There are more things one should know about business. It is necessary that one should calculate the cost of production. One should take into account all expenses incurred before calculating. This was clearly explained by Chanakya. Chanakya further propounded that out of total income, one fourth should be saved for the future and three fourths should be used for the five life forces of the business.

Today’s business owners were only managers at onetime. As they have amassed wealth, they have become leaders. But we should understand their indifferent attitudes. For each company there are shareholders. The leaders (as promoters) invest money; say Rs.10 lakhs along with the remaining shareholders. From the moment they get back the money they invested, they lose interest in the business of that company. This leads to the company making losses. These leaders have the defect of grabbing back their capital and do not have the broad mindedness of improving the business afterwards. Three fourths of today’s managers act thus. That is why to day’s business does not prosper. Chanakya’s principle was different. His principle was that of ‘Circulation of the Capital’. Both money and blood have to be circulated so that there is safety and protection. This is the most important principle of Chanakya.

He stated that out of the total earnings or crops produced, one-half has to be stored for the future. During times of emergency, one should be self-reliant and not dependent on others. Out of the remaining, one half has to be used for the welfare of the nation and the other half for defence. He also gave principles of business. (M, p. 8/ 49)