Leveraging what you have for what you need.
Sometimes we are short of time, cash, space, or other resources and abundant in others. If you are a business owner having the ability to allocate your resources effectively can make all of the difference in the world to your bottom line.
Technically speaking resource allocation is the assignment of available resources to various uses. In the context of an entire economy, resources can be allocated by various means, such as markets or planning.
In project management, resource allocation or resource management is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.
In economics and in entrepreneurship there are three broad areas you need to address.
1. The part of your business that deals with the performance, structure, behavior, and decision-making of the business as a whole. For example, using interest rates, taxes and you’re your spending of profit to regulate the growth and stability of your business. In large economies and in government spending this is known as macroeconomic stabilization,
2. The distribution of income and wealth,
3. The allocation of resources.
Much of the study of the allocation of resources is devoted to finding the conditions under which particular mechanisms of resource allocation lead to Pareto efficient outcomes, in which no party’s situation can be improved without hurting that of another party.
Without an understanding of how to leverage and allocate resources, it is unlikely your business can survive and prosper in the long run. This requires common sense.
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I’m the author: I am a game theorist and a teacher on peak performance. I am also a results-oriented self-improvement coach offering advice for innovators of all levels.
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