How can I earn Rs 1 crore in one year?
Even below does not guarantee to make you 1 crore in a year, however you could make a lot of money in a year if you follow these steps.
Note: I am fully aware that this answer is easy to write but a lot difficult to implement in reality.
As web-designing is the only skill that you posses currently, they best way to monetize is to provide web designing services. If you live in a tier-1 or a tier-2 city then there is a good market for it. Apart from web designing you will need to incorporate the skill of selling your services.
To make it easy, I have divided the entire task into 4 sub-tasks.
The beginning(Self- Employment stage)
Month 1 - 3
Start approaching small business owners in your city who do not currently own websites. Now a days people pay up to 25K INR for a website. But as you are new, offer them a website for 15k INR.
Now making a sale here is not as easy as it sounds, usually the conversion rate is 10%. i.e if you approach 100 people 10 people will buy from you.
Our goal is to make 24 sales in the first 90 days.
To make 24 sales you will have to approach 240 people.
So each day you will have to approach at least 3 people, which is entirely doable.
Now as you are familiar with making websites you could easily design 24 websites in 3 months, which comes out to be 2 websites per week.
You sold each site for 15k out of which 3k is spent for domain name and hosting services, consider other 2k as your personal expenses. So you made 10,000(Per website) X 24 (Sales) = 2,40,000.
Statistics for Months 1-3:
Total people approached:240
Sales:24
Profit per website:10k.
Net Profit: 2,40,000.
Where you could go wrong :
1.You might not even start,considering this is impossible.
2.You might give up too soon after facing some rejection from people.
Month 4 - 6(Small business stage)
Now as you are well established with good number of clients you could raise your prices to 25k/website. As you have some capital in hand now its time to scale up and hire some people to help you. Also provide more quality in your websites.
Hire 2 salespeople and 2 developers(interns)
salesperson salary: 15k+5k fuel/month.
developers salary(Intern): 15k/month.
As these are full-time salespeople they can reach more clients in a day as compared to you.
Let us assume that each salesman approaches 5 clients a day.
For 90 days 1 salesman approaches 90 X 5 =450 people.
For 90 days 2 salesmen approaches 450 X 2 =900 people.
Now assuming conversion rate of 10% as considered previously, 10% of 900, i.e 90 people will buy your services.
As now there are 3 people designing websites, split up the work, i.e 90/3=30 websites per person in 90 days. i.e completing a website in 3 days which is entirely possible.
After selling a website for 25k lets say you make a profit of 20k on each site. So you made 20,000(Per website) X 90 (Sales) = 18,000,00.
But you have salaries to be paid in this period.
sales people salary:
no of salesman X salary per month X number of months
2 X 20,000 X 3 =1,20,000.
no of Developers X salary per month X number of months
2 X 15,000 X 3 =90,000.
Net profit = 18,00,000 - 2,10,000- (other expenses(10k)) = 15,80,000.
Statistics for Months 4-6:
Total people approached:900
Sales:90
Profit per website : 20k.
Net Profit: 15,80,000.
Where you could go wrong :
1. Hiring people(developers/salespe
2.Hiring good salespeople and developers is another challenge.
Month 7 - 9(Scaling up)
Now as you are well established with good number of clients you could raise your prices to 35k/website. The aim now is to target clients with high annual revenue who are ready to pay decent amount to get a website. Also hire more experienced salespeople to make the sales.
Hire 4 salespeople and 5 developers(interns)
salesperson salary: 25k+5k fuel/month.
developers salary(Intern): 20k/month.
As these are full-time salespeople they can reach more clients in a day as compared to you.
Let us assume that each salesman approaches 5 clients a day.
For 90 days 1 salesman approaches 90 X 5 =450 people.
For 90 days 4 salesmen approaches 450 X 4 =1800 people.
Now assuming conversion rate of 10% as considered previously, 10% of 1800, i.e 180 people will buy your services.
As now there are total 6 people designing websites(including you), split up the work, i.e 180/6=30 websites per person in 90 days. i.e completing a website in 3 days which is entirely possible.
After selling a website for 35k lets say you make a profit of 30k on each site. So you made 30,000(Per website) X 180 (Sales) = 54,00,000
But you have salaries to be paid in this period.
sales people salary:
no of salesman X salary per month X number of months
4X 30,000 X 3 =3,60,000
no of Developers X salary per month X number of months
5 X 20,000 X 3 =3,00,000
Net profit = 54,00,000 - 6,60,000- (other expenses(1,00,000)) = 46,40,0000.
Statistics for Months 7-9:
Total people approached:1800
Sales:180
Profit per website : 30k.
Net Profit: 46,40,000.
Where you could go wrong :
1. Scaling up is a big challenge, you will need to manage a lot of people
2.Some people may not perform up-to their level.
Months 10-12:
Repeat steps performed in months 7-9.
Net profit for months 10-12: 46,40,000
Total net income for the entire year:
Month 1-3: 2,40,000.
Month 4-6: 15,80,000.
Month 7-9: 46,40,000.
Month 10-12: 46,40,000.
Total income:1,11,00,000.
Other expenditure:
Lets assume you need an office space with furniture which costs 30k per month so annual cost=3,60,000.
Computers for 5 Developers cost 5 X 20,000=1,00,000.
lets consider other expenses as 40k a month=40,000 X 12= 4,80,000.
Net Income:
So net income for year- 1,11,00,000 - (1,00,000+3,60,000,4,80,0
In Make Money