[Club100] Creative Writing Contest - Edition #01 || What Business Route Will You Take With A 500 Steem Capital?

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Namaste Steem Family,

I like this contest and could not resist participating in it. As I am a new member to this community and do not belong to Cameroon, I do not know many people here, but I would love to know you guys. I like this contest and the idea of exploring the worth of 500 Steem in real life is very attractive. So here is my entry for this contest, and let us see what I do with my 500 Steem.

We will talk about our choices assuming that we are allowed to withdraw these 500 Steem without any restriction or any condition.

Tell us the equivalent of 500 Steem in your local currency.

Currently the price of 1 Steem is fluctuating around 25 Indian Rupees. So, this 500 Steem would be equal to 12,500 Indian Rupees at the current market rate.

You are given 500 Steem. Would you run a business? Carry out Crypto Trades on a trading platform? OR Invest on the Steemit platform?

Scenario #1: Trading

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If I was given 500 Steem today, I would definitely not trade them on any trading platform. The reason behind this decision is because in India (my country), we are taxed 1% (TDS - Tax Deduction at Source) on every transaction we make and this is true for any trading platform, and we also have to pay 30% tax on the profits earned. We are taxed even when we have made a loss in another trade, we will have to pay 30% for the profits made in each trading round. So I am going to stay away from this route knowing that I am not going to make profit every time in trading.

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Scenario #2: Invest back in Steem

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In this scenario, I am asked if I will invest these 500 Steem back to the platform. Let me check if this is going to be a wise decision or a long term investment problem (from the problem I mean that we can use it to multiply our money in the short term by using other investment or business strategies).

So we have opened the SteemWorld page, and we will be checking how much vote value we get when we invest these 500 Steem back to the platform.

_{Source: Steem World}

So, using the information given in the image above, we can infer that our account will have the vote value of 0.01 STU, which is the value of our one time vote. Now, let us see how much vote value we will be able to give out to authors throughout the day. We can give out 10 votes each day without exhausting our recovery rate, as our voting power will regenerate every 24 hours.

Using this information, we know that our daily vote value is 0.1 STU. Now, let us assume that we give out this as a vote to authors who produce exceptional content on Steemit platform and they are also supported by @steemcurator01 and other curators of the platform. Then we now have to find such 10 people and vote on their posts before anybody else votes on their post. This way we will be getting more curation rewards.

We are assuming that we are at least getting 3 times the vote value. So, in total, we will be getting around 0.3 Steem each day and around 9 Steem per month.

Not bad, as we are getting around 86 Steem per year towards our investment of 500 Steem. If we calculate the return on Investment, we get this to be around 17.2%. This is more than what our banks will provide us. So I think this approach can be taken by some users.

But we will come to the conclusion once we have explored the business scenario.

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Scenario #3: Business Investment

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Businesses can be very profitable if research is done properly and a right product or service is chosen for the business. Currently due to the summer, sugarcane juice, lemon juice, watermelon, ice-cream, shaved-ice, and other such products are in high demand. And if a person invests in any of these products, I can guarantee that the person will have sold all of their products by the end of the week.

We will also be choosing a product to invest from the above products. For our business investment, we will choose lemon-juice/lemon-soda as our product.

Now let us see all the investments we need to make for this business.

We would be needing a few things to run this business. First and most important of all is going to be lemon. Other important ingredients are going to be water, ice and sugar. We will also be needing mint leaves and salt to make the taste of our lemon juice better.

Firstly, let us see the current market prices of these ingredients and then we will be dividing these ingredients as per our requirements for making one glass of lemon juice.

Ingredient	Amount	Price in INR
Sugar	1 KG (80 TBs)	40 INR
Lemons*	1 Nos	5 INR
Water	1 Liter	5 INR
Shaved Ice	1 KG	10 INR
Mint Leaves	1 KG	100 INR
Salt	1 KG	20 INR

Note: * Since we live in Junagadh (agriculturally rich district) and many farmers have lands full of lemon trees, we can get access to lemons easily than any other places, and since the supply is adequate, we will get the lemons at a lower price.

_{Source: Google Search}

We want to get the cost of 1 glass of lemon juice, so we will first look at how much each ingredient is needed to make one glass of lemon juice and then we will get the cost of that amount of ingredient.

Ingredient	Amount Needed	Price in INR
Sugar	1 TB	0.5 INR
Lemons	1/2 Nos	2.5 INR
Water	100 mL	0.5 INR
Shaved Ice	100 Grams	1 INR
Mint Leaves	Few Leaves	0.01 INR
Salt	1 Pinch	0.02 INR
Total	1 Glass	4.53 INR

Now, using the above information if we divide the total money we have, with the cost of one glass of lemon juice, we get a rough figure of 2760 glasses of lemon juice. So this is the estimate of how much glasses of lemon juice we will be able to make from the amount of 500 Steem (12,500 INR) we have.

According to recent market price of 1 glass of lemon juice, we can easily sell 1 glass at the price of 10 INR. This price will give us the total sales of around 27,600 INR (1104 Steem).

We know by the demand in the market that a person sells around 250 or more glasses of lemon juice each day. This means that our stock will end after 10 days of selling. After selling all the stock, we will be making profit of 15,100 INR (604 Steem), and this business was run for only 10 days, while we could run it for a month and earn more profit.

After doing this business, we have already made twice the value of our investment, and now we can happily invest the 500 Steem back to the Steem platform. We will be able to run the lemon-juice business from the profits only, so we can invest the 500 Steem back to the platform.

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Explain in detail how you hope to execute your choice, and how much profit/interest you can realize within the time frame you chose to work on.

I hope the readers have got the answer from the above section.

Give personalized reasons behind the choice you made, alongside the advantages it has over the other options

The above section makes this clear. We chose to do business at the end because we saw more profit being made in the business scenario. We skipped the trading scenario because the taxation will take out a major chunk of our profits from our pockets.

If the amount was doubled and you were encouraged to select two options, which choice would come second favorite and why?

If the amount was doubled and I was allowed to invest in two categories, then I would first invest in the lemon-juice business and the second investment would be putting the other half back to the Steem wallet, and powering it up.

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I hope you liked reading my post, and I would like to invite @jimah1k, @daytona475, and @zmoreno to this contest.

Beneficiary: @steem-cameroon (30%)

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