Resources

Types of resources

One of the most important aspects of starting a new business is to consider what resources you have and any more you may need to acquire to achieve your goals. Money, people, skills and capabilities, physical assets, intellectual property, knowledge and time are all resources that you have at your disposal.

In this topic, we are talking about resources at the start-up stage where if you are aiming to be a sustainable business you may only need to reach a minimum viable product to start generating revenue.

Defining value

Referring back to the previous topic, consider your place in your industry and what resources give you meaningful advantages. If you are a first mover then money might be a valuable resource to scale the business rapidly. If it is a crowded industry with many competitors then some new IP and knowledge might be more useful to break into the market. Precise terms to measure resources are how valuable, rare and inimitable they are.

Intellectual property

This resource is particularly special as it touches so many aspects of the business. A company can have trademarks on its branding, copyright over its content and patents on its designs. These allow a company to sue any competitor which it believes is infringing on its property and prevent them from monetising it. In recent years this has also lead to huge fines for companies that steal intellectual property. Having patents and trademarks held by a company has often been an indicator that it can be more profitable.

Resource acquisition

As we mentioned, there may be some resources which you yourself do not possess and so you must go about acquiring them somehow. This can be done in five different ways.

• Making plans
  This is an iterative process of identifying goals, implementing them and then measuring the outcome to adjust the approach for the next time.

• Making what is available: effectuation
  This method involves analysing what you do have and coming up with creative ways to make that into what you need with no external input. It requires flexibility and a realistic outlook.

• Making do: bricolage
  This seems to be a way of creating value out of things which are considered valueless.

• Making narratives: cultural entrepreneurship
  This is basically saying if you can’t win the game as it is, change the rules.

• Making rules and institutional building
  Challenge the existing institutions and come up with alternative practices.

Things to consider

If you want to start your own venture, here are some directions of thought to consider when working out how to acquire resources.

• Partnership
  Much of the initial resource gathering in a start-up phase is all about who you know and how they can contribute. Networking is a very effective way to build partnerships with colleges, with potential funders and potential suppliers.

• Relevance
  Knowledge is power. A well thought out critique of your ideas is as valuable as gold and it could make the difference between a company that succeeds and a company that fails.

• Audience
  Marketing is a skill that can be learned very quickly but can take practice to get right. Think about the tools you have access to which can let you reach people and spread the word about your venture.

• Cause
  This is very similar to audience but with the key difference with it relating to specifically what you are marketing, not how. Think of ways you can establish your values and display them practically.

• Relationship
  While you need to network to build partnerships, think about your relationships with customers, users and everyone who has contact with your company. You don’t need to be getting something from someone to spend time of them. Goodwill can go a long way in the long term.