"There is a saying that a giant chariot can be moved from its resting place, if the entire village pulls it together. However difficult a task is, if several people work together, it can be accomplished. Don't you agree?" asked Palani.
"But how can we start and run a business, when we don't have any experience in the line?" asked Velu.
"We are ten. Each can bring in ten thousand rupees as his investment. We can start a business with a capital of one lakh rupees."
"What business? How much profit we can earn on an investment of one lakh rupees? Can we generate enough income to meet the needs of all the ten of us?" countered Velu.
"Velu! it has been more than a year, since we had completed our college education. None of us has got a job. When I was talking to the proprietor of the supermarket in our area, he suggested a business proposal. He will supply groceries to us at wholesale prices. We can sell the groceries to the small shops located in the surrounding villages. Since we can offer the groceries to them at lower prices, they will buy the groceries from us. We need to deposit one lakh rupees with the supermarket. The supermarket will supply us the goods on credit. We can pay them after we sell the goods to the small shops and collect the payments from them. Each of us can carry the groceries in our two-wheelers and sell them to the shops in the nearby villages. We will try to sell the goods for cash, by offering them at lower prices. However, we may have to sell on credit to some shops. We will be able to generate sales of fifty lakh rupees per month. Even if we take the profit margin to be five percent, we will get a profit of two lakh fifty thousand rupees per month. that works out to twenty five thousand rupees per head. We will be able to increase our sales and profit over a period of time. What do you say?" asked Palani.
"First of all, we should identify the villages in which we are going to do our business. We should then visit those villages and check how many small shops are there, where they are getting their supplies from and at what prices. We should then make an assessment about whether those shops would buy the goods from us. Only after making such a study, we should proceed with the idea" said Velu.
"Hey! What are you saying? Can we do market surveys as the corporates do? Can we get a business opportunity at such a low investment? We are ten. If all of us put in some hard effort, we can definitely get good results" said Kumaran.
Though the other friends didn't say anything, it appeared that they were ready to proceed with the proposal outlined by Palani.
"I am sorry, friends. I cannot join with you in this venture. I strongly believe that venturing into this business, without making a proper study is not wise. My best wishes for the success of your business" said Velu and took leave of others.
After Velu had left, the remaining nine people decided that each would invest fifteen thousand rupees to start the business. It was also decided that the sum of thirty five thousand rupees that would remain after paying the deposit of one lakh rupees to the supermarket would be utilized for other expenses for starting and running the business.
Six months passed since Palani and eight of his friends had started the business. Only a few small shops came forward to buy groceries from them. Most of the others said that they had already been getting the goods at wholesale prices from some big dealers.
Those who bought goods from them demanded credit and paid for the goods only after several weeks. But the supermarket was putting pressure on them to pay for the goods supplied to them by the supermarket.
Two of Velu's partners got jobs and quit the business. Four others lost their enthusiasm for the business and stopped working.
Only Palani and two others were continuing in the business.
Palani realized that given their inability to procure goods from the supermarket and the inordinate delay in getting the payments from the shops to whom they had supplied the goods, they could not carry on the business any longer and that they had to wind up the business.
But Palani was worried how they were going to pay the dues to the supermarket.
Section 2
Acting After Due Consideration
pORRinum poththup padum.
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