Resource Allocation in start-ups

Thought most start-ups have limited resources, hardly any started with nothing! So what makes the difference between the ones that survived and the ones that died along the way? It is fairly easy to guess, isn’t it? Common sense says that the primary difference is in how the limited resources are put to use. But as the cliché goes, common sense is the most uncommon; most start-ups don’t seem to think too much about the resource allocation process.

Resource allocation is an important aspect of enterprise creation and management. Where and how an enterprise applies its resources is an important aspect of business strategy as well – but entrepreneurs rarely like discussing strategy. Most entrepreneurs don’t want to strategize, they want to implement. While I don’t disagree that implementation is key to realizing strategic intent, the former without the latter seems like shooting in the dark.

For entrepreneurs with access to limited resources, it becomes all the more critical to focus efforts on resource allocation. ‘Where’ and ‘How’ resources are to be used should be a call that the entrepreneur must himself / herself take, based on ‘What’ they are trying to create.

Think of resource allocation as a fall out of strategy formulation. It helps keep ‘focus’ which is so important for a start-up.

Think about it!

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