Resources, in a business context, are any economic factor needed to accomplish an activity. A business resource is anything that will help in the operation of a business and lead to profit-making. Each resource – including human capital, natural, tangible or intangible, financial resources and more – has economic value. These values need to be considered before starting your firm, especially if you are new in business. So how do these resources vary from place to place, and where can you find the best?
One of the most important things to consider is finance, which includes any source of revenue a company has including sales, loans, investments and so on. Money is what a business is about. Recently, research has revealed that Newcastle is the cheapest area to start a business in the United Kingdom, with an average cost of £17,008. Newcastle, with its growing status as a technology hub, is gaining favour from a few financial support schemes targeted at the region. For example, there is a new £60m Regional Growth Fund-backed programme called “Let’s Grow”. The programme is aiming to support capital investment and R&D projects that create jobs through a system of grant support. Applicants will receive up to £1m.
Another important resource in a business is human capital. Newcastle will certainly give you access to fresh new talent, being known as the region’s major student centre. Human capital is the combined skills, efforts and abilities and knowledge of a company’s workforce. Every employee should have the ability to transform raw materials into products or transform knowledge and skills into services.
When operating a business, a company will require natural resources such as paper, minerals or oil that are made or taken from nature. The values of these resources vary depending on several factors, including whether they are renewable or not. Within the UK, natural resources may vary significantly throughout the country depending on what natural forces you’re able to harness in support of your business. Newcastle may not strike you as a goldmine of these natural benefits, but the overall mix of resources on offer definitely brings down the average cost of setting up there.
Tangible resources things that help a company operate including production machinery, supplies for final product, property or rent, transportation and overhead. These resources vary across every different industry. An intangible resource, on the other hand, is often an overlooked business asset. These can be the brand image, patents, goodwill or anything else that’s hard to quantify but adds value. Some businesses often benefit from being competitive and survive well by just excelling in brand image, or by providing good protection for their product such as by having patent for a new technology they created.
Again, these may not be explicitly linked to businesses in Newcastle or even the north east, but it’s interesting to consider how regional differences can have an impact and how it’s necessary to consider so many different resources before even making a start in business. Wherever you choose to set up and however you choose to do it, we hope this article helps you get some perspective on the vital decisions you need to take in the early stages.