Cash is just one of the essential business capital

The surest way of getting more money is to have
The surest way of getting more money is to have more mental and relationship capitals. FILE PHOTO | NMG 

I was in a meeting where one seasoned entrepreneur boasted how he started a multi-million shilling business from the scratch with little capital.

However, on analysing his story we realised that he had several privileges and factors that helped him that cannot be ignored in the entire narrative. In other words, he had other ‘capital’ only that it was not financial in nature.

Quite frankly, whenever a word capital is mentioned what comes to mind of most people is money. In reality, money is just one form of capital and though a key one, it is not solely sufficient to make one succeed in business.

Two other important forms of capital that are often overlooked are mental capital and relationship capital.

Mental capital basically includes what you know and can do. Your knowledge, competencies, education, experience and insights are key assets that can form a business core capital.


Most employed people and the educated have this form of capital in abundance but often keep looking for money capital instead of using it. For example, instead of seeking employment, you can propose solutions and partnerships with business people who lack the kind of knowledge and skills you have to solve their business problems.

Some of the ways you can increase mental capital includes reading, traveling to gain exposure and interacting with others in the industry.

Relationship capital basically refers to the people you know and have a connection of material value.

These are the people who can give you advice, guidance or mentorship. Many not give you money or noticeable knowledge that you can apply in your entrepreneurial endeavours but can connect you to people in their network who can be of use either as financiers, customers or partners.

You increase your relationship capital by choosing your friends well and being ready to help others. When you positively impact on people’s lives, they become your friends and open the door to their other friends.

Financial capital which is known to all of us is the money which you either own or have access to for the purpose of starting or growing your business.

In most cases if you have mental and relationship capital, accessing financial capital is a walk in the park. If you use your mental capital well you can create value and positively impact on people and by so doing build relationship capital.

To an extent, lack of financial capital is an indicator that your mental and relationship capital is wanting. Instead of focusing so much on how to get money, focus on acquiring the first two and money will start flowing in.

In other words, the surest way of getting more money is to have more mental and relationship capitals.

For instance, a sales person — and all entrepreneurs are — can increase income my increasing knowledge and skills in their area of specialisation as well as building relationships with people who can buy their products or recommend them to their networks.