Managing and Running a Small Business Assignment - Talent Plus

Managing and Running a
Small Business

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations of social enterprise require to plan and allocating resources................1
TASK 2............................................................................................................................................2
P2 Different process of customer relationship management for social enterprise......................2
TASK 3............................................................................................................................................5
P4 Prepare annual itemised monthly cash flow showing variable and fixed costs.....................5
P5 Explain break even point.......................................................................................................7
P6 Interpret key financial statements of an company.................................................................8
TASK 4............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small business is an integral part of firms that gave its contribution in economy of
country. It is employer responsibility to utilise funds, material and manpower efficiently.
Employees are working with the organisation which provides the employment opportunity to
people for enhancing their skills and knowledge. Present report is based on Talent Plus which is
small scale firm providing recruitment and consultancy services to clients. Firm has limited
resources which require to be used in such manner that adequate amount profit is generated by
businessperson (Bridge and O'Neill, 2012). This assignment defines considerations which
require small and social enterprises require to follow while designing strategies and policies.
Government legislations and rules are considered by employer to make appropriate decisions and
judgements for company. It is management duty acknowledge process of constructing CRM by
maintaining skilled and competent members. Along this, they even frame cash flow statement
and use break-even analysis to handle situations properly.
TASK 1
P1 Main considerations of social enterprise require to plan and allocating resources
Small and social companies have limited capital which require to be used efficiently by
entrepreneur. It is necessary that top personnel formulate plan and implement appropriate
technologies in system and distribute resources in different departments to execute activities in
effective manner. Talent Plus is small firm which provides recruitment and consultancy services
to people. For this, entrepreneur require to utilise resources and frame program in such manner
that appropriate business activities are executed in system. Along this, manger even need to
assess factors which impact on growth and success of firm (Crane and Matten, 2016). Thus, they
make changes in system and strategies to maintain their position and goodwill in market. These
are various considerations which businessperson consider are as follows:
Financial resources: This aspect defines that small firms have limited funds which
require to be used properly. An entrepreneur require to have sufficient financial resources to
conduct activities effectively and make success with time. It is necessary that adequate amount
of capital is available with head of Talent Plus. This help top personnel to implement appropriate
equipments and assets in firm to provide recruitment services to clients. Along this, they even
maintain financial statements that is cash flow statement, balance sheet and profit & loss account
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to have complete information about income and expenses of company. These help management
to make appropriate interpretations and decisions which are beneficial for firm.
Vision, goals and objectives: Each and every organisation formulate mission statement
which defines goals, vision and objectives. This help businessperson to direct members and
make them feel connected with firm. Management of Talent Plus construct framework which
defines objectives and goals to influence employees and make them function in defined manner.
Small scale firms goal is to utilise resources and gain adequate revenue for maintaining its
position in market.
Employees and their skills: It is essential that management have adequate workforce
which help them to execute activities and achieve objectives. Employer responsibility is to
conduct staffing, training and development practices, so that organisation have skilled and
competent members (Donnelly and et. al., 2015). Talent Plus is small firm which provides
recruitment consultancy to different firms and individuals. For this, employer require to have
talented people which are able to provide appropriate recruitment consultancy to people.
Thus, employer require to frame appropriate vision, mission, goals and objectives to
direct members and make them perform tasks effectively. Talent plus is small scale firm which
have adequate capital to use adequate technologies in system to provide recruitment services to
people. Along this, manager have skilled staff which provide quality services to clients.
TASK 2
P2 Different process of customer relationship management for social enterprise
Customer relationship management: This aspect define and practices and strategies which
are followed by top personnel, to maintain connection with buyers by providing them appropriate
facilities. It is essential that adequate technologies and equipments are used by firms to
communicate and provide information to people about products and services. It is essential that
small firms provide quality items and services to customers to sustain reputation of firm in
market (Drucker, 2012). Along this, management even require to use appropriate techniques to
communicate and maintain relations with customers. Telephone and email are tools which help
Talent Plus to provide information to people about services and attract them to avail facilities to
complete their demands. Thus, employer is able to enhance sales and generate good amount of
profit from business.
