One of the most important factors in running a business is getting and understanding very early your capabilities and capacity as a business. Often people get very confused about these two aspects. Capability is an understanding of your skills and expertise in executing a task. Capacity is your ability to complete a task with the resources you have. It is these two metrics you need to understand very carefully before undertaking any project or building any kind of company. If you don’t have a true understanding of the metrics around your capability and capacity your merely dreaming in your plans for execution.