Skip to main content

Posts

Showing posts with the label alternative costs

Just my thoughts #0830

Future and Attitude : My current attitude toward the future shapes my outlook on it. How I perceive the future influences my actions and mindset now. By analyzing past experiences, I identify patterns that help me compare and validate my expectations and predictions for the future . In other words, the past serves as material for judging the future. Therefore, my judgments and current behavior stem from reflecting on the future I have already envisioned . If I don’t decide on my outlook and attitude toward the future, my present self remains undefined. This is known as ‘CONFLICT.’ Today, an unclear future coexists with past experiences that form specific patterns. Why is time important? Because to exist in the present, both past and future must be simultaneously present. If these two tenses are not reflected now, decision-making stalls , and conflict continues due to its effects. - 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”