Small Business Success Factors

This assignment delves into the critical factors that contribute to the success of small businesses. It encourages students to analyze various success strategies employed by small enterprises and evaluate the challenges they encounter. The assignment structure includes a case study component, requiring students to apply their understanding of key concepts to real-world scenarios.

SMALL BUSINESS
ENTERPRISES

Table of Contents
TASK 1..........................................................................................................................................................4
1.1 Profile of the company......................................................................................................................4
1.2 Comparison of Financial Performance...............................................................................................5
TASK 2..........................................................................................................................................................6
2.1 Actions to overcome weaknesses......................................................................................................6
2.2 Ways to maintain and strengthen current performances..................................................................7
2.3 New areas for making expansion.......................................................................................................8
TASK 3..........................................................................................................................................................9
3.1 Assessing Business Objectives...........................................................................................................9
3.2 Business plan and areas of changes.................................................................................................10
3.3 Action plan for the implementation of change................................................................................11
TASK 4........................................................................................................................................................11
4.1 Impact of proposed changes will have on business and its personnel.............................................11
4.2 Plan for managing change...............................................................................................................12
4.3 Improvement in the business operations........................................................................................13
CONCLUSION.............................................................................................................................................14

INTRODUCTION
Small and medium business enterprise are those organization which is owned and controlled
by the owner itself. In such kind of organization, there is no more than 250 employees and the
annual turnover of these organization arte below 50 million euro. United kingdom is one of the
country in the world which welcoming for the new start up business and it is dominated by
service industry. In addition to this, sales operation of these organization is limited in the
country. But these kind of business have huge scope for development and growth at global level.
In this project report, various strength and weaknesses of the small business enterprise
Razzmatazz Theatre school has discussed (Cassar, Ittner And Cavalluzzo, 2015). It is a children
theater and drama company which provide the training to children’s and adults about the singing,
dancing, drama etc. In this report, financial statement and business performance has compared
with similar business in the same industry. In addition to this various criteria and ways to expand
the existing small business has also discussed in this report. The major objective of this report is
to understand the business activities and way to expand small business in the country.
TASK 1
1.1 Profile of the company
Business name- Razzamataz Theatre Schools
Mission- The mission statement of Razzamataz Theatre Schools is to provide training or
teaching about wonderful singing, dancing and drama.
Vision: The vision of the corporation is to become a leading and successful teaching school of
arts through having an excellent audience base.
Aims and objective The major aim and objective of this organization is to attract the large
number of customer and earn the maximum market share. It want to earn extreme
profitability and brand image in the UK market.
Ownership structure: Private Limited Company and major shareholder is Ms Denise Gosney
owning more than 75% shares
History/background- It was founded by Denise Hutton Gosney in 2000 and in 2007 e took it to
business program conducted by BBC, Dragon's Den were investor Duncan Bannatyne
supported to launch company all over the country
Activities and operations- Its major activities is to provide arts to students so it provide training
about singing, dancing, drama to children and adults. It have highly professionals and
expertise who have excellent knowledge about the arts (Blackburn, Hart And Wainwright,
2013).

Locations: Registered office is in London but has expanded to 14 countries through outlets. It
offers training for all the performing arts including musical theatre, dance and song, drama,
improvisation and physical theatre
Strength-
 Razzamataz Theatre Schools have major strength is its highly advanced and excellent
quality of services. It is famous in the UK because of its quality services.
 One another strength is that it is operates around 14 countries and each country it have
highly skilled and knowledgeable trainer who provides training about singing, dancing
and drama.
Weakness
 Razzamataz Theatre Schools have major weakness is that it provides training or teaching
to children and adults only. It does not provide teaching for dancing, singing and drama
to old age people.
 The another major weakness is that it charged very high prices from its customers so
lower income group people can not afford these services.
 Another weakness is it have lack of technical support through which some time creates
slow business process.
 It have lack of promotional activities so many of people do not aware about its teaching
services.
 One another major weakness is that cited school runs only on Friday and Saturdays.
1.2 Comparison of Financial Performance
As per the above discussion it has been ascertained that there are various kinds of strength
and weaknesses of the Razzamataz Theatre Schools. The cited venture have major competitor is
Swing patrol, which is regular focusing their efforts to deliver top quality singing and dance
teaching to children and adults. Swing patrol is another teaching organization which provide
training about the dance to its customer in the UK market. Swing patrol gives the tough
competition to the Razzamataz Theatre Schools because it have more market share and
profitability. Ratio analysis is consider considers as the best technique to quantitative measures
and evaluate the comparative performance of both the SMEs.
Year Razzmataxx Theatre Swing patrol

