Question

you are about to start a company in hong kong that sale athletic shoes. how much you predict ro make in the 1, 5, and 10 year cycle ?? ( ptofits, the numbers have to make sense) also will this company work in hong kong

150,000 in my own equity

600,000 in bank loans

starting off with 5 main employes and im the CEO/ Boss. probly goimg to need a factory with about 15-20 workers

Answer 1

With 7,50,000 in hand, the company will start with research, plant setup, sourcing of raw materials, production, wages, etc. for the first year. The interest on loan of 6,00,000 will also go side by side.
In year 1, the RO expected is not to be much because the profits can be minimum because of set up cost.
In next 5 years, with production being high, the sales also growing, the profits of 400,000 is expected.
Again, there will be changes in demand, the tastes and preferences of the people will shift and hence the production will change. More number of workers and staff will be hired for same and then in 10 years, the profits of 10,00,000 is expected if there are no external contingencies.
hence, the ro will move from negative to stable and then show a positive graph in 10 years.

If this helped you please give a thumps up