One of the most powerful equations I have learned on my journey is the following:
Intellectual Capital + Relationship Capital = Financial Capital
You are the most important asset in your business. Your knowledge, wisdom, skills, and unique abilities make up your intellectual capital. You can increase the value of this intellectual capital by learning, growing, and expanding your skills.
Just as important is your relationship capital. This is made up of relationships you have with your family, your advisors, your team, and people in your network. You can increase the value of this capital by deepening your current relationships and building new relationships.
When you combine your intellectual capital and your relationship capital, it creates financial capital.
Business owners who don’t understand this equation might focus squarely on financial capital. Yet they may find themselves stagnating and struggling to get results because they’ve missed what drives financial capital.
But if you focus on growing your intellectual capital and relationship capital, financial capital will come as a result.
Don’t Take Your Eye Off the Ball
If you now see the whole picture and want to create your own banking system, don’t lose focus on the main driver of this bank, which is creating financial capital by growing your business—and creating this financial capital through your intellectual and relationship capital.
Your income is what will make your own banking system strategy work. Continue to grow that so you can magnify the impact of this strategy.
When you have a strategy that protects you, your family, and your business, you will have clarity, confidence, and a strong foundation that will allow you to grow your business.
Knowing that your assets will be protected if you die or become disabled, you’re free to focus on doing what you do best–growing your business through growing your intellectual and relationship capital so you can have more financial capital to fund your banking system.
Disclaimer and Waiver
Michiel Laubscher & Laubscher Wealth Management LLC is not an investment advisor and is not licensed to sell securities. None of the information provided is intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, of any company, security, fund, or other offerings. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties, either expressed or implied. Michiel Laubscher & Laubscher Wealth Management LLC does not promise or guarantee any income or specific result from using the information contained herein and is not liable for any loss or damage caused by your reliance on the information contained herein. Always seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, or other content.
