MANAGING AND RONNING A SMALL BUSINESS INTRODUCTION

Main considerations a small business or social enterprise needs when planning and allocating resources 1 TASK 23 P2. JS Supermarket Ltd to take on main consideration or social enterprise requires during developing a plan, different processes of CRM for Small and medium size businesses, break-even analysis. Main considerations a small business or social enterprise needs when planning and allocating resources In present time, United Kingdom's business sector has given ample growth opportunities for individuals who are willing to earn good money.

MANAGING AND
RUNNING A SMALL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Main considerations a small business or social enterprise needs when planning and
allocating resources................................................................................................................1
TASK 2............................................................................................................................................3
P2. Different processes of customer relationship management for small business organisation3
P3. Way of small business can develop transnationally benefits and drawbacks..................5
TASK 3............................................................................................................................................6
P4. An annual itemised monthly cash flow forecast showing fixed and variable costs.........6
P5. Way of break-even analysis applied in an organisational situations................................8
P6. Interpretation on key financial statements for an organisation for contribution in
successful management..........................................................................................................9
Income Statement............................................................................................................10
TASK 4..........................................................................................................................................13
P7. Key legislation and regulations which have major implications on small business
companies.............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In modern business world, it has been analysed that SMEs have impacted highly on
world's economy. Entrepreneurs and business people have adopted this like opportunity that
supported them in earning profits above than their expectations (Ali and Babiker, 2017). But, in
actuality it has been found that individuals are required to have unique idea of performing or
executing business to deliver products in order to to sustain at marketplace for a longer time.
This report is based on JS Supermarket Ltd. which is UK based company. Apart from this, it will
discuss on main consideration or social enterprise requires during developing a plan, different
processes of CRM for Small and medium size businesses, break-even analysis. Lastly,
assignment will put light on key legislation and regulations which will impact upon small
business organisations.
TASK 1
JS Supermarket Limited, a small retailer performing its operations in London, United
Kingdom. It was found in the year of 2014 by Ramachandran Jalatheepan. In present time, this
organisation is delivering a number of services or products and dealing in food, beverage and
grocery sector. If it is talked about present case, customer base of JS Supermarket Limited is
reducing continuously that is impacting upon performance level in negative manner. Thus, firm
has planned to develop an effective plan to look into social needs or requirements of customers
to regain its position in today's competitive marketplace.
P1. Main considerations a small business or social enterprise needs when planning and allocating
resources
In present time, United Kingdom's business sector has given ample growth opportunities
for individuals who are willing to earn good money. Main reason behind this is “Brexit”
Withdrawal of United Kingdom from EU and it has developed opportunity for individuals to
start a business at small level in open market. It influences individuals to emphasise on most
populated areas and are rapidly opening outlets, business outlets and are delivering various
services to potential consumers so that revenue can be generated in much effective and efficient
manner. But, this could only be done if they may develop right idea considering innovation on
basic priority because people in modern world are carrying a rapid changing nature and this can
be easily be covered with keeping an aim of brining innovation in the business. Forecasting &
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budgeting, planning and allocating, interpreting key financial statements, operational resources
and recruitment & selection of employees etc. are some of main activities that is being done on a
regular basis within a company (Chauma, 2017). On the other hand, it is also much required for
entrepreneurs to take in use of resources, capital utilisation in an optimised manner.
When it comes to grow, it is necessary for entrepreneur of JS Supermarket Ltd. to take in
consideration of a right plan. This could only be done if resources are allocated smoothly.
Whereas, it is being found that there are a number of elements that might be affected which are
related with functions (Cojoacă, 2017). Thus, a small description of these factors have been done
below :-
Financial resources: This could be considered as one of is the primal factor that a firm
needed when it comes to develop right plan as per the needs or requirements. Because without
funds nothing can be done in a business organisation whether it is manufacturing or buying of
raw materials, developing infrastructure and so on. Therefore, finance is required for functions as
well of JS Supermarket Ltd.. Since it is a small firm in nature, company do not consists with a
range of investors and it takes a lot of efforts to accumulate efficient funds for developed plan.
Thus, mainly there is just one option that could help them and that is loan and this could be taken
from banks, friends and from other resources as well. Since, JS Supermarket Ltd. is performing
business at small level, it is essential for this company to keep saving approach so that they may
easily reduce a number of expenses. As organisation has planned for developing a plan so that it
could directly improve its customer base, financial resources are needed so that execution could
directly take place.
