Is it true that capital of 2M cannot give you a profit of 50k a month as alluded by some fellow?

In an interview, Eng Evans kimori opines that currently in Kenya, There’s no business you can invest 2M in and get 50K net Profit monthly. Many disagreed with him with some even claimed they can repay it back within few months but business people claimed otherwise. To me i think people need to understand the differences. For people in business they can make 50k with 2m investment since they know the game. it’s easy for whoever has never had that money think if he had them he would multiply them. If you have them, you stand a higher risk of losing them than multiplying them.

i know it possible to make 50k to those explain to me how you gonna move that business from zero to 50k a month with no prior knowledge in business.

Do luck plays a role in business

You can’t earn 50k a month just passively investing 2M but you can theoretically do so in business (if you don’t consider the value your own labor an expense when arriving at profit)

Let’s say you want to do wedding photography, you can get equipment for 2M and pull 50K a month profit excluding your labor but your labor is really what is generating that income.

@Gerald
You can’t pull that sort of money as a photographer every month. Not even close

Here is one example: Uber

A Demio might cost you 1.3M or 1.4M and another 90k for insurance. If you’re a regular 9-5 person you don’t have a PSV licence so you’ll spend maybe 18k total getting that. Some other small small things and you finally can be an Uber driver. Now after all the things you have to do you will be happy earning 40-50k on the app. But thats just the amount you’ll get from uber (lets say even 15k weekly to be generous). But you haven’t counted the fuel you put in the car which might be half of the amount you get at the end of each week. Uber drivers also have to contend with city council and traffic police bribes, service the car regularly, the inevitable repairs needed. Also you need to put money away every week for your future insurance sticker which is coming up in just a year.

So with that model yes, there is no way 1.5M to 1.6M wlll get you even close to a real profit of 50k-60k

Not possible to make 50k profit with 2M capital. It might be 50k in revenue or sales but not profit.

Callen said:
Not possible to make 50k profit with 2M capital. It might be 50k in revenue or sales but not profit.

[deleted]

Mia said:

Callen said:
Not possible to make 50k profit with 2M capital. It might be 50k in revenue or sales but not profit.

[deleted]

Were you paying income tax and vat on your sales as well as PAYE on the money you paid yourself? Of course not. There is no legal way to make 50k profit from 2M. Whose land were you farming on?

@Callen
Taxes tu ndio sikua nalipa. You don’t pay income tax for casual labour. land was leased. You ignored the part where I said with 10 acres that is an easy 560k per month. Even if I paid income tax I would still make significant profit. Value-added tax is for complete goods. I was not supplying to supermarkets or wherever. Realistically, the flaws in the system empowered how I operated.

It is a matter of which business you are doing. Farmers with hundreds of thousands of acres are selling produce subjected to those etims taxes and still making bank.

@Montana
Kama hukulipa taxes wewe na drug dealers mko category moja ya illegal businesses. Let us keep this discussion to legal businesses. Unasema casual labourer anaeza lipwa 1m bila taxes? Sawa sawa.

@Callen
No hard feelings :joy::joy::joy:

Mia said:

Callen said:
Not possible to make 50k profit with 2M capital. It might be 50k in revenue or sales but not profit.

[deleted]

I’m curious, don’t you know that there might be a revenue assistant somewhere reading this post?

@Coin
What’s he/she going to do? Fuck KRA.

Montana said:
@Coin
What’s he/she going to do? Fuck KRA.

I have the same sentiments.

Callen said:
Not possible to make 50k profit with 2M capital. It might be 50k in revenue or sales but not profit.

Y’all Just be thinking so much. PersonX started his business with 100K na pockets slightly higher amount.

@oliviamartin
That’s jaba. That person did not pay themselves salary, they did not pay taxes and so on and it took time. . The equity grew over time before it started generating revenue and profit. We have established corporates making losses, don’t think you will do magic with 2M.

50k of profit from 2m of capital is a return of 2.5% in a month.

Compounded over a year that would be 1.025^12 = 1.345 = 34.5% return per year.

Compounded over a decade that would 1.345^10 = 19.358 = 1835.81% per decade.

That would make you better than Warren Buffet in his prime. If you were that good you wouldn’t be on Reddit asking questions, you’d be in your superyacht with billionaires begging to invest with you.

@Darian
Not to mention especially if it’s a start up, there’s alot of learning curve and mistakes… Even if it’s somehow magically possible to make 50k profit from that investment, there’s no way in hell it do that from month 1.

Most businesses don’t turn a profit in anything under 1-2 years… Let alone return the initial investment via retained earnings.

That’s why most business owners shouldn’t give themselves a salary until year 4 and 5. And why businesses where the owner withdraws money kujilipa kidogo fail.

if it was that simple we would all be rich

Daryn said:
if it was that simple we would all be rich

Interestingly enough if it was that easy we actually wouldn’t all be rich.

Market forces, demand and supply would quickly rush into that unicorn business niche and quickly set the profit at equilibrium… Only the people who make money would be the guys who went in, invested early and divested.

@Noa
…and there goes the rabbit hole