This is the part that overwhelms most people when thinking about setting up a business of their own. There is a lot of information available on this topic, but here we are going to condense it into a succinct piece that touches upon all aspects of resource acquisition for a business.
Mainly there are three types of resources required to start a business:
⦁ Economic resources
⦁ Human resources
⦁ Social resources
The interesting thing about this is that each one of these is linked to the other.
With economic resources you can buy human resources, and with human resources you can acquire social resources.
Let’s take a deeper look at all three of these individually.
1. Economic resources
Economic resources comprise of the capital (money) a business requires to set up, and then to expand. These expenses can be calculated by the business owner only as they will know what they need (materials, tools, staff, services etc.).
One thing to note here is that it is not necessary for you as a business owner to have the entire capital you need, to get your business where you want it to go, ready. Even if you don’t have that kind of money in the beginning it’s fine.
In fact, a smart business owner does not go all in with their capital. You can start with a basic package and get only what you need to get your project off the ground. If it has worth, it will generate money and pay for its expansion itself.
This is not to say, however, that businesses start giving returns right away. You have to pay for it to a certain extent before it makes any profit. This is what you need to calculate and raise.
When you are able to raise more capital, you can make efforts for expansion and improvement.
2. Human resources
Human resource is the staff or personnel; the people working for a business.
Acquisition of a good human resource can make (or break) a business. To capitalize on human resources one needs to approach it from the point of view of quality over quantity. Skilled and seasoned managers can plan the work according to the staff available and get more value out of it.
In this department, a considerable amount of planning and foresight are required. We say foresight because the manager needs to know why a task is being performed. There should always be an objective in view.
Don’t follow patterns and strategies you read in books. Ultimately the map of every business and company is different and at different stages of the business set up the nature of work will vary.
Working with an objective in mind will mean that no labor is wasted and there is more value in the work that is being done.
Hiring a good team is not the main hurdle in the human resource department. The main struggle and task is getting the kind of work that the business needs.
All successful companies lay a lot of emphasis on training. There is good reason for this. A solid team means that your business is in well-trained and skilled hands. Ultimately, strong human resource means financial gains and expansion of business and capital.
3. Social resources
Networking and customer service form the main parts of creating social resources.
In today’s times where social media and social media presence is such a big part of business and marketing, building strong social connections and resources has become all the more important.
The main forms in which social resources manifest are:
⦁ Customer service
⦁ Building brand rapport through influencers
⦁ Creating brand image
All these factor into how a business is perceived by the masses and so are necessary aspects of any business’s marketing strategy.
Economic and human resources both play a part in developing social resources. A business partnership or connection will be built on provision of mutual value. For example, if you are collaborating with a social media influencer, you will pay them for the partnership and in turn they will generate attention for your product or service by giving you a good review and vouching for you.
Therefore, a good amount of planning and strategizing is involved in making the best out of the resources at your disposal.
Effective utilization of resources is the main contributory factor in the success of a business. Less resources, when they are used to acquire maximum value, can also prove to be more influential for a business in comparison with a poorly utilized plethora of capital and human resource.
This is the part that overwhelms most people when thinking about setting up a business of their own. There is …