Using Mental, Human Capital to Create Business Capital
All businesses start with an idea…obviously. That idea may be just a little glimmer of a dream in the mind’s eye, yearning to be nurtured and brought to life. It may be a grandiose plan that demands to be set free. Regardless of what the idea is and its original size, the beginning of any business is an idea, or mental capital. You learn things as you get started with your business; you learn what works and what does not. As you experience setbacks and failures, you learn new ways around the problems and issues that plague your progress.
After you get the idea for the business fully formulated, you will need to start reaching out to others who may be able to get your company’s plans off the ground. You will seek investors if you do not have enough money to pay for your venture and not enough experience to qualify for a loan of any kind. When you come to the investors or the loan agency if that is the case, you will establish a working relationship that will hopefully be in place for many years. No one comes to the business world thinking they only want to work a year or two and then fold. They want to be successful for a very long time, until they chose to retire or sell the company and live out the rest of their lives. This is relationship capital. Anyone you will have contact with more than a few times will have a working relationship with you- and you must nurture and grow it just like you would any other relationship in the world.
Human capital is established every time that you speak to or deal with someone that you may never have called to deal with again. A customer who is calling to complain about a product wants more than to just vent; they want to know that they have valid concerns and that these concerns matter to the company from the ground up. They want to know that someone is listening to them and that their disappointments are not going to be overlooked. They want to know that someone is going to be looking out for them, and that someone is going to make it right.
Of the three, human capital may take the slight edge of importance. After all, it does not matter how great your business idea is if you cannot get anyone to listen to your thoughts because they cannot deal with your personality. You cannot build a relationship if you do not have good human contact skills. All of the mental capital in the world will not do anything to increase your business capital if you do not have the basic human skills to back it up.