Managing and running a small business

Managing and running a
small business

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY-1...................................................................................................................................3
Capacity management..................................................................................................................3
Resource allocation......................................................................................................................5
Customer Relationship.................................................................................................................7
ACTIVITY-2...................................................................................................................................7
Financial Management.................................................................................................................7
Cash flow projection....................................................................................................................8
Break even analysis.....................................................................................................................9
Key legislation and regulations...................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Managing a business is considered to be one of the key aspect for every organisation that is
working in the aspect of development. Businesses are said to be many and industries are said to
be immense. When an industry is dealing with certain atrocities then the management will have
to provide strategies that are necessary for the organisation to combat with the challenges that are
appeared to be in the lane of business. Be it a small business or a biggest MNC it depends upon
how far are the strategies that are implied in the business are worked for (Kühlmann and Heinz,
2017). Businesses are meant to be one of the profitable aspects unless and until they are worked
in the prospect of growth. Business management requires many strategies and enhancement of
every ideology with the aim of reaching best possible mark. Small businesses or MNC are said to
be one of the prominent ones that are in the path of rising. MNCs are regarded as one of the
finest aspects unless and until there are a set of employees that work towards development of the
organisation. Every minute structure of the organisation will have to be taken care about in order
to reach the best of its ability to meet its demands. There is a great competition in the marketing
world with regard to any operational strategy that the organisation is working for. It is important
to identify the choices that are in regard for the organisation that that every competitive
advantage that is revolving around the organisation can be made within no time. The entire
report deals with small business management and the strategies that are to be incorporated. There
are aspects that are to be taken care about and those are explained in the report with prior
explanation. Knowing about the small business it becomes easy for those who are talking with
the ideologies that are scattered and those that can be re-modelled in order to move the business
to our next level.
ACTIVITY-1
Capacity management
Every business that is operating in its industry will have to focus upon the potential of
maximizing its project to the other level. There will be terms and conditions that will fall in the
path of the organisation when it is still in the developing stage (Van Looy, 2019). The
management will have to ensure that the business maximizes in the stipulated time through
which the objectives as well as a particular time bound is being maintained. In this time bound,
there is an allocation of resources that is usually done by businesses or Industries such that the
capacity to which it can probably develop will therefore be identified. This is mostly done in all

the companies where the business measures will follow in identifying the choices of capacity
such that they can achieve the targets in a very short time. This is what is called as capacity
management. Capacity management is the most probable act that is being followed by business
in order to identify the maximization of its techniques as well as technologies in order to produce
or derive an output. This will contain different conditions as well as challenges in order to bring
out the potential to which they can extend. Examples can be taken in this prospect in order to
identify the proper definition of capacity management. For example, there will be a call centre
whose stipulated time is a month and per week the management decides the capacity of calls the
employees will have to take up. When it comes to Cafe the management prepare the target of
supplying 'n' number of coffee cups per day (Huang and et.al, 2020). The capacity of the
organisation is decided by the fact that employees in the organisation can inculcate and will
produce the best out of the lot. It depends upon how far the management is training its employees
such that they go above and beyond in order to reach the target as well as generate surplus
amount. Capacity management is very important in order to identify the growth prospects as well
as the time in which the organisation can increase its performance. Sometimes it is a mere fact to
accomplish the ad it will draw profits that is necessary for the organisation. On analysing the
capacity to which it can extend the business can move ahead with strategies that are necessary
for it to accomplish even prior. This can also save time because on identifying the choices that
are to be delivered by the organisation it becomes easy for the management to design strategies
to implement them.
When a business is operating in an industry there will probably be external atrocities that are
affecting the business. All these demands will include changes that are to be made in the
organisation. Capacity management entirely depends upon how far the organisation is managing
the resources that are allocated. Every allocation that is made in the sector that is divided in the
organisation will help the management to analyse the cost-effective measures that are to be
employed. Companies must maintain a status that is necessary for them to determine the pace
with which they are operating. For this, inventory measures will have to be adopted by the
organisation such that implementing capacity management will not affect the entire operations of
the organisation. There will be different purchases that are to be made in order to get the
additional equipment that are necessary to make changes. Capacity management is a need for
every company in order to experience push-up in the revenue of the organisation (Rebelo and