Misunderstanding about capital

[Su2026ga]

90% of business people, especially new ones, do not understand capital in business. Capital in business is not just money, it is also much more sophisticated and complex. If you think capital is just money, you will definitely fail in business. Because money is never enough. And even with enough money, you will still fail. Because it's not just about you dropping your money and taking profits. Completely wrong.
Capital includes human knowledge and a passionate desire to learn and 1000 other factors. And then comes the money. Therefore, give it up only when you have money to start a business.

 

[Alexandoy]

Excuse me to disagree that capital is just money. If you are talking of the accounting system a business in economics is always Land, Labor, Capital. Now that means you need to have the labor which is the work force, the land which is the place of business and the capital which is money. The knowledge you are talking about is not the capital but the work force. You open a shop and you do not know the operations? Hire an operations manager with a knowledge and your work force had solved that lack of knowledge. Don't forget that business is all about resources that are measured in terms of money.

 

[Wisdom01]

I think capital is money because you would actually need money to start a business and not just human knowledge or whatever you want to use , because you can't use knowledge to start a business only , i think you need money to buy the materials and tools you would be selling in your company , because you cant buy that with only knowledge , and i have friends who hace start their business now with enough capital at hand i think