Revenues Net profit Net profit margin Revenues
Net
profit
Net
profit
margi
n
2011 3400 255 7.50% 3200 300 9.38%
2012 4200 420 10.00% 4050 350 8.64%
2013 4550 300 6.59% 4800 510
10.63
%
2014 5100 612 12.00% 5420 610
11.25
%
2015 5700 855 15.00% 6020 675
11.21
%
As per the above table it has been ascertained that both small business enterprise such as Swing
patrol and Razzmamataxx Theatre’s school revenues show the upward movement. But still
Swing Patrol have high sales and revenue as compare to the.In the year 2015 Swimng petrol
have total revenue is 6020 and said firm revenue is 5700 GBP. So as per the above analysis of
both company it can be said that Razzamataz Theatre Schools requires to make more efforts in
order to generta revenue.
TASK 2
2.1 Actions to overcome weaknesses
As per the above discussion about about the Razzmataxx Theatre it has been ascertained that
firm have various kinds of weaknesses which created barrier for business growth and process. In
order to overcome the weakness , company requires to put more efforts so as it can sustain its
growth in the market and also can perform better as compare to competitors (Ebert and et.al.,
2014). In order to overcome such weaknesses or draw back, management of cited venture
requires to adopt the various ways which are as follows-
 One major weakness of the Razzmataxx Theatre is that it only offers training about
singing and dancing to children’s and adults age between 2 year to 18 year. It doers not
provide training to old age people or above the 18 year people. Since this is specialised in
children only market share is reduced in comparison to others (Choshin And Ghaffari,
2017). To overcome such weakness, company should widen the scope and look forward

for imparting training in dance, art and music. In this manner, company can organise the
training programs in some different field like fine art, literature, speaking English etc.
 One another weakness of cited venture is that it only runs on Friday and Saturday so
many of the customer have issue regarding timing and schedules. Corporation should
need to open this training session for whole week which will more convenient for the
customer and this will enhance the comfort level of customers.
 In order to gain competitive advantage as compare to other competitor, firm should
requires to provide various kinds of dancelike classical, hip hop etc. This will assist
increase the customisation of business and attract the large number of customers.
 In order to overcome the weakness regarding low market share, cited venture should
provide various facility so, they attract all types of age groups by opening dance, art and
drama classes according to their customer hours. This type of flexibility in hours in their
school company attract the students, professional and children.
 Company should organise the free classes for new jonnies so as new audience will
encourage to join this training programs .Further, company should more decorate its
institution with balloons and sign.
 The most attractive ways to acquire the customer attention is that organise local events
and programs the festival seasons and fall season. This will attract the new customers
from various locations.
 Company requires to improve its promotional activities and advertisement in the
newspapers, websites, emails, poster, billboards etc. This will acquire the attention of
customer. Further, firm should develop its own websites on the internet so as customer
can register their booking by online basis.
2.2 Ways to maintain and strengthen current performances
Razzmataxx Theatre school is the famous training organisation for arts, dancing, singing
in the 14 countries of the world and each country it have highly skilled and knowledgeable
trainer who provides training about singing, dancing and drama. It is famous for its high
quality services and differentiations from other competitors (Ellis and kiely, 2015). Company
should keep its excellent performance for long time through which it can maintain good
brand image. In order to maintain and strengthen of current performance, it should adopt the
following ways-

 Provide training and development to professionals and employees- This is the best
way through which Razzmataxx Theatre school can maintain and strengthen of its
current performance. In this manner, company requires top organise training and
development programs for its employees and professionals through which they can
learn the more skill, talents, knowledge about dance, arts, singing (Goss, 2015). This
will assist in improving the productivity and maintain the current performance of
business. By this human resource development programs, professionals can render
the better knowledge and training to their students in the organisation. This will also
aid in improving the brand image of business enterprise.
 Developing technologies- Razzmataxx Theatre school requires to ado[pt the new
technology and infrastructure for improving the current process and operation of
business. In this manner, firm can adopt more new technology through which
professionals can render the training of dance and singing in more excellent ways.
The use of various new techniques in dance forms along with some good props can
prove to be of good strength for dances.
 Development the relation with stakeholder- This is the most effective way through
which organisation can maintain the strengthen of current performance. In this
context, firm should make more efforts to develop relationship with various
stakeholders so that company can build a strong bounding with them (Gupta And
Makrigeorgis, 2016). Firm should always keep satisfy its employees and suppliers so
that it maintain its sustainability in market. On the other hand in order to maintain
healthy relation with customer, cited venture should provide right and relevant
information to customer. Further by delivering excellent services to customer, firm
can able to maintain healthy relation with customer.
2.3 New areas for making expansion
As per the entire discussion about the Razzmataxx Theatre school, it has ascertained that
company has successfully developed an effective and impressive brand image in the market by
delivered high quality services to customers in the age of 2 year to 18 year. With assistance of
highly skilled employees and professionals, company maintain its effective performance in the
market .However, growth and development in every business can enhance the market share and
profitability. Business expansion is very essential and necessary in order to acquire large number

