Don't Stop Believing: The Capital You Need

I was in the ‘start-up’ world for 3 years in Yangon. Pursuing business ideas and building them.

Everyone had hopes of finding the next big thing that would 10x revenue. Venture capital was everywhere, but innovation was not.

The city was full of VC’s and start-up incubators that asked, “How can we get investment for idea X." Or “How much can we sell the business for?”

Many copycat businesses emerged, happy to bring in overseas trends to try their luck. It was an environment where starting businesses capitalised on trends rather than innovation. Yangon was becoming the “Silicon Valley of South East Asia.” The low start-up cost and lax regulations were attractive to potential business owners.

You have to innovate to stand out in a sea of copycat businesses. There's a form of capital key to innovation and it’s abundant. Belief Capital.

What is Belief Capital?

I first heard of the idea from KP’s newsletter.

Belief Capital:

Is the first investment that goes into an idea. “The people who you can talk you into pursuing your ideas are belief capitalists.” This is the capital that helps you get from zero to launch.

This can come down to both creative and business projects. An example is having to start my podcast. If I didn’t have the support and belief from friends who talked me into the idea, it wouldn’t have started.

Anything that doesn't impact revenue is often overlooked and taken for granted. I would like to add that Belief capital helps sustain a business even after launch.

Belief Capital is human in nature and intangible.

I have been guilty myself of focusing too much on VC. From the business and entrepreneurs I have worked with, revenue was the main focus.

In this essay, I will explain to you why Belief Capital is important and how to leverage it.

Most of us have had ideas that brew in our head and never happen. This could be down to a bunch of reasons, but from zero to launch, the main reason would be a lack of belief in one’s ability. This is where belief capital comes in to help propel an idea forward.

It aims to provide you with the momentum to push your ideas and business from zero to launch. Through providing motivation and inspiration to the founder. When I wanted to start a marketing service in Yangon, I spent weeks planning for it. I was confident in its potential and had the money saved up. But, without belief capital, I didn’t sell the service or even talk about it. It tanked.

Yet, when there were times when the business plan wasn't good enough, belief helped navigate past the shortcomings. As I was launching a new event in a different city, I had many doubts about its success. Yet, a simple call or a vote of confidence helped me overcome the problems and pushed me to execute.

After Launch Care

Being a founder is lonely. You encounter problems that money can’t solve such as self-doubt and a lack of confidence. Also, founders often risk their personal safety net and resources for the startup. Along the way, they may not take a salary and work unhealthy hours.

This was part of my experience in Yangon. As someone new to running businesses, I was often doubtful of myself. I used hard work to compensate for a lack of experience. I also felt guilty drawing a salary, surviving on instant ramen and bread.

Often, it was the injection of the belief that spurred me on to continue.

Finding BC

The lack of belief capital often boils down to one thing, a lack of sharing. When I had the idea to provided marketing services to small business in Yangon, I kept it to myself. No one knew that there even was an idea to invest their belief in. If I didn’t share what I was building, how did I expect people to invest in it?

The best way to attract BC is to build and share publicly. It’s a scary idea. But by doing that, people will invest in your vision and work.

To leverage BC, share often. Use the opportunity to create tight feedback loops that will help iterate your idea. You will come out from the experience with people who believe in you and a refined idea.

Thank you to Zain & Najla for the feedback and KP for the idea.