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”
One of the purposes of commerce is to build strength. Gaining wealth gives us power, which is the ability to influence others. There are three main types of power: first, power gained through coercion or threats; second, power obtained through payment or inducement; and third, power gained through attraction. The power obtained through coercion, threats, payment, or inducement—that is, force or tactics—is called ‘hard power,’ while the power gained through ‘attraction’ without using force is called ‘soft power.’ Additionally, the ability to effectively achieve your goals using coercion, payment, and attraction is known as ‘smart power.’ Depending on the situation, we may need all three types; however, soft power is something that everyone admires. - Joseph’s “just my thoughts”