Physical resources
Physical resources include anything that can be touched, e.g. a building, machinery, equipment and so on.
A business will have to make decisions about how to acquire them.
Renting or buying premises
A business can buy or rent premises. Buying a property is expensive but the value of property usually increases and is therefore a valuable asset. On the other hand, the building has to be maintained. When renting, it will be the landlord's job to look after the building but the business will have to pay rent.
Equipment and vehicles
Similarly, equipment and vehicles can be purchased or leased. Buying equipment is expensive and the value of fixed assets like these does not usually increase. On the other hand, leasing is cheaper in the short term but can be much more expensive in the long run.
IT hardware and software
IT hardware includes computers, printers, screens, projectors and mobile phones, while software includes packages such as Office, firewall and antivirus applications and specialized packages. IT changes frequently and can be expensive to update.
Suppliers and costs
Suppliers are a cost to a business but a necessary cost in order to operate. Over time business will build relationships with suppliers but at first, suppliers will have to be chosen carefully.
Pause for thought
You are thinking about buying a car. You can buy it for £10,000 or you can lease it for £200 a month. You expect to keep the car for about 6/7 years.
Do you decide to buy or lease the car? Why?