Managing and Running a Small Business

This document discusses the management and operation of small businesses, with a focus on AKS IT Services. It covers topics such as the need for financial reports, small business funding sources, budgeting and forecasting, and self-legislation for small businesses.

Managing and
Running a Small
Business

EXECUTIVE SUMMARY
From this document, it can be analysed that small business are operating and setting up by
less fund or capital and people for offering commodities and services so individual can make
determinations of purchasing. To comprehend about small business AKS IT Services Company
has been taken which operate its business by offering number of consulting facilities to its target
audiences and assist to maximise the business execution in rivalry business atmosphere. This will
assist to enlarge the acknowledgement about small business, essentialness of fiscal reports and
laws that are essential to make expansion in business.

INTRODUCTION
Small business management is an activity and procedure which usage by businessperson
at time of operating their production actions and functions. Entrepreneurs may need to
understand that how to administrate employees, appropriate financial information and attain
financial resource or company resources and formulate diverse trade determinations (Wong,
Holmes and Schaper, 2018). To operate and manage a small business, the administration of an
organisation develops and formulates effective plans of actions, policies and strategies as well
tactics so that business can operate in appropriate form. To develop and enlarge the
acknowledgement concerning small company and its require AKS IT Services has been chosen
which is a undersized computer authority offer diverse facilities to its target audiences by
offering Software that utilises to monitors payment and consultant facilities of business
enterprise. This written document will defines about needs of small business to tackle assets to
attain business aims, measurement of different process of consumer relation administration and
plan of actions of making business expansion at global level.
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ACTIVITY 1
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ACTIVITY 2
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TASK 3
P4.
Cash Flow– It indicates to a document and report that framed and designed by including several
acts in context of finance which is identified as fund flow. It assists in defining the productivity
phase of their production in rival company atmosphere (Steingold and Steingold, 2019) Each
establishment should improve fund flow report by managing and determining their actions that
can assist in managing the elevated profit margins by assisting and monitoring their actions
which can assist in managing the high revenue and productiveness in competitive business
surroundings. Business is supported to monetary value and its ebullient products that assist to
operate production by executing each process and enlarging manufacturing appropriately. The
AKS IT Services is also recommended to its target audiences to mange effective records of
business transaction with the help of its software and framing fund flow document so all action
can be executed in improved manner.
Sources of funds
To operate a company, finances and capital are significant to form substantial of each
activity and procedure by utilising fund and administrate the elevated execution in aggressive
trade are (Park, 2018). Lacking of capital it becomes complex for business incorporation to
organise its business operations and acts. So there are numerous resources that are utilises to
operate company and maximising the construction that are defined as beneath:
Own saving– It mentions of an individual and person has determined to set up and operate
business then it should have own saving that can be utilise to purchase goods and commodities
and manage relations with providers in effective manner. It assists in incorporating to rise
separately by satisfying crucial necessities and demands of their production so all divisions can
be coordinated efficiently.
Equity finance– It is another source that utilises by organisations by issuing share to public
and workforce who are making their contribution in operating business firm in adequate manner.
It assists to conduct the business by gathering capital in appropriate manner. The respective
cooany has this chance to organise finance from impartiality assets by accumulating money and
managing the actions constantly.
Loans from family and friends– This way and tool of finance is supple that can be organize
by company apprehension for the motive of operating production and developing profit margins
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ratio. The administrator of respective firm has alteration to conduct money by raising finance
from associators and family so that trade of a company can be set up in easier way and manage
profits in efficient manner.
Bank loan– It is other form of finance that is utilises by mainly of commerce administration
to operate and administrate the company actions and operations of a company. Persons who are
taking finances from banks and other financial institutions, they require to offer safety for
assurance that they can assist to run smack production in effective manner (Tidd and Bessant,
2018). AKS IT Services company can management all actions and frame or create cash slow
report by raising loans form bank that require to pay after granted time duration. So all process
and functions can be administrated appropriately and maintain the effective execution.
Balance Sheet, P&L and cash flow statement of the Silent London Limited:
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Profit and Loss Account at the year ended
Cash flow Statement
Cash budget for the year
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Forecasting and budgeting
Forecasting define as the determination of necessities and including the quantity that are
departing to acquired in production with the object of operating company. It is vital that should
be performed by administrators who have information and experience towards budgets and
determining income as well as expenditures that are needed in company (Pakroo, 2018). In AKS
It Services, administrator are utilising estimating and improving finances by monitoring earning
and expenditures so all business actions and operations can be operate in adequate form.
The techniques for budgeting and forecasting are as defined:
Calculating the moving average– This tool is utilise by administration of respective venture
for acquiring the view and impacting the norm and standard by operating company. It assists in
increasing the distinguishing and understanding information regarding accounts and enable in
developing business of enterprise.
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Time series data– This method is utilised to determine and disclose the information
progression in record and graph that can be easier to understand and develop the production
execution in rival company atmosphere (Kremer, Rizzuto and Case, 2019). It also assists in
carrying out all utilises and operation of respective firm n formulating and making visual
communication that manage all business activities and operations in term of profit and
productivity in amended form.
Dealing with seasonality– It defines the reliability of a business is pledging with diverse
time. As in same period the need of commodities of goods and facilities develop and in some
time it minimise that become a contract for enterprise to contract with it. AKS IT Service is