of customer and market share. For this purpose, Razzmataxx Theatre school requires to expand
its current business. In this manner, company have various opportunities to expand its current
business operation. In the present time, customer are more health conscious but due to busy
schedule they can not concentrate on their health. As it discussed that cited venture is a training
institute so firm can diversified in the various new area such as yoga, meditation etc (Klapper,
Feather, Refai, Thompson and Fayolle, 2015). This will assist in improving its current
profitability and market share because yoga and meditation is most famous healthy activities
among the youth as well as old age people. With assistance of this strategy of business
expansion, old age people can gain more benefit of their health and maintain their fitness. This
dealing aspect will centre on developing a well-trained set of professionals who have a
awareness in the stated segment. Moreover this will enlarge the target market and demand for the
company in the market as well. Adults and elderly citizens can pertain for the courses.
The entire assessment reflects that the business in the present marketplace condition have
broad and essential growth opportunities. With assistance of the new diversification of
business, company will attract the large number of customer in all age and earn more
profitability and market share. In addition the business may also attain the first mover
advantage in such formal courses which will ensure the business growth in the UK market.
TASK 3
3.1 Assessing Business Objectives
Razzmataxx Theatre school is very famous training organization for its highly advanced
and impressive training programs for children’s. It offers the training to children’s and adults
about the singing, dancing, drama etc. Its major aim is to attract the large number of customer
and earn the maximum market share. It want to earn extreme profitability and brand image in the
UK market. The vision of the corporation is to become a leading and successful teaching school
of arts through having an excellent audience base (Levinson, 2011). For this objective, cited
organization make its continuous efforts to deliver high quality of training services about
singing, dancing and arts to children’s and adults. In the context of business plan and objective it
always recommended to make the objective on SMART criteria. This objective stands for the
specific, measurable, achievable, realistic and time bounded. In this manner, Razzmataxx
Theatre school have objective which are as follows-
Specific- Razzmataxx Theatre school have objective is to expand its market share and
profitability along with target customer in various countries of the world.

Measurable- Company have objective is to increase 10% profitability in every year and 10%
market share in every year.
Achievable- Corporation have objective is to earn the profitability and market share every year
in progressive a manner. It wanted to expand its services in various dance, singing and arts
forms.
Realistic- Company wanted to gain the popularity among the children and adults. Further, it want
to make business innovative and developed with expanding technologies and infrastructure.
Time bounded- Company have objective to increase market share and profitability by 10% every
year.
As per the above evaluation of business objective of Razzmataxx Theatre school, it has been
ascertained that business plan and objective can make business realistic and measurable.
Company have target to increase profitability and market share by 10% every year so it stated
that business objective is realistic and measurable. In order to achieve such objective, company’s
management have to adopt varios new technologies, increase human resource development and
make various efforts.
3.2 Business plan and areas of changes
In the present time, Razzmataxx Theatre school has delivered great work and has been
experiencing growth. But still its competitor have more better performed as compare to its
business in the market. In order to perform in better manner and compete with rival in tye
market, company requires to bring the requisite changes (McCarthy, 2013). With assistance of
effective measure for development of business plan, company can make various essential
changes in the business process. The area of changes are as follows-
Marketing planning- Marketing planning is most essential aspect for improving the current
business performance in the country. In this manner, company requires to conduct research
and development programs so as it can identify the actual needs and requirement of
customers. On the other hand, company should increase its promotional activities so as it
can more promote its business and attract the large number of customer (Schuler, 2013).
This will strengthen the business plan being developed as well as the increase the
appropriateness of marketing activities. Furthermore, company requires to organise the local
events on festival seasons and seminar in order to gain attention of audience. This all
measure will aid firm in increasing existing performance and growth of business.
Financial aspect- In order to bring the essential changes in the business, company should allocate
financial resource in the various department. Company requires to make appropriate
arrangement of fund so as they can utilise it in an effective manner (Ghattas, Soffer and

Peleg, 2014). By proper allocation of funds in the different business activities, firm can gain
better and progress in the market.
Human resource development- It is very important to retain the highly skilled and effective
workforce in the business. In order to maintain and motivate employees, company requires
to develop new policies and practices through which its employees can retain for long time
in business. On the other hand, in order to bring essential changes in the business, company
requires to provide training opportunities to employees so as they can learn the innovative
skill and new knowledge. This will assist in bringing the innovativeness and essential
changes in the services.
3.3 Action plan for the implementation of change
As per the above discussion it has been ascertained that in order to earn more profitability and
market share, company needs to bring some essential changes in the business. In order to
implement these changes, firm requires to make an effective action plan which are as
follows-
Set objective- In order to make the changes in the business, company requires to create an
objective.
Priorities- In this stage cited venture requires to identify the priorities of business sin an effective
manner. This will assist in processing the steps wise measures of informed what can be done and
how it should be done.
Time scale- In this stage company requires to develop a time scale through which it can
measures the requisite changes within the stipulate time.
TASK 4
4.1 Impact of proposed changes will have on business and its personnel
The adopted changes will have a great impact on the business performance as well as
personnel. Furthermore, the major aim of the cited organisation is to earn maximum profitability
and market share by deliver the high quality and distinctive services of training to children and
adults. So by adopt the several changes, company will highly influenced by following area-
Increasing profitability- Introduciung the several changes in the business, cited firm will gain the
high profitability. Razzmatazz to enhance their profit situation and thus bring changes in

