Capacity planning
Matching what you can produce with what you have sold.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Capacity planning works out how much the business can deliver with its people, equipment and space, and how that compares with demand.
Why it matters
Selling more than you can deliver damages reputation and margin at once, through overtime, subcontracting and mistakes. It is the operational twin of overtrading.
What it looks like in practice
Calculate available productive hours honestly — not headcount times contracted hours, but after holiday, sickness, admin and non-billable time. Utilisation of 100% is not a target; it is a queue.
What to watch out for
Selling from a full order book without a lead time conversation. Customers accept a wait they were told about and not one they discover.
Where to get proper advice
Your own utilisation figures. An operations consultant if the constraint is not obvious.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
Fiducia Together