Dear all, thanks for the support in my previous blogs. I am back with another new content. This is another real life story that had happened in my life. One of my known persons was proposing an idea of starting a business. He has a small portion of place where they can have a small shop. Few months back there was a Coffee shop and that uncle was getting a monthly rent of Rs7000, but the business did not go well, so that person decided to vacate the place. 

Instead of giving that place to a new person, this uncle thought of starting some business in that shop and his wife and daughter can take incharge of that shop. He wanted to have some more income as he need to save the money for his daughter's marriage. His approach was right, he came to me asked for some suggestion. I can definitely give suggestion, but I wanted to understand what was in his mind. So, I had asked him the idea of what business he wants to do there.

He told that, he wanted to start a Browsing center with a xerox shop. That was a very good idea indeed. The first thing I asked to him, are there any other Xerox shops in a nearby distance of atleast 500 metres. He told that, there was one huge Xerox shop nearby and it was doing a great business. I asked, if he is confidence that they can overcome their business and bring some clients for him. He was confident of that. I went to the next question, are you ready to invest some money on purchasing necessary tools and equipments like Laptop, Printer, Xerox machine and other small accessories related to start a Xerox shop.

His answer was a big no. will you be able to avail a loan and purchase these machines, he was a little hesitant. Moreover, this uncle had to return the advance amount of 70000 to the previous shopkeeper, even though he deducts some amount, still he might had to pay a huge sum of atleast 40000. He did not have a chance to return. I asked, if he is sure that this business can make a profit of atleast 7001, not just the gross amount, it should be a profit. Because, that place fetches a rent of 7000 without investment, so the profit must be a minimum of 7001 that too every month.

He had a big question mark, I told there are lot of factors against starting this business. I told him, if he leaves the shop to rent for some other business, he can repay the advance amount to previous shop owner by getting advance from the new business and their is an assured sum of 7000 every month, he can even keep the starting rent at 7500. He agreed to it. This was the business proposal rejected by me. I think, I have done a good analysis and made my decision. 

Please feel free to share your opinion and let me know, If I had made a wise decision.

Thanks for reading, will be back with a new blog.