Unit 5: Chapter 22

While distribution chains are a large part of a business model, the resources required to actually operate a business are equally important. In business, the term “internal resource” means a supply of something that allows the business to function. There are many different types of resources, which serve a distinct yet similar purpose. Physical resources are anything that is tangible, ranging from property to equipment. Financial resources is any money that is owned by the business. Human resources are people that make the business run. Human resources are more valuable the more unique their skills are. Intellectual resources are patents, copyrights, trademarks, or trade secrets that are unique to a business. Managing your resources can be difficult, especially when there are a lot of them. This is where your business model comes in, to help you structure what is important in your business.

While all property is extremely valuable in its own right, intellectual property is different from the other forms of property. It is one of the most competitive forms of property. Intellectual property can define a business model in a successful company. However, this does not mean that intellectual property is the only important property, just that it’s importance is much higher than the other properties in some businesses. Think of a company like Coca-Cola, their entire company relies on the fact that people think that their cola tastes the best. This is because their intellectual property of the recipe is the center of their business model. When making a business model, it’s important to structure it around what your business will be most successful in. If you have an idea that you’re starting a business to sell, then intellectual property is likely the most important. However, if you’re business is doing the same thing that many other businesses are currently doing, other types of property might be more important. A business model is a tricky subject, and can be one of the most important things in your business.

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