Developing Entrepreneur Skills

This report provides a comprehensive overview of developing entrepreneurial skills, covering topics such as business planning, customer relationship management, financial analysis, and the impact of legislation and regulations on small businesses. It includes practical examples and case studies to illustrate key concepts and provide valuable insights for aspiring entrepreneurs.

Developing entrepreneur skills

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Main considerations a small business or social enterprise needs to address when planning
and allocating resources to achieve business objectives.......................................................1
TASK 2............................................................................................................................................2
P2) Processes of customer relationship management for a small business or social enterprise.
................................................................................................................................................2
P3) Discuss how a small business can develop transnationally and determine its benefits and
drawbacks...............................................................................................................................4
TASK 3............................................................................................................................................5
P4) cash flow statements of Talent Plus organisation..........................................................5
Interpretation....................................................................................................................................6
P5) How break- even analysis could be applied to an organisational situation.....................6
P6) Financial statements for an organisation in relation to how they contribute to the
successful management of the organisation...........................................................................7
Trading account and Profit and loss account..........................................................................8
TASK 4............................................................................................................................................9
P7) Impact of legislation and regulations on small businesses or social enterprises............9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship skill is very important for growth of the organisation. This report will
be explain the considerations of small business and process of customer relationship
management (Chuen and Lee, 2017). This report will describing the benefits and drawback of a
small business and how they can develop transnationally. This report is also discuss the break
even point and financial statements of Talent Plus company.
TASK 1
P1) Main considerations a small business or social enterprise needs to address when planning
and allocating resources to achieve business objectives
Planning resources is a particular area in small business that help with gathering and
making use of all important resources required to fulfil business need. It also includes all those
things which are useful for running small scale business like people, IT tools, materials,
facilities. Mostly knowledge and creative work is the most essential resources of small size firms
(Chuen and Lee, 2017). Talent Plus is also focus on their available resources and this
organisation is also use in their resources in effective manner.
Budget : it is the process of creating plan to spend in small business and social enterprises, it
help to ensure that will always have sufficient funds to fulfil the business need. Budgeting is
specifically important for small business group, it is the process of creating plan to spend money
in small business and social enterprise. Talent Plus and also make budget plan for running their
business. The main reason make budget planning it helps to provide a mechanism for
identifying need of business and it also provides enough information regarding revenue and
cost per unit. This organisation are constructed budget plan for attract investor, increasing their
sales and making decision about the salary, benefits, bonuses and other operating expenses, it is
very easy to preparation of tax planning.
Skilled employees : it is also very important in small scale business, Talent Plus organisation
increasing their profitability ratio and strong growth so they have need to skilled employees.
Because it is important for future development and earning more profit. If this company hire
right skill person so there business is also sustained for long duration. This corporation need to
skilled, knowledgable staff it is very necessary for achieving the goal of the business. Need of
employees without worker no any organisation achieve their goal so small business also need
1

employees so Talent Plus company are hire skilled people, they need them for creating
excellence idea, and achieve their business goal. They also help to increasing the work efficiency
and full fill organisation expectations. Employer help to maintain organisation culture it is
considerations of human resources management. This company HR department is responsible for
hiring , recruiting, performance management and build a team work.
The business plan : it is also very helpful for small enterprise in making effective business
plan . It is related how to start a business, its need, goals and objectives , finance need these are
the some guide line of small scale business (Walker, 2015). Talent Plus company also making
effective business plan and also follow these guidelines. It is also necessary for achieve the goal
the small scale business.
Market Demand : it is also very necessary for small business, if Talent Plus company run their
business providing quality product so demand of their goods and services is also generated
(Walker, 2015). They also focus on their market demand, it is the total amount of goods and
services that all the customer are willing and afford to purchase the product at certain rate. It is
necessary for small business they deciding their product prices so consumer ready to purchase
and able to buy at a given rate.
TASK 2
P2) Processes of customer relationship management for a small business or social enterprise.
Customer relationship management (CRM) is the process of managing small business
and social enterprise relationship and interaction with consumer and help to stay connected with
their clients and it is also helpful for improving the profitability margin of the organisation.
Talent Plus usually referring to CRM system, it is tool that is very effective for managing the
sale of this organisation, increasing the productivity of the business. It main motive to improve
business relationship. There are some important process of customer relationship is given below.
2

