Lack of physical resources may require hiring professional individuals, which may be challenging in some areas. Human resources shortage to carry out the necessary activities has resulted in their inability to be put to use due to the situation. Because of this, the company may suffer increased expenditures due to the need to train its current personnel rather than hire skilled personnel.
Although it is unlikely, the physical resources may not function to their maximum capacity. Because of the high cost of acquiring an asset, it is difficult for a corporation to fulfill its objectives, and as a result, the corporation falls short of its goals in the long run. The fact that they are underutilized means that most organizations, particularly those in their early stages, are unlikely to be able to afford to invest in this type of machinery.
An organization’s ability to acquire resources is severely restricted because of a faulty appraisal of the risks associated with the resources in question. It is the responsibility of a business owner to investigate the potential hazards that specific physical resources may pose to the organization and its employees before investing in them. A company can incur significant financial losses due to improperly maintained machinery and equipment.
When a corporation does not have the financial resources to acquire physical assets, it cannot grow its operations. The corporation requires an in-depth evaluation of the resource’s feasibility on its behalf. Consider the following scenario: you decide to spend your limited resources on purchasing physical assets that are excessively expensive and bring little value to the company. Your presence in the organization would make you an investment rather than a liability.
Most new businesses confront difficulties expanding their physical resources due to a scarcity of available space. Even though the company may be interested in the property, they may be unable to access it owing to a shortage of accessible space. They may be forced to rely on the services of other companies to make use of the available resources.
As a vital part of the decision-making process, the ability of a physical resource to deliver services should be taken into consideration. There should be sufficient resources to supplement the existing facilities within the business. If the company can obtain the services provided by a resource for free from the resources of other existing organizations, it would be a waste of money to invest in it.