Key Resources: Definition, Types, and Its Role in BMC

Key resources are set of business resources that is also a crucial element in the Business Model Canvas (BMC).

These resources enable a brand to convey its Unique Selling Proposition (USP), enhance brand awareness, value proposition, engage with the target audience, and much more.

It is a primary resource that comes in various forms and is composed of several types of supporting elements, both physical, financial, and others.

To learn more about what are key resources, their types, examples of implementation, and their roles in the Business Model Canvas, make sure to read the following article until the end.

What are Key Resources?

Key resource is one of the BMC elements that plays a significant role in determining the success of a business. Before discussing about its definition, have you ever heard of BMC or the Business Model Canvas?

Every business certainly needs the BMC (Business Model Canvas) to visualize and design business strategies succinctly, compactly, and clearly.

In this BMC, there are 9 elements to describe how the processes or activities will be carried out by a business. Of these nine elements, key resource is one of them. So, what is it actually?

In BMC, key resources are primary assets in terms of operational, financial, and other that play a significant role in supporting the success of a business.

It is classified as an aspect of feasibility, as with this aspect, a business can improve its overall performance and profitability.

How to Determine Key Resources?

Some good key resources examples are always based on the specific needs of the business model. 

This is because the resources or assets needed by Business A may be very different from those needed by Business B. Here are some ways how businesses determine their resources:

• Analyzing what resources are needed to demonstrate the business's value proposition.
• Examining the business's relationship with customers (customer relationship) and identifying areas for improvement.
• Assessing the distribution channels for products/services offered.
• Understanding the revenue stream or income flow for the business within a specific period. 

Types of Key Resources

In overall, this aspect of BMC can help a company increase the effectiveness of marketing plan. It also assist businesses in obtaining a higher engagement rate.

Then, what are the types or elements that should be present in a business’s resources? Here's  the detail!

1. Physical Resources

The scope of physical resources includes assets or facilities that support the continuity of a business, especially in functional terms.

Physical resources can encompass machinery, systems, vehicles, buildings, manufacturing facilities, and distribution networks.

These physical resources play a crucial role, especially for retail business owners. Retail businesses typically require extensive distribution networks and large, capital-intensive logistical infrastructure.

2. Human Resources

Entering the era of digital marketing, human resources still play a crucial role in every business's operations.

Some businesses, such as the creative industry, education, and healthcare, consider human resources as a dominant key resource in their business models.

Companies that understand the role of human resources and manage them well will have a strong competitive advantage in the business world.

3. Financial Resources

Finance resource is a fundamental element that can help you manage and organize the health of a business.

This type includes various financial assets such as the funding or capital needed to support business operations. In general, some types of financial assets are:

• Initial capital: To fund the initial needs of the business.
• Cash flow: The inflow and outflow of funds to maintain business liquidity.
• Funding (loans or equity): To finance growth, expansion, or research and development in the business.
• Business profits: Net income generated after subtracting operational costs and expenses.
• External investment: Obtained through venture capital or risk capital.
• Financial assets: Include investments, securities, stocks, or other properties owned by the business.

4. Intellectual Property

The next element is intellectual property, which includes ownership, copyrights, partnerships, and databases of your target audience or customers.

To build a strong business, you must protect and manage all these intellectual property resources as effectively as possible.

Benefits of Key Resources for Businesses 

In the business world, key resources BMC are a crucial aspect that you analyze and manage as effectively as possible. 

With optimal resources, a company can strengthen its business competitiveness and gain several other significant benefits, such as:

1. Clearing Business Intitiation

As part of the Business Model Canvas aimed at visualizing business management strategies, this resources can make your business more focused and goal-oriented.

2. Improving Operational Efficiency

With adequate resources, businesses can optimize their operational processes. This includes using the right equipment, efficiently managing staff, and allocating funds wisely.

3 Empowering Innovation and Product Development

Innovation is a key element in maintaining business competitiveness, especially in a constantly changing business environment. 

With supporting resources, businesses can allocate them to research and development activities to provide solutions to customer problems and create a positive customer experience.

4. Risk Management

This aspect includes financial reserves to face unforeseen financial challenges, such as market changes or economic crises. Protected intellectual property within business resources can help protect the company from copyright infringement risks.

5. Business Development and Expansion

With optimal resources, your business can more easily pursue growth opportunities. You can expand operations into new regions, develop product or service lines, and enter new potential market shares.

Key Resources Examples

To expand your knowledge of what are key resources, here are some key resources examples and their applications that you can try in your business.

• Physical Resources: Include the location of clinics or beauty centers, medical equipment and facilities, and infrastructure comfortable for customers.
• Human Resources (HR): Include doctors, nurses, therapists, beauty experts, and other supporting staff who assist in providing services to customers.
• Financial Resources: Include funds needed to start the business, purchase beauty equipment, design facilities, pay staff salaries, and run daily business operations.
• Intellectual Property: Include trademarks, special prescriptions, treatment techniques, product innovations, partnerships with other product or service providers, such as cosmetic manufacturers or pharmaceutical companies.

That concludes the explanation of what are key resources BMC, their types, examples, and their role in supporting business success, especially in the digital realm.

It is such a crucial asset that can help you win the competition and dominate numerous competitors with similar niches.

One of its substantial elements is intellectual property. Besides ownership and copyrights, this element also includes partnerships that you establish to maximize online and offline marketing strategies.

If you want to optimize business visibility in search engines but have not found a reliable resource or partner, cmlabs can be the solution.

SEO Services by cmlabs can help you increase visibility, acquire quality organic traffic, and build domain authority through search engines.

With cmlabs, your website can be well-indexed, SEO-optimized, and rank high on search engine results pages (SERP). Let's collaborate and Contact Our Marketing Team now!