Organising Resources

In the planning phase, a business owner must consider:

• Inputs required (material, capital equipment, labour, information, time and money) Suppliers must be found for key inputs.

• Equipment and technology required. This must be purchased and installed in the store’s premises (must find that too!).

• Process of transformation must be considered—layout of premises, processes, location of technology, storerooms for maximum efficiency.

• Inventory management—how much stock to purchase, where to store

• Quality management—systems developed to ensure quality output

In the planning phase, a business owner must consider:

• Business image and reputation—how to build customer base and customer recognition to drive early sales.

• Initial promotional strategy—how to gain attention of customers and position the business against existing competition.

• The specific target market of the firm’s product

• How to tailor the marketing mix (the 4 Ps: Product, Price, Place and Promotion) to the target market to maximise sales and increase profit. 

• Marketing costs are substantial and must be budgeted for.

In the planning phase, a business owner must consider:

• Task design—This is related to operations. What jobs will be required to be completed? What tasks should be allocated to each job?

• Recruitment—Where and how will you find suitable applicants for the roles within the business? How will you then filter the applicants to determine the selected person for the role?

• Definition of the job—full-time, part-time, casual? Wages?

• Training required—What training will be required for your staff to perform at the highest level upon starting with the firm? Induction training?

Employing the right staff when starting a business is CRITICAL!!

In the planning phase, a business owner must consider:

• Establishment costs—what will the total cost be to make the firm fully operational? Must consider technology purchases, leasing premises, connection to utilities, refurbishments / decorations, stock purchases…

• Operational costs—an estimation of the costs of ongoing operations once business is running: wages, electricity, stock purchases, rent…

• Financial forecasts—what sales are projected? What is the projected revenue? What is the profit margin on each sales? Is it enough to cover costs?

• Source of finance—Will the business owner use equity finance (their own money) or debt (what institution, how much, what interest rate?)

• Accounting systems must be set up to ensure good oversight of position.