Financial Capital vs Human Capital? - 4
Some examples of Financial Capital based companies..{records are from 2008}
Pepsico, a superbly managed company from the 20th century and one of the most admired in the world has used financial capital of about $34 billion throughout its coperate lifetime has created shareholder wealth of just about $73 billion.
Same goes for Procter&Gamble, also a well admired company, which used about $83 billion yet has created just about $126 billion in shareholder wealth.
{Check part 5 for Human Capital based companies}
Financial Capital vs Human Capital? - 3
What this means for you is that.. Unlike before, your excuse for not starting out and succeeding is not dependent on money as much as it's dependent on being capable of doing what's necessary..
Be it you.. Or your employees.
And there are many examples to see today.
Financial Capital vs Human Capital? - 2
From roughly six hundred years ago.. When people Europeans started embracing a culture of learning there was an explosion of wealth and commerce that lasted till the late 1900s. During that period the scarce resource in besinness was "financial capital".. Which, if you had, you had the means to create more wealth but it you didn't have, then well, you didn't.
However, that world is gone now.
Today, in a change that is historically quite sudden, financial capital is abundant. The scarce resource is no longer money. It's human ability.
Financial Capital vs Human Capital?
Roughly every 9 out of 10 people who are yet to start their own business will claim the reason they haven't done anything is because of the lack of "Financial Capital"..
And though this argument would have made so much sense between the 15th - 20th century.. It really doesn't today, at least not as much.
So what's my point?
{Go to my time line to read the continuation}
{Second part}
Any body who truly ever became anything valuable in life will let you know that the fact that you don't "owe anybody any explanation" already puts you at a disadvantage over those who do.
Unlike what you like to hear, it's harder for you already if you don't have anyone to report to.. It's worse for you if you think that it's a license to misbehave
"You don't owe anybody any explanation.. Ma jaiye lo"
The above statement is usually paraded by the the YOLO set of people.. And sincerely, it sounds enticing.
But I doubt you have really thought out the repercussions of such mindset..
What I mean is this.. {check my time line for continuation}