Wondering what the essential resources needed to start a business could be?
If you recently launched a business or are about to start one, you’re probably not sure if you require more than just a business idea to run a successful business.
Undoubtedly, starting a business can be an exciting and rewarding experience. Yet it can be challenging too. But when you have a wide range of resources in place beyond your idea, you’re more likely to achieve success in your business…on a solid foundation.
In a worldwide study carried out among start-up owners to find out why businesses fail, 38% stated that they had stopped business because they ran out of money. Another 35% admitted there was no substantial market for what they were selling.
Also, the survey confirmed that there are usually a bunch of things that explain why a company or business may shut down.
Interestingly, that sets a foundation for this blog post as we discuss the key resources you need to start a business.
What Are The Four Resources Of A Business?
Undoubtedly, there are many business resources in entrepreneurship. And perhaps, you might have read a couple of articles that proposed to teach you a hundred resources you need to start a business in 2023 or years to come.
But in this post, you’ll learn the four major resources needed to start a business of your choice in any niche or industry.
#1. Financial Resources
You may have come across a content of fellows that parade themselves on the internet as business gurus, preaching how to start a business with zero capital.
People can believe whatever they want. But attempting to start a business without access to financial resources will cause you more pain than you can imagine. That’s because nobody (including you) can undermine the importance of adequate finance to a business.
Fortunately, entrepreneurs have several financing options to leverage, such as grants, loans, and investments. But to give yourself a chance as a business owner to get any of these, you must have a solid business plan.
Only then can your potential investors and business partners take you seriously; while they get to know your business in detail.
#2. Human Resources
While financial resources are irreplaceable, every business needs a formidable team. And this team has to do with the company’s human personnel.
In other words, having competent hands as members of your company’s team is crucial to (and for) your business’s success. And you may need to fill roles in operations, marketing, accounting, and more, depending on the size and nature of your business.
Because of the significance of human resources to an organization’s success, companies are ready to commit themselves to what it takes to recruit the right candidate(s) for their businesses. And that includes crafting clear job descriptions for these posts or openings; selecting and conducting thorough interviews for applicants.
Resources needed to start a business
#3. Physical Resources
Say your business now has financial and human resources. The next question would be, what location would your business be situated in?
What equipment, tools, and supplies should your office house for maximum efficiency and productivity of your staff and business?
Would your staff work from home or somewhere in the sky?
That tells you if you and your team aren’t going to be working from home, you need a physical office space.
You can now see that, in addition to financial and human resources, you will need physical resources to start a business. And that may include office space, equipment, and supplies.
However, it’s essential to determine what physical resources are necessary for your particular business and then acquire them. Depending on your business size, nature of the operation, and capital requirement, you may lease office space, purchase used equipment, or even start your business from home.
Factors to consider when determining Physical resources necessary for your business
You’ll agree that determining the physical resources your business need requires thorough planning. Often, that starts with assessing the specific needs of your business.
A better way to determine that is to identify first your business offerings (products or services) and their intended methods and processes of delivering them. That way, you can know the types of equipment or tools such as machinery, computers, or specialized software your business needs.
The next step is to consider the space required for business operations. And that includes the physical space needed for the equipment and the space for employees to work and customers to visit.
In the case of a restaurant, the business owner will require a larger space for the kitchen, dining area, and storage room. But say you want to run a consulting business, you can operate in a smaller office space.
That said, it’s also crucial to consider the type and quantity of supplies necessary to operate your business. For example, if you want to start a retail business it will require a stock of inventory. But if it were a consulting business, you may only need office supplies such as paper, pens, and a printer.
However, you must note that in some business cases, you may need to consult with industry experts or professionals. To determine the appropriate physical resources you need for your business.
#4. Intellectual Resources
In today’s world, it’s expedient that businesses keep learning new things and use this information to make good choices. Only then can they achieve success and expansion.
That said, the intellectual resources of a business are knowledge and expertise. And these, no doubt, are critical to starting and growing a successful business.
Interestingly, there are several ways to gain intellectual resources for your business. They include attending industry conferences and seeking mentorship from experienced business owners. So it’s safe to say the intellectual resources at the business’s disposal reflect its commitment to continuous learning and networking.
That’s why a business needs to have access to smart people who know a lot and can give good advice. Because these people can help the business learn about new ideas, identify ways to do things better, and of course new technology.
How To Gain Intellectual Resources?
As said earlier, businesses can gain knowledge and expertise, called intellectual resources, in many ways. And that could be going to conferences to learn about new trends and meeting other professionals.
Essentially, as an entrepreneur, you can find mentors to give you advice; help you avoid problems, and get new ideas. Also, reading books and articles and taking online courses can help too.
In addition, networking with other professionals can provide important information and help you make solid business connections. So, you may want to join or encourage your team members to join industry associations and organizations to gain access to experts and industry reports.
That way, your business stays up-to-date with new ideas and trends and makes better decisions to stay ahead of the competition. And to achieve success.
Tips to build your business intellectual resources
First, you must understand that building your intellectual resources takes time and effort. But great tips you can use to build a strong foundation of knowledge and expertise that will help you succeed in your business:
1. Continuous learning
Learning is a lifelong process, and you must keep yourself updated with the latest trends and technologies in your industry. You can do this by reading books, taking online courses, attending workshops or training sessions, or even from schooling.
To gain access to new ideas and perspectives and stay informed about the latest trends and opportunities, you must build relationships with other professionals in your industry.
You can attend industry conferences, join professional organizations, and connect with others on social media.
3. Find a mentor
A mentor can be a valuable resource in providing guidance and support as you build your business. But to find an excellent mentor, you must look for someone with experience in your field. Because only with this type of mentor can you give quality advice on how to succeed in your career, profession, or line of business.
4. Participate in industry events
Why getting a mentor for yourself or team members is good, attending industry events, such as trade shows or seminars is paramount. That’s because they can provide you with opportunities to learn from other professionals in your field and showcase your products or services.
5. Take risks
You might have heard countless sayings or quotes whose messages center on “the best way to learn is by doing”.
In most cases, that’s true. And that’s why you don’t need to be afraid to take calculated risks in your business. Well, know that you can always learn from your successes and failures.
6. Use online resources
With the tool called the internet, there are a wealth of online resources available to you, including industry blogs, podcasts, and forums. You can use these resources to stay up-to-date with your industry’s latest news and trends.
Importance Of Resources In Business
Again, resources are vital for a business to be successful. They are things that your business needs to help it run well. There are four types of resources every business needs. They include money, people, things (like computers and tools), and information.
Consequently, when a business has the right resources: it can do better and make more money. Businesses need to use their resources well to allow them to grow and do a good job in their niche or industry.
Final Thought on Resources needed to start a business
Now that you’ve learned the main resources needed to start a business, you need to know other available resources. To help you get further information and support in starting and growing a business.
In the US, one of them is the Small Business Administration (SBA). As an agency, it provides free resources and support for small business owners, including guidance on starting a business, funding options, and training programs. A great place to start is their website.
While in Nigeria, a similar agency is The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). It’s a governmental agency responsible for promoting the development of the Nigerian small and medium-sized enterprises (SMEs) sector. By providing support to SMEs in aspects like capacity building, access to finance, market linkages, technology acquisition, and business development services.
Summarily, many resources are available to help you start a small business as they provide you with essential knowledge, connections with other business owners, and support. By utilizing these resources effectively, individuals can improve their chances of success in starting and growing a business.