Figure 1Diagram of CRM
(Source: CRM diagram, 2018)
Communication channels: this process is related to communicate with customer on
multiple channels, it include email, messaging, smart phones, online chat, and social network. it
is the process of build up relationship with their customer, better communication is very helpful
for maintaining relation with clients. So Talent is also use this process. These organisation is also
developing their relation with these process such as online, using smart phones, live chat and
3

social media (Chuen and Lee, 2017). It is very effective for providing the information to their
clients including smart phones, online chat and also using social media.
Social media: it is also the best way to communicate with their customer and solving all
quarries regarding with products and this process is very effective, Talent and social care
financial company is also providing their services though this process (Jones, 2014). It is also
better way to communicate with clients though social media. Social network this tools is very
effective, it help to maintain relationship with customer through social network. It help
providing information regarding their product or services.
Smart phones: it is also effective tools to use communicate with their customer. Talent
Plus company is also providing their services though using mobile phones (Jones, 2014). It is
great technology today every business send their information
Customer relationship management (CRM) process is very useful for increasing customer
engagement means generating positive experience and interaction with their consumer. CRM
also make Talent Plus better relationship with their customer. It is helps to improve the business
environment (Chuen and Lee, 2017). Effective communication is also very helpful for managing
all operation which is run in organisation. So these process are very important to managing their
customer relationship.
P3) Discuss how a small business can develop transnationally and determine its benefits and
drawbacks
Small business can develop transnationally, it is simple aspect that help to growth of the
business. It is refer to involving and operating several countries (Jones, 2014). It also includes
company polices, languages, it is also exiting in same time in many countries. Talent plus is also
operate their business in several nations for developing their work and growth of the
organisation.
Transnational strategies: it is related is assessing the demand for particular products
within market. It is different from global business strategies, it help takes one product and sell
and promote in same way across all the countries and using all the channels. This strategies is
more personalized for selling their goods and services (Hansen, 2014). The advantage of this
strategies it is very effective local and small scale business with limited operating capital.
Transnational is the activity, Talent Plus organisation are skilled and they can use technology to
operate more business. It helps to expand their business in local area as well as different location.
4

The benefits of transnational strategies, it help to faster response to their consumer
means if small size organisation is follow this strategies so it is easy for help their client to fulfil
their demand. So Talent Plus company is also managing their client quarries and providing
effective services (Hansen, 2014). It is also for developing their business. They people also
maintaining their relations with customer so automatically they this organisation develop their
business in efficient manner. The drawback of this strategies some it is difficult to managing all
operation, if lack of financials resource so it is also create a problem without fund small business
can not develop their business. Talent plus organisation is small business group, so some time
they also face lack financials funds (Hansen, 2014). Without money they people cannot operate
their work and not providing customer services. If they raise their cost of goods and products
and they people are not focus on their quality services so it is also draw back, it also create many
issues.
TASK 3
P4) cash flow statements of Talent Plus organisation
Particulars April March May June July August
Cash inflows
operating cash flow 5000 6300 8500 1200 1450 1400
net profit 30000 10800 61314 12237 12591 146322
Other income 4000 2000 5000 6000 5000 7000
Total cash inflows 39000 19100 74814 19437 19041 154722
Cash outflows
raw material 6500 1820 9197.1 1835.55 1888.65 21948.3
staff salary 3000 3000 3000 3000 3000 3000
Other expenses 3300 2400 3469 2709 3735 4833
Administration charges 4200 4200 4200 4200 4200 4200
Total cash outflows 17000 12420 22866.1 15744.55 15923.65 32781.3
5

