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Physical Resources - PowerPoint PPT Presentation


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Physical Resources Machinery and other capital goods your business requires in order to operate. Find the equipment you will require in your business in order to establish the cost of all those products. Physical Resources.

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Physical Resources

    • Machinery and other capital goods your business requires in order to operate. Find the equipment you will require in your business in order to establish the cost of all those products.
physical resources
Physical Resources
  • Machinery and other capital goods used to meet a business organisations objectives
    • Facilities
    • Equipment
    • Vehicles
    • Computers
    • Buildings
    • Factories
    • Offices
  • List your physical resources and explain why you need them.
  • What options are there for your business (rent, own)?
  • Find prices for them which you can total up and if relevant decide whether they are an ‘initial investment’ or ‘monthly cost’
  • You have to say how the equipment you have purchased affects your business’s quality standards (Have you bought cheap equipment which you aim to improve after year 1? Explain)
physical resources1
Physical Resources
  • You are in the introductory stage of your business therefore you should explain that you can only focus on short term. Focus on essentials and discuss what you could do without.
  • Short term = Less than a year
  • Long term = More than a year
  • Physical resources require initial investment as well as maintenance.
  • Setting aside a contingency fund to ensure maintenance can be done on your physical resources is essential in financial planning
  • Must discuss availability issues and the appropriateness of the resource to your business
  • Discuss quality of product/ physical resource