Investing in your social capital

The term “social capital” is so widely spread. So, what is social capital? Simply, social capital means economic benefits, which people get due to cooperation (like synergy between two different companies in business). It is made usually by a group and used in the production of wealth. Social capital consists of a large variety of resources:

• •      Ideas

• •     Knowledge

• •     Information

• •      Opportunities

• •      Contacts

• •      Referrals

There is no doubt that social capital nowadays is a very important part of building a successful project or carrier. If you would like to get a good job, it is better to have a very large web of relations.

Thus, a key way that social capital is acquired is through networking because successful networking is all about building and maintaining solid, professional relationships. The trouble is, we don't live like the Ingalls in Little House on the Prairie anymore, and we don't have the natural community-like business relationships that existed before. Many business owners hardly know their own neighbors.

Formal, structured networks like this provide the mechanism for accomplishing the shared objective of business development within a particular community. According to Eric Lesser, the author of Knowledge and Social Capital, "Without a shared understanding of common terms, activities and outcomes, it becomes very difficult to reap the benefits associated with building social capital." Herein lies the incredible power of structured networking programs. They provide the "common terms, activities and outcomes" (or system) that lead to building substantial social capital for the people who use the program effectively.

• 1.    Plan your word-of-mouth. If you want to be successful in business, it's critical that you plan your work and work your plan. Furthermore, part of your plan should involve your strategy for building your business through word-of-mouth.

• 2.    Give referrals. Every day, week and month, entrepreneurs strive to build their businesses through referrals. Part of this process is to build a team of people whom we recommend and refer. This is part of the process of building your social capital.

• 3.    Show professionalism at all times. Being dependable, delivering a product on time, meeting appointments consistently and treating others with courtesy will give you a professional reputation and cause you to be remembered by those you wish to have become a contributor to your social capital.

If you're not already a member of a strong contact network, find a chapter near you and get started. There's no better way to systematically develop a solid base for building social capital than in an organization dedicated to helping you succeed in this endeavor.