---
title: "Channels, key resources and key partners"
subject: "Entrepreneurship Development"
chapter: 4
key: "semester_7/entrepreneurship_development:business-channels-resources-partners"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/business-channels-resources-partners
site: BCT Engineering
---

# Channels, key resources and key partners

Entrepreneurship Development · Chapter 4: Business Model

- Asked in: year not given, 5 marks
- Video: [Business Model Canvas Key Resources](https://www.youtube.com/watch?v=9w6zEqXtZdk) — StartupSOS
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/business-channels-resources-partners
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-4

## Question

Write short notes on (a) business channels, (b) key resources and (c) key partners in a business model.

## Short answer

Business channels are customer touchpoints (direct or indirect) through awareness, evaluation, purchase, delivery, and after-sales. Key resources are critical assets—physical, intellectual, human, and financial. Key partners are outside parties that supply missing activities or resources, optimizing cost and reducing risk.

## Answer

#### (a) Business channels
Channels are how a company communicates with customers and delivers its value proposition. They pass through five phases: **awareness, evaluation, purchase, delivery and after-sales**.
- *Direct channels:* own shop, website, sales team (higher margin and control, higher cost).
- *Indirect channels:* wholesalers, retailers, distributors, marketplaces (wider reach, lower margin).
- Digital channels (social media, search ads, app) are cheap for startups to begin with.

#### (b) Key resources
The most important assets needed to make the model work:
| Type | Example |
|---|---|
| Physical | Factory, machines, vehicles |
| Intellectual | Brand, patents, software, data |
| Human | Skilled engineers, sales staff |
| Financial | Cash, credit lines, investor funds |

#### (c) Key partners
Outside parties who make the model work: suppliers, manufacturers, logistics firms, payment providers, joint-venture partners and technology providers. Reasons for partnership: optimise cost, reduce risk and acquire resources or activities the startup lacks (outsourcing, strategic alliances, buyer-supplier relationships).

Together with the activities, these form the "infrastructure" side of the Business Model Canvas.

**Answer:** Channels reach and serve customers, key resources are the critical assets, and key partners supply what the startup cannot do cheaply itself.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which are the five phases of a channel?
   A. Awareness, evaluation, purchase, delivery, after-sales
   B. Design, build, test, launch, exit
   C. Plan, borrow, hire, buy, sell
   D. Idea, screen, concept, prototype, launch
   Answer: A. Channels pass through these five phases. (Key point: Channel phases)

2. Indirect channels give:
   A. Higher margin and total control
   B. Wider reach but lower margin
   C. No reach
   D. Zero cost
   Answer: B. Intermediaries widen reach but take a margin. (Key point: Indirect channels)

3. A patent or brand is which type of key resource?
   A. Physical
   B. Human
   C. Intellectual
   D. Financial
   Answer: C. Brands, patents, software and data are intellectual resources. (Key point: Key resources)

4. Why do startups form key partnerships?
   A. To increase competition
   B. To avoid customers
   C. To eliminate suppliers
   D. To optimise cost, reduce risk and acquire resources they lack
   Answer: D. Partners provide capabilities the startup lacks cheaply. (Key point: Key partners)

## Related in Entrepreneurship Development

- [Testing key business assumptions](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Atesting-key-assumptions) — Entrepreneurship Development, chapter 3

## Related in other subjects

- [Why network layer is key layer](https://www.bctengineer.com/question.md?key=semester_7%2Fcomputer_networks_and_security%3Anetwork-layer-key-layer) — Computer Networks and Security, chapter 4
- [Constraint specifications in bank account model](https://www.bctengineer.com/question.md?key=semester_6%2Fobject_oriented_analysis_and_design%3Aconstraint-specification-bank-account-model) — Object Oriented Analysis and Design, chapter 2