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Process of Customer relationship management: These are various steps which are
followed by entrepreneur to manage clients are stated below (Five Step Process for CRM, 2018):
Identification of customer base: This is starting phase which help management to
segment buyers in respect to profitability of firm. Top personnel of Talent Plus assess customers
which will be beneficial for company and its performance. Thus, services and things are
provided in according to target segment and requirements of people.
Customer intimacy: After knowing targeted buyer another job work of the
businessperson is to emphasize on demand and requirement of customers. In addition to this,
superior majorly focuses on getting familiar with buyer behaviour that helps in building healthy
relationship with the buyers. Its important for the organisation in order to develop their mode of
communication and guide them in improving bond with buyer and also helps to know how
positive relationship with buyer is beneficial for the organisation.
Network development: It is the process of building consumer relationship. It plays an
important role for management to distribute products and services in market in according to
needs and wants of people (Durst and Runar Edvardsson, 2012). Along this, superior even
require to maintain network with shareholders, suppliers, employees and other members to
deliver appropriate facilities and things to customers.
Value proposition development: This is essential step which specifies that management
provide quality services and products to target buyers and sustain position in market. Talent Plus
is small scale firm which require to maintain its position in market in respect to competitor firm.
For this, businessperson require to provide quality services to clients.
Customer life cycle management: This is last step of CRM process which define that
administration require to provide products and services in according to their demands of people.
It is essential that appropriate changes in technologies are made by businessperson to deliver
innovative and creative services and things to buyers.
P3 Small business can develop transnationally with its advantages and disadvantages
Transnational sales is strategy which helps businessperson to increase sales volume
without maintaining relations with customer for longer time. For this, company require to have
skilled and talented members which provide quality items and services to people. Along this,
manager uses different promotional techniques to inform buyer about availability of products in
market and its features. This helps firm to have adequate customer base which have data about
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organisation and their items. Thus, superior are able to maintain relations with buyers and
appropriate position in market.
Talent Plus is small firm which has less market reach and customer base which define
that entrepreneur require to increase their market share to enhance their sales and profitability.
Transnational sales is tactic which helps company to use appropriate technologies to enlarge
business in different countries. Along this, manger is even able to provide appropriate services to
clients and maintain its image in market. But, as market conditions are static and keeps on
changing with time. For this, businessperson require to implement latest technologies in system
to provide quality and quick services to customers. Thus, transnational sales has benefits and
demerits on functioning of system and organisation (Durst and Wilhelm, 2012).
Advantages: These are benefits that transnational sales aspect have on Talent Plus to
improve market position and achieve objectives are as follows: Lifestyle: This tactic defines that people require to have sufficient money for regulating
their living standards. In this, small and social firms increases employment opportunities
and give chance to citizens to get job in according to their skills and abilities. Talent Plus
is one of small scale recruitment consultancy firm which require manpower to conduct
business and provide adequate services to customers. Thus, company provides job
opportunities to people and help them gain sufficient money for their lifestyle. Efficiency: It is essential that small and social firms have limited resources which require
to be used properly. For this, businessperson of Talent Plus require to implement
appropriate technologies and tools in system. Along this, they even require to have
skilled and competent members which provide adequate services and products to
customers.
 Independence: This is another benefit of transnational sales which define that people gets
freedom of choice and select things in according to their requirements and demands.
Along this, employees also require to get adequate power to make decisions and work in
according to their interest. This help manager of Talent Plus to maintain workforce by
giving them independence and freedom to make judgements in according to their
knowledge (Frese, Hass and Friedrich, 2016).
Disadvantages: These are problems and demerit that transnational sales have on Talent
Plus are stated beneath:
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Financial risk: Small and social firm have limited funds which require to be utilised
efficiently. As, entrepreneur will not be able to conduct operations and deliver appropriate things
in market. Along this, Talent Plus will even not able to expand business and market reach. This
influence on sales and profitability of firm.