recommending to its consumers to uses this tool and system so all data in term of need of
commodity of goods in period that can be understood appropriately.
P5.
Break Even analysis– It is monitored as a structure with fiscal tool in context of obtain the
relevancy and equitability of monetary value. This refers the prominence and benchmark of
business by operating firm and manages same post in rivalry business atmosphere. By utilising it,
a production apprehension get data at what costs consumers are prepared to maintain equality
like no profitability and loss circumstances (Hickman and Silva, 2018). It is also helps in
analysing the relations among fixed and variable resources of establishment.
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Uses of budgets, performance monitoring and control– Budgets are effective that should be
able to production apprehension by monitoring profits and gains as well as expenditures that are
obtaining in enterprise (Depken and Zeman, 2018). It can assist to manage the good execution
and determining the activities by managing finance. Respective establishment is determining and
administrating finance and functions of firm by performing business actions and operations. It
assists to maximise the production execution in rivalry company atmosphere.
Variance analysis– It is connected with those issues and complexities that arises within firm and
refers to the dissimilarity among authentic and expected divisions. It is the whole of entire
presentation of industry which is monitored by restrictions. In AKS IT Services, the
administration can use variance determination as with the utilisation of it, the firm can determine
its monetary value and make growth and progress in its business in effective manner.
P6.
Each firm operating their industry and building it flourishing by distressing and readying
dissimilar kinds of fiscal document that is significant. Small company is also required frame
monetary document and reports so that they can also maintain and analyse their trade execution
in aggressive atmosphere. In respective firm are designing and recommending utilisation of
software to frame and improve several financial reports that explained as under:
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Balance sheet– This fiscal tool is the traced report of resources and liabilities that occurs
within business venture. It is framed with the assistance of all documents like income statement,
cash flow and trail balance sheet etc. IN respective firm, the finance function also create and
design balance sheet by explaining and including resources and liabilities which require to
reimburse off during operating small commerce venture.
Cash flow statement– To search out the liquidity and all actions or operations in context of
funding, a fund flow document is framed and created by administration that particular knowledge
and accounting as well as about fiscal policies to operate business and determining profits
(Soundararajan, Spence and Rees, 2018). Thus, in respective business establishment,
management is made its concentration in term of operating, investing and monetary actions to
acknowledge the accessibility of
Profit and loss account– It is other document and report that generated and designed by
financial function of respective enterprise to understand the profitability and losses situations of
their production. It assists to enlarge the commerce venture’s earnings and revenue which invests
in order to perform business activities and operations.
TASK 4
P7.
AKS IT Services company is recommending to its consumers and following self legislation
that is defined:
Tax and employment, 1976– As per to this law, a company apprehension is needed to
reimburse the excise to national authority and should offer job options improvement chances to
all persons which assists to involvement to devise the sovereign and communal economic system
(Tu, 2018).
Record Keeping, 2006– These laws are associated to files and management information
efficiently that can assist to operate a firm and maximise the establishment productiveness in
rival business surroundings. In respective firm, company is following such legislative and
managing production knowledge and manpower information that are utilises undersized and
other company efficiently.
Health and safety act, 1974– The administration of company should create gratify to their
workers as they are part of their company and devising effectively to operate the business in
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aggressive company atmosphere by offering excellent health and security to them (Pakroo,
2018). Respective business establishment is considering the physical condition and protection
law by fulfilling workers and offering them proficient strength and safety law by fulfilling needs
of manpower and offering them efficient health that develop business execution.
CONCLUSION
It has been summarised from the above defined information that an establishment require
several kind of assets and resources to operate it business which also assist in conducting the
business. Business administrator also play an effective role in it as they concentrates on needs
and demands of target audiences and offer them commodities and services as per their
requirements so that they can make fulfilment in their desire accordingly. Financial statements
are designed by administrators and executives because they have information about specific area
o business in which company invests fund and raise profit.
REFERENCES
Books & Journals
Steingold, F.S. and Steingold, D., 2019. Legal guide for starting & running a small business.
Nolo.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Park, K., 2018. The Korean American dream: Immigrants and small business in New York city.
Cornell University Press.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Pakroo, P., 2018. The small business start-up kit: A step-by-step legal guide. Nolo.
Kremer, C., Rizzuto, R. and Case, J., 2019. Managing by the Numbers: A Commonsense Guide
to Understanding and Using Your Company's Financials. Hachette UK.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
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Depken, D. and Zeman, C., 2018. Small business challenges and the triple bottom line, TBL:
Needs assessment in a Midwest State, USA. Technological Forecasting and Social Change, 135,
pp.44-50.
Soundararajan, V., Spence, L.J. and Rees, C., 2018. Small business and social irresponsibility in
developing countries: Working conditions and “evasion” institutional work. Business &
Society, 57(7), pp.1301-1336.
Tu, J., 2018. Managing Business Process Transformation Projects Using Contextual Hybrid
Agile Methodology.
Pakroo, P., 2018. The small business Start-up kit for California. Nolo.
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project: A business
student's guide. Sage publications.
Wong, A., Holmes, S. and Schaper, M.T., 2018. How do small business owners actually make
their financial decisions? Understanding SME financial behaviour using a case-based
approach. Small Enterprise Research, 25(1), pp.36-51.
Rowe, S.F., 2020. Project management for small projects. Berrett-Koehler Publishers.
Massaro, M. and et. al., 2019. Trust, control and knowledge transfer in small business
networks. Review of Managerial Science, 13(2), pp.267-301.
Kgoroeadira, R., Burke, A. and van Stel, A., 2019. Small business online loan crowdfunding:
who gets funded and what determines the rate of interest?. Small Business Economics, 52(1),
pp.67-87.
Torrès, O. and Thurik, R., 2019. Small business owners and health. Small Business
Economics, 53(2), pp.311-321.
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