Managing and Running a Lesser Business

MANAGING AND
RUNNING A LESSER
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of company............................................................................................................1
P1. Main considerations that must be considered when planning and allocating resources. .1
TASK 2............................................................................................................................................3
P2. Various different processes of (CRM) Customer relationship management to enhance the
small business.........................................................................................................................3
P3. Important tools to small ventures in order to grow the working standards along with
benefits and drawbacks...........................................................................................................4
TASK 3............................................................................................................................................5
P4 Development of an annual itemised monthly cash flow projection presenting variable and
fixed costs set in contradiction of income for a particular organisation.................................5
P5. The way break-even analysis can be implemented to an organisational circumstance. . .6
P6 Interpretation of financial statements of company in relation to the way they contribute to
successful administration of company....................................................................................8
Income Statement............................................................................................................11
TASK 4..........................................................................................................................................13
P7. Main legislation and regulations which have major implications on business enterprises13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
SMEs play an important role in contributing towards the economic development of a
country as they help in generating employment, effective use of available resources, meeting the
needs of a large number of customers etc. In order to run a small business effectively it is
important that the resources of company are utilised efficiently by taking into consideration the
capacities of company so that requirement of customers can be met effectively (Long, Indigo and
Blok, 2020). In this report Green Man Gaming is taken which is a small business based in
London that deals in online gaming so that the way in which resources can be used in achieving
goals and objectives of company can be understood. Also the analysis of cash flow forecast,
budget, break-even point, interpretation of financial statements, implications of regulations and
legations etc. will also be covered in this assignment so that overall knowledge on running a
small business can be developed.
TASK 1
Overview of company
Green Man Gaming Plc is a newly started venture established in 2009 and deals in
various types of goods and services like food, beverages, retailing etc. Currently the business is
facing an issue related with decreased customer base which is affecting its profitability in
market. The company is therefore considering upon improving its plan in meeting the needs and
wants of its customers so that it can remain competitive in market (Kurpjuweit and Wagner,
2020).
P1. Main considerations that must be considered when planning and allocating resources
In order to effectively run a business, it is important that the resources in company are
utilised in an efficient manner and allocated in various departments so that organisational
objectives can be achieved. Green Man Gaming Plc needs to utilise its resources in an optimum
manner so that they can be directed in fulfilling the needs and wants of its customers which can
help it in building its brand image thereby improving its profitability in market. In order to
achieve business objectives, it is important that resources are well planned and allocated as per
the requirement of each department so that employees can utilise them and complete the work
given to them on time. Following are the factors that must be considered while allocating and
planning resources in Green Man Gaming Plc:
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 Staff members and skills: Employees in an organisation plays an important role in
achieving its goals and visions on time and within budget. It is important that the number
of employees and their skills regarding using resources must be analysed so that they can
be allocated resources as per the work given to them. This can help the employees of
Green Man Gaming Plc in effectively utilising the available resources so that highly
effective results can be generated (Esmerova, 2020).
 Vision, mission and objectives of company: Depending on the mission, vision and
objectives of company the resources must be acquired so that they can be allocated in
various activities of business. In order to achieve high quality results and to emphasize
on customer demands it is important that resources are planned and organised in such a
manner which can help in improving the confidence of employees and enhance their
productivity. Also this can help in improving the efficiency with which customers are
satisfied with the goods and services provided by Green Man Gaming Plc.
 Monetary resources: Financial availability determine the quantity and quality of
resources that can be acquired by a company and the way in which these resources can
be utilised in operational activities so that high profits can be achieved. Various financial
statements like balance sheet, income statements etc. can be analysed so as to determine
the financial capacity of a business which can be helpful in planning and organising
resources.
Various types of tools and techniques can be used by Green Man Gaming Plc so that the
resources can be used in an efficient manner so that its customer base can be increased by using
the resources:
 Gantt Chart: This is a tool that can be used in allocating time with respective yo various
activities so that an interrelation among various activities and time required in completing
the activities can be determined. With the help of this tool resources can be allocated
among activities so that they can be completed within the time associated with them so
that high quality of results can be achieved. Green Man Gaming Plc can use this tool so
that resources can be utilised in an efficient manner which can help in meeting the needs
and wants of customers (Russell, Westby, and Watt, 2020).
 Critical Path Analysis: This is another tool that can help in finding shortest possible path
that can be followed in achieving desired goal and objectives in an organisation. Green
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