Business resources are essential for any company to succeed. They can be physical, financial, intellectual, or human. Physical resources are tangible items such as land, equipment, buildings, and other infrastructure. Financial resources are the money needed to pay for the physical resources and personnel.
Intellectual resources are the knowledge and systems that help to implement campaigns correctly. Finally, human resources are the people who manage the business and interact with customers. For a service-based company, human resources are especially important. Without the right people and using intellectual property in the right way, the business wouldn't exist.
For example, an entrepreneur is someone who is willing to risk their time and money to start or run a business. Organizations that focus all their functions on manufacturing and selling a product are called product-driven companies. These companies need physical resources such as specialized production plants. They also need financial resources to pay for these plants and personnel.
Innovative companies have transformed the way they organize and use their physical resources. For example, car manufacturers use robots in their production processes to improve accuracy, speed of production, and reduce costs. Companies also understand the importance of intellectual resources, as demonstrated by the increase in the number of patents filed in the United States. In addition to physical resources, companies need to consider if their current human resources will be sufficient or if they need to hire more talent. Companies should also think about how they can use resources differently from the dominant business model in a market or industry.
Key resources can be owned by the company, leased by the company, or purchased from key partners. Before developing a business model canvas, entrepreneurs should consider what resources they need most to start their business. They should also look for ideas from places such as banks which rely exclusively on financial resources. These types of business resources are crucial and it's important to have them for your company to succeed. Not only do employees help manage the business, but they also interact with customers, help to develop the business through innovation, and possess the skills and knowledge that differentiate the company from another.
