It All Adds Up: Assessing the Importance of Emotional Capital
Junita Flowers is a writer, speaker, entrepreneur, mom and the owner of Favorable Treats. With more than 20 years of experience working with nonprofit organizations, she spent her career advocating for families and leading social change initiatives. She shares her thoughts and experiences with us in her monthly blog series “It All Adds Up.”
Later this month, I will moderate Taking the Lead, a panel discussion for women in business, on the topic of accessing and raising financial capital, so I thought it was especially fitting to take a few moments to share my perspective on the importance of raising an additional source of capital…emotional capital.
When describing entrepreneurship, I often hear words like passionate, visionary, dreamer, inspired, optimistic, etc. Words that describe strong emotions…emotions that produce great results. Yet, there is still a strong sentiment communicated, that “emotions have zero place in business.” As a woman in business and a solo parent, I remember meeting with a small business advisor who “advised” me to postpone starting my business and focus on raising my family because the emotional demands of managing both are extremely tough. At that time, I didn’t have a term for it, but that interaction was my first introduction to the importance of emotional capital as an entrepreneur.
Emotional capital is simply the ability to build and sustain strong relationships that ultimately lead others to want to work with you, buy from you, support you and to conduct business with you. Clearly, the business advisor from my example didn’t understand the importance of emotional capital in building a trusting advisor/advisee relationship and the overall impact to the business financials. That interaction was my first and last as that advisor’s business client.
Emotions are a piece of the equation in everything we do and should be positioned as a valuable commodity in creating strong and thriving businesses. As a social entrepreneur, emotional capital is at the core of my work. Emotional capital is an asset that, over time, becomes the differentiator which aids in my ability to build meaningful and mutually beneficial relationships, allows me to strengthen my influence, is the foundation to create a trustworthy brand and is ultimately a positive impact on my business financials.
In addition to a solid business foundation, growing and maintaining a financially strong and profitable business must prioritize the importance of emotional capital. Whether purchasing cookies from my cookie company or hiring me to speak at an event, every potential customer will want to conduct business with me based on how they feel when interacting with my products and services, and for me, that is the result of successfully raising emotional capital as an entrepreneur.
I would love to hear from you. How does emotional capital fit in your business operations? You can share your perspective with me by clicking here.