| When you start your own business, you commit to | | | | In addition, build a stellar Board of Advisors or Board of |
| investing your time, talent and resources in the | | | | Directors. A Board of Advisors usually will help you for |
| business to make it succeed. You authorize a | | | | free, whereas a Board of Directors is paid. The key is |
| spending plan; you ask the bank, your credit card | | | | to engage thought leaders in your niche who become |
| company, friends, family, employees, to endow the | | | | early adopters of your product or service and |
| business to follow your business plan and implement | | | | advocate for you to their significant networks. |
| your marketing plan. There's more to it. You need to | | | | Working Capital: Invest minimally here because there's |
| determine where you can differentiate your company | | | | no added value to the company or the product. Tying |
| from the competition, so where should you invest the | | | | up cash instead of using credit may actually slow your |
| most resources? To garner the most flexibility, I | | | | time to market. This could be a critical timing mistake if |
| suggest your investment priorities should be: Brand | | | | your competition is racing you to market. |
| Capital, then Human Capital, followed by Working | | | | Physical Capital: Invest minimally here because bricks |
| Capital with Physical Capital at the bottom of the list. | | | | and mortar don't sell product. Yes, you need a roof |
| Brand Capital: Invest the most in your market and | | | | and windows that don't leak (I've worked with many |
| marketing to them. Up front this could simply be | | | | startups in the old mills where workstation layout was |
| focusing on a small group of prospects. Do the | | | | based on the leaks and drips.). You don't need to be a |
| economics to make them well satisfied customers. So | | | | miser. And you need the equipment, technologies and |
| much so, that they provide the testimonials or become | | | | conveniences that will make everyone highly |
| the spokespersons for your future sales. Remember, | | | | productive. Cost- effectiveness should be weighed |
| the high value transfer of using relationships. | | | | here too. |
| Human Capital: This is your team and their track | | | | Whenever you are investing in your business, |
| record coming on board. Only hire stars, no matter | | | | recognize that you cannot manage everything, but you |
| what. Only employ experts in the key roles of your | | | | can manage the value equation of each investment. |
| company. For other positions, look for great talent you | | | | Be sure the value to your business is outstanding, so |
| can mold to your vision, and move around to meet the | | | | you can win business with every sale. |
| company's needs. | | | | |