What Kind Of Capital Is Appropriate For Your Business?
Hey there!
I wanted to write a quick post about how different types of capital might help you best run your company. I'm going to cover four types of capital: financial, intellectual, human, and social. Each type is vital to the success of any business but they each have different requirements and come with their own set of challenges.
Financial capital refers to an investor’s contribution in cash or kind that can be used by the company for day-to-day operations or future investments. This capital can come from either outside investors or company owners themselves, who provide their own cash to fund their venture.
Intellectual capital refers to the value of all of your “know-how” — everything that you and your organization know to do and how to do it. Intellectual capital should not be viewed as a possession that belongs to a certain individual but as an asset owned by the organization itself. The greater the intellectual capital of an organization, the more valuable it is.
Human capital refers to the knowledge, skills and abilities of individuals within a group or organization. It is represented as human resources which contribute towards building an organisation's reputation, brand and equity over time. Human capital is a very tangible asset, as it can be seen through the contribution of a company's workforce.
Social capital refers to the intangible value created by social networks, relationships and communities. The more connected you are, the more you have access to opportunities, information and knowledge that can be extremely useful in evolving your venture. When we build strong relationships with our networks, they support us with relevant referrals and opportunities. Because they are inherently underused in most business plans, social capital can often be an overlooked resource when building an organization.
I hope this post helped to answer some of the questions you may have had about different types of capital. If you are interested in learning more, check out my book:
The Business Idea that will Change Your Life: How to Make Money from Your Passion Project
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DISCLAIMER: The blog of Raven Grey is intended for educational purposes only. The information provided on this blog is not intended as a substitute for advice from your own legal, medical or financial advisors. Do not take any action or information presented on this blog as advice to your actual personal circumstances. The author of this blog makes no warranties as to the material's accuracy, completeness, efficacy, timeliness or appropriateness for a particular purpose. The information provided here is meant only to help you understand and/or review legal requirements that you may be facing and should not be relied upon for any type of legal decision making. Other than general education purposes, no representations are made regarding the suitability of the ideas and suggestions contained in the blog posts with respect to specific situations and situations involving specific persons. The blog posts are not intended to be relied on for any specific purpose or situation. As with anything related to the law, nothing is ever certain and what is outlined here may change at any time. Again, the information provided in this blog should not be relied upon to make a legal decision. If you need specific advice related to a personal situation, you should seek professional legal counsel. The author of this blog will not be liable for any direct or indirect damages or loss arising in connection with the use, misuse or reliance on the contents of this blog.
CLICK ABOVE TO BUY ON AMAZON.COM!
For more great reads like "What Kind of Capital Is Appropriate For Your Business?" CLICK HERE!
DISCLAIMER: The blog of Raven Grey is intended for educational purposes only. The information provided on this blog is not intended as a substitute for advice from your own legal, medical or financial advisors. Do not take any action or information presented on this blog as advice to your actual personal circumstances. The author of this blog makes no warranties as to the material's accuracy, completeness, efficacy, timeliness or appropriateness for a particular purpose. The information provided here is meant only to help you understand and/or review legal requirements that you may be facing and should not be relied on for any type of legal decision making. Other than general education purposes, no representations are made regarding the suitability of the ideas and suggestions contained in the blog posts with respect to specific situations and situations involving specific persons. The blog posts are not intended to be relied on for any specific purpose or situation. As with anything related to the law, nothing is ever certain and what is outlined here may change at any time. Again, the information provided in this blog should not be relied upon to make a legal decision. If you need specific advice related to a personal situation, you should seek professional legal counsel. The author of this blog will not be liable for any direct or indirect damages or loss arising in connection with the use, misuse or reliance on the contents of this blog.
CLICK ABOVE TO BUY ON AMAZON.COM!
For more great reads like "What Kind of Capital Is Appropriate For Your Business?" CLICK HERE!
DISCLAIMER: The blog of Raven Grey is intended for educational purposes only. The information provided on this blog is not intended as a substitute for advice from your own legal, medical or financial advisors. Do not take any action or information presented on this blog as advice to your actual personal circumstances. The author of this blog makes no warranties as to the material's accuracy, completeness, efficacy, timeliness or appropriateness for a particular purpose. The information provided here is meant only to help you understand and/or review legal requirements that you may be facing and should not be relied on for any type of legal decision making. Other than general education purposes, no representations are made regarding the suitability of the ideas and suggestions contained in the blog posts with respect to specific situations and situations involving specific persons. The blog posts are not intended to be relied on for any specific purpose or situation. As with anything related to the law, nothing is ever certain and what is outlined here may change at any time.
Conclusion!
Thank you again for taking the time to access this information. I hope that you found it helpful and that you are better equipped at handling the legal side of your business. Please feel free to ask any questions related to this blog post in the comment section below. Happy reading!
CLICK ABOVE TO BUY ON AMAZON.COM!
For more great reads like "What Kind of Capital Is Appropriate For Your Business?" CLICK HERE!
DISCLAIMER: The blog of Raven Grey is intended for educational purposes only. The information provided on this blog is not intended as a substitute for advice from your own legal, medical or financial advisors.