3 Sources of Capital
What do you need to build a successful business?
As entrepreneurs, we often have the false sense of hope that “if I only have more money, my idea would be wildly successful!” Such thoughts place the majority of emphasis on only 1 of many sources of capital that a company needs to be successful. I am quickly learning of two other sources of capital that are important:
- Knowlege Capital
- Relationship Capital
Acquiring knowledge capital is one the skills that I’m learning from a mentor, Paul Allen. Paul is known to spend a few hours of each day reading from the best books, blogs, magazines and websites. Such dedication to learning requires much discipline, but I am beginning to understand its value. Acquiring knowledge about your industry, current trends, customers, history, and competitors will eventually translate into competitive advantages and long-term success.
The other, relationship capital, is the value of establishing strong relationships with other individuals and companies. You never know what will come of relationships that you develop in your life. Paul often says, “The best things happen outside of the office!”
Corporate Alliance is that KING of relationship capital. Over the past 2 days, I attended their Corporate Relationship Training and was invited to the Jazz game with a few other members. Both events were terrific opportunities to establish long-lasting relationships with other business leaders in the state. I wish Corporate Alliance the best of luck in their expansion plans.
Brock, nice take on the need for capital. My experience tells me that human capital is also critical. For an entrepreneur, human capital is found in the combination of knowledge and relationships. You need smart people to join you and at an early stage (with a lot of risk), your relationships will serve you better to attract the necessary talent thana big budget for recruiting.