By social bank we are not referring to banking activities carried out via social media channels. We are referring to the second form of capital to consider as you think about starting your business.

Let’s talk about social banks (relationships) that you need to start your business. Social bank is a bank that contains your social interactions and relationships with people. It refers to the people in your circle and within your sphere of influence that intersects with your idea.

This is key, because the growth of your business will be built around people – customers, staffs, investors e.t.c. Understanding how to leverage your social bank to validate and promote your business would make your business successful.

Vital questions to ask

Think about everyone in your circle who could be beneficial to your business idea and make a list.

Is there someone who could help you with your business branding in terms of logo design and brochure?

Who could help you with your marketing plan?

Do you have people who would use your products or services?

We hope you are making a list of those in your circle that fit into different areas you would need assistance. How does this list benefit your business?

First you can get your first customer from this list. Someone in you list need the service that you are offering even if they don’t want to pay the full price but at this stage that should not be your worry. The idea is to start the business and get someone to pay for the service or product?

When people in your list patronize you, you can reinvest that money to get other things you need to build the business.

In case of a product, you can be a reseller for existing products before you can validate the business to generate enough revenue to start manufacturing your own. We cannot explain all the dynamics and strategy that you can employ at this phase in one article but the idea is to use what you have to get what you want.

Trade by barter social bank

Imagine starting a business and a friend offer to design your business cards, logo, and brochure and you only have to pay for printing. Such an action would save you thousands of naira and invariably reduce your startup cost and operational (the money you spend monthly in running your business) cost.

One other way to maximize your social bank is to look for skills/services you can exchange for skills/services with those in your circle. If you have a friend that can design apps for your blog in exchange for promotional/advertising space on your blog, this would be a fair deal. You would have to be creative with what you have and what you can offer but like was said this would only be beneficial if you have an idea of what you want.

As an entrepreneur you have a responsibility to grow and invest in your social bank.