Why Capital Is The Most Important Thing In Business?

Good-Guy

VIP Contributor
There are so many people who usually overlook the power of finance in any field. I do not claim that Finance is the only important thing because I believe that it is still possible to start a business without enough capital, but I think that when it comes to 95 percent of business opportunities, finance plays a very huge role. One of the main reasons why finance plays a big role is due to the fact that finance is just like the root of business just like plants have roots. It is not possible for plants to survive without roots and roots are the main building block of a plant's life.

Similarly, finance is also one of the basic building block of a business. It might be possible that a business might survive without marketing, sales, employees, etc. However, as long as a company has enough cash reserves and assets like capital, it was resurrect its business in much better way and I think that this is exactly what happened during the time of pandemic. Many companies simply went bankrupt and they failed to survive because they never had enough capital, while many big companies like Apple, Microsoft, Amazon, etc managed to survive during those tough times because they had much capital in hand.
 
There are a lot of things that go into making a business successful, but at the end of the day, it all comes down to one thing: capital. You need money to invest in your business, to hire employees, and to cover your expenses while you're getting your business off the ground.


Many people mistakenly believe that having a great idea is all you need to be successful in business. While an idea is certainly important, it's not nearly as important as having the capital to back it up. So if you're looking to start a business, make sure you have enough money saved up to cover your costs.


If you don't have enough money saved up, there are a few things you can do to raise the funds you need. You can take out a loan from a bank, borrow money from friends or family, or crowdsource your funding.


No matter how you raise the money, make sure you have a solid plan for how you're going to use it. Don't just spend it on things that don't matter, like fancy office furniture or high-end marketing materials. Use it to invest in your business, hire employees, and cover your costs while you're getting started.
 

King bell

VIP Contributor
The most important thing in business is capital. It is the lifeblood of any company and without it, no business can succeed. Capital is the fuel that powers businesses and allows them to grow. It is what allows them to invest in new products, hire new employees, and expand their operations.


Capital is also what separates successful businesses from unsuccessful ones. The best businesses are always the ones that have the most capital. That’s because they can use that capital to make the most of their opportunities. They can take advantage of market fluctuations and invest in new technology and products.


In order to be successful, a business needs access to capital. That’s why it’s so important for businesses to have strong relationships with investors and lenders. Those relationships give businesses the ability to borrow money when they need it and to make the most of their opportunities.
 

btaliat

VIP Contributor
What's better than money? I bet there won't be any other answer more than money. There is no other factors of production that's better than money. Without money, everything that we may have like business ideas will only be a mere dream that may not be actualized.

Without money, there may not be execution of most plans that we have. Plans to buy most things that we may need to buy to kick start our business. Most people have lost and forgot about their dreams because they don't have money. Money will even detemine to which length our business may be established.

Apart from using money to get material resources, money can also be used to secure good human resources. To get better hands fit our business, we need to pay those people good money that will attract them to work with us. What's the essence of getting good business ideas without human resources to carry out the major things that we need to actualize those dreams.

However, the quest for money must not let us forget that there is much importance given to other factors of production too. Money alone can not do the production, other factos of production will also be needed.
 

saoussen5765

Valued Contributor
Health is better than money because without health you could not do anything even having lot of money but with good health and few money you could do few things this is my point of view.
 

Sotherefore

VIP Contributor
Thank you for sharing . So many people have come to the understanding that financing of business is the most important thing but personally I also choose to believe that is so because it is the most important factors you must put into consideration when thinking of starting a business. You cannot just start a business just like that without having the needed capital or have a constant way of raising or generating money to sustain the new business you have established.

Unfortunately so many people are always thinking of the most profitable business to start and many of them also at the same time fail to think about a way they will use to raise the needed money to start up the business they have been able to plan . As a result of this plan not being put in place , so many people might resorts into getting a loan to start up and finance their business.

Although loan could be a good idea for people who are interested to invest for short term purposes , but we also at the same time must understand that getting a loan firstly to start up a business is not the perfect way for starting a business.
 

Yusra3

VIP Contributor
Capital remains a solid foundation in any company because it allows them to make use of important financial resources needed in starting up operations, maintaining growth, and eventually overcoming economic challenges. Business financing are important for the enterprise to purchase equipment, stock inventory, lease facilities, hire talents, develop research and development or to disseminate marketing information. Lack of capital generally prevent the business from growing and this drawback can result in losing remarkable opportunities. It is usually via the provision of financial assistance by investors, loans or savings, from which firms can make necessary short- or long-term investments for their competitive success.
 

Jasmine

VIP Contributor
If someone is looking forward to start a business or scale the existing business, I do not think he would be too foolish not to understand the power of capital in starting a business or building a business. I think all of us understand the importance of money in the business. I feel that a lot of people already know, money attracts money, they know you need to invest money to make money. Without money, it not possible to create or run a business. This is a hard truth
 
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