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Investment Capital - Putting Brand Capital And Human Capital Above Working Capital Or Physical Capit

When you start your own business, you commitstellar Board of Advisors or Board of
to investing your time, talent and resourcesDirectors. A Board of Advisors usually will
in the business to make it succeed. Youhelp you for free, whereas a Board of
authorize a spending plan; you ask the bank,Directors is paid. The key is to engage
your credit card company, friends, family,thought leaders in your niche who become
employees, to endow the business to followearly adopters of your product or service and
your business plan and implement youradvocate for you to their significant
marketing plan. There's more to it. You neednetworks.Working Capital: Invest minimally
to determine where you can differentiate yourhere because there's no added value to the
company from the competition, so where shouldcompany or the product. Tying up cash instead
you invest the most resources? To garner theof using credit may actually slow your time
most flexibility, I suggest your investmentto market. This could be a critical timing
priorities should be: Brand Capital, thenmistake if your competition is racing you to
Human Capital, followed by Working Capitalmarket.Physical Capital: Invest minimally
with Physical Capital at the bottom of thehere because bricks and mortar don't sell
list.Brand Capital: Invest the most in yourproduct. Yes, you need a roof and windows
market and marketing to them. Up front thisthat don't leak (I've worked with many
could simply be focusing on a small group ofstartups in the old mills where workstation
prospects. Do the economics to make them welllayout was based on the leaks and drips.).
satisfied customers. So much so, that theyYou don't need to be a miser. And you need
provide the testimonials or become thethe equipment, technologies and conveniences
spokespersons for your future sales.that will make everyone highly productive.
Remember, the high value transfer of usingCost- effectiveness should be weighed here
relationships.Human Capital: This is yourtoo.Whenever you are investing in your
team and their track record coming on board.business, recognize that you cannot manage
Only hire stars, no matter what. Only employeverything, but you can manage the value
experts in the key roles of your company. Forequation of each investment. Be sure the
other positions, look for great talent youvalue to your business is outstanding, so you
can mold to your vision, and move around tocan win business with every sale.
meet the company's needs.In addition, build a



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