Jawahar Bhai is in the furniture seconds business for the past 7 years.
The business consists of manufacturing showcases, office furniture and wooden racks from recycled materials. He purchases the materials as scrap when showrooms / offices are vacated. The items are then displayed in a shop to be sold.
His furniture business was doing well until lockdown. During lockdown, his investor got cancer and needed funds badly. He had to sell his godown and store at a loss to one of his employee to payback the investor.
He gets orders from his existing customers on regular basis. To fulfill their orders, he needs a godown where he can manufacture the items. He has seen a suitable place. The deposit and set-up cost will come to 2 Lakhs and he would need 1 lakh for operations — purchase of materials and labour.
For an investment of 3 lakhs, he expects minimum profit of 30k per month. The investor share is 25%. That’s about 7500 or 30% return on investment. A 3 month notice is required should you wish to exit from the business.
Track record of earlier investments:
Advantages of investing in this deal:
1. Support a small business owner
2. No loss in investment. Your investment will be returned when you wish to exit from the business.
3. Investment is secured by post-dated cheque
4. Minimum cost to start a similar venture is 6 Lakhs. Due to shared rental godown the set-up and deposit cost is slashed to half.
Disclaimer:
This is an ESAF initiative to help business owners who have the expertise and are seeking capital. ESAF or its representatives do not stand to gain from the investment. The information is taken from the business owner and is not cross checked. Please do your due diligence before investing.
