Social Capital as a Driving Force for Business Growth

By Viktor Andrukhiv, Co-founder of Fibermix and Savex Minerals

In the dynamic world of business, success goes beyond just offering products and services. In today’s competitive landscape, building strong connections and fostering a loyal community are essential. In this column, we’ll explore the concept of social capital and how it can be a game-changer for business development.

Understanding Social Capital

At its core, social capital is all about trust and loyalty that customers have towards a person, company, or brand. It’s the reputation and goodwill that accumulates over time. For instance, when seeking information, people tend to turn to someone they trust and believe is knowledgeable on the subject. That’s the power of social capital at work.

Building social capital is a strategic long-term approach that brings multiple benefits. It boosts a company’s visibility, attracts new customers, and expands the business. Interestingly, it can also save money on marketing. A recommendation from a trusted expert can often be more impactful than a series of costly advertisements.

Accumulating Social Capital

1. Social Networks

Social media platforms like LinkedIn, Facebook, and Instagram offer excellent opportunities to build social connections. While you don’t need to be on every platform, an active presence on one can go a long way. However, leveraging multiple platforms can unlock their full potential.

Having a business presence on social networks can yield significant advantages. It increases brand awareness, attracts new customers and partners, and can even support business projects. For instance, we once secured a contract by posting about specific equipment we needed on social media, and the response was remarkable.

Building recognition on social networks locally can also open doors in international markets. If your target audience is abroad, connecting with them through platforms like Twitter and LinkedIn can prove fruitful, as they are widely used in Europe. In Ukraine, more popular are Facebook and Instagram.

2. Networking

Networking is a powerful way to forge valuable connections for your business. Firstly, it allows you to meet potential customers, suppliers, partners, or investors who can contribute to your growth. Secondly, networking strengthens relationships with people you already know, showcasing your expertise and personal qualities as an entrepreneur.

Our business club experience is a perfect example of the benefits of networking. It helped us find skilled specialists quickly when we were working on a sports project, including building the “Olympic House” in Dnipro. Through networking, we efficiently decorated the space with sports memorabilia and created a remarkable Olympic museum, leaving a lasting impact.

How to Win Your Audience’s Heart on Social Media

In today’s competitive landscape, merely pouring money into marketing or switching tools won’t guarantee visibility for your business. Instead, focus on creating top-notch content that provides real value to your customers. People are drawn to those who offer meaningful insights and practical benefits.

When it comes to using social media for your business, having a systematic and disciplined approach is crucial. While posting once or twice a week might work on some platforms, each social network has its own pace and requirements.

For instance, LinkedIn is a powerful tool for professional networking and communication. To make the most of your LinkedIn page, remember these key principles:

• Share Relevant Content: Regularly post articles, updates, and posts related to your industry.
• Diversify Your Content: Utilize LinkedIn’s stories, video posts, and polls to keep your audience engaged and interested.
• Provide Value: Offer help, ideas, and support to your connections. Building trust and strong professional relationships is essential.

Facebook is a fast-paced platform where timely responses matter. What’s relevant today might not be tomorrow. To make the most of Facebook:

• Stay Active: Regularly post interesting content and engage with your audience.
• Know Your Audience: Understand their preferences and provide content that adds value to their lives.
• Diversify Your Content: Share informative articles, entertaining videos, behind-the-scenes glimpses, user-generated content, and more.
• Encourage Engagement: Ask questions, conduct polls, and create interactive content to generate likes, comments, and shares. This signals Facebook’s algorithm that your content is valuable, leading to more exposure.

Instagram, on the other hand, thrives on visuals. So, focus on creating eye-catching images and videos that people will love. Use good lighting, composition, and editing skills to make your content stand out. Always respond to comments and direct messages from your followers, fostering a sense of community and loyalty.

Events are another excellent opportunity for business growth. To maximize your networking success, follow these simple tips:

• Connect with Others: Engage with fellow participants, discuss potential collaborations, and set up meetings in advance. Staying in touch after the event becomes easier this way.
• Share Your Experiences: Be active on social media during the event. Share your thoughts, impressions, and photos. Tag new friends and acquaintances to expand your network.
• Share Your Expertise: If possible, offer to speak at the event and share your knowledge. This boosts your credibility and might even lead to co-creating content with others.

Always remember, social capital – the trust and connections you build – is a valuable resource for companies and experts alike. Over time, it can pave the way for significant business development opportunities. So, focus on building authentic connections and providing value to your audience. Your success on social media will be the result of consistent effort and meaningful engagement.