Human resource and qualities and their skills: Another factor which could help a
company in executing business plan effective manner. HR manager of JS Supermarket Ltd., is
already having good range of policies that guides them to raise profitability because all
employees are working effectively. staff members are performing well. Failure into this, may
lead JS Supermarket Ltd. to develop issues for themselves that is late completing of plan or
attainment of goals but not on specified time frame. This could raise expenses of JS Supermarket
Ltd. At next, it is advised to company to develop better policies on compensation, training and
etc. so that employees of organisation could easily raise its skills and performance level (Durst
and Lee, 2015). It is also necessary for this business firm to keep on doing assessment on skills
of employees so that benefits their weak and strong points could be evaluated.
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Goals, vision and targets: is seeking enhance its customer base and have kept its focus
on retaining good position at marketplace. Thus, it could be considered as a goal in present time.
It has made its vision to become a popular brand name in retail industry. On the other hand, JS
Supermarket Limited, targeted audience with the age of 20 to 50 (Women).
In-spite of this, JS Supermarket Ltd. organisation developed some values as well for itself
considering being smart, real along with taking ownerships as well. When it comes to attain
targets, values plays a crucial role and here, HRM of JS Supermarket utilises a various of
important tools. That aid in planning or allocating resources as well. JS Supermarket Ltd.'s
administration also utilises, critical path analysis along with Gantt Chart helps researcher
investigator in executing every single activity which is related to plan right on time. These tools
described beneath:
Gantt Chart: It is a kind of chart which illustrates overall schedule of specific project
(El-Rafei and et. 2017). It includes both the starting as well as completion date of a specific
project. This is being considered as a specific chart that shows accurate time which will going to
be consumed in completing the project. With the help of this, project manager of JS Supermarket
Ltd. can examine how many tasks has been accomplished and in what time frame.
Critical Path Analysis: With the help of this tool, all the business firms whether it is
small or large in nature requires to stay right on order along with budget as well over the project.
Considering this technique, managers could easily attain its tasks within set duration. Through
this, JS Supermarket Ltd.'s manager can effectively complete project in set period of time.
Considering all the aspects which has been mentioned above will aid JS Supermarket
Limited in accomplishing the desired target which is improving customer base from the existing
one.
TASK 2
P2. Different processes of customer relationship management for small business organisation
In present time, it has been analysed that CRM is seen as the process of each single
company plays a crucial role when it comes to execute effectively at marketplace. There are
numerous of key approaches that are adopted by business organisations at the time of delivering
different services to customers. This would help in developing right relations with consumers
which will directly support in attaining business growth in set time frame. Away with this,
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execution of correct investigation can be seen as unique trends along with customers demands. In
present context, it has been analysed that JS Supermarket Ltd. have kept its focus on two
different approaches and there are CSR (Corporate Social Responsibility) and CRM (Customer
Relationship Management) .
Here, CRM could be seen as tool that aid in creating better communication with the
targeted consumers, and by this, their desires and wants can easily be carried out by customers
(Javaid and Iqbal, 2017). Considering this approach, JS Supermarket Ltd. Company's manager
can make modifications as per needs of consumers. Away with this, Corporate Social
Responsibility activities also consists with procedure of taking appropriate but right decision by
keeping in mind of ethical needs of workforce, family members along with the area in which
organisation is performing its operations. Taking in use of both the approaches can support JS
Supermarket Ltd. in enhancing its values and image in society. Customer Relationship
Management technique that involves various procedures that are defined as below:-
Customer portfolio analysis: It is being considered as an effective analytical tool which
can help JS Supermarket Ltd. in making measure among standards and behavior of consumers.
Taking in consideration of customer portfolio analysis, management team of this company would
easily contribute in gaining information related to people's lifestyle, status and their purchasing
power. It helps employers in making judgements which is related to if they are needed to make
modifications or not in their company where grocery, food and beverage items are offering to
their targeted customers. With the help of this, JS Supermarket Ltd. could simply grab high
position and also they can attract people within a specific time frame.
Customer intimacy: With the help of this kind of approach, managers of JS Supermarket
Ltd. could easily develop effective relationship with its consumers. Manager of the company can
simply know about their employees, what they exactly looking for. Here, response from people
on services that JS Supermarket Ltd. is providing can be considered as an effective approach
which might create issues for the company. This will help such organization like JS Supermarket
Ltd. in acquiring retention of loyal customers by solving their problems in an efficient manner
(Ludmila and Stanislava, 2015).
P3. Way of small business can develop transnationally benefits and drawbacks
In present time, it is being computed that transnational operation can be defined as a
strategy in which a company incorporates global business activities through cooperation between
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headquarters and international operations. Here, it can easily be analysed that current position
could be evaluated which would aid in making right determinations based on performance level.
Major benefits of using this approach can clearly handle the actual position of business as well as
sales performance small business owners.
