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Indian business mentality is popular mainly for two things. One is their risk taking ability and the other is their belief in earning enough for the next 7 generations. Looking at today’s high and increasing standards of living, saving for the next generations requires one to earn a humungous rate of return. How much ever difficult it sounds, the task is not impossible. A golden rule to achieve high return on efforts is very simple. All you need to do is keep your resources updated and happy, thereby ensuring optimum utilisation of the same.
What are Business Resources?
Anything which allows a company to operate, in other words everything that enables a firm to perform its daily business activities comprises of that firm’s resources. Basic resources of a business are land, labour and capital. These comprise of the internal resources of a company. External resources like natural resources or economic resources also play an important role in the smooth functioning of a company.
Apart from the financial resources like sales, investments and loans, a company should also concentrate on other internal resources. They mainly comprise of physical resources, human resources and the intellectual resources of your business. These resources ensure optimum return of efforts, leading to the firm’s higher overall growth.
Ways to Invest in your Resources & Benefits
As mentioned above, internal resources are the resources on which company has its own control while the external resources cannot be controlled. A business can only keep provision for coping with their external resources. Here’s a list of three most important internal resources, apart from financial resources, and ways to invest in these resources.
1. Physical Resources
They comprise of all the resources that one can touch, feel and see. These help one to undertake daily activities quicker and with less effort. These resources mainly comprise of building, vehicle, machinery, furniture etc. called business infrastructure on the whole.
How to Invest in Physical Resources?
Investment in these physical resources is necessary not only to provide better services but to also increase efficiency of business activities. An entrepreneur can invest in the following forms of physical resources:
2. Human Resources
In recent times, human aspect of business has gained prominence. Human resources are the employees and other personnel working in your business who are regarded as assets because of the skill set and abilities that they bring into the company. Human resource consists of both, management, that is the employer, as well as the employees or workers of the business.
How to invest in Human Resources?
Investing in the tools which your employee base feels is correct brings in high productivity, dynamism and greater efficiency in the company. Higher salary is not always a measure by which you can motivate your employees to do their best at work. Investing in the following activities has a high potential of giving your company that competitive edge over your competitors, reducing overheads with increased efficiency.
The above mentioned measures lead to a highly motivated workforce, low attrition rate, increased employees satisfaction and loyalty towards the company, develops employee engagement as well as a healthier work culture. All these in turn highly benefit the rate of return on your investment in human resource.
3. Intellectual Resources
Intellectual resources are those new things which you have come up with and believe no one else has thought of. It mainly comprise of patents, proprietary knowledge, R&D processes, brands and customer database. With heavy usage of the internet, it has become very easy to steal one’s intellectual property mainly because a lot of people have access to that information at the same time.
How to invest in Intellectual Resources?
Investing in intellectual resources is not always necessary. However, if you think your business has something which no one else has, be it a process, product, technology or your logo, it is advisable to act quickly and file your intellectual property exclusively under your name.
It is very tempting to reinvest your money into new product development rather than investing in protecting your intellectual property, but negligence in this aspect can not only cause loss of lucrative opportunities but also incur huge losses in terms of funds as well as goodwill.
All in all, invest in your own resources first and then think about investing in the financial markets. This practice will help you drive your business to new levels. So, all you need to do is concentrate purely on enhancing your business activities and leave the rest for experts who have their best interest in your growth.
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