A business requires a lot of business resources for its smooth and efficient functioning. These resources include not only the human resources required to run the show, but also financial and physical resources. These resources are not always available in abundance, this is why it is important that you learn to efficiently use whatever limited business resources you have.
Financial resources of course are monetary resources needed for starting and running a business. It includes cash balances, bank overdraft, bank and other loans, shareholders’ capital, creditors and working capital that are already invested in the business. Though it is possible to increase your financial resources through business and getting loans, it is better to use minimum expenditure to run your business. This not only reduces your financial expenses, but also leads to increased profitability. The best way to do this is by keeping a tab on all business expenses and thus avoiding unnecessary expenses. Examples for cutting down costs includes cutting down on perhaps advertising costs and using more of the cheap World Wide Web for advertising.
Human resources consist of your business staff which is divided based on their qualifications, experience and function in the business. It is not always practical to hire new staff to carry out additional duties and work as your business grows. At times, you have to take a look at the skills your business already possesses, and if it is possible to flex or stretch these existing skills to meet your new business requirements. Instead of hiring new people and paying them additional wages, it proves cheaper to implement specific training to existing staff to handle new duties in the business, and giving a hike to their existing salary. However if you do require new staff, it may at times be cheaper to outsource your tasks, go into a joint venture or hire freelancers instead of hiring permanent new people.
Physical resources are the operational resources of a business that are required to run the business. It includes all the raw materials, land, building, vehicles and equipment that the business requires for its smooth functioning. These are the resources that have to be used the most efficiently as wastage or wrong usage of the resources can lead to a major loss to a business. Buying new material, vehicles or equipment due to carelessness, absence of planning or avoidable accidents is all an additional financial burden to the business, and a loss.
The best way to avoid these accidents is to follow a planned business strategy and by keeping a tab on the use of the resources. Without a business strategy, you end up using your resources wrongly at the beginning, and eventually find out that you don’t have sufficient resources to run your business. Moreover, the over-consumption of these scarce resources and emission of waste products are all signs of economic inefficiency in your company, and is also harmful to the environment. On the contrary, with efficient use of all these business resources, not only is your business economy benefited, nature is also helped. Also, if you have a tight promotional budget, why not choose submiting your website to free web directory as one of your business promotion campaign? You can draw customers to your website without any cost. Submit your site today.