Follow the Law of Capital and Accelerate Your Growth

I was listening to Brian Tracy’s audio book The 21 Absolutely Unbreakable Laws of Money, and the 8th Law made me think.

It says: 8. The law if Capital: Your most valuable asset , in terms of cash flow, is your physical and mental capital, your earning ability. If you are not already wealthy, your ability to work is the most valuable asset you have.  To make money, you have to utilize your ability to work.

By applying your earning ability to the production of valuable goods and services, you can generate sufficient money to pay for all the things you want in life. The amount of money you are paid today is a direct measure of the extent to which you have developed your earning ability so far. Whether you are  employed or are running your own business- especially one where you are paid for providing personal services or consultancy- you are only paid equal to the value that people place on you’re your labour or expertise.

I provide a number of professional services to business owners, including coaching and helping to develop strategic and entrepreneurial business plans, setting up business systems and financial management consultancy.  A few years back, I had a standard pricing list for my services, based on the time and materials needed to accomplish a job. But when I gave prospects the price list there were problems from two fronts: some customers would query why my prices where so low and others would say my charges where to high.

Then I realized that people valued my services differently. The major determinant of value as perceived by customers what they wanted to get from making use of my services. A person running a $10,000 a year small business would cry out if charged $250 for production of a business plan, while someone who wants to develop a million dollar business would wonder if the plan will really work at that low price.

In this cash crunched business environment, there is a limit to what people are willing and able to pay for a service. If your price too, people will simply look for cheaper alternatives. Sot he only way to make more money is for you to add more value to your offering. As a personal services provider or consultant, you can only add more value by acquiring more skills so as to do your job faster, better and more efficiently. This requires an investment of you time and money in developing your most valuable assets, that is, your physical and mental capital, your earning ability.

As a business owner, when and how did you last reinvest into your mental capital? When did you attend a course or workshop to improve your business skills? When did you last read a book or listened to an audio book learn new or better methods of accomplishing your tasks or running your business? When did you last attend a business seminar to update your mind on industry trends, or a networking event so as to expand your connections of useful people?

According to the Law of Capital, you only get what you put in to your earning ability. The purpose of corporate strategic planning is to increase Return on Equity invested in the business. In your business and personal life, your equity is your mental and emotional capital. Your job is to earn the highest possible return on your human capital, to increase your “return on energy.”

If you are not reinvesting  in your human capital, you are probably struggling to grow your business. The BusinessLink Gold Club is continuing to grow, with new members joining every week. This is a business networking forum for high performance entrepreneurs who want to accelerate their growth.  New subscribers will attend for free the next Breakfast Networking meeting at Gaby’s Restaurant in Harare on Wednesday 27 June, 2012 and also receive a full set of BusinessLink business guide books and CDs, worth $50, for free. To find out the benefits of joining and see more detailed information, please visit the  website  And don’t forget to tell a friend to subscribe to our free weekly newsletter.

You can download Brian Tracy’s book and other resources on the same website, just go to the Entrepreneurial Resources page.


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