You must admit it! being an owner bring confidence and self-respect.
Even a vegetable seller treat himself an owner, but actually, he is!
Promptly, he doubles his investment on daily basis, debt-free business.
The retail business model definitely doubles the investment on weekly basis, if executed professionally.
That was the reason most of the BIG FISH like Reliance Industries in India, now one of the retail tycoon.
In this article: I seriously converting my thought into words.
The retail industry in India is expected to grow to US$ 1,100 trillion by 2020 from US$ 680 billion in 2017 – as per the report of ibef.org.
Is it really TRUE?
Yes, it is!
Retails business grab a formula of “fast revolving of money”
What is Fast revolving of money?
Fast revolving of money determines the fast rotation of money invested in a commodity and bring back some profit percentage after selling it.
For instance: A vegetable seller purchases a bulk of potato.
Say 50Kg @ ₹ 10.
And sell all 50 Kg @ ₹ 12
That brings the profit of ₹ 2 per Kg. by the evening of the same day.
My concept is retailed business bring corporate business to the next level.
A vegetable seller makes 20% of profit in the same day.
Because he is selling a commodity with huge demand in society.
List of retail companies in India
According to bizvibe.com top 10 retails industries in India:
- Reliance Retail
- Future Group
- Aditya Birla retail
- Titan company
- Shoppers Stop
- The Raymond
- Avenue supermarts ltd (D-mart)
- Godrej consumer products
My point is:
What brings corporate in retail businesses?
If we look into the figures- A product which was sold from the outlet bring the profit of at least 5% to the company on daily basis.
That means the company can rotate their investment on a daily basis, sitting on a 5% profit.
If we calculate on monthly basis:
That would be 150%.
Am I right?
Although the company in retail business need to spend more on marketing, staff, transportation etc.
The profit will smash down.
But the bottom line they will earn about 500% per annum.
That why a billionaire company only deals in Oil, decide to deal directly with the consumer and enhance their figures.
Also Read: Are you financially healthy? – Self Diagnose
- Hey, Amit Kumar Bansal, the man behind this blog. I always passionate about Taxes, Stock Market. This was one of the reasons why I have chosen the field of account. Blogging was not the coincidence it was a proper decision. The main aim of this blog is to help readers to take an informed financial decision. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.