Cash deficit / surplus or
closing cash balance
22000 6680 51948 3692 3117 121941
Interpretation
This cash flow statements showing net profit and expensive of Talent Plus organisation,
this data show April to August month net income. The cash from operating activities increasing
in April to may is consistently more than the net income so this company earning more
profitability , are said to be high quality (Hansen, 2014). The expensive is also less in April to
may and they also also pay salary to their employees in equal 3000. this organisation make cash
inflow statements, they earn within 6 month is 154722 and its total outflow 32781.3. so this
company is making profit (Walker, 2015). The total surplus of last month is 121941.
P5) How break- even analysis could be applied to an organisational situation
Break even point is let to create distinctiveness among competitors and also lets to
provide competitive advantage in market in order increase the base of the customer. Small
business is also make break even point (Chuen and Lee, 2017). Break – even analysis is helpful
for calculating break even point in according to fixed cost, variable cost per unit of revenue per
unit of sales. It help in small scale business, it is related to the total cost and total revenue are
equal. For example if Talent company there no net loss or gain of the business.
Particulars Formula Figures
Selling price per unit 12
Variable per unit cost 7
Contribution per unit Selling price per unit - variable
per unit cost
5
Fixed cost 7200
6

BEP (in units) Fixed cost / contribution per unit 1440
BEP (in value or monetary terms) BEP (in units) * selling price per
unit
17280
Interpretation
Break even point this company is showing the selling price per unit and variable per cost.
Fixed cost is also contributing 7200. at last BEP selling prices is 17280.
P6) Financial statements for an organisation in relation to how they contribute to the successful
management of the organisation
Financials ratio or accounting ratio is the process of crucial and interpreting the
relationship with financial statements (DeFazio, 2015). It is also the important aspect of Talent
Plus company and are in integral part of this organisation financials statements. It is refer with
calculating financials ratio which are also included assets, liquidity ratio, solvency ratio,
profitability ratio, activity ratio, these are the ratio which is helpful for the calculating the
financials statements of this company (Jones, 2014). It also show the actual performance of the
businesses. Financials ratio can be provide small businesses and it is valuable tool it also
calculated the total sales dividend by numbers of worker.
7

Trading account and Profit and loss account
Trading account/Income statement
Particulars April March May June July August
Sales revenue 39000 19100 74814 19437 19041 154722
Less: Cost of goods sold 3256 1500 2050 1870 1600 2568
Gross Profit 35744 17600 72764 17567 17441 152154
Less: Operating expenses
raw material 6500 1820 9197.1 1835.55 1888.65 21948.3
staff salary 3000 3000 3000 3000 3000 3000
Other expenses 3300 2400 3469 2709 3735 4833
Administration charges 4200 4200 4200 4200 4200 4200
Total operating Expenses
17000 11420 19866.1 11744.6 12823.7 33981.3
Total operating income
18744 6180 52897.9 5822.45 4617.35 118173
less: Income tax 30% 13120.8 4326 37028.5 4075.72 3232.15 82720.9
Net profit 5623.2 1854 15869.4 1746.74 1385.21 35451.8
Balance sheet:
Balance sheet
Particulars April March May June July August
Assets
Current assets
Cash 22000 6680 51948 3692 3117 121941
Accounts
Receivables 560 4724 1050 7964.2 6789.6 1402
Inventories 6500 1820 9197.1 1835.55 1888.65 21948.3
Total current
assets 29060 13224 62195.1 13491.8 11795.3 145291
Fixed Assets
Office furniture 1500 1450 1720 2050 2860 1100
8

Building 2000 2200 3500 3980 4890 3200
Total Fixed Assets 3500 3650 5220 6030 7750 4300
Total assets 32560 16874 67415.1 19521.8 19545.3 149591
Liabilities
Current
liabilities
Accounts payable 10736.9 400 28195.7 200 0 50000
Short term debts 2000 1800 2250 1025 2560 12590
Total current
liabilities 12736.9 2200 30445.7 1225 2560 62590
Non- current
liabilities
Bank loan 2200 1970 3000 2600 3250 8649.49
Long trem debts 1500 1050 2500 1670 1680 7900
Total non- current
liabilities 3700 3020 5500 4270 4100 16549.5
Total liabilities 16436.9 5220 35945.7 5495 6660 79139.5
Owner’s equity
Capital 10500 9800 15600 12280 11500 35000
Net profit 5623.2 1854 15869.4 1746.74 1385.21 35451.8
Total Liabilities
and equity 32560.1 16874 67415.1 19521.7 19545.2 149591
TASK 4
P7) Impact of legislation and regulations on small businesses or social enterprises.
The rules and regulations has an very important role in supporting and restricting the
small businesses and social enterprises (Hansen, 2014). These rules and regulations are provided
for guiding the business to increase the efficiency of the business in market. Business are
required to be flexible because needed to adopt strategies which are required for making business
activities to be more effective that can lead to generated the amount of great profit for financial
security of an organisation. Some of the impacts are:
Various rules and regulations implements strategies that can lead to change the
behaviour of the surrounding. It can also leads to stop unethical practices that can lead to
develop some kind of help for small business which are mostly victims of big companies
9

