Your decisions about your business model will demand key resources to make it run successfully.
Accordingly to Alexander Osterwalder, these resources are:
- Physical: machines, stores, buildings, vehicles, etc.
- Intellectual: brand, softwares, patented products or processes, etc.
- Human: professionals that bring an advantage for the company because of their knowledge.
- Financial: cash availability that leverages companies business model activities.
WHY IS IT A FUNDAMENTAL QUESTION?
Because failing to map and to maintain key resources is failing to execute your business model.
Let’s suppose your startup’s value proposition is to provide innovative furniture designs that increase users’ productivity in, at least, 20%.
In this case, designers knowledge are a key resource of your startup. Therefore, to fail to recruit and retain these designers prevents you from delivering what you promised to your customers.
FINDING THE ANSWER
Now, ask yourself: what are the physical, intellectual, human and financial resources required to deliver what I’m promising. Take into account all resources that are the core of your strategy and that couldn’t be taken out without ruining your plans.
Then, for each key resource, identify what managerial actions are required to acquire and maintaining those assets. In other words, besides knowing which are your key resources, you must define a strategy to manage them.
That definition will serve to anticipate any setbacks on your current business model hypothesis, because of your key resources.
Okay. Enough talking. Go there and come back when you have the answer for this post’s question.
Done? Let’s jump into our next question…
WHAT ARE YOUR STARTUP’S KEY ACTIVITIES?
by Alexander Osterwalder and Yves Pigneur