RESOURCES FOR A SUCCESSFUL

VENTUREBDP301

RESOURCES FOR A SUCCESSFUL VENTURE

• Most ventures require many types of resources to get off the ground and grow

• Some resources such as furniture, equipment, raw materials, parts and technology can be purchased

• Things such as advice, expertise and financing may be harder to acquire

• The costs of resources can either be fixed or variable.

FIXED VS. VARIABLE COSTS

• Fixed costs are resources that are the same every month i.e. rent, salaries, equipment lease payments.• Variable costs are costs that change from month to month.

I.e. heating/electricity bills, raw materials.• Resources fall into one of the following categories: material

resources, technological resources, financial resources, or human resources.

MATERIAL RESOURCES

• Material resources are the materials a business needs to operate- these vary from business to business• Material resources can either be consumable or fixed• Consumable resources (a.k.a. expense goods) are paper,

gas, telephone services.• Fixed resources (a.k.a. capital goods) last a long time,

although their value eventually decreases. i.e. buildings, trucks, machines, office equipment

TECHNOLOGICAL RESOURCES

• Today, decisions and discussions can take place at anytime, anywhere, with anyone

• With virtually instant access to events and economic changes, people are finding themselves as part of a global community

• Most businesses require technology and these resources are becoming less expensive all the time

• E.g. computers, laptops, printers, telephones, computerized programs

FINANCIAL RESOURCES

• These are the funds required to start-up and operate the business• Sources of money might include: banks, government

agencies that provide loans or grants, or people who want to invest in your venture• An entrepreneur must show carefully researched

projections for their business in order to secure funds

HUMAN RESOURCES• These are the people that make the venture work.• Internal Human Resources: People who are part of the venture,

such as the entrepreneur, partners, employees• External Human Resources: The people who are outside the

venture, such as accountants, consultants, lawyers, advisers, insurance agents, etc.

• Once you have determined what kind of people you need to hire for your business, you can start writing job descriptions.

• Once the job description has been written, you can start advertising for the job online, in classified ads, through recruiters, etc.

HUMAN RESOURCES CONT.• Whenever you hire someone to work for you, you need to consider

things like:• How will you train them?• How much will you pay them?• Which deductions are you required by law to make from their

paycheques?• Will you offer benefits?• You may need to hire/consult a lawyer or mentor to make sure you

effectively cover all of these areas