business. By providing effective training to the human resources in the professional manner
will assist in improving the current profitability of business (Duval‐Couetil, 2013).
Enhance brand loyalty- This is major benefit and positive impact by adopting the new changes.
With assistance of various changes like improving promotional activities, organise event on
festival season will raise goodwill and brand image of the organisation. By this changes,
company will acquires the new customer toward the business and gain the opportunities to
increase profitability.
Fulfilling individual requirements- With assistance of the changes in the business organisation,
firm can meet the needs and wants of the customer in the field of dancing, singing and
drama. In this manner, market research will highly assist to firm by which company can
estimate the requires of customer. By this identification, company can render high customer
satisfaction to customers.
4.2 Plan for managing change
Changes is refers to that thing through which company can bring various improvement in
business activities and function. However, sometime changes highly influence management in
negative manner. Thus corporation requires to maintain and mange such changes in the business.
To overcome the negative impact of changes in the business, management can use the various
kinds of techniques and measures (Bryman and Bell, 2015). In the context of Razzmataxx
Theatre school is a corporation which is operating in the UK market. Now company requires to
bring some kinds changes in order to improve its current performance of business and increase
profitability and market share. Thus company can use the change management model that is
Lewin’s changes management model which is as follows-
 Unfreeze- It is the first stage of change management model in which company introduce
the changes activities and action in front of management. In this stage, cited venture
describe the advantages of changes in the business to employees because some of the
personnel resist to change in the business policies, practices and business process
(Hodges and et. al., 2015). Thus it is very important stage under which corporation
describes the benefits and impact of changes to workforce. In the context of cited venture,
its management defines the advantage of changes in this stages so as various employees
become ready to adopt such kinds of new business activities at workplace.

 Changes- In the second stage of this change management model, company prepare
workforce for adopting such changes in the business in an effective manner. In this
manner, organisation conduct the training and development programs so as workforce
can learn the new skills and ability to develop such effective alteration inn the business
process and activities. In addition to this, management also allot the roles and
responsibility of employees according to the new business structure and activities at
workplace. Cited venture allot the roles and obligation of each employees according to
the new alteration in business.
 Refreeze- In this final stage, organisation finally adopt the new alteration or changes in
the business activities and function. This is the final stage which requires to be faced by
workforce of concerned corporation wherein alteration has been successfully
implemented and adopted by the employees (Guimaraes and et. al., 2013). Cited venture
finally adopted the several new alteration in the business in order to gain the profitability
and market share in the UK market.
4.3 Improvement in the business operations
As per the above discussion it has been ascertained that there are several changes take
place in the cited venture in order to gain the effective marker share and profitability as compare
to competitors in the UK market. In order to maintain and sustain these changes, management of
corporation requires to make regu.lar monitoring and control over the business activities and
functions. For this objective sales or profit of the two year will be evaluated in the following
manner-
2015 2016

Sales 5000 6050
Gross Profit 3252 4585
Net Profit 3365 4587
Turnover 7655 9874
As per the above analysis of business performance after adopted several changes, it has
ascertained that company is currently performing in excellent and progressive manner. The
new changes has more beneficial for the organisation so as the sales and gross profit of the
company has increased in 2016 as compare to 2015.On the other hand company’s turn over
and new profit has also increased as compare to past year after brought the proposed
changes in the business.
CONCLUSION
From this project report it has been ascertained that small business enterprise is very
important in the country in order to expand the economy and development. Razzmataxx Theatre
requires to adopt the new technologies so as it can bring the innovation and fast business
prices .It has also concluded that cited venture requires to expand its business by render various
kinds of new services to its customer in the UK market. Cited venture needs to organize training
and development through which its workforce can able to acquire or gain new skill and
knowledge in order to improve business performance and productivity. According to the
financial performance of corporation it has seen that company requires to increase its revenue so
as it can develop effective brand image in the market. With assistance of market research
company can identify the customer requirement about the singing and dancing which assist to
company in improving existing performance. It has also concluded that after developed the
various changes in the business, cited organization has able to increase its profit and sales as
compare to past year.

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