Human Capital is essential to a family business. But Human Capital can also be fragile. How do you ensure that the essential know-how that makes your business uniquely successful gets carried on? How do you scale your competitive advantage? How do you protect your most important capital? You make it into Enterprise Capital.
What is Enterprise Capital? Enterprise Capital is all the unique know-how embodied within a business that allows a product to be made or a service to be delivered better than the competition can do it. It is the coming together of Human and Financial Capital to solve a problem. Enterprise Capital can take almost any form: machines, systems, know-how, algorithms, techniques, patents, processes.
The key is to identify your most important capital and then institutionalize it; transform it from an individual unit of capital to capital that can be replicated, redeployed, and repurposed to strengthen competitive advantage and to create new opportunities. In this episode, you will learn a 5-step process for transforming your most important capital into Enterprise Capital.