Hello My Steemain Friends ,

Today I am writing about an interesting Steemit Engagement Challenge S29- W5: which is all time my favourite topic ""“Thinking and Ideas!| Ideas That Failed (and Why)!” """ this amazing challenge organised by @ninapenda.

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Unsuccessful Idea

(Taking a loan and supplying large quantities of goods to customers)

We have a grocery store where my husband sells both retail and supplies. Our goods are supplied to hotels. However, nowadays, competition is fierce, and even if someone starts a grocery business with very little capital, the profit isn't as impressive as the hard work involved. This profit also depends on the quantity of goods sold and the margin we earn on those goods.

My husband received an offer. A friend of his friend had opened a hotel and needed all the goods from our store. He was a fairly wealthy man. When my husband was sent a WhatsApp order for the goods, stating that he would pay for whatever goods he supplied within 10 days, he saw the order and calculated it. He said it was at least ₹35,000.

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But I don't have enough capital to invest so much in just one person for 10 days. I said, "Look, we have to take a risk. If we want to make a profit, they're buying such a large quantity. If they buy goods three times a month, our profit will be the same, so we'll have to take some risk." My husband agreed, but he didn't know where to arrange the capital, as our money was stuck in the market. So I suggested we take a loan against our LIC and repay it gradually. When we started making a profit, my husband agreed. He took the loan and started supplying his goods to the hotel.

The original intention behind this was to earn a large profit and grow by selling goods in large quantities, thereby increasing our profits. This would also promote our shop and reduce our stress. Because when you supply more, your chances of getting more supply increase, so we wanted to expand our employment so that we could provide a good and healthy lifestyle for our children.

In my opinion, this failure occurred because we were selling quality goods. However, the other party, who was supposed to make the payment on time, withheld our payment, and if they did, they did so in very small installments. Even the payment of ₹35,000 was paid in three installments. This resulted in our capital being wasted. When capital is wasted, you start incurring losses. Because how can you invest capital repeatedly? And even if you manage to invest, if the other party is not paying properly, you will still incur losses. That's why our idea failed.

If given another chance, we'll take an advance before delivering any goods to anyone and also draft an agreement stating that, whether large or small, the loan is for a mere seven days, and if they don't pay within seven days, they'll have to pay interest. Because when a person has to pay interest, they pay on time. This will benefit us by ensuring our capital isn't wasted, the other party won't be able to defraud us, and our business will thrive. Because sometimes, being straightforward is crucial.

I want to invite my friends to take part in this contest: , @paholags , @lirvic , @tasonya"

Thankyou 🙏

Greetings