How many resources (money, people and equipment) do you need to fulfil your goal?
What resources do you need to fulfil your dream? How much money, muscle and materiel, is necessary to achieve your goal?
We often limit ourselves and our goals to our present resources. After all, it is reasonable to ask, ‘What can I afford?’ before committing to something, even if that is just a vacation. Budgeting is good stewardship, and I would certainly not recommend getting into debt on a whim.
But, we won’t be able to dream big if we limit our goals to what we can achieve with the resources we have now. It is better to ask first, ‘What are we most passionate about doing?’ Then we work out the resources required and can think creatively of ways to get what we need. That is why this question comes some way down the planning process.
“First, have a definite, clear practical ideal; a goal, an objective.
Second, have the necessary means to achieve your ends; wisdom, money, materials, and methods.
Third, adjust all your means to that end.” – Aristotle
Resources: The importance of logistics
An army needs logistics. A large portion of every military is concerned with delivering the right resources to the right people in the right places. In fact, there are many more logisticians than infantry soldiers in the average army.
“Amateurs talk tactics, professionals talk logistics” – General Omar Bradley
But the army does not exist for logistics. It has a mission to achieve. That aim is very rarely just to do with just moving men and equipment from one place to another. Logistics is a large and essential part of achieving your aim. But it is there to support the mission, not to drive it.
History testifies to the fact that an army will beg, borrow and steal if necessary to get the job done if (or rather when) logistics fail. You can still achieve your aim when resources are difficult to come by if you remain focussed; as the United States Marine Corps would say: you need to ‘improvise, adapt and overcome!’
Resources are not as finite as you might think
There are very few occasions when finances and resources are truly fixed. That is why the vision or goal is so important. They give us the correct motivation. A compelling dream will inspire us to innovate and overcome shortages. The idea of success motivates us to find the money, people and tools to get the job done.
Why is it that many people who win the lottery often struggle? Why do they end up having spent their money within a few years? The gambling industry sells winning as the dream; it does not provide a vision for what comes beyond that. Many people who win do not have a clear idea of what they want to do with the money. They might take a nice holiday and pay off the mortgage but that is not a grand vision.
People who make (and maintain) large amounts of money tend to use it productively. Resources that continue to grow are usually driven by a vision beyond that of just making cash. Bill Gates, the richest man in the world for many years, was not motivated primarily by money. When he started Microsoft with Paul Allen they had a vision of a computer in every home. This dream, of how computing could transform the world, drove Microsoft. It became the most successful software business in the world and made Bill Gates a multi-billionaire. This money is now being used to drive a new vision. Through their foundation, Bill and Melinda Gates pursue a mission “to create a world where every person has the opportunity to live a healthy, productive life.”
Money, Muscle and Materiel
So, we start with the dream and then work out what we need to make it a reality. When we need to make something happen it generally comes down to the three ‘M’s:
- Money
- Muscle
- Materiel
Finance, human resources, and equipment are all important, but it is usually the first element, the money, which drives others. Therefore, we will focus on cash now and return to people in more detail when we consider the ‘Who?’ question.
Estimating the cost: Using the Route Card Tool
Once we have articulated our dream or goal, we can start to estimate the resources we need. If it is hard to assess the cost for a whole goal we can break it down, as we have done previously, and cost each constituent task or step.
To do this you can use the Route Card Tool. Just follow these steps:
- Take your completed Route Card Tool, choose a goal and then estimate the resources needed for each task or step included in that row.
- Now add these up to create a total resource bill for that goal.
- Repeat steps 1 and 2 for your other goals.
- Add up the total costs of each goal to calculate your overall resource needs.
This should give you a reasonable estimate of what you need to succeed.
Counting the opportunity cost
Remember to put a cost against the time you invest in achieving the goal. When doing something yourself you can feel you are getting it done for free but that is not true. Our time is worth something, even if it is just the opportunity cost of not being able to do something else while we are engaged with a task we have decided upon.
Often it will turn out cheaper to pay someone else to do a task that can be delegated. This leaves you with just the things that no one else can do, meaning you will achieve your goal sooner.
We will look at delegation some more under the ‘Who?’ question, but now – having broken down tasks with costs against them – we are in a much better place to decide on the team of people you might need to support you.
Alternative funding
Once the cost for each task is estimated you will get an idea of the budget for the whole project. Now you can start to think creatively about how to raise funds or reduce costs.
For example, instead of paying for a qualified professional, could you get someone to do the work voluntarily? Perhaps you could offer them experience as an intern? If someone is still in training or education they may value the experience more than pay.
Alternatively, think about what service or product you could offer someone in return. Bartering is as old as trade itself but sometimes people forget it. I have used this sort of transaction in building my business. For example, I have coached people in return for help with developing my website.
Fuel the dream
Considering the resources we need and how we are going to get them is an important aspect of how we make our dreams real. An idea is more tangible as we think about the money, muscle and material we need for the job. It can take some time (and may not be as liberating as big-picture thinking) but it will help you succeed, so stick with it!
And remember:
- Your calculation is just an estimate. The overall cost will change and is likely be higher than expected. It is worthwhile adding an extra 10% to the overall estimate to take this into account.
- You don’t need all the resources right now. Focus on what you need for that first step or goal.
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