What types of resources do your business need? Where do you find certain types of resources?
To secure exclusive resources in business, you need to acquire assets or capabilities that provide unique leverage in the market before competitors recognize their full value. The unique leverage of these resources is that they allow you to offer superior products or services, operate more efficiently, or control critical aspects of production.
Check out how to get your hands on resources that will give your company a boost.
Secure Exclusive Resources
Hamilton Helmer explains that securing exclusive resources in business early on insulates your company from competition because such resources are often:
- Scarce—for example, a rare mineral used in manufacturing allows you to monopolize the market for that resource.
- Legally protected—for example, a patented technology provides a legal safeguard against replication.
- Rooted in specific expertise—for example, a unique algorithm developed by in-house experts creates a large knowledge gap that competitors can’t bridge.
- Based on exclusive relationships—for example, a contractual agreement with a single supplier for a critical component restricts competitors’ access to that component.
| Disadvantages of Exclusive Resources While it’s clear that exclusive resources can provide a competitive advantage, business experts warn of their potential drawbacks: Scarce resources: Scarcity often drives up costs, making the resource expensive to acquire and maintain. Additionally, reliance on a scarce resource can make a company vulnerable to supply chain disruptions, geopolitical issues, or environmental regulations that could limit access or increase costs further. Legally protected resources: Relying too heavily on legal protections can stifle innovation, leading a company to focus more on defending its existing patents rather than developing new technologies. Expertise-based resources: If the expertise is too specialized, it may be difficult to integrate with other business areas or adapt to new market demands. Additionally, over-reliance on specific expertise can make it challenging to innovate outside of that narrow field, potentially limiting the company’s growth and adaptability. Exclusive relationship resources: If market conditions change or if better opportunities arise, being locked into exclusive agreements can prevent a company from pivoting quickly. Additionally, such relationships can create dependency, where the company might struggle to negotiate favorable terms or seek alternatives if the exclusive partner’s performance declines. |
How to Secure Exclusive Resources
According to Helmer, the following three methods will help you secure resources with unique leverage:
1) Catalog your resources: Identify all tangible and intangible resources available to you—such as raw materials, technological equipment, specialized knowledge, company culture, and unique partnerships—that competitors may lack access to. For example, in addition to acquiring a manufacturing facility, cultivate a team of food scientists with expertise in plant-based meat formulation.
(Shortform note: According to the strategic factor markets theory, rather than passively cataloging available resources, businesses should assess how such resources might grant them a competitive advantage in future market conditions. This approach can help businesses identify and leverage resources that allow them to respond to changing consumer demands and stay ahead of the competition.)
2) Maximize your resource value: Find ways to monetize and leverage your resources to extract multiple benefits. For example, leverage your proprietary technology across multiple product lines to reduce costs and enhance your ability to offer superior products.
(Shortform note: According to some business academics, maximizing resource value isn’t just about finding multiple uses for a single resource, but about continually adjusting those uses to address both the internal evolution of your company and the external shifts in your industry. This involves adapting resources to complement changes within your organization (such as shifts in strategic goals or workforce capabilities), while also adapting to environmental shifts (such as changes in customer preferences, technological advancements, or regulatory policies). For example, in addition to using your proprietary technology across multiple product lines, adapt this technology to keep up with evolving production techniques and nutritional trends.)
3) Maintain and develop your resources: Make incremental improvements that enhance the effectiveness of your resources to sustain their competitive edge. For example, consistently refine your proprietary plant protein extraction process to improve operational efficiency and product quality.
(Shortform note: According to Verne Harnish (Scaling Up), an effective way to maintain and develop resources is through a structured, data-driven review process. Start by identifying three to five key performance indicators (KPIs) for each resource, such as utilization rate, output quality, or cost efficiency. Then, schedule regular review meetings to assess these KPIs, involving team members who work directly with the resources to gain frontline insights. If the KPIs fall short of targets, develop specific action plans with clear ownership and deadlines.)
