‘Capital’ means ‘Principal.’ What does ‘Principal’ mean in business? The ultimate goal of any business is to create wealth. Wealth serves as the foundation for creating value, and that value must be generated solely through production. To produce, the cost must be invested first; the source of that cost is referred to as ‘Principal.’ In other words, the result of a transaction through trading is ‘revenues,’ and if costs and expenses are subtracted from sales, what remains is ‘profit.’ If costs and expenses exceed revenues, it results in a losing trade; if they are lower, it results in a profitable trade. Therefore, principal serves as the benchmark for profitability; in other words, it is referred to as capital. Whether a business is good or bad is determined by its profitability. If the principal is insufficient, borrowing capital becomes necessary, which is termed “debt.” Just as the number of principals capable of producing tankers differs from those that can create bicycles, the si...
The term “pseudo-” means exquisitely similar, but the core differs. This small difference in the core has enormous consequences. When you see a pseudo-doctor, you lose your health or life. When you meet pseudo-religious leaders, you waste your life and ruin your future—this small difference in core changes in fate. So, when consulting, I emphasize the “essence of business” and “identity”. Entrepreneurs don't know the tragedy that occurred by ignoring the small core in peace due to similar reasons. - Joseph’s “just my thoughts”