77. Agent of ProductionBy Roger Bryan
As per classical economics, there are various agents of production which help in fructifying a business. Make a list of each agent of production in your business plan and how it is going to impact your business. An agent of production could be
1) Land – How much land do you have and how have you put it to use? If you are at a very early stage, then try to estimate the efficacy of both these factors.
2) Labor – How much labor is needed? Can automation be used at certain stages? If yes, then what are the costs involved and what is the efficacy? What is the number of human hours involved in ensuring optimum level of production? Is extra labor available in case demand goes up? All these questions need to be answered and looked into while jotting down this section of your business plan.
3) Capital – How much capital is needed for production? How is it going to be utilized from start till end as an agent of production? List out these details with utmost clarity for the investors.
4) Entrepreneurship – How does entrepreneurship impact your business? Who takes decisions and provides consultation? List out details if someone is overlooking the decisions from time to time and giving useful inputs for giving a direction to your business plan.