Does high business capital investment means high business profit and income?

[CALVINDOL]

Absolutely and obviously not , even if you think that investing a huge amount of initial capital into your business will totally or incredibly increase the amount of profit for income that your business will encounter the truth is that it totally does not work that way because in order to accumulate huge and reasonable business profit and business income the management of your business funds allocation and the facilitation of the business assets and properties is totally what determine the rate of profit and income that your business will accumulate . There is absolutely no doubt in the fact that having a huge capital to establish your business idea is very beneficial because rather than opening the business in small-scale he will definitely open it in last year so as to meet and satisfy the wants of your customers and clients perfectly and successfully .

But do not be deceived because that is not what determines business profit and business income but rather the facilitation and the management of the business is definitely an obviously what determines how successful your business will be in making profits and incomes . A lot of businesses have shut down today even if they invested hugely , this is absolutely cause as a result of poor management and wrong business funds and location .

 

[TOZZIBLINKZ]

Not exactly , the amount of capital you devote to establishing your business does not determine the potential rate in which your business Will survive and also make profit because in most prominent unusual cases majority of businesses who have already invested huge amounts of capital in their establishing and implementation absolutely shut down and bankrupt reason is why they possibly will have depend on the huge amount of capital investment that they invested for the business establishment neglecting the business management and facilitation which are the two main things that determine how potential a particular business is to succeed and make profit and income .

Business management and facilitation are not totally the same thing but one thing is sure about them which is the fact that if done properly can actually skyrocket a particular business profit and income and also increase the chances on which a particular business will be successful or would be considered to be successful . In managing a business the business owner or the business manager should be very creative in order to sort out ways to increase business productivity his ability to increase business productivity totally means that his business has the potential to survive challenges and trials that it my face .

 

[Jasz]

While it's very clear that more money spent on machinery and materials means more product, the relationship between business capital investment and business profit can be a bit more complicated.

To begin with, the relationship between capital and profit is not always direct. A business may invest a lot of money in machinery, but if that doesn't lead to an increase in sales or customer satisfaction (or if there's some other factor that lowers customer satisfaction), then it won't necessarily lead to higher profits.

While this is technically true for any business investment, it becomes especially important for businesses with large capital investments—like manufacturing companies. Manufacturing businesses tend to require significant up-front investments in machinery, equipment, and materials before they can even start producing their products. If those manufacturers don't see an increase in sales during the period of their capital investment, then they might not be able to recover their investment costs.

This is why it's so important for manufacturing companies to keep a close eye on customer satisfaction during the period of their capital investment—even if they're making big improvements in quality control or efficiency. It can take customers some time to adjust to the new changes, and businesses shouldn't expect immediate increases in sales as a result of their capital investments until those changes have had time to sink.

 

[Suba]

I don't agree with your opinion that not all types of investment are the same in assessment and analysis, there are types of investments with high, medium and small risks, the level of risk will be proportional to the level of profit, the higher the risk, the higher the level of profit to be obtained. If you are going to open a coffee shop business, of course you don't need big capital, but you only need capital according to the budget you have compiled. When it comes to investing in stocks and crypto, why do whales still earn more than retail investors? whatever methods and strategies used by retail investors may not be able to exceed the profits of the whales, because retail investors cannot move volume and price trends.

 

[Rachael]

If this should be stated as a fact, high capital investment does not in anyway guarantee high productivity. I have seen 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 borrow money so they can expand their businesses.

The technique 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. Also, I have seen where small businesses thrive more than big businesses. When the business plan is faulty at the onset, there is bound to be casualties in the business and with the need or aim for investing high capital becomes almost abortive if nothing is done to manage the crisis.

 

[Flow-er]

The tread that you have posted is very interesting and it is very important that most of the businesses that requires high capital may not possibly give you high profit in some cases .but there are some businesses that will give you a high amount of capital as profit but they are capital intensive business. Let's not also forget that it's that there are some businesses that does not require much capital but the return that you will get from such business is very high. In such cases the business is not capital intensive but you will gain a lot of profit from them . for instance ,I have a business that I run presently and it is not capital intensive but the profit I make from it is a bit high. I also have a business that is capital intensive. I invested the business with a huge amount of capital and it still needs capital for it to function properly but the profit that I get is not commensurate to the amount that I invested. So in that case, it is very important that it depends on the type of business that you do that will actually determine the profit that you will make the capital to establish the business does not really matter.