The business world revolves around capital. Venture capital is what kicks off the business in the first place. Future capital is what is generated by the product or service or by further investments by the partners. Without venture, the business will never get off the ground and will remain just an idea in your head. Without future capital, you will find yourself having to close your doors because you just cannot afford to remain in business. Money may be important, but it certainly is not the only type or form of capital that there is to be found or used in the business world.

There are actually several kinds of capital that you will need to learn about on your path to financial success. Mental capital, or the ability to learn and absorb new information keeps you from repeating old mistakes over and over again. Perhaps you know that your strengths are with the people aspect of business, but that one of your investors is a mathematic whiz. Instead of struggling every day to reconcile your numbers and possibly creating costly errors, you may choose to have the numbers whiz, investor handle the books from now on- as an investor he is interested in your company’s continued success. You have created a beneficial relationship; you are on your way to gaining relationship capital.

As you continue on with your business, you may find that you are creating and strengthening relationships in different ways. For instance, you may find that a certain distributor in one office can get you better deals if you work with him directly. He knows how to get the right kind of deals that save you money so that you can pass those savings on to your consumers through sales and special promotions. You are working on gaining social capital by building these relationships. For every distributor or other that you can gain benefits from is another chance to build social capital. In return, you will continue to give that distributor your business, because it is beneficial to you as well.

Human capital, like social capital can be very important in growing and developing your business. When you are building strong relationships, you are strengthening your company as well. Human capital can take the form of excellent customer service, or the ability to relate to all of your employees as individuals. Sometimes all of the money in the world will not help a failing business is one of the other capitals are lacking. The powers that be are stuck in a rut and will not learn new information or new ways to do anything, so they are doomed to continually repeat their same failures and miscues over and over.

If the capital forms are not in some kind of balance, there will be problems throughout the company. Mental capital will teach new skills, social capital will build and strengthen relationships. The more adept you are at handling the different forms of capital, the better you are able to adapt and adjust to changes, the more likely you will be succeed in the business world.