When we think of capital, we largely think of money.
Financial capital is just one of the eight different types of capital for a business to thrive. If you would like to appeal to a wider audience, attract and retain quality staff, attract investors, and create more free time to enjoy your success, the eight different types of capital need to be cultivated.
While the most commonly accepted types of capital (Financial, Material, Intellectual property) are important, there is a growing consensus valuing the other types of capital needed for the businesses to thrive.
I came across the Appleseed Permaculture approach to the financial system and business that resembles the ecosystem. The additional five types of capital are:
Experiential – The experience Founders, Staff, Mentors & Advisor bring
Social – The relationships with the broader stakeholders, from peers, the public, government, influencers and more.
Cultural – The diverse staff provide the fabric of the business. Different viewpoints are a benefit while still aligned to the purpose of the business.
Living – Our natural ecosystem. If we pollute our water and the air, the products and services we create will be impacted.
Spiritual – the heart of the founder’s is one of the most powerful and it is faith! Creating and growing a business is not easy. There will be many set-backs, it’s about the tenacity and grit of the founders and staff to get through the challenges based on how they ‘show up’.
Below is short video where I dive into the different type of eight different types of capital.