How to understand Ramen Profitability in 5 minutes?
The term Ramen Profitability means , earning profit to cover the daily expenses of the owner. If you want to know how it is different from a traditional way, the latter has an initial investment, then it achieves break even and then profitability, whereas the ramen way is that the profit will be very less and will be achieved immediately.
For example, a company will have only one owner and the person will earn $1000 immediately after starting a business, whereas in a traditional business the person raises funds of $100 million and generates $500 million after 5 years.
Some of the advantages of ramen profitability are:
(i) investors will have confidence in the person
(ii) investors will know you’re serious about building things people want
(iii) investors will know you’re disciplined enough to keep expenses low
(iv)it increases your morale. you feel like you have achieved something in life when you get that huge amount to cover your expenses.
My sincere advice is that this concept will be useful for young students who are interested in earning money. The risk is very less compared to traditional business and thus people will have that confidence in doing business.
