Chapter 7 -8Financial Growth and Success
Lin Yuer's journey into the soap business began with modest investments. Initially, she sourced basic materials like oils, lye, and water locally, costing her about 5 silver taels per batch for raw ingredients. Renting a small stall at the market set her back 8 silver taels a month, while simple packaging added 1 silver tael. She worked alone at first, but as demand grew, she hired two workers for 2 silver taels per week, totaling 16 silver taels for labor costs. Over time, Lin Yuer expanded her operations, renting a plot of land near a water source for 50 silver taels per year and investing in production equipment for 120 silver taels. She increased her workforce, hiring five more employees, raising the monthly labor costs to 40 silver taels. Monthly expenses now totaled 211 silver taels, covering raw materials, wages, packaging, rent, and miscellaneous costs. As production scaled, Lin Yuer diversified her product range, adding luxury soaps priced at 3 silver taels each and herbal soaps at 2 silver taels. In total, she earned 3,100 silver taels in revenue, with the basic soaps, luxury soaps, and herbal soaps contributing to her profits. After deducting her monthly expenses, Lin Yuer's net profit amounted to 2,889 silver taels, which she wisely reinvested in expanding her factory, upgrading equipment, and hiring more women, especially those interested in management. She even introduced milk tea shops, which brought in an additional 500 silver taels per month. Lin Yuer's business success was not just about profits but also about empowering her workers. She provided training and education to women in her workforce, helping them develop leadership skills and become more efficient. This created a loyal, motivated team that helped drive the factory's expansion. Through strategic investments, diversified income streams, and an emphasis on workforce education, Lin Yuer transformed her small soap business into a flourishing empire, laying the foundation for further ventures and ensuring her legacy of financial independence and empowerment for women.