Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
Raflesia
on 02/07/2024, 17:29:06 UTC
Its not that we cant deny that the more capital we have, the greater the profit we have, it's just that it only refers to that context because in fact we have to think about how to profit as well because it doesn't mean that with a lot of capital, we will definitely profit and with little capital we will make a big profit because its just a way to look at it from a positive perspective.  When talking about business or investment, its not as easy as just based on capital, there are so many things that need to be prepared, there is a plan that we must realize is more important and of course we need several backup plans to support it better because in the end, the benefits of business or other things such as investment are certainly not only based on capital alone. Although capital is important, there are other aspects that support it so that capital does not just disappea .
Some time, capital is not a determinant in business. The first thing that matters most is idea of a particular business. Follow by other things like capital. Because when you have a good idea of a particular business, you can even start a business without capital. example those doing affiliate marketing. these people are doing business and they don't have their own capital why? because of the business idea that they have. But even if you have a huge amount of money as a capital, without a business idea, you are going to fail if care is not taken.
Furthermore, you May have big capital but because you don't know how to operate it in a business or you don't know the kind of investment you will do with it, your profit may be small, and somebody with small amount of money may have huge profit than your own because he or she knows how to do with it. So it not automatic.
But looking at your example, capital still plays a role in the end, right? Moreover, ideas without capital will only be a wish without realization in the end.

Taking an example from what you mentioned such as affiliation in this case regardless of whether it is large or small in the end it also has capital because for affiliation we must have facilities as initial capital so that no business is truly without capital because in the end everything also refers to capital whether large or small because in this case when we talk about the business of goods or services it still requires initial capital in the form of supporting infrastructure.

Indeed, the idea also from the beginning clearly must be taken into account but in the end if only the idea is owned without any other factors that we can make capital everything will not work in the end.