Essential Resources and Business Systems

Essential Resources and Business Systems.

The business system manages different functions of a business and is essentially that spinal cord of a business.

  • It is important to start with working knowledge of a simple system and understand it.
  • It is a complex set of activities that has evolved from a simple system that worked.
  • Every aspect of a business is a part of business system and can be managed or improved by applying appropriate principles.
  • A business system is designed to connect all the intricate parts and combines them to achieve business goals.
  • When some principles and practices are applied to a system, it delivers value to the business and its customers.
  • An effective business system unifies the problem solving and decision-making activities of the business.
  • This systematic structure is a permanent part of the business infrastructure.

It involves various factors as listed below.

Business Environment

  • An environment is the structure in which a system operates.
  • It is the sum of all external and internal factors that influence a business.
  • Internal factors like employees, customers, management, supply and demand and business regulations are controllable factors.
  • External factors which have a bearing on the functioning of a business are, economic, social, political and technological factors.
  • These factors are almost beyond the control of business.
  • External factors and internal factors can influence each other and work together to affect a business.


  • Cashflow is an integral part of every business system.
  • Constant cash-flow is another big challenge affecting any small business.
  • Every business has suffered from, or suffers from issues with getting money that is owed.
  • It’s amazing how few small businesses have an accurate idea of the daily, weekly and monthly numbers and financial trends in the organization.
  • If you lack the financial skills then hire an accountant, but still stay in the loop.
  • It’s vital that you spend the necessary time keeping current on cash flow.

  • The problem stems from a domino effect of one business having poor profitability earlier on in the chain that then starts to directly affect all the others, as many small businesses trade with other small business.
  • Thus, the situation compounds itself.
  • It is the movement of capital due to investment, normal business operations or financing.
  • Inflows are money received by a business because of its financial activities, investments sales, and other incomes.
  • Out flow is the money that is paid to the suppliers, bank, and other parties involved in the business.
  • Flow of resources includes energy, entrepreneurship, expertise, time, management, information etc.

Key Resources

  • The resources which are needed to create value for your customers are called key resources.
  • They are your assets and are needed to sustain and support your business.
  • These resources can be categorised into four main categories.
  • Physical resources like vehicles and raw material;
  • intellectual resources like, copyright, patents, customer database etc.;
  • human resources like staff, analysts etc.; and
  • financial resources like cash in business and credits.

Value Proposition

This is the unique value that your business creates for your customers in the form of exclusive products and services, based on newness and novelty. It’s the primary reason a prospect should buy from you. A product can have single or multiple value propositions. Value propositions like price, brand, performance, accessibility, convenience etc. help you make your product unique and different from your competitors.

The System

  • The systems approach of organization produces new insights about your small-business culture.
  • This approach encourages you to change how people learn from each other, by looking at problems differently.
  • Consider how changing your systems will help you address organizational problems such as fragmentation and low levels of interdepartmental sharing of information.
  • Changing the relationships between systems or the configurations inside systems can improve your company.
  • For example, if you move employees from one department to one in which they will have a bigger impact, you could raise their job satisfaction and increase efficiency.
  • You could potentially identify many kinds of systems in your small business.
  • To name a few, there are different systems of computers, procedures, ideas and employees.

One major business system that has surged in the recent past is digital advertising, which can be particularly straining on small companies that may not have the money or resources to invest in digital advertising. Enrol for our free one hour session to understand this and know how to save money.

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