Do not be deceived high capital investment does not ensure successful business.

TOZZIBLINKZ

VIP Contributor
Majority of individuals who intend to establish a business of their own usually fail to see that high capital investment on the respective business they intend to establish does not ensure that the business will be successful . It is ok to have the capital to start your business especially when the capital to start the business is actually of a good and reasonable amount so as to establish the business in large-scale , yet It is important to know that high capital investment does not determine that the business will be successful . The ability for a business to be successful simply depends on what type of business plan and business strategy that you follow . In other words is simply depends on how business phones are being facilitated and allocated so as to reach an achieve expected business goals and objectives .

As a good business manager or the business owner , you must be capable of effectively making good business decisions and choices and also you must have the creativity to to bring in ways in order to outsmart your competitors . When you are able to achieve all this , then your business is sure to be successful no matter what .
 

Jasz

VIP Contributor
Investing capital in your business may not be enough to guarantee success.

Wealthy individuals and venture capitalists often invest millions of dollars into companies with the expectation of substantial returns. However, studies show that there are many reasons a lot of money may not actually help a company grow.

First, as an owner, having a high capital investment may give you less incentive to be frugal with your resources. The famous "lottery curse" is one example of this phenomenon—a person who wins the lottery may start spending their money on unnecessary items, or they may develop habits that cause them to lose the money they won.

Having a lot of capital can also create high expectations for how much you should be able to accomplish with your business. If you don't reach those goals within the time frame you predicted, it can be easy to become discouraged and give up on your company.

Instead of focusing on just investing more than your competition, consider creating a plan for spending your resources wisely and taking slow but steady steps toward your goal. A good strategy will do more to help your business succeed than just a big pile of cash!
 

blessingc

Active member
It is a necessity as we all know that having a capital is the key to start a business. You can't start a business without having the money to use in starting it.

Nevertheless, the growth of the business is not tested on how it started. I have heard alot of stories from different entrepreneurs of how they started and where they are today. Well it is rightly said that gow well you start determines how you end, it is applicable to business but in a different way. Starting a business in a little way helps you to be more calculative on having a gain than when you start up big.

The main things that makes a business boom is not the size, or how it started with a huge amount of money, but how dedicated you are to that business.

When starting a business writing out a plan for the present and the future if the business is important, it is like a road map, it helps you know what to do, and when. It is also necessary to put into consideration what your customers will like, what their interest will be at. Get what will attract them to you, and make them know their ideas matters, then they will come to you.
 

Rachael

Verified member
Undeniably, this is a very clear fact, high capital investment does not in anyway guarantee high productivity. I have witnessed business owners who took up loans to boost or start up their line of trading yet, there is no inflow of profits due to some impending factors which they failed to sort out. It becomes very difficult in this case, because the aim of any business owner who invests high capital is also to gain high profits but this is not always the reality in some cases. No doubt, in any business, the flow should be that, the greater investment, the greater profit and this is the reason some business owners go to loan money so they can boost their businesses.

The strategy about this is that, when an individual finds it hard to strike a balance between the vision of the business and his present reality, it becomes a conflicting issue. The truth is that, investing high capital is not always a yardstick to the productivity or sustainability of a business but the strategies being adopted to see its growth. Inasmuch as it is the dream of every business owner to boost the sales of his business, but in some cases, you have to take it one at as time just as during the time of the covid-19 pandemic.
 

Flow-er

Active member
The belief of most of the people is that capital intensive business are lucrative business. that means that they are business that will give you a high amount of profit, but it is not really so. I have seen cases where you invest a huge amount of capital and at the end of the day you will not get an amount that you have invested in the business. What I meant is that you will not get the profit that you are expecting to get because you have invested a huge amount of money on it. This is a reason why it is also important to investigate the business that you want to do before you put capital on them. There are some business that you will put a little amount of money but the amount of profit that you will get will he very high and you will tend to enjoy the business. So in that case, I believe that putting huge amount of money in the business does not guarantee a huge amount of profit. The selling of condemned vehicles is a very profitable business and you don't need a huge amount of capital to start . The amount that you need to establish this business is very minimal but you will make huge profit from it.
 

CALVINDOL

VIP Contributor
It doesn't really matter how much sufficient capital you have to establish a business but instead what really matters is there speciality of the business idea and how creative you are in managing the business once it has been established. It is absolutely very necessary that a business owner or an individual intending to establish a business put into proper considerations all factors necessary to grow and to develop a successful business. No doubt having sufficient capital is one of these factors but it is not the most important and paramount Factor.

Many individuals have established their business with small capitals and they have single-handedly grew this businesses into a kind that is considered to be legit, prominent, and profitable, and so it does not really matters how much sufficient capital you have but instead how effective and worth-establishing your business idea is. The success of a business can also depend on how creative you are in managing the business and also making sure that all areas of the business are financially fortified.
 

Mataracy

VIP Contributor
Investing big capital in to a business does not mean that the business will be successful at all.
The success of the business lies upon the sowder of the management of the company or the business.
If the management of the business manage the resources very well there is tendency that the business will be successful but in the other way round of the manager or management is not effective there is tendency that business will be crumble or fail wholefully.
Before starting certain business one just need to make sure that there is proper planning and before any decisions are taken so that there will be good returns after investing huge amount of resources in to the business.
Though there some people so far they get huge money they will just enter in to the business which they do not even know anything about and yet be expecting good result from which is not possible. He who fail to plan should be expecting failure.
 
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