Are you conducting feasibility study on a business and need help doing the analysis? If YES, here is a complete guide on how to do technical and manpower analysis.
Starting a business is not as easy as it sounds because startups are amongst the number of businesses that fail within the first 3 years of taking off. The fact that you have a fantastic and workable idea does not automatically guarantee you success as an entrepreneur; you would need to put structure in place that will aid your business success.
If you intend starting a business as an entrepreneur, one of the things that is expected of you to do if indeed you want to build an organization that can grow beyond you to accommodate more employees is to conduct technical and manpower analysis. Conducting technical and manpower analysis is just the right thing to do if you are serious about starting a viable business. Technical analysis and manpower analysis go hand in hand, they cannot do without each other.
Table of Content
What is Technical Analysis?
There are certain aspects of setting up a business that an entrepreneur need not neglect and technical analysis is one of them. Technical analysis is all about collecting and studying all the needed techniques that will help you effectively run your business. In some quarters, especially the financial industry (stock market), technical analysis is about the collection of price trends with the aim of forecasting or predicting the future price trend of stocks, commodities, and futures et al.
Although technical analysis is majorly used in the stock market, but you can apply same principle to your startup. The essence of conducting technical analysis for your startup is to ensure that you are well equipped with the right resources to successfully launch your business. Technical analysis is almost similar to economic analysis because it also involves the law of demand and supply – market fluctuation et al.
What is Manpower Analysis?
Manpower analysis is all about critically examining the various departments that will be created in your organization and the expectation and qualification of the employees that will work in these departments to achieve the organization’s goal.
Manpower analysis is not only about the present, it is also about the future of the business. The truth is that you might not have enough money to accommodate the numbers of workers needed in your business plan, but that does not mean that you should bypass manpower analysis when making plans for your startup.
What’s the Difference Between Technical and Manpower Analysis?
While technical analysis deals with understudying the needed machines, tools and apparatus for running a business, manpower analysis entails understudying the needed human resource or brain power that will ensure the smooth running of the machines and the entire business.
Now let us quickly consider some of the key steps you need to follow to be able to effectively conduct technical analysis for your startup business;
How to Do Technical Analysis in a Feasibility Study
a. Study and Research
If you want to successfully conduct an effective technical analysis for your startup business, then you must spend time to study and research your line of business. In studying and researching your line of business, you are expected to get a good idea of the technical skills required to successfully run the business and how you can source for such skills
For example; if you intend starting an automobile repair and maintenance workshop, part of the technical skills you would need to be able to run a complete auto workshop are auto mechanical skills, auto electrical skills, panel beating skills and also marketing skills amongst others.
b. List the Techniques that will be needed in effectively running Your Type of Business
If you successfully carry out a thorough research and feasibility studies, you will be able to pin point the required skills needed to successfully run the kind of business, and how to source for the skills.
So, what is expected of you to do is to list all the techniques that will be needed and then conduct a proper analysis to know the role and capacity each of the technique will play in your business. The truth is that there are key techniques that you can’t ignore from the day one of starting your business and there are some other techniques that can be adopted as you grow the business
c. Map out Strategy on How to Source for the Required Technique
The next thing to do once you are able to list the techniques needed to run your business is to sit down and map out strategies on how to source for the required technique. As a matter of fact, sourcing for some of the technique needed to run your business might involve hiring an expatriate to help you fill in the skill gap if you can’t find a qualified person to fill in the role in your country.
That is why it is important to conduct technical analysis before launching your business so that you will be well informed and prepared financially to shoulder the expenses that come with hiring expatriates or consultants. There are other means you can follow to source for people with the technical skills that is required in your business; you can poach from your competitors, and you can as well hire fresh graduates and train them to fit into your plans.
d. Develop Suitable Training Program
The essence of conducting technical analysis before starting your business is to ensure that you put in place all the techniques that are required to effectively run your business. So, part of what you need to do is to develop suitable training program that will help you equip your staff with the required technique needed to run your business and also to help them operate effectively. The truth is that if you want to run a business that has the capacity to compete globally, then you must ensure that you adopt best practices.
e. Constantly Review Your Technical Analysis Document
Once you are able to successfully follow all the steps discussed above, then you would have succeeded in conducting a technical analysis for your startup. What is expected of you to do with your technical analysis document is to constantly review it so that you won’t be operating your business with obsolete techniques and equipments.
