PSOhub Blog

Forecast Profitability Accurately with Resource Planning


Accurately forecasting sales and revenue is the dream of any business owner in the world.  

For one, forecasting unlocks the ability to spend smarter. You’ll know where and when to put focus on new or innovative projects (such as marketing), and forecasting can greatly improve hiring decisions.

But forecasting, for all its benefits, isn’t necessarily an easy task.

For one, forecasting is not always accurate, especially for seasonal businesses. It can be even more inaccurate and consequently damaging if your business lacks clear cash flow reporting dashboards. 

So, how can you leverage the benefits of forecasting while being as accurate as possible?

A critical piece to getting more accurate forecasting for your small business is practicing better resource planning and management. It’s not just about the work coming in, but how successfully you are able to complete projects. 

By leveraging comprehensive resource planning, businesses are better able to forecast revenue and profitability ACCURATELY. We’ll share tips for what to consider when resource planning, how to get started, and tools you can use to better manage your resources.

What is resource planning?

Resource planning is often the first step in project management. Essentially, resource planning identifies all the necessary resources to complete a project. Resources include team members (roles and responsibilities) as well as tools (software, hardware, facilities, etc.). Resource planning in project management involves putting these items into a schedule. 

Important questions to ask when setting out to plan resources: 

What is my timeline? 

If you’re a services organization, how many employees do you have? 

What are the rates/salaries involved?

How long will it take to achieve the individual milestones? 

Benefits of resource planning

Knowing exactly the who, what, and when of your resources removes any guessing when it comes to scaling, i.e. accurate resource planning begets accurate forecasting.

"Resource planning in project management will help you avoid making unnecessary decisions that might cost you margin on projects. Plus, you’ll be able to better stick to deadlines or be more flexible for clients if needed."

And importantly, effective resource planning can create a better connection between sales and project management. This will help streamline the handoff between the two as well.

Ready to start resource planning? Here’s how.

  1. You can start with spreadsheets. Although you can find templates online or within Excel to help get you started, this requires manual data entry, the bane of creatives and most Professional Services Organizations. If you’re working with clients or projects that need more flexibility (aka shifting timelines), spreadsheets can eventually create cumbersome workflow clogs for your project managers. Still, you have to start somewhere, so don’t knock the spreadsheets just yet if you are new to resource planning in project management.

  2. As you grow, consider adopting smart project management tools to optimize workflows and save precious time and cash. Monday, Teamwork and Microsoft Teams are examples of solutions to consider. With adept project management software, you can:
    • Start to automate the planning process. Make it easier to build projects and save time on data entry or possible mistakes. 
    • Visualize resource management clearly. Visibility is everything! And these tools will allow you to see performance and time spent on previous projects that will help you scope better and plan better. You’ll be able to see where you might have gone over or under on previous projects and make the necessary adjustments. 
    • Incorporate MORE functionality. Make your projects even more efficient with self-driving features like time tracking to collect real-time capacity data once projects kick off.

  3. Get to know your team to plan beyond capacity and begin to evaluate individual strengths and needs that would be best suited for certain projects. After all, your team is arguably your best asset!

  4. Integrate everything with your CRM and completely automate your lead 2 cash process. For HubSpot the use of PSOhub enables you to create a seamless connection with CRM and your resource management tool. 

HubSpot Integrations

Ready to forecast your company’s profitability more accurately?

Take the steps needed to strengthen the connection between your sales and project management teams by finding a resource planning and management tool that seamlessly integrates with both. Make sure to look for self-driving features that will save you and your team time on mind-numbing admin. With truly comprehensive software in place, you should be able to increase your visibility and provide forecasting that’s more accurate than ever before.

Curious about resource planning and forecasting in PSOhub! Try it FREE.

PSOhub Free PSA Software