Rising Young Entrepreneurs Hub

Rising Young Entrepreneurs Hub

8.5 – Capabilities and Resources

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Because you’ve started to think about your potential revenue, it’s important to also figure out what capabilities and resources you’ll need so you can deliver your product or service.

Capabilities = skills/abilities

Resources = actual materials, equipment, machines

The best place to start is with a Process or Production Map. This is similar to your customer experience map, but instead of showing the experience of the business from your customer’s perspective, the Process or Production Map shows what is going on behind the scenes. It’s the picture of the business from your perspective as the business owner.

Why is a Process/Production map important?

  • This is what you need or need to do to make the customer experience work.
  • It helps identify what specific things you need to be able to deliver your main product/service.
  • It helps you think about more effective ways to operate, while satisfying your customers’ needs.

How do you do it?

Step 1

Drawing from your customer experience map, write down what you have to do to fulfill an order your customer has made (i.e., the process from the moment the customer makes a purchase to the stage where the service/product is delivered).

Step 2

Think about how the process will change for a large volume of orders. List any limitations and brainstorm and write down possible solutions for overcoming these.

Let’s use the Grow-Well example again, so you can see what this might look like:

Possible Limitations:

  • Cooking time can be a problem for large orders. Solution: Need processors and commercial-size tableware to reduce time.
  • Packaging can be time consuming. May have to hire someone for large orders.
  • Delivery – if it takes hours to deliver orders, the delivery truck may have to be refrigerated.
  • Individual consultations can be time consuming – should consider group consultation at lower rate.

Once you’ve figured out what you need to accomplish, next you need to figure out what you’ll need to make this happen.

What capabilities or resources do you need?

You need to figure out all the elements – from specific skills to equipment – that are needed to make your main idea come true and plan how you’re going to get what you need.

Why is this important?

  • It helps you think about exactly what you need to create the best customer experience possible.
  • It helps you think about creative ways to get resources without spending money.
  • It helps you plan your next steps to start or enhance your business.

How do you do it?

Step 1

Review your Production/Process map, and write down everything you need to do (create, borrow, buy, rent, etc.) to make this happen.

Step 2

Think about the cost (money, time, favours, trades, etc.) for each item. Be creative about how you can make it happen without spending money.

Take a look at this example from Grow-Well for ideas:

Try to be as specific as possible as you build this list. It doesn’t have to be perfect the first time, and you might need to add or change things as you think of new items or skills, but the more you can prepare ahead of time, the easier it will be. Keep your cost estimates realistic.

In the next few lessons, we’ll be looking in more detail at finances and increasing your understanding of money and your relationship with it.