Question

Give an example of a personal purchase or a small business investment venture. Do you think that you made a good investment of your hard-earned capital? Why?

Answer 1

An example of a small business investment venture.

Myself along with a friend of mine started a gymnasium in our locality. We needed around $ 15,000 to rent a place, buy the gymnasium equipment and do some advertisement work for our gymnasium. Each one of us contributed around $ 7,500 to start this venture.

Do you think that you made a good investment of your hard-earned capital? Why?

Today the gymnasium had been operational for about a year and we have a good foot fall of customers. We have around 50 active customers who come during the day on monthly subscription model. We are generating around $ 500 as surplus every month after taking care of all the operating expenses. At this rate, we are expecting around 15,000 / 500 = 30 months to hit the payback.

I sincerely believe that I made a good investment of my hard earned capital. It has a simple payback period of approximately 30 months which I believe is a decent time frame. Besides, the gym is helping around 50 people to regain their fitness and health. Hence, on monetary as well as social front, this investment has turned out to be good.