Resource Allocation and Management

 Recognize potential benefits of seeking expert advice and search it out whenever there is a gap in knowledge or experience.  Successful entrepreneurs not only know to how to acquire the right resources, they also know how use them in the most effective way. ◦ Examples:  Lawyer  Banker  Accountant  Real Estate Agent  Insurance Broker  Management Consultant

Human Resources:  People who make the venture work ◦ Internal Resources – people who are part of the venture (the entrepreneur, partners and employees) ◦ External Resources – people outside of the venture (accountants, consultants, lawyers, marketing advisors, bankers, insurance agents, supplies… etc.)  Job description must be made for the jobs that are needed.

After hire people, must consider: 1. How do you train them? 2. How much should you pay them? 3. What deductions are you required by law to make from their pay cheques? 4. What tax and employment regulations will apply to you and your employees? 5. Will you offer your employees benefits such as health and dental plan?

Material Resources:  Will vary depending on nature of business  Either be: ◦ Consumable – resources used up in the process of doing business (paper, oil, gas… etc.) ◦ Fixed – resources that lasts a long time, but the value will decrease/depreciate over time (goods such as buildings, trucks, machinery and office equipment).

Technological Resources:  Purchased to improve communication and provide access to needed information. ◦ Examples include computers and telephone systems.

Financial Resources:  Funds required for the start-up and operation of the business.  Sources might include financial institutions (banks/credit unions), government agencies that provide loans or grants, or people who invest in the venture.