(DeFazio, 2015). Some taxes and duties are imposed which leads to help for various business
activities such as exports and imports.
The various corporate as well security law has direct as well as significant impact on the
growth of business. Trade regulations, the federal minimum wage, and the requirements for
permits or licenses have effects on business. The amendment in business law leads to the
changes in the way of doing business. The changes in tax law has provides various financial
benefit to small medium enterprise in United kingdom. It has enabled small medium organisation
to increase its profit margin and saving. Amendment in Tax laws has aided business entity in
reducing the cost of operations (DeFazio, 2015). Modification in employment law has direct as
well as significant influence on the relationship between employer and employee. The
implementation of various norms by government has helped small medium enterprise in
identifying the solutions to wide range of problem. The objective of creation of various laws by
government is to prevent or protect small medium enterprise from unfair competition. Legal
authority in nation implement a policy that changes the social behaviour in the business
environment (Zarenda, 2014). Trade regulations, the federal minimum wage, and the
requirements for permits or licenses have significant effects on business. Government in united
nation has created such monetary policies which has helped small medium enterprise in
maintaining financial stability (Walker, 2015). The changes in health and safety laws has direct
as well as significant impact on the working environment within an enterprise.
Consumer Protection law:
In accordance with making the operational increment as well as enhancing the brand
reputation there are various consumer protection laws are needed to be acknowledged by the
professionals. These acts are mainly enforced to reduce fraudulent acts, misrepresentation as well
as facilitating the public safety among buyers.
Data Protection Act:
It is necessary to keep the confidentiality in recording all transactional activities of firm.
Thus, it consists of all the legal and personal information amount consumers. The firm has to
keep confidentiality in the records and do not disclose personal details. Instead of this they can
have a secured network system which do not allow any external source to access sites or
undertake data.
Sales and Good act:
10

To protect the human rights as well as providing sound services to clients which requires
proper quality, costs and operational management. Thus, products and services has been offered
by an organisation must reflect clear information about it.
CONCLUSION
It can be concluded that developing entrepreneurship skill is very important aspect in
nowadays. This report can be explained important considerations of a small business or social
enterprise needs. It also described the process of customer relationship management, it is also
very crucial for managing the relations with consumer. This report is also discussed the impact
of small business can develop transnationally and determined its benefits and losses. It also
explained the break even point and impact of legislation and regulations on small businesses.
11

REFERENCES
Books and journals
Chuen, K. and Lee, D., 2017. Decentralization and Distributed Innovation: Fintech, Bitcoin and
ICO's.
DeFazio, J.P., 2015. The Relationship of a Match and Mismatch of the Social Style Profile on
Practices of Communication and Counseling in the Financial Planner-Client Relationship.
Northcentral University.
Hansen, M.W., 2014. From enclave to linkage economies? A review of the literature on linkages
between extractive multinational corporations and local industry in Africa (No. 2014: 02).
DIIS Working Paper.
Jones, M.K., 2014. The impact of mentoring on first year principals (Doctoral dissertation,
Youngstown State Unive
Moeti, B., Mgawi, R.K. and Moalosi, W.T.S., 2016. Critical Thinking among Post-Graduate
Diploma in Education Students in Higher Education: Reality or Fuss?.Journal of Education
and Learning.6(2). p.13.
Szentes, T., 2017. World Economics 1.
Tabatabaee, and et.al, 2014. A study of succession planning challenges in governmental
organizations.Kuwait Chapter of the Arabian Journal of Business and Management
Review.3(11A). p.231.
Walker, S.P., 2015. The role of the HBCU library alliance leadership program in developing
library leaders. Mercer University.
Zarenda, H., 2014. The policy of state intervention in the establishment and development of
manufacturing industry in South Africa (Doctoral dissertation).
Online
CRM diagram. 2018. [Online]. Available through :< https://digital-55.com/services/crm-
workflow-risk-management/crm-for-business/crm-diagram/>.
12