Does initial capital determine the outcome of a business?

[Skysaint]

Initial capital here means the amount of money a business man used to open or start up a business enterprise. For some different reasons, different people do think that the starting capital is directly proportional to whether the business w going to thrive or not. That is, the higher the initial capital the higher the possibility of making a successful business and vise versa. In my own opinion, I think this is not actually the case, a successful business doesn't wholely depends on the starting capital as many do think but depends on the strategies and commitment employed by the business man while running the business. No matter how much a business man used to start up his business, if he is careless about how he runs his business then he is sure to make severe losses. It's all about management, commitment and strategy.

 

[btaliat]

Initial capital to me only determine the size of the business. And the size determine the profit but it doesn't determine the future success of the business. All businesses start from somewhere and if there is persistent and some hardwork from the manager, the business can be expanded in a matter of time.

 

[Sherman198]

Initial capital does not determine the successfulnes of a business cos what determines the successfulness of a business is how effectively we can manage the business very well..... though we can use capital to propagates our business taking it to the next level but if it is not maintain very well, success may not come.

 

[Skysaint]

Initial capital to me only determine the size of the business. And the size determine the profit but it doesn't determine the future success of the business. All businesses start from somewhere and if there is persistent and some hardwork from the manager, the business can be expanded in a matter of time.

You are right. That's exactly my point, the initial capital only determines the size of the business. What really do sustain the business is the commitment and strategy employed by the investor to keep the business going. Like you said, all businesses do start from someone where, then how you handle the business affairs determines or ensures the success of the business

 

[kayode10]

Initial capital you raise for the business can have impact on the turnover of the business at the end of the first year. If you are unable to procure some necessary tools you might find it difficult to make sales consistently with your business. So it is good to raise a good amount of money as a start-up capital for your business.

 

[Phabbyfundz]

No, because if business rely solely on the amount of capital you are able to start with, most promising and lucrative businesses existing today wouldn't have started in the first place. Things to consider is firstly the kind of business you want to start, your marketing strategy, the consumers you want to reach out to and lastly the location of your business be it offline or online.

 

[Skysaint]

No, because if business rely solely on the amount of capital you are able to start with, most promising and lucrative businesses existing today wouldn't have started in the first place. Things to consider is firstly the kind of business you want to start, your marketing strategy, the consumers you want to reach out to and lastly the location of your business be it offline or online.

I do agree with you on this. The initial start up capital doesn't determine the outcome of a business, it might be able to give it a good start tho but if one should neglect other important core factors then it will be better off to him not to have even setup the business in the first place.

 

[Alexandoy]

Can you clarify the meaning of outcome? It can be 1 month or many months or even a year. But if what you mean by the capital that will determine the type of business then that is the size of the business that you are talking about. The bigger the capital then the bigger the size of the business that you will start.

 

[Skysaint]

Can you clarify the meaning of outcome? It can be 1 month or many months or even a year. But if what you mean by the capital that will determine the type of business then that is the size of the business that you are talking about. The bigger the capital then the bigger the size of the business that you will start.

Well, what I do mean in essence is that does the initial capital determine the success or the profit making level of the business. I do think or suggests that the capital only affects the size of the business and not the outcome of the business, that is, if the business will be earning you lots of profits or not.
Capital can only determine the outcome of an investment and not a business setup. The bigger you invest, the bigger your reward.