever business they like.
One would make peanuts and struggle to survive. Another will not even spend all that capital and strike some good profits.

Don't be in a hurry to start out any business. Rather, be in a hurry to acquire knowledge of businesses that have good profits plus a market and can sustain your livelihood.

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