The resources that are owned by a company are called the assets of the company that it requires maintaining its business value and continue providing goods and services. The types of resources companies need are broadly classified into two categories: tangible and intangible resources.
The resources that can be physically touched, felt, and seen like equipment, raw material, machinery, etc., are called tangible resources. The resources a company requires which cannot be seen or touched, like human resources, business ideas, etc., are intangible.
Types of resources a company
Every business, company, or organization requires resources to function and grow. The four types of resources in business are:
Financial resources are the finance or the money or capital required to set up and run a business or company. Financial planning is the most important and the first step in setting up any business.
As invaluable company resources, they can be obtained at the beginning from or during the company’s expansion, from loans, capital contributions, and external investments. Every company should avoid situations where the shortage of finances can lead to the temporary suspension of activities.
Because of a shortage of funds, they cannot buy raw materials or pay employees’ salaries. Companies’ financial resources also include liquid financial investments like stocks and bonds, checks, and short-term bank deposits.
Physical resources are tangible resources and include the factory or building, the machinery, the raw materials, the desks, pens, staplers, and other stationeries and the distribution network.
All of these are very important, starting from the place, production, and distribution of the final product, be it any service or any good. Depending on the type of company or organization, the physical resources are decided.
For example, consultancy services require a place, desk, computer, and all the other equipment needed to provide the necessary services to their customers. Among the different types of company resources, physical resources include the basic requirements that a company requires to function or operate efficiently.
The Human resources of a company are the workforce that is assigned different roles according to their skillset and talents. It is on the company whether they are able to properly utilize the skills of their employees through proper training and giving them opportunities for career growth. It is essential to keep them motivated and driven so that they can serve the company.
Every company has a human resource department that is responsible for the screening and hiring process of employees for specific roles. The hiring of employees with proper experience and expertise ensures that the missions and goals of the company or business are achieved and with competence. Human resource is one of the significant company resources that an organization needs to function correctly and keep growing.
According to the company resources definition, intellectual resources are intangible resources that are all the ideas and the collective academic knowledge and skills of all the employees that are required to drive a business. In a service-based company, intellectual ability plays a prominent role and is more important than physical resources.
Intellectual resources also include patents, copyrights, and trademarks required to protect a company’s intellectual property. There are ways to improve the academic resources of a company like training programs and to develop new patents.
What is the importance of resources in a company?
It is impossible for a company to function without the resources or assets required. All the types of resources are essential, some more and others less, depending on the company’s final product. Strategic management of resources helps improve profit and reduce costs.
Resource management in any company is critical, and it includes calculations regarding what are resources in business, which area, and how many resources should be required so that maximum gain is attained by spending as little as possible to complete the work correctly—planning ahead of time to determine the best approach to properly use the company resources of the critical step in achieving the goals that you want for your company.