As mentioned in a previous post, there are several good and free templates available online to help you build a solid business plan. If you are a new entrepreneur and are starting from scratch, several sections, especially the key “personnel section”, may appear a little challenging to complete.
The first step in addressing the key personnel section should be to map an organisational chart (org chart) of the new business. An org chart is a diagram that shows the structure of the business and the relationships between its employees. For example, a small retail store that is opened 80 hours per week may have the following org chart:
The next step in the process is to assign responsibilities to each of the positions in the organisation. The assignment of duties in our sample retail store could resemble the following table:
From the assignment of positional duties we can build one of the most valuable and multi-purpose tools in effectively managing our human resources: job descriptions. Not only do job descriptions identify the duties and required skills of the position, job descriptions help when recruiting, when performance managing employees, when succession planning, when planning training and development activities, etc, etc. Further, job descriptions are an indispensable tool when planning your compensation strategy.
Not sure where to start? The internet has some job description templates. Short on time or expertise? Call HR pros and we will help with this process and build your job descriptions.
Posted in advice, human resources, new business
Tagged Business, business plan, compensation, employment, human resources, Human Resources Management, job description, new business, performance management
So you have decided to start a business but you wonder whether doing so in a recession is the right time. If that is the case, you are not alone. It seems that the entrepreneurial spirit is awakened during a recession. Downsizing, corporate re-structuring, and corporate closures are leaving thousands of talented workers wondering what the future will bring to them. Several will decide to take control of their destinies by starting their own business. In fact, according to Statistics Canada’s latest Labour Force Survey, self-employment grew by 37,000 in April 2009.
While the doom and gloom can scare many potential entrepreneurs, the observant ones will notice that start up costs may be at their lowest for years to come! Because of the economic downturn, equipment, land and buildings might be purchased at reduced rates or perhaps on favourable terms as manufacturers try to reduce their inventories. Finally, employment has fallen by 321,000 since its peak in October 2008. This means that there a lot of qualified people searching for jobs and they may agree to lower starting wages.
Arguably credit is tight but the Bank of Canada has adopted policies to improve access. In a May 6th statement to the Standing Senate Committee on Banking, Trade and Commerce, Bank of Canada Governor Mark Carney mentioned that: “Conditional on the outlook for inflation, the Bank has committed to holding this rate at 1/4 per cent until the end of June 2010.” In other words, we should enjoy the benefits of unusually low interest rates for the foreseeable future.
Once you have decided to start a business, you must prepare a business plan. Fortunately, there are several very good tools available on the interned to help emerging entrepreneurs with this task. The Business Development Bank of Canada and the Center for Entrepreneurship Education and Development are two agencies that provide excellent tools for building business plans. The business plan is not just something to do to obtain financing; it is a document that should guide you start your business on the right track. The business planning process provides a systemic approach to consider every aspects of operating a business. Not surprisingly, a key component of the business planning process is the section dealing with Human Resources.
Over the next few weeks, we will write about the issues that should be considered in preparing the Human Resources section of the business plan and we will introduce the concept of strategic human resources management. Broadly defined, strategic human resources management is the integration of human resources management strategies and systems to achieve the organisation’s goals and objectives. Because it is a complex issue, larger businesses and organisations have a department dedicated to Human Resources management. Typically, smaller firms do not have the resources for a full-time HR department and may not have access to the appropriate level of expertise. HR pros provides Human Resources management expertise to small and medium size businesses.