As a small business owner and entrepreneur you must be willing to build and work on your Financial Capital as well as your Social Capital. As Noam Wasserman states “Social Capital” is the durable network of social and professional relationships through which founders can identify and access resources. He also says that “Financial Capital” is when founders try to accumulate a cash cushion while still working as employees. The size of the cushion can largely determine the amount of time the founder is able to give the startup….. (Pages 47-48 “The Founder’s Dilemmas”)
With my business Savvy Tech I see more of the Social Capital gains. You must be willing to get out there and network, make great impressions on the people in your community. One day these people will some how play an important role in your small business.
I love building my Social Capital, mainly for the fact that we need to help each other and that you never know where and when someone can change your life or for that matter you can change their life! Get out there and network! So, maybe you are a thinking about becoming a small business owner, how do you network?
Networking is simple, no really it is! Want to know what to do? Yes? Ok! Get out there and mingle! Talk to everyone, have your business cards ready at all times, collect business cards where ever you go! Go to chamber events, open houses, classes, conferences, public speaking events, after hour business events…the list goes on and on! But, just get out there and mingle, this is the first step towards building your Social Capital.
Another great asset to build your Social Capital is by actively using LinkedIn. Join this amazing online professional networking group and connect with people you know and of course those you don’t. Join groups and be pro active in them, by supplying your own ideas and thoughts about the topics at hand!
I’m still working on my Financial Capital, this one is hard. The day to day life struggles for me is real, but with that I still work my business. I know I can do better, and I will very soon! Any ideas on how to build Financial Capital? I would love to hear your thoughts!
Source: The Founder’s Dilemmas – Anticipating and avoiding the pitfalls that can sink a startup. Noam Wasserman