Hassaan Khanani

May Allah bless our Homeland with Good leadership and Protect it from INTERNAL and External Enemies

Aameen

This is what we Call Befikri 🩷

A simple formula I have seen many successful businesspeople follow:

Suppose you are starting a business with an initial investment of Rs. 1,000,000. Many aspiring entrepreneurs make the mistake of assuming that this is the total amount they need.

Your initial investment is only one part of the required budget.

You should also keep approximately Rs. 1,000,000 available as working capital to manage cash-flow shortages, operational losses, and unexpected expenses during the first year.

At the same time, you still need to support your household. If your monthly household expenses are Rs. 100,000, you will require another Rs. 1,200,000 for one year.

So, the calculation becomes:
Initial business investment: Rs. 1,000,000
Business cash-flow reserve: Rs. 1,000,000
One-year household expenses: Rs. 1,200,000
Total recommended budget: Rs. 3,200,000

In simple terms, before starting a business, try to arrange roughly three times your initial investment.

This financial cushion gives you the time and stability needed to build the business without making desperate decisions because of short-term cash-flow pressure.

Starting a business requires more than investment—it requires survival capital

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