Human Resources

Part 3: Human Resources Needs in The Business Plan
In your business’ Human Resources Needs in the management plan section of your business plan, you need to describe all the human resources that you need specifically. If you write something like, “After a year, hopefully we need more people”, this will not impress anyone.

Start from the beginning, and find out how many employees your business will need and how much it will cost you. This will probably be most interesting to the people reading your business plan.

You need to first consider what your business’ need for human resources is. You need to ask your self:

  • Does you business need employees?
  • Can I operate your business with contract workers and freelancers?
  • Do I need a part time staff?
  • Do I need full time staff?

Once you have figured out what you need, you will have to describe specifically the skills and requirements needed for performing the tasks you need in your business.

Finished? Not yet, you will have to calculate your labor costs. You will also have to figure out how many employees you will need by seeing how many customers they can serve at a time. For example, if one employee can serve 100 people, then you can predict 1000 customers in your first year; your business will need 10 employees.

Next, you will need to determine what salary each employee will receive and the total costs for all your employees. You will need to add the cost of Workers Compensation Insurance, which is mandatory for most businesses as well as the cost of any other benefits such as medial insurance and dental insurance, to calculate your total labor costs.

Finding Staff
You will also need to describe how you are going to find the right people for your business’ needs. Also describe how and who is going to train your staff. Your description of staff recruitment should explain whether or not sufficient local labor is available, and if there isn’t you’ll need to explain how you are going to recruit staff if you need to go further.

Staff Training
When explaining how you are going to train your staff in your business plan, you’ll need to be as specific as possible. Such as:

  • What specific training will your staff go through?
  • What ongoing training opportunities will you provide to your employees?

Even if your business only consists of you in the beginning, you will need to include the human resources needs section in the management plan of your business plan. You need to show the readers that if your business expands that you are ready, and that you know in specifics what kind of staffing you will need as your business grows. Business plans are about the future and how your business is going to succeed.

Part 1: The Management Plan Section of The Business Plan
Part 2: The Management Plan Section of The Business Plan - External Management Resources
Part 3: The Management Plan Section of The Business Plan - Human Resources Needs

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