Why Entrepreneurs Can’t Afford to Overlook Their Human Capital
Despite nearing the end of the year 2021, the economy shows no signs of letting up the volatile momentum experienced these past few weeks now, slowly recovering from the risk-off sentiment that many forecasts strongly assumed to be the safest approach going into 2022. As a result, many business owners and up-and-coming entrepreneurs are pivoting their investing strategies and risk roadmaps to better meet the changing demands of the general uncertainty currently present in the markets.
However, while business resilience planning and shifting financial management strategies to cool-off for more sustainability going into 2022 are equally valid points moving forward, accounting for these mechanical and technical business aspects won’t necessarily propel progress in the years to come. And if you’re looking to capitalize on further economic rebounds and riding the wave of economic recovery, we firmly believe that entrepreneurs desperately need a fresh start by looking into their human capital first.
Personal Drive Alone Won’t Overcome All Challenges
Understandably, we recognize the advantages of being a highly-motivated, determined entrepreneur and business leader, no matter what industry or business sector your company may be currently operating in as of this moment. But, relying on your drive alone to pursue target goals and meet disruptive changes within this current market situation won’t make the cut because challenges are transforming and becoming increasingly difficult.
- Business Challenges Require Professional Competencies: Although a strong grasp on fundamentals and market movements can help improve your decision-making, nowadays, specific business challenges require professional competencies from entrepreneurs. As a result, relying on experience and observational evidence won’t provide you with the best criteria to manage your business effectively. Therefore, the likelihood of shortcomings and exposure to business risk increases with the lack of human capital.
- You Can’t Build and Develop Soft Skills Overnight: In addition to the increasing demand for professional competencies from entrepreneurs, the past two years have consistently challenged our understanding and application of soft skills. And, unless you’ve already established a foundation for professional business communication and associated time management, building these skill sets will take time. You must also integrate the same mindset onto the business culture, especially teaching the same in hybrid workplaces.
Don’t Just Invest in Asset but Also Invest in Yourself
Given the reasons mentioned above, it’s clear that investing in business assets, equity securities, and allocating resources for future projects shouldn’t be the only items on your priority list because investing in your human capital is equally important. And while personal skills and expansive knowledge of relevant business information may not provide direct economic benefit on paper, this professional expertise gained will help you navigate through the industry better and lead to more quality decision-making.
- Seek Advanced Education and Accredited Programs: Firstly, many success stories would have you believe that anything is possible even without formal tertiary education. However, seeking advanced education and accredited programs will prepare you for more demanding responsibilities. And if you practice a keen eye on what courses and workshops you decide to attend, you will retain job-specific specialized skills that will shed new light and bring different angles to things you didn’t know before.
- Immerse Yourself In Different Industries And Markets: Apart from seeking further education to add to your human capital, it also helps immerse yourself in different industries and markets that aren’t necessarily interconnected with your business. For example, learning more about the crash and extended decline of cryptocurrencies will introduce other investment markets and expand your knowledge of emerging tech. And, in doing so, the business principles carry over to your business functions as well.
Of Course, Don’t Expect to Achieve Everything Alone
Likewise, we shouldn’t expect to reach the perfection of human capital and know every last detail and specialization of all fields to a tee because it’s virtually impossible to do so. At the end of the day, we reach set limitations, and going past that point will only introduce information overload. Therefore, working with others that are highly trained and skillful in other subject matters is necessary.
- Bridge Gaps with Networks and Teams: Businesses are built by people, and every individual present in your company contributes to the collective human capital present in your business. As a result, you should use your business networks and teams to bridge the gaps of different departments and your lack of understanding of certain business processes. For example, if your specialty lies within finance and investments, you can leave the process of serving court papers and filing patent claims to your legal team or services.
Human Capital Amplifies the Magnitude of Future Success
In conclusion, investing in yourself and improving upon your human capital is becoming essential with each passing day, considering the disruptive market situation and volatile nature of industries. And while its economic benefits may not reflect in material respects through your financial statements, human capital will provide opportunities to amplify your future success.