Marietta, US
KristiSmith@texascbar.org
229-632-8101

Resource base for business

When one or more resources are involved in entrepreneurial activity, there is a leakage of funds in the form of costs. But business owners’ goal is to generate income, optimize financial flows, and reduce losses. A very important point is cost management in business, when a minimum amount of resources is involved or their replacement with cheaper counterparts is performed.

The resource base for business is mainly composed of three components:

Workforce (human resource), a key item used by employers to produce products or provide services to customers. Depending on the direction of the workforce can be unskilled or highly skilled;
capital – the second most important resource, which is the funds used for its own activities. It is good when the businessman knows how to value all components of commercial activity in cash equivalents;
Land is also an indispensable element in some niches. Infrastructure is built on land, materials are extracted, products are grown.

The entire resource base for a business is usually not available at once, and it’s great for building a more global structure that brings in a lot of money. Building a business idea should go systematically with the gradual inclusion of new resources.

Implementation of the business idea
The implementation of the developed business project idea takes place in stages. An example scheme looks like this:

  • Correctly assess the prospects of commercial activity;
  • check the sources providing information on the selected business idea;
  • assess the level of competitiveness and relevance of the direction;
  • to study the advantages which are not available in similar projects;
  • to make a business plan;
  • work out the business processes;
  • find promising, reliable partnerships;
  • resolve issues affecting real estate, cash, equipment, and other aspects necessary for the implementation of the business idea to go smoothly;
  • to find qualified employees;
  • analyze the risks in the business;
  • to form a scheme of action in case of any force majeure;
  • register as a legal entity in the manner prescribed by legislative acts.

SCbar-Tex