Building Social and Financial Capital

“…Social Capital is the durable network of social and professional relationships through which founders can identify and access resources.” (Wasserman, 2012)

“…Financial capital… many future founders, while still working as employees, try to work on the startup accumulate a cash cushion that will keep them going after leaving to work on the startup.” (Wasserman, 2012)

When starting a venture, it is essential to have resources in place. One of the most important resources is money. This can be money saved by the founder of the business, money from investors and even loans. Often times money is the over- arching cloud lulling over a founder’s head. However, I come to learn that knowing the right people goes a long way. Their knowledge and resources, sometimes financial, can help in many ways.

As such, it is important to have a solid network or group of professional relationships. I have been fortunate enough to have a few close friends that are in accounting and the financial arena. They have given great financial and professional advice. I plan to utilize their skillset throughout my entrepreneur journey. The great thing about having these relationships is that everyone knows someone. It essentially becomes a large web of resources and knowledge that become available and can be built upon.

This notion goes beyond the initial startup stages of the company. It is also imperative to have personnel in pace as my venture grows that are equally as knowledgeable, experienced, and resourceful, especially as department head leaders. These individuals will help grow the business as well as play integral roles in hiring personnel within their departments.

Works Cited:

Wasserman, Noam. The Founders Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Princeton Univ Pr, 2012.

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