Understanding and addressing how a small business will utilize the resources is an important aspect of any business plan. A company resource analysis segment in a business plan is where a small business owner or business plan writer will discuss how the company will best utilize their scarce resources. These resources may include cash, employee skills, and or products/services. When assessing and analyzing a company’s resources, there should be two perspectives that are taken. The first perspective should be how a company will utilize the resources in the short term. A second perspective should be based on how a company perceives their resources being utilized in the distant future. With these two foundations, a small business owner or business plan writer can then discuss how the two perspectives may become an alignment.
Short-term Resource Allocation
When analyzing and discussing a company’s short-term resource allocation, placing the information in the proper section of a business plan is needed. Our business plan writers recommend that small business owners discuss short-term resource allocation and their business models’ section under operations. In this section, make sure to address how equipment, money, and knowledge set is intertwined to create synergistic competitive advantages. For example, a small restaurant may identify that they have a walk-in freezer and cooler. This enables the company to store more products for future usage. This will enable the company to order involved and save money through bulk purchases. In this example, as you can see, money was addressed, equipment was addressed, and the purpose of the action was also noted. The structure enables the reader to better understand how assets within an organization will be used in the short term.
Long-Term Resources Usage
Long-term resource usage discussions should be placed in the future plans section of a business plan. When our business plan writers structure a business plan, we often first address at what point in time our assessment for resources will be conducted. This may be done by using the phrase: “In three years…”. By setting the reader’s expectations as to the timeframe, they will immediately understand that these future plans will be broad and subject to change.
After this introduction, a business owner or business plan writer, should then discuss how the company will look at this point in time. Make sure to discuss whether there will be more than one location and possible new products or services offered.
By following this process, a business owner will then be able to address later in the business plan how the company will achieve their vision in relations to long-term resource usage.
Some business plans failed to fully explain how a company will utilize the resources in the short and long term. By following the structure above, business plan writers are able to utilize a specific structure to help readers and vision how a company uses the resources as well as how they will employ resources in the distant future.
Author: Paul Borosky, Doctoral Candidate, MBA., Author