Founders often start a business without understanding their profit model. People are more likely to fail because they only think, “I have to work!” and don’t truly grasp how and why they can make money from it. They don’t understand the concept of capital, meaning the basic funds, nor do they understand the founder’s equity. They have heard the terms often but don’t really know their meaning or importance. They don’t recognize it, although they may have heard of it a lot. You start a business and partner with others without knowing whether your return is the reward for taking risks, giving up current interests, or sacrificing competitors. Understanding this is a fundamental part of entrepreneurship. Yet, in reality, they run their business without considering these issues simply because they need to work and can do so at the moment. - Joseph’s “just my thoughts”
All businesses ultimately converge in real estate and finance . This is an unavoidable fate. Real estate is the smallest unit and foundation of production activities, with a price calculated in real terms . Volatile assets that have a real price and whose prices fluctuate frequently must generate interest or dividends. Rental fees for an office or store are typically sufficient for the business operator to pay the interest on the loan owed by the lessor , the real estate owner, to the bank, akin to the real estate owner holding a particular share of the lessee ’s business. Therefore, a lessee capable of paying interest on a property as a rental fee is the strongest candidate to own that property. This fact serves as strong evidence that business is closely linked to real estate. After all, most businesses grow in size and have two asset structures : their basic operating sales and real estate revenue . Without an efficient connection between these two structures, a business will nev...