Chapter 3 Ingenuity from Moderate Inferiority and Poverty 3.2.1.1 Money and solutions (1)

前話: Chapter 3 Ingenuity from Moderate Inferiority and Poverty 3.2 Poverty is the mother of ingenuity
次話: Chapter 3 Ingenuity from Moderate Inferiority and Poverty 3.2.1.2 Money and solutions (2)

Aside from mental poverty, I know that there are many things in the world that can be solved with money. I do not deny it.

However, it is not good to rely too much on money when you start, maintain, and develop a business. Good examples are the collapse of the bubble economy in 1990, the bankruptcy of large corporations since then, the bad debts of banks and the arrival of the deflationary era. These are good lessons for us.

SMEs do not have the money free to use at any time. The companies that do work without using much money steadily grow and they are socially recognized.

I think there are six items to keep in mind when individual with a small power starts a new business: Otherwise, he or she poses a great danger and causes a great deal of trouble to society.

 1. Don't rely on money (borrowing), goods (equipment), people (others): Efforts not to spend are more important than efforts to make a profit. It is important not to use money to solve all the things. Capital is debt from others. Not only money, but also starting something new that relies on things (equipment) and people (others) carries a great risk. You should not irresponsibly rely on entrepreneurial funds or lending equipment just because it is an era new business needs to be started. You should start with a job you can take responsibility for, with a level that suits you and with a job you can get a daily income. If you can't do that, it's too early for you to start a business. You are lacking in power to start a business. You should not use your retirement allowance to start a business. Severance pay is a shared property of people and families who live together. Do not use it only by yourself at your own discretion. Moreover, we are in an era of aging society and unstable pension system. Don't put an unnecessary burden on the younger generation by cutting down your retirement allowance early.

2. Utilizing past experience, knowledge and property: It is better not to start a new business that you can’t utilize your past experience, knowledge and property. Each person has experience, knowledge, and property. By combining, reusing, or exchanging them, it is possible to start a business with less risk in terms of money (funds), goods (equipment), and people (human resources). If that is not possible, the new business is premature or your experience, knowledge and property are lacking. It's better to delay the start of your business. Or you shouldn't start.

3. Take at least a few years to prepare: Don't make a haste. It is important to carefully examine the plan from the standpoint of a third party. The work or business, large or small, is rarely forever. Only when a certain business is successful, it is a good timing to select the next business and start preparing for it. It usually needs at least a few years, preferably five years or more, for an individual with small power to start a business. If you can be ready to do it in a year or a few months, it's a job that anyone can do. It must be highly competitive and may have low value as a new business.

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Chapter 3 Ingenuity from Moderate Inferiority and Poverty 3.2.1.2 Money and solutions (2)

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