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Showing posts with the label funds

Just my thoughts #0619

Rejection Cost. From the perspective that my profit is someone else’s loss, and someone else’s profit is my loss, the fact that I have to reject an opportunity to make money for my circumstances is a loss for me and an act of giving someone else a profit. In other words, my added value is not determined solely by productivity but also by the marginal utility generated by the law of supply and demand. Therefore, my labor price should reflect the value that I have given up—the profit I could have gained. If the rejection cost is not included in my profit, I will be at a loss to that extent. Failing to account for rejection costs in production expenses is not wise, but foolish, because it risks my survival. There is no absolute value in this world. All economic values are relative. - Joseph’s “just my thoughts”

Just my thoughts #0518

Time is wiser and smarter than humans. The reason a regular income is necessary for escaping poverty is to fully utilize time’s value . If a person without a regular income invests, they must invest with money they cannot afford to wait for, which forces them to spend the investment funds while waiting for the right opportunity. This may lead to missing a good investment. If the person has already invested, they might not be able to wait to recoup their investment , resulting in debt to others . Individuals who struggle to use their time effectively due to insufficient assets must generate a regular income unconditionally . The reason for having ample assets is to buy time . - Joseph’s “just my thoughts”

Just my thoughts #0241

Business isn’t just about “doing something” — it’s about “building trust.” In running a café, my focus should be on fostering customer confidence in my service rather than simply selling coffee without consideration. Before making sales, establishing trust as a business owner should be a priority. Gaining experience by working part-time in another café can facilitate this trust-building process. When you create financial credibility, running out of money can harm your reputation. However, if you earn money through established trust, you can regenerate funds even after they have been depleted. Trust serves as the foundation of money and is central to successful business operations. - Joseph’s “just my thoughts”

Just my thoughts #0070

In business, capital means business funds. A successful entrepreneur often says, "I started my business without any capital". It's partly true, but it's a lie. The entrepreneur just said that capital means only cash. However, all kinds of businesses need to be fundamentally business funds in any even not cash. The entrepreneur didn't count the founder's labor cost. No inputs, no outcomes. The uncounted labor costs are called "alternative costs" or "opportunity costs". This comes from comparative advantage. If the entrepreneur doesn't accept the uncounted labor cost as a debt, the entrepreneur is equivalent to losing the profit due to opportunity costs. Please always remember this. There is no free lunch in this world. - Joseph’s “just my thoughts”