Through this, enhancement of productivity level can be done right on time (Nowotarski
and Paslawski, 2015). Right business plan, can easily develop strategies or policies considering a
number of activities. In present context, translational sales has been utilised for considering
coordination and opportunities related to international marketplace so that JS Supermarket Ltd.
can target people based on their products and services in specific time frame. With the help of
this, analysation of demands of customers that are living at different areas and belongs to
different cultures can be done in much effective ways. Consideration of this approach consists of
different advantages along with the disadvantages and these are given below:
Advantages:
 With the help of transnational approach, JS Supermarket Ltd. could easily make
modifications in its operations and can attract customers that are sitting overseas. Away
with this, it has also been found that transnational operations could also deliver right kind
of opportunities to managers of small businesses and it may aid them in promoting
products at international level (O’Connor and Kelly, 2017 ).
 Considering this operational approach, JS Supermarket Ltd. can easily merchandise its
products across the world. This will directly put positive impact upon sales performance
level of JS Supermarket Ltd.
Disadvantages:
 When it comes to enlarge the business at global market, operations of JS Supermarket
Ltd. May require a proper plan, strategy, arrangement of resources and preparation of
documents. Execution of operations of this company while doing business expansion may
require heavy investments and a business organisation like JS Supermarket Ltd. are
performing at small scale. Therefore, it may not afford this kind of approach because of
minimal resources and low amount of budget (Parkin, Fielder and Ashby, 2016).
 In translational operations, JS Supermarket Ltd. Needs to follow all the ethical and
societal policies or procedures which has been followed by the country in which they are
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expanding. This might take time and organisation can face a number of issues as well
related to finance.
TASK 3
P4. An annual itemised monthly cash flow forecast showing fixed and variable costs
In present time, Cash Flow Forecast have been considered as an effective kind of a plan
that could easily reflect upon how much JS Supermarket Ltd.'s have earned as income. Along
with this, cas flow forecast could also be used by business firms like JS Supermarket Ltd. in
controlling on expenses that are going to be made in near future (Skolud and et. al., 2016). Here,
it is being found that there are a number of sources which could be used and these are given
below:-
Equity Finance: A type of financing which can be used when it comes to raise funds for
the organisation through selling of shares. In present context, it is being found that JS
Supermarket Ltd. is doing business at small level where it cannot sell its shares because of low
market value. Here, it is being found that capital is being raised through family, friends and so
on.
Bank Loan: This is being considered as another approach through which JS Supermarket
Ltd. could raise funds in specific time frame. Here, commercial along with the private banks
could develop fixed rate. Here, Banks mainly asks for interests on the loan (funds) which has
been provided by bank.
Planning, budgeting and forecasting: They are the three important pillars which could
be utilised by JS Supermarket Ltd. in recognising tendency related to near future. This process
also aids a firm in deciding their long-term scheme, mid-term budgets and short term forecasts.
In this process, management team of JS Supermarket Ltd. Company has utilized several method
for planning, budgeting and forecasting:-
Measure moving average: With the help of this method, JS Supermarket Ltd. could
easily attain or gather data related to set objectives. This is being mainly utilised when it comes
to measure current position of JS Supermarket Ltd..
Time series data or information: This has helped in developing different applications for
manufacturing enterprises to set up and streamline production schedules. It will aid in
implementation of plan at estimated budget (Stanciu, 2015).
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Balance Sheet, profit and loss account, cash flow statement of JS Supermarket Ltd.
Company:
Balance Sheet
Year 2017 (value in £) 2018 (value in £)
Fixed assets 150 200
Stock 25 30
Debtors 60 45
Bank 15 25
Total 250 300
Creditors 150 200
Bank overdraft 100 100
Total 250 300
Profit and Loss Account
2017 2018
Sales 15 25
Cost of sales 20 15
Gross profit 35 40
Overheads 5 5
Net. profit 30 35
Cash flow Statement
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Variable cost : Variable cost are the cost incurred while manufacturing goods in a
company, it changes with the change in the quantity of good. It considered as normal cost which
put in manufacturing finished goods with involving of fixed cost into it. Variable cost can be find
out by deducting fixed cost from total coast.
P5. Way of break-even analysis applied in an organisational situations
Work break analysis is considered as effective blueprint that is adopted by various
business enterprises in order to evaluate relationship between profits, costs, expenses and profit
at different level of output. In has been analysed that with break even analysis entrepreneurs can
easily examine that at which stage or level revenue and cost of production are equal (Break Even
Analysis, 2018).