So ensure that you read journals and any available material that relates to your line of business. It will help you to stay abreast with the changing trends and technology in your industry. No doubt if you are able to conduct technical analysis before launching your business, you would have succeeded in putting in place machineries and structures that will guarantee you huge success with your startup business.
There you have it; some of the steps to follow to successful conduct technical analysis for your startup. Let’s now consider the steps needed to conduct manpower analysis.
How to Conduct Manpower Analysis for your Startup
Although a rookie might find it challenging conducting manpower analysis for his or her startup, but with extensive study and research, you can achieve something worthwhile especially if you do not have the money to pay a Human Resource Expert to help you out. Nevertheless, if you have the required funds, it will pay you to pay a HR expert to help you conduct manpower analysis for your startup – they will help you carry out a thorough job.
If you intend conducting your own manpower analysis for your startup yourself, then you will find the following steps useful;
1. Study and Research about Manpower Analysis
If you will be conducting your manpower analysis yourself, then you must be ready to first spend much time studying and researching about manpower analysis. The truth is that manpower analysis is a core HR job and it takes an HR expert to conduct a thorough job in this regard.
But there is no harm in trying especially if you are a fast learner. Just ensure that you gather enough materials that will aid you to learn how to effectively conduct your own manpower analysis for your startup.
You can visit libraries around you and you can also surf the net to source for relevant materials on manpower analysis. As a matter of fact, you stand to gain a lot when you conduct your own manpower analysis for your startup company yourself.
2. List the Departments That Will Aid the Growth of Your Business
Part of the process involved when conducting manpower analysis for a startup business is to list the departments that will be needed in the organization. So, if you have a clearer picture of the kind of business you want to build, it wouldn’t be difficult to list the various departments that will aid the growth of the business.
For example; if you want to establish a manufacturing company, some of the departments that you would need to successfully run such business are maintenance and technical department, HR & Admin department, Marketing Department and Production department et al.
3. Critically Analyze Each of the Departments to Know the Quality and Qualifications of the Manpower Needed
Once you have successfully listed all the departments that will be needed in your startup business, the next step to follow is to critically analyze each of the department to know the quality and qualifications of the manpower needed. At this stage, you must have in mind that you are not expected to have the resources to carter for all the manpower listed.
Manpower analysis is not just for the immediate but also for the future, so ensure that you are not restricted when conducting manpower analysis for your startup business. The essence of manpower analysis is to put strategies in place that will help you with maximizing your resources and the manpower within your disposal.
4. Develop a Manpower Growth Chart in Your Organization
After you have successfully analyzed each of the departments in your organization, then the next step to follow is to develop a manpower growth chart for your organization. Manpower growth chart helps you manage the employees in your organization in such a way that a fresh graduate can get employed and he or she can grow in the organization to occupy management positions. The truth is that it will cost you less when your team grows through the hierarchy of your organization as against hiring an expert from outside.
5. Develop Specific Training Module for Each Department
Part of what you need to do when conducting manpower analysis for your startup business is to develop specific training module for each department that will be geared towards empowering your staff to function effectively in their role in your organization. Manpower analysis will not be complete if there is no room for training.
6. Constantly Review Your Manpower Analysis Document
Once you are able to come up with your own man power analysis document for your startup business, you must not forget to constantly review the document. When you constantly review your manpower analysis document, you will position your organization to adopt best practices in your line of business.
There you have; the steps to follow to conduct a manpower analysis for your startup.
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