Human capital is more important than financial capital. Human capital is the energy, talent, skills, resilience and effort that the people working in the business provide to get it off the ground. Businesses are built by people, not by money. Money may be useful in attracting talented people to the business but if you don’t have money then you, the founding entrepreneur, need to provide the human capital to grow and sustain the business.
lf you don’t have passion for starting a business, do not even try. Passion is the most important ingredient for getting a business off the ground. The dispassionate entrepreneur will almost always be beaten by the passionate entrepreneur. Consider your passion in two areas:
Your passion for running your own business. Are you excited, energised and totally fired up to be your own boss and to make decisions that count? Are you turned on by the responsibility and accountability that comes with running a business?
Your passion for the product or service that the business delivers. Every business has a different product or service at its core. A love for the product or service that your business delivers will make it easier to work the long hours that come with launching a business, and that love will enable you to be resilient in the tough times and low moments.
Knowledge and skill
The difference between financial capital and competence is that financial capital is finite. Knowledge and skills grow and we become better and better at what we are doing. Each of us has a unique combination of knowledge and skills.
If you find a business that effectively leverages them, chances of being competitive and succeeding will increase. Employee assistance program Newcastle is aimed at boosting productivity.
It may seem obvious, but starting a business takes time and effort. People who put in the time and effort will always have an advantage over those who don’t. No one ever described the simple things such as getting an infrastructure in place, getting a telephone up and running, opening a bank account, getting VAT registered as fun. These are mundane tasks that must be done and one of your contributions to your business is to get out there and do them.
Great entrepreneurs are not defined by how they respond when things are working out, they are defined by how they respond when things are going badly (and they will go badly at some point). if you can be resilient in times of trouble and tenacious when suppliers, customers and the world seem to be ignoring you, you will invariably outlast a less resilient competitor.