Capital isn’t scarce; vision is. — Sam Walton

New business need capital, expansion need capital, new products need capital, to implement new ideas – need capital, whatever initiative need capital. And if you haven’t heard that the “It’s a good idea but at this moment we don’t have capital to invest on this” …or something similar.. you are lucky.

Many organizations complain about not having enough capital to put ideas into practice. While there are many types of capital, here we are talking about the financial capital. Either debt or equity, financial capital is the financial strength to put ideas into practice.

The capital of a company is the money available to spend on daily operations as well as to invest on future growth. ?Kye types of capital include working capital, debt, equity, and trading capital. Capital structure of a company is an important decision taken by the management which determines what mix of capital is used to fund its business.

We can look at the capital of a business to evaluate how efficiently it is using its resources.

When a company says, they don’t have capital to expand, they don’t have working capital to import goods to be sold or if they say they don’t have capital to run the organization in a way that both employees and the company feel comfortable…are they telling the truth?

If a company pulls out ‘Scarcity of Capital’ as the excuse for not doing the right thing... more often than not “they are lying”. Its not that they don’t have capital... they lack VISION! Or they have a hidden agenda. Leaving aside the hidden agendas lets look at the ‘lack of VISION’

Many mid-size organizations which complain and struggle on lack of capital (or working capital) usually run by some senior employees who are still lacking entrepreneurial vision. When owners do not have a proper vison and rely on few senior employees who were groomed by them with same lack of vision to run their organization... all we can say is ‘God bless’ to that company.?

When the ‘top few’ do not have a clear vision for the organization, they look at excuses for not thriving or expanding, usually blaming the scarcity of capital. And they will never have capital as the capital does not grow inside companies like grass growing freely in a meadow.

If the management have a clear vision on the future of the business, they can always find ways and means to alter the capital structure of the business and start moving forward towards reaching towards the ultimate vision. ?

So as the funder of Walmart, Sam Walton said “Capital isn’t scarce; vision is”.

When a business leader says they are curtailing anything due to lack of capital, remember they lack vision, NOT the CAPITAL.?

(Nirmana Jayatunge / https://nirmanajayatunge.lk/ )

#business #capital #leadership #workingcapital #management