Students Planing their simulation

What Is Resource Planning?

Resource planning is the process of being sure that various types of business resources are being used in the most effective way, for the most effective timing and cost for your company. 

Resource planning identifies the availability of resources, present and future resources –  and all of their different needs. 

It not only involves identifying resources, it also includes allocating and forecasting these various types of business resources to the proper projects. This all must be done in the right way, within the correct time frame, and at the best cost. 

Examples of resources: 

  • Finances: It’s important to take stock of your financial resources very carefully. 

These can include: cash on hand, long and short-term bank loans and deposits, and your liquid financial investments, such as stocks and bonds. Knowing your startup’s overall value is critical.

  • Materials, Equipment and Supplies: Your material resources are incredibly important – and can also involve large resource costs. 

These can include: your company real estate, company machinery, office computers and equipment, your startup’s supplies and products, and your physical tools. 

Managing these resource requirements involves asking yourself questions, such as: 

What supplies are running low? 

Do you have all the equipment that you need? 

You certainly do not want to blow your budget on supplies, so you need to allocate the appropriate amount of funds in this area.

Are your technological tools up to date? 

Do you need replacement due to advancements that have potentially made certain objects obsolete?  

This is particularly important when it comes to computers and software. Once a more advanced technology is implemented, you may find yourself needing to invest in new materials.

  • Time: Is time a resource? In short, yes. 

Available time is available time to earn and build. Time itself is an invaluable resource to manage. 

Resource planning involves making the most of your time and your employee’s time- no one wants to waste time on unnecessary endeavors. 

  • Intangible wealth and assets: Intellectual property is a huge resource for a company. Things such as patents, your trademarks, and your copyrights are somewhat hard to measure in terms of value, but they are a huge resource to have. 

This also includes things like: your company brand, your loyal customer lists, company databases, and your own developed processes or software. Take stock of all of these things and utilize them for company growth. 

  • People: You’ve probably heard the term “human resources”, right? 

Well, they say that a company is only as valuable as its people. This is very true!  

When calculating your resources needed while planning, you must consider your people first. 

What are the skills that your team has to offer? 

What experience do they have? 

Do they have specific qualifications that you can utilize? 

Their geographic location and availability – these are all important things to identify. Use your people to your advantage!

Resource Planning From A Startup Simulation Game

How can users of Simulation games be introduced to the importance of resource planning?

In simulations, users are given a finite amount of resources to use. 

A big issue that students and future entrepreneurs encounter when resource management planning is not having enough knowledge or experience for proper allocation of needed resources. 

This can lead to costly mistakes. 

If resources aren’t properly and carefully utilized and distributed, it can cause a startup to fail. 

This is why simulation games are so effective. 

Simulations help students to learn and practice resource scheduling methods over and over again, in a safe environment. 

Simulations provide an unbeatable advantage for a student to learn ways to manage resources. Students have the opportunity to practice making resource planning choices in a hands-on way. 

For example, in one Startup Wars simulation, a student is given $15,000 with the goal to run a business – and not go bankrupt! 

Because Startup Wars is a simulation, there is no real concern if a student happens to go bankrupt while learning about resource planning and strategy. They can just try again. 

This gives a future entrepreneur infinite opportunities to learn from this experience, and to prepare for the real world later on. 

Common Issues When It Comes To Resource Planning

There are several common problems when it comes to business resource planning to be aware of. 

Here are a few common issues to avoid:

  1. Missing deadlines
  2. Lack of visibility
  3. Inefficient cash forecasting
  4. Assigning people to the wrong teams
  5. Balancing resources over multiple projects
  6. Lack of communication

Resource management best practices are a real balancing act. Mistakes in planning and management are common. Simulations teach the skills to avoid these common mistakes to future entrepreneurs. This allows for better planning skills down the road.

Why resource management is important:

Resource management is stressed in simulations. It is all about doing more with less. This involves utilizing every employee, their skills, and every physical resource to everyone’s best advantage.

A company needs to know the skills of each employee, which is where resource planning comes in. One must properly allocate the skills of each team member in order to complete daily tasks. 

When it comes to financial resources, proper resource planning makes sure that there is no possibility of running out of money, or wasting money.  The spending of money for paying employees must be properly budgeted.

Communication And Time Planning

Resource planning skills gained in simulations allow a student to learn that communication and time management go hand-in-hand. 

Time spent on specific tasks must be properly allocated. This involves wise planning, scheduling, and proper monitoring on all projects and business activities.

As in everything in life, communication is the key. An effective resource management plan involves communicating your plan in a clear and precise way. 

Effective resource management will allow your team to get on board with your vision.

With proper resource planning and scheduling in place, you will see success. 

Resource Planning Through A Startup Simulation Game

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Charlotte Kane
Charlotte Kane Undergraduate Student, The Ohio State University

Startup Wars allowed me to understand everything that goes into starting a business in 90 days.

Darshita Bajoria
Darshita Bajoria Undergraduate Student, The Ohio State University

Startup Wars is an interactive way to learn and hone entrepreneurial skills while being a no-risk outlet. Great tool for those pursuing entrepreneurship.