Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
N.O
on 09/08/2024, 19:04:41 UTC
From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

Normally, if you use big capital to start a business or invest in a business, the money you will get as profit will be much more than someone who uses small capital and expects a big return. I think such a person is just wasting his or her time because the amount of profit will depend on the capital you use to enter the business, so I think the thing is vice versa. In business, capital matters when it comes to getting a huge return because capital is what boosts our profit.
 
But sometimes someone can start a business with small capital, then continue using the profit he is making to boost his capital till the capital reaches his or her target before withdrawing the profit in a large amount.
But I want to add one thing. If want to start any business, do work for the person who is successful in that niche in which you want to do the business. If you want to make a market, see the market and analyse the market and analyse the profit of products and  analyse the price you have to invest in that business and always make a mentor and learn from his experience and his mistakes. These are most important thing to start any kind of big business because money is not such important as comparison to mindset and experience. If you will experience the market condition then you will get more new things in market and you will learn from that. And always improve yourself by studying the books of successful entrepreneurs.