Resource planning is crucial for small businesses
RESOURCE planning is potentially one of the most important things that you will do in your business.
As a small business owner, understanding your resource requirements and your resource availability will ensure that you can deliver on work and on projects as and when deadlines fall due.
Not only will your service delivery be affected, if you don't have a good resource plan, but your costs can skyrocket, and your ability to make profit can also be impacted.
Here are some key tips to help you manage your resource planning process.
Firstly, your resource planning should be for at least the next 12 months. The first things to consider are what type of skills are required, and how many of those skills are required.
Note that there may be times during the year when your resource needs fluctuate. For these times, short-term labour hire may be required. Here at TGG, we offer short and long-term labour hire.
Once you know what resources you will require, and when, you can start attracting these resources and engaging them into your business.
The type of resource, and the duration of requirement may determine that you need a range of employment agreements, from full-time, to casual, to permanent part-time.
The key here is, though, to ensure that you are competitive in relation to others in your industry or your market segment.
It is very difficult to attract resources if you are not able to remunerate them at industry rates. Our TGG staff are all hired under different agreements, which works well for us.
Finally, the two key things with resource planning is to not over resource, as you add monthly wages to your cost profile, and remember that the more resources engaged in your business, the more administration staff that are required to manage their work, their time and their output.
So, there you have it. Resource planning is about understanding your resource requirements, engaging the required resources on flexible arrangements and not over resourcing, as you can quickly and significantly add costs to your business.
Anton Guinea is business manager at The Guinea Group, which supports businesses by providing staff to fill positions. Visit theguineagroup.com.au.