Growth and Profits Rise with Better Use of Capital

Experience Is Also Capital: Find the Area You Can Master Through Many Different Experiences

Use capital to increase profitability; if you fail to generate profits, investment capital will leave.

Prepare for the future by watching the trends of the times and the market.

The world is never a place where anyone can live alone. We can navigate this harsh world only with someone’s help. Among the many kinds of help available, choosing “capital” makes life more convenient and efficient. These days, people communicate with the entire world from their living rooms through a computer, and that has been made possible by the help of “IT technology capital.”

How productivity changes depends on how capital is used. Whether starting a business, running one, or simply living everyday life, receiving help from capital is a very wise choice. The drawback, however, is that it costs a great deal. Capital does not offer help for free. It must be used carefully after closely examining its business viability.

Experience is also a form of capital. As you accumulate different experiences, you must discover the area in which you are most skilled. The experience of using capital to achieve results is your true capability.

You neither need to do everything alone nor can you. If you use capital, you can achieve greater results and, as a result, be recognized as a capable person.

Highly productive large corporations pay their employees high salaries. This is possible because the capital they possess is far greater. When capital is accumulated and there is abundant skill and experience in handling it, productivity naturally rises.

Using capital increases profitability. But if profits are not generated, the invested capital quickly leaves. Only when profitability is proven in the market can capital continue to be utilized.

Being a large corporation does not automatically guarantee profits. However, because such firms have accumulated technology and experience, they are able to produce basic results, maintain their capital, and continue developing.

Whether it is a large corporation, a small or medium-sized enterprise, or an individual, capital must be put to work. This is a different concept from personal finance management. It means that if you have capital, you are in a far more advantageous and convenient position in management or social activities, and the benefits you can gain from using capital become much greater.

Does having capital make everything good? If a company owns a private jet, it is certainly convenient. But operating a private jet costs an enormous amount of money. If it cannot generate enough profit to cover those costs and runs a deficit, then it should use Korean Air rather than a private plane.

Capital is not accumulated overnight. A large company like Samsung Electronics cannot be created in an instant. To ensure capital builds up steadily, it must be used well. That is precisely how you make time work in your favor.

The more work methods and management know-how are accumulated, the more advantageous they become. As a company grows, it must develop its corporate culture in ways that are beneficial. To make time work for you, you must accumulate the capital you already possess. And that capital must continue to be adapted to reality and changed in ways that work to your advantage.

Whether for a company or an individual, one must prepare for the future by watching the trends of the times and the market. These days, YouTuber creators have emerged as one of the most popular occupations. In the 1970s, the most important form of capital was automobiles, and the top occupation was bus driver.

Amid the flow of change, we must closely examine which forms of capital are leading the times. We must adopt capital suited to the era and reshape our experience to fit that capital. If your line of work is at risk of disappearing, you must be retrained and build new experience.

A great deal is changing because of mobile phones and YouTube. When new capital plays a bigger role and opens the way to a larger market, we must adapt to that market.

If you remain buried in past experiences of success, you gradually grow farther from reality. To make time work in your favor, you must expand your experience capital through retraining and align yourself with the trends of new currents.

In any field, it takes 5 to 10 years of practice to become truly proficient. If you gain a first-mover advantage, however, you can achieve your goals even in a short period. Even if it means accepting trial and error, if it fits the trend, there is a need to boldly challenge yourself with new experiences.

Just as one changes the portfolio of investment resources, one must also change the talents one possesses. My body is the sum total of experience capital. When experience capital aligns with the trend, time works in your favor.

Experience can be either a strength or a weakness. If the experience of success prevents you from accepting something new, it becomes a weakness. But if, based on experience, you embrace something new, it can become a leap forward. The work of finding better capital and adapting yourself to it must always continue.

Seizing a newly emerging field does not mean something will be achieved overnight. Naver and Kakao, which rose to the ranks of large corporations, also blossomed only after accumulating capital over a considerable period of time. They entered the path of success because they had sufficient business viability and time to build proficiency.

We must also keep an eye on new currents. There are negative views of virtual assets, but they should not be dismissed outright. It is necessary to understand the theory behind virtual assets and the process of their development. It is wise to analyze them while considering how they might connect to business and what possibilities they may hold.

Capital has continued to flow into virtual assets since they began 10 years ago, and technology and knowledge are accumulating. The possibility that they may become fully established as a new business foundation cannot be ruled out. If a new platform for virtual assets is created, an enormously large business could emerge.

The United States continues to create new things on the platform of enormous capital. In the United States, where knowledge communities are spread across New York, Boston, Chicago, San Francisco, and LA, each forms a unit within a vast platform. In Asia, huge central axes are in place in Tokyo, Seoul, Beijing, and Shanghai.

Within knowledge communities and these central hubs, new capital is accumulated and clusters of business value are created. Growth occurs when we do not turn away from new currents but make use of them. We must capture new currents through capital and adapt to them. Let us watch the flow of capital, build up capital, and make capital work for us.

Sung-no Choi, President, Center for Free Enterprise (CFE)

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Original title: 자본 활용해야 성장하고 수익 오른다

Author: Sung-no Choi

Date: 2024-03-19

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=3&idx=26527