Lengthy: Transnational sales is tactic which require skilled people and use of appropriate
technologies. For this, entrepreneur which don't have adequate knowledge and skills will
consume lot of time to organise activities and set up outlets in different places to target large
number of customers. Along this, manager even take time to make decisions which might affect
on performance of system.
TASK 3
P4 Prepare annual itemised monthly cash flow showing variable and fixed costs
Small and social firms require to have adequate funds to organise and conduct business
activities effectively. It is necessary that entrepreneur acknowledge different sources of funds to
select appropriate tools which help them have sufficient assets for business. Talent Plus is small
scale firm which provide recruitment consultancy to people. Thus, these are various sources
which require to be used by businessperson are stated beneath:
Internal sources: These are different tools which are used by organisation to arrange
funds from internal devices are as follows:
Reserve profit: Management protect and safe money from profit which are used for
future use and for overcome uncertainties and problems (Glover and Kusterer, 2016).
Sale of fixed assets: This is another internal source which define that executive sell fixed
assets to have adequate money for having sufficient resources for business.
External sources: This tactic comprises two forms that is short and long term which
entrepreneur uses to acquire adequate funds for business are stated below:
Short term sources:
Bank loan: This is appropriate technique for businessperson to borrow funds from
financial institutions. For this, entrepreneur signs agreement to repay money at specified time
and promises to pay fixed interest for the same.
Overdraft facilities: This is another facility which is provided by bank to provide funds
to companies for conducting business and deliver appropriate items and services to people.
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Long term sources:
Mortgage and bank loan: This is efficient tool used by businessperson to increase capital
by taking funds from private banks and mortgage particular thing or property. Financial
institutions provide loan for long term duration and charges interest in respect to amount taken
by businesses.
Budgeting and Forecasting: Entrepreneur of Talent Plus require to construct appropriate
budget to utilise funds and conduct activities properly. These are different tactics which are used
by manager to conduct forecasting and budgeting are time series data and determination of
moving average.
P&L, Cash flow statement and Balance Sheet of Talent Plus company
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
Working capital 30 80
Profit and Loss Account at the year ended
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2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
Cash flow Statement
Particulars Jan Feb Mar Apr May June Total
Cash inflows
Investment 5000 5000
Credit sales 1000 2500 3600 4000 1200 3200 15500
Total inflows 6000 2500 3600 4000 1200 3200 20500
Cash outflows
Fixed : Equipment’s 3000 2000 2000 1500 1000 2000 11500
Variable : Direct
material 200 200 300 500 100 100 1400
Total outflows 3200 2200 2300 2000 1100 2100 12900
Net cash flow 2800 300 1300 2000 100 1100 7600
Opening balance 0 2800 3100 4400 6400 6500
closing balance 2800 3100 4400 6400 6500 7600
P5 Explain break even point
Break-even analysis is tactic which helps organisation to acknowledge different facts and
figures to sell high number of products annually and monthly. It is essential that businessperson
is able to cover expenses which in incurred for manufacturing adequate products and services.
This help manager identify margin of safety in according to revenue gathered from business and
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cost computed. Along this, they even are able to enhance sales volume and profit to cover prices
of fixed assets which are purchased to conduct operations. Break even analysis includes BEP
point which defines condition that firm is in situation of no profit and loss. But, it is essential that
company makes revenue for maintaining its position and reputation in market (Hodges and et.
al., 2015).
Talent Plus is small scale firm which define that entrepreneur require to utilise funds
efficiently. For this, break even analysis is appropriate technique used by manager to identify
sales and costs to anticipate income potentialities of system. This tactic helps firm to have
complete knowledge about profitability. For example: Fixed cost: 18000, Variable cost: 10 per
unit and selling price: 12 per unit. Thus, Break even analysis is:
Formula: Break Even Point = Fixed cost/construction margin per unit or product
BEP = 18000/(12-10)=9000
P6 Interpret key financial statements of an company
Cash flow statement, balance sheer and profit & loss statement are various financial
statements. This help companies to have complete and accurate information about usage of funds
and profitability of firm. Talent Plus is small firm for which entrepreneur require to acknowledge
income, expenditure, assets and liabilities information. Financial statements help businessperson
to identify profits and cost to make success with time. Hence, these are different statements
which help manager make appropriate interpretations for firm are stated beneath:
Profit and loss account: This statement defines that organisation make statement which
provides information about expenses, cost and profit. It is essential that management assess
funds which are incurred in whole financial year. Indirect and direct expenses and income are
computed by firm to acknowledge revenue capabilities (Hammer, 2015).
