Capital is the money or wealth needed to produce goods and services. It is also known as money. All businesses must have capital in order to purchase assets and maintain their operation.
Capital for entrepreneurs will be discussed in four (4) aspects which I call the FSIM.
F: stands for Financial Capital
S: stands for Spiritual Capital
I: stands for Intellectual Capital
M: stands for Material Capital.
This is the form of capital we hear about all the time, Sometimes people start off with a lot of money. They may have a lot of money and decent ideas but since they have the money there isn’t a high level of urgency, they will start bit by bit because all they need is made available at their very disposal.
Some persons will be like what is spiritual capital? I haven’t heard about it before, what could it be?
Spiritual capital is a faith-based kind of capital. There are a lot of products that are tied to a certain faith, to a certain religion, and that entrepreneur has an advantage because they know exactly how that faith thinks or how the community can work with that faith and get what they actually want.
Material capital are things like tools and machinery, it can also be your wealth or assets you have accumulated overtime
Intellectual capital is patents and trademarks you may own, and knowledge, wisdom and exceptional thinking you may have in a particular area.
To tell an entrepreneur that a prospective investor may not be ideal is like telling a starving man that the food doesn’t taste very good. As fellow entrepreneur, I can you that the passion and desire to find funding any funding often outweighs a logical business decision.