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Showing posts with the label prepayment

Just my thoughts #0435

There exist two categories of leaders: those who prioritize individuals and those who prioritize circumstances. Which category do you fall into? Leaders who prioritize circumstances may easily overlook the needs of individuals, driven by an underlying fear of adverse outcomes impacting them. Ultimately, those who favor circumstances above individuals exhibit a tendency to prioritize self-protection over the welfare of those they lead. In contrast, leaders who prioritize individuals, even amidst challenging situations, demonstrate the qualities of exemplary leadership. - Joseph’s “just my thoughts”

Just my thoughts #0301

Receiving an investment signifies that you are receiving a prepayment for future costs and expenses. To generate revenue, you must cover these costs upfront. If you lack the funds necessary to manage current expenses while aiming to raise revenue, you might need to borrow money or attract investments. However, as a recipient of these funds, you cannot use them freely; this money does not belong to you. Legally, your options for utilizing this money are limited: you can either receive it as a salary from your expense account, as a dividend from profits after deductions as a shareholder, or pursue official management incentives. This underscores that the invested funds are not your own. When funds are invested, it implies that profits will be derived from someone else’s money, which you will share with the investor. Although investment alleviates the immediate pressure of expenses, it simultaneously heightens your obligation to generate profits promptly. Being fully funded does not equat...