This analysis also known as profit contribution analysis. It can be implemented in two
conditions one is Revenue relationship & non linear cost and second one is revenue relationship
& linear cost. Hence, it can be said that an organisation can opt these procedures and implement
it in contribution analysis, algebraic methods, graphical method and profit volume ration. In
relation to JS Supermarket Ltd. company, the manager of this organisation have adopted
Algebraic method that is beneficial in taking decisions in complicated situations. As per this
method, it has been evaluated that break even quantity can be defined by:
TFC = Total fixed cost
P = Price
AVC = Variable cost per unit of outcome
Qb= TFC/ (P-AVC)
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It can be easily be understood with the help of an example, where variable cost is 9 per
unit and fixed cost is 40,000 along with 18 as a selling cost. Here, Break-even point is computed
beneath:
=40000/(18-9)= 4444.45
Break-even point is the point, when the company reached to the level of achieving its
total revenue and total cost equal, which gives no profit, no loss and conclude it to nil. As shown
in the above graph and table clearly.
Sales 34*30 1020
Variable Cost 34*15 510
Contribution 34*15 510
Fixed Cost 34*15 510
Profit/loss - NIL
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P6. Interpretation on key financial statements for an organisation for contribution in successful
management
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Interpretation: It has been interpreted from the above table that firm is effectively
executing all its business operations and they are earning profitability in their business activities.
16.6% is the overall profit margin has been analysed and on the other side for Talent Plus
business 17.89% is the operating margin. 2.87% is the total return for the investment which is
sufficient to find out and carry out all investment measures. Thus it can be interpreted from the
balance sheet that organisation is working under high profitability ratios thus business concern
can easily develop plans in order to expand their business activities.
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Interpretation
From the above balance sheet it can be analysed that this business concern is carrying out
its daily operations within a decent level of profitability. 16.06% is the profit margin which is
determined for organisation on the other hand 17.89% is for operating margin for Talent plus.
For this return on asset of organisation is 2.87% which is good enough to analyse the return
which is carried out with the help of its capable investment measures. Thus it can be interpret
with the help of balance sheet that the following business concern is operating under massive
profits and will be capable to take up future attempt for expansion.
Income Statement
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A company focuses on three different activities which is related to operating coast,
financing cost and investing cost. As in the above table operating cost is 961500, investing cost
is in negative which is (646300). Investing activity shows less which means purchase of fixed
asset is more as compare to sale of fixed asset. Last is financing activity which shows negative,
it means more purchase of financial services
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Interpretations: From the above cash flow statement it is clearly understood that about
961500 is obtained by JS Supermarket Ltd for fulfilling its business activities. But in some
factors which is finance and investment company has gained negative balance which was close
to -329300 and 646300 respectively.
TASK 4
P7. Key legislation and regulations which have major implications on small business companies
Firms that are performing well at small sector are rapidly impacting positively upon
economy. But, they might face a number of legislative issues through which it may impact
negatively on their working or the procedures as well. On the other hand, United Kingdom's
government have already developed ample number of legislations or the laws as well.
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Considering these legislations a business firm can easily do business in ethical manner. It
includes majorly following laws that are:-
Employment Law 1996: This is being considered as a regulation which could aid in
protecting employees of the company from various laws like discrimination at the time of
working. It is necessary for employers of an organisation like JS Supermarket Ltd. Company to
ensure that individual in their business should be treated fairly and equally (Winarno and
Wijijayanti, 2018).
Consumer Law, 2015: Consumer law is set of rules which aim to protect individuals
from unfair business activities. In Order to retain costumer for long term benefits, business
enterprise make it sure that they complying with consumer laws. There are various rights of
consumers such as, Sale of Goods and Services Act this act aims to provide goods and services
of higher quality to population. In addition to this if an organisation is providing recruiting
services then they should follow Employment Business Regulations, working time regulations
and conduct regulations to operate their business in respectable manner.
Competition Law, 1998: According to this law, business firms those who are offering same
services in a marketplace required to offer services provided by them on similar rates of prices.
This law aid in preventing illegal business practices like offering services on cheaper price rates
to attract large costumers and increase profits. Therefore, it is essential for recruitment firms to
offer their services in a fair and effective price rates (Van Scheers, Botha, and van Scheers,
2018).
CONCLUSION
From the above specified project, it has been analysed that entrepreneurs that are doing
business at small scale plays a crucial role and strongly impacts upon economical conditions of
the globe. Focusing on laws like Consumer Law, 2015, Employment Law, 1996 and Competition
Law, 1998 while executing the plan may help company in achieving its predetermined goals.
firm in attaining desired goals and objectives. Apart from this, proper budget could help a plan to
get executed in rightful manner. Further, it can be said that during starting new business, it is
required by businessman to analyse needs and requirement of customers so that it could be
fulfilled effectively at right time.
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Online:
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