1.1.3 Resource Requirements

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1.1.3 Resource Requirements

There are three types of resources that should be considered when establishing an operational plan – human resources, physical resources, and services. 

  • Physical Resources 

Physical resources are any resource that you can buy, feel and touch. To account for these, make a list of everything that you need and try to make a list of the costs of each. This can allow you to account for how much the production processes are likely to cost. The major types of resources, along with their associated costs, are as follows:

Major Types of Physical Resources 

PremisesRent; rates; service costs (heating, lighting, cleaning, security) and structural alterations
EquipmentCosts of purchase, hire or lease; insurance, running costs (service, repair)
VehiclesCosts of purchase, hire or lease; insurance, road tax; running costs (service, repair)
Raw MaterialsCosts of purchase, cost of storage (any special requirements for refrigeration or hazardous substances)
  • Human Resources

Aside from the physical resources, you must also account for the cost of the people that exist within the organisation. You will be spending money on wages, salaries and other forms of remuneration – this may, in fact, be a huge part of your budgetary expenses. Even acquiring new employees can be a significant expense; you need to account for the costs of recruiting such as:

  • Advertising in newspapers and other media 
  • The time and organisation associated with recruitment 
  • The cost of running interviews and associated testing
  • Insurance

Each of these costs may be significant when you are introducing new processes, which may require new staff, into a business. Try to be as accurate as you can with any costing that you make. Look back on previous processes of recruitment and selection and attempt to determine how much they cost you.

  • Services

Along with physical and human resources, services are the third type of resource requirement you must account for. This type of resources may be overlooked because most organisations source all their services internally (i.e. through in-house staff). However, outsourcing, which is the process of entrusting certain functions and processes to individuals from outside the company, is also a common practice that has proven to be effective and efficient. Some of the most commonly outsourced services include:

  • Customer service and phone support
  • Bookkeeping and accounting
  • Tax filing and preparation
  • Payroll processing
  • Social media management
  • Creative work (e.g. content writing, digital marketing campaigns)
  • Computer programming, web design and optimisation
  • Research and development
  • Event management
  • Human resources, hiring, training
  • Engineering (e.g. architectural, electrical, structural or mechanical)
  • Manufacturing and production
  • Legal services
  • Healthcare services
  • Cleaning services
  • Security

Your organisation may not require all these services listed above. However, these must be considered in your operational plan as necessary.