One of my good friends and a individual that I just love to associate with is Garrett Gunderson. Garrett is the author of the New York Times Best selling book Killing Sacred Cows.

Garrett Gunderson

Garrett Gunderson

Several months back I was on Garrett’s radio program “The Power Hour” and was telling the story of how we took $5,000 to build this million dollar business and prove the concepts in Bootstrap Business. Keeping in mind we are on live radio, Garrett interrupted me and said “NO YOU DID NOT start with just $5,000” and went on to explain:

The financial capital was the most insignificant part of the success formula. You already had millions of dollars of intellectual capital and relationship capital.

Garrett was right! I loved it and since that time, I have used this formula in EVERY presentation I have done. This is indeed a Bootstraper’s magic formula for success.

Drum roll please, here is the world changing formula dissected:

Intellectual Capital + Relationship Capital = Financial Capital

Intellectual Capital
The number one thing that you need to do is be smart and be intelligent. If you are not smart or intelligent, then you need to study, go to seminars, read, and learn. Incompetence and Competence always show their head and in order to make money, you have to be smart at what you are doing in order to create value. If you are not adding value then anything you do is temporary and … here comes some hard words …. you are a sham. Don’t be a flim flam man, GET SMART!

+ blend it with or add it to

Relationship Capital

Now that you have some grey matter in your head, build relationships and use your intelligence to serve and help people who have influence and are like minded. This is the #1 key that most people miss. I think this is the most important part of the equation. If you serve those around you, solve problems for them and develop relationship capital just like you do money in a bank, when you go to take action you will be able to call on these individuals.

Draining relationship accounts is just like running your bank account into overdraft. But it is longer lasting. People do not like to be around someone who drains their relationship account. It is easier to go get more money than it is to just go get new friends and associates.

Put tons of deposits into the key relationships and you will NEVER go wrong.

= Business is the conduit for financial transactions and it is why we are all entrepreneurs

Financial Capital
Wealth creation and money will naturally come as a by product of combining Intellectual Capital with Relationship Capital in the form of a business.

🙂 Cool huh? ….. The best part is it is true and it works.

I remember early in my career staying late one night setting up the computers to perform perfect, then cleaning the floor until midnight for a big demo we were doing. I did this to serve my mentor and make him look good. I did not consciously think through the implications, but indeed I got a raise for this.

Intellectual Capital + Relationship Capital = Financial Capital

I just love this concept and challenge you to now go get smart and go serve people.

PS …. want a bonus learning? Here it is. The way to turn the + (plus) in to a * (multiplier) is to do leverage events such as write a book or speak in public. This adds value and intellectual capital in a multiplication impact rather than a single additive. That is unless it is really crappy work, then it is a / (divider) and that is not a happy thing. 🙁