When we think about small businesses in Sri Lanka, our second thought would be these :

  • Initial investment for business
  • Rising working capitals for the business
  • Location, rent and the rate
  • Other related expenses.

But, there are so many businesses those are running with huge profits without much problems.

For example,

1] Selling kingcoconut

at pavement

When I mention selling king coconut as a small business, people may think, is it a small business? Or is it generating good enough profits?

Here are some reasons and calculations to solve your confusion.

It’s a one of the most consumable goods in srilanka. Mostly everyone would like to drink it for their thirst and it is good natural tasty fresh drink. When the sun burns hot, people get tired even if they walk for ten minute. So, when they see a kingcoconut shop they will think of drinking it. So, its no wonder as the road he seel kingcocunut in road and when lots of people passes by his shop atleast 1/10 of people prefer drinking king coconut.

The success of this small business [king coconut]lies on identifying a correct place and open a small shop. The place he select should be mostly used by people for their day to day works.

Revenues and profits calculations:

The person who sell king coconut can sell minimum of 50 [and maximum depend on his skill] per day in Colombo area. If they can sell each at Rs.30, and if he purchase it for an Rs.15 his profits is purely 50%. For a day he can earn a profit of Rs.750. If he works for 25 days, his total profit will be 18750. But these profits will not remain same. There will be ups and downs in the sales.

His total profit would go up by 2nd or 3rd month and he may earn Rs.30000-35000 for month. It depends on his communicational skills and the socialisation skill.

In accordance to Sri Lankan labour market, an assistant accountant’s monthly salary is about Rs.20,000 – 25,000. So doing an own small business will be better than working under anybody.

2] Lottery tickets

In Srilanka lottery tickets are the mostly purchaseable thing in the public.

But as per my concern the people who buy lottery tickets are foolish and don’t have self-confident on them. They rely on thier luck and buy the ticket with the dream that they will win one day.

But I am bit happy, because it make some business opportunity to some entrepreneurs to sell the lottery ticket.

Their revenues are depend on the number of lottery tickets they sells, but these business opportunity makes a quite enough profit to make their business success.

5 Comments for this entry

  • but in srilanka there is rule has been implemented by the government not to sell the products near by street……. ( Barriers for the business)

    • prasanna says:

      but in colombo there are so many small shops developed by the municipal council. and
      and theses rules are applicable for few days…

      and what i mention here is, once they developed their business they should find a proper way to developed their business with other opportunities. than only they will be a businessmen….
      otherwise they will be looser….

  • Naren says:

    your king coconut example was nice. but one little calculation made me to think. “If they can sell each Rs.30, and if he purchase it for an Rs.15 his profits is purely 50%.”

    just want to ask you what the HELL is this?

    let me put it this way. you buy for 1 rupees sold for 2 rupees. is that 50% …???? THAT IS 100% PROFIT.

    sorry buddy, telling this not to annoy you, or tell you i’m clever. but to start a business you need accurate figures. for loan purposes or for your strategy plans you need accurate figures.

    • prasanna says:

      hi Naren,
      thanking for point out the mistake,
      between we can consider the profits from the selling price as well. as we call profit margin. than its 50%.
      if we consider it as markup, than it should be 100% as you said,

      anyhow thanks for point out.

  • maria andros says:

    Great work keep it coming, best blog on earth

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