I heard the term for the first time in the book Trust Agents.
Just as you need traditional capital (money) to run your business and fund expansion, you also need social capital - an intangible currency used among your network.
Next time you buy your friend lunch; you'll be creating social capital, in that you're giving something to someone, expecting nothing in return, just because you can and want to. You want to invest into that relationship.
One day that friend may buy you an unexpected cup of coffee ...and maybe they would have done it anyway, but at least this way both parties feel good about the transaction; you with a fresh coffee and your friend with the privilege of returning a favor. There is no guilt and no obligatory feelings - just a friendly transaction for all the right reasons.
It's not just with purchasing things either. If you decide to shovel your neighbors driveway because they aren't home to do it, then maybe one day you'll find that they replaced a burnt out light bulb on your porch when you are away.
Making those small investments in all relationships is what successful people do. They are always there to lend a hand and as a result, people are always eager to help them in any way possible.
-B
Comments