“I want to start a business, but I don’t have the capital”, “if only I have X thousand naira, I would be able to execute my ideas”. I’m sure this resonates with many of us as things people say or we say to ourselves when the issue of starting a business pops up. Let me break it to you, money is not the only capital you need to start a business. It is essential, no doubt…but it’s not the most important factor. I am a living example of that. Let’s dig in.
This article was inspired by Dr. Charles Omole, a lawyer, security consultant, trainer, and strategist to businesses and government across Europe and Africa after watching a video of his, thought to share some of his insights plus my own experience with you. So, it’s a story/testimonial article.
It’s common knowledge about the situation of economies all over the world right now, people are losing their jobs as many companies can’t realistically keep up with the overhead of running their operations. Thanks to remote working and other technological advancements, a previous analog workforce is gradually fizzling out making room for a new kind of digital workforce, such that if you are not technologically savvy you may not be able to find a job or retain one.
Consequently, there is a need for an entrepreneurial explosion, because if you are waiting for one uncle of the government to come through with a job, you may just be sitting on a long thing.
Despite the difficulty and economic downturn, research shows that more millionaires were created during the great depression in America, and it’s because people created jobs for themselves, not the government.
However, I know getting funding to start a business is not beans, and our banks are not helping matters by making loans easily accessible. Never let money stop you from starting your business,
start with what you have.
Sam Adeyemi
You may be wondering, what do I have sef? Let’s explore other channels of capital you might need to look into to getting started with your business.
1. Intellectual Capital:
Wait, I’m not talking about degrees or academic qualifications, I’m talking about knowledge. A knowledge of something, a ‘how-to’ knowledge.
Take for instance you want to open a fashion design business, you don’t necessarily need to be the one sewing the clothes (most fashion designers don’t even know how to sew), but you must know what good clothing looks like, how to buy good quality fabrics and a good eye for top-notch aesthetics. It could be anything, but the main thing is the knowledge of the intricacies of the craft.
My point in essence, is you can’t be ignorant of how things work in the business you want to start. I started a piggery 2 years ago because I wanted to diversify into agriculture and pig farm was like the sensational thing everybody was talking about, that it is profitable and all. I entered it with no prior experience or technical know-how, just had money, and wanted to do business.
It was an epic fail after about 2 years of continued investment in it without returns. The moral of the story is, don’t go into business without the intellectual capital of that industry. It could end in premium tears. Which brings me to my next point;
2. Emotional Capital:
This is the ability to be emotionally tough. Entrepreneurship looks fancy on social media and pop culture, but in reality, it could be emotionally draining, especially when things are not going as planned. Sleepless nights, disappointments, rejection, starting a venture, and watching it crumble before your eyes, I can go on and on.
You need emotional fortitude to run a business, not even when you are in a country like Nigeria where your efforts can be easily frustrated by different factors.
You drown not by falling into a river, but by staying submerged in it.
Paul Coelho
You must find emotional resilience, that dogged belief in your vision and what you want to achieve. However, you must also know when to quit. Quitting on a task is not entirely a bad thing.
Sometimes you’re not just ripe for the idea yet or you don’t have the right skills. So, moving on to other things you feel you can do better at is not a bad idea at all. After my piggery experience, I’ve done other projects. This blog you’re reading is one of them.
3. Relational Capital
This has to do with the ability to relate with people. You have to be a people person to do business. You must have the ability to hold discussions at all levels. Gateman to managing director. Your relational bandwidth must be very diverse with conversational skills and genuine affection for people.
Remember it’s not about you, it’s about the person you want to solve a problem for. Also, never underestimate the power of a PA or secretary. Your proposal or file may never get to the decision-maker if you don’t know how to be friends with these so-called lower staff.
I remember many years ago, my dad used to get contracts from a government establishment. Whenever I follow him then, he goes with enough cash and he starts giving people money right from the gate and I see the way they hail him and treat him well as a result. It is what is, some little gestures like this are just necessary to get goodwill as a businessman.
4. Social Capital
This has to do with your network and your strength of character. The quality of friends and associates you have around you as well the quality of your personality.
Relationships are a 2-way street, it’s hard to seek value from someone when you have not in one way or the other added value (or plan to add) to the person. Some people are socially bankrupt because of their shitty character. Borrowing money from a friend and not talking about it again, not to talk of paying back is a bad thing.
Your social capital is the people around you, when you eventually need financial or moral support, these are the people that can give you soft and interest-free loans. So, how do you do it when you’ve destroyed your reputation.
I started my very first business with a loan of 26,000 naira from a friend in school. His name is Dayo, coincidentally my partner in MSP is also Dayo, maybe there’s something about Dayos, lol. Anyway, as young as I was, I understood it was a loan and it had to be paid back. I paid back as planned and my business soared from then on. You get my point, right?
5. Mental Capital
The ability to have a sharp mind and to recollect facts and figures. It’s not every time you’re given a piece of vital information, you’ll be able to write it down or it’s not every time you are talking with a client, you’ll have the luxury of reaching for your phone or notepad to get out a piece of important information.
As a businessman or intending entrepreneur, your mind has to be able to calculate figures without a calculator. An average bus conductor does some simple arithmetic like “bring 150, let me give you 500”. This is a simple version of what I’m talking about.
Also, you must be very vast about all aspects of your field, the basics and the advanced. You don’t want to be talking to an investor and you start stuttering when they ask you a question. You should be able to school anybody that asks you a question in your line of business.
6. Spiritual Capital
Money-making is a spiritual activity. In religious settings, they call it faith, in secular settings, they call it vibe. Whatever it means to you, understand that business is a spiritual activity.
Have you noticed something in big markets, you’ll see over a hundred people selling the same thing and you wonder how they do it? With no verifiable information that he will be successful in selling his wares, the market woman or man nonetheless purchases inventory.
He then waits patiently with a belief in his heart that someone will come to buy from him at his stipulated price. Then he collects a piece of paper (money) to also buy whatever he needs from somebody that sells it. This exchange is spiritual. Also, someone may come highly recommended for a service and you may meet the person, you won’t just like their vibe and you won’t be able to explain it.
As a businessman, you must constantly emit the right vibe to people and find a way to recharge your batteries, some it’s prayer, some its meditation, some its gym, or yoga. Whatever it is, you need a truckload of faith for business and follow come charger for your spiritual batteries.
7. Financial Capital
Wouldn’t dwell too long on this for the obvious reasons. But if you get it right with the six points I mentioned earlier, the money will come in your direction.
I’ve been there, sometimes a partnership or trade by barter is all you need. I remember a time I wanted to do a photoshoot with a particular photographer, I know I couldn’t afford his fees. Hence, I leveraged what I have. I offered him my services and he was to do a shoot for me in return. Money never changed hands, but value did.
If you first think of money for your projects, your brain is likely to shut down and you abandon the idea. But look critically into other capitals you have and you will see possibilities.
I sincerely hope I opened your mind to new possibilities to unlock the potential that lies dormant inside. Please drop a comment or add anything you feel will be beneficial to others too and share on social media so others can see.
We shall succeed. Stay stylish.
Olowe Segun
Tolulope
