Financial Management Techniques for Royal Furniture

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Table of Contents

INTRODUCTION......................................................................................................................3
Activity 1....................................................................................................................................3
Brochure.................................................................................................................................3
Activity: 2.................................................................................................................................11
Executive Summary.................................................................................................................11
Understanding financial management..................................................................................11
Cash flow forecasting for Royal Furniture...........................................................................12
Breakeven analysis...............................................................................................................13
Critical evaluation of key financial statements....................................................................15
Critical evaluation of key legislations and regulations affecting small business.................15
REFERENCES.........................................................................................................................16

INTRODUCTION
Introducing new business idea is all about starting in a new business venture. The new
start up are very challenging to handle as they ensure different strategic needs and
requirements as a business holder. This report is based on the case study of Royal Furniture
in regards to launch of its business idea (Mathieu, May and Reif, 2017). Th organisation will
engage in selling customised furniture products over internet. This report will discuss
different aspects of the launch of the new business idea. Henceforth, report will project the
brochure that will discuss about the role of capacity management in managing different
operation and functional area of the new business idea. Link between resource management
and achieving business objectives will also discuss under this project. Different tools related
to the resource management will also discuss under this project. Involvement of the customer
relationship management will also discuss under the brochure. Potential to develp business
transitionally will also elaborate under this project. Transitional operation and development
model will elaborate to analysis both challenges and benefits of adopting the model.
Furthermore, report will emphasis over the cash flow forecast and break even analysis in
respect to the new business idea. Furthermore, different legislative implication over the new
business idea will also discuss under this project.
Activity 1
Brochure
Capacity Management
Capacity
management is a process
that involves analysing
and evaluating the
capacity of business
Resource allocation and achieving
business objectives
Resource allocation is a
process that involve on the basis of
the different planning has been done
in respect to the resources attached
Customer relationship
management

enterprise to achieve the
overall business
objectives of company.
Capacity
management involve
managing the resources
of company in such way
that it allow and drive
the business entity to
achieve the overall
business objectives.
Resources are
always limited in
number and especially
with the business entity this is about
to allocate all different resources in
different functional responsibilities
entertained by company. Allocation
of resource is very significant in
respect to the small business start up
as it is obvious that the resources are
limited in number that require the
business entity to utilise the financial
resources in the best way possible.
The limited resources clearly
demonstrate that company cannot
meet all its functional responsibilities
so when it comes to allocation of
resources company should emphasis
over the fact that it can keep a right
balance between the financial
requirements availability of the
financial resources in the business.
Only such resources are allocated
under this process that can
sufficiently meet up all the needs and
Customer relationship
management is a process
of managing the
relationship with the
customers in market. This
is a process that involves
managing and
establishing the long term
relationship with the
potential customer
associated with respective
target market. Customer
relationship is the focus
area of company where
the business entity tries to
establish the long bond of
the organisation and its
existing customer base in
against to deliver the
overall business
objectives.