Balance sheet: This helps management to frame statement which defines assets and
liabilities of company. Employer require to have complete knowledge about capital, loans and
advances, fixed and current assets. This help owner of Talent Plus to utilise resources and make
appropriate decisions about flow of funds.
Cash flow statements: This statement comprises three forms of activities that are
conducted in organisation which are financing, investing and operating. This helps entrepreneur
to acknowledge data about flow of cash and cash equivalents to purchase adequate resources,
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thereby generate sufficient revenue from business. Along this, they even require to identify funds
generated and position of company in market.
Thus, cash-flows statement helps entrepreneur to have complete data about inflow and
outflow of cash. This helps Talent Plus to make appropriate plan and manage funds properly.
Hence, this are profitability ratios which are conducted by manager are as follows:
Profitability
ratios Formula 2017 2018
Gross profit
ratio Gross profit/net sales*100 150 150
Net profit ratio Net profit/net sales*100 120 126.666667
Liquidity
ratio Formula 2017 2018
Current ratio Current asset/current liability 0.75 0.5
Interpretation: Gross Profit: This determine margin of revenue in respect to net sales of companies
percentage is used by management to assess gross profit capabilities of firm. As, in 2017
gross profit margin was 150 which retain in 2018. Thus, there was no change in revenue
which is computed from formula: Gross profit/Net sales *100. Net profit: This is another ratio which includes formula Net profit/ Sales *100. Net profit
ratio in 2017 was 120 which increases to 126.666667 in 2018. This defines that there is
increase in revenue which help Talent Plus to sustain its position in market.
 Current ratio: This helps management to assess liquidity of firm by using formula that is
Current asset/ Current liability. As, in 2017 current ratio of Talent Plus was 0.75 which
decline to 0.5 in 2018. Ideal ration is 2:1 which define that company has fall in short and
long term liabilities.
TASK 4
P7 Key regulations and legislation that implications on social enterprises
Government frame rules and legislations which are enacted in system and have both
positive and negative impact on small business operations. The rules and regulation are
formulated in order to ensure proper controlling on business operations. Talent Plus have
obligation in order to adhere the plans and policies at the time business activities are carried out.
The major regulations are evaluated below as:
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Health and safety Act 1974: The main implication of this act is linked with bringing
obligation on managers so health of workers can be secured at the work place. There should be
focus on using safety measures so that employees will be motivated in order to achieve their set
business goals and targets.
Data protection Act: This act states that managers and workers cannot share the personal
data of individual without their permission. Talent plan does not allow their employees to share
their personal data with any other members. This factor is beneficial in order to decrease the
turnover rates of employees by ensure trust (Harmon, 2015).
Tax and employment act: This act brings obligations on Talent Plus in order to give
information related to tax payment on fixed time. It is beneficial for supporting government at
the time of performing business operations. Thus this results in establishing proper image at
market place.
CONCLUSION
From the above report, it can be comprehended that small firms helps government to
develop and enhance state of country. It is essential that entrepreneur have adequate knowledge
and skill about the market place so they can achieve growth and success in their business
operations. The rules and regulations are useful in order to ensure safety and security of all
employees so they can carry out their business operations in healthy environment.
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REFERENCES
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development. Springer.
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business challenges and strategies in three countries. International Journal of Gender
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Steingold, F. S., 2017. Legal guide for starting & running a small business. Nolo.
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Online
Five Step Process for CRM. 2018. [Online] Available through:<https://bizfluent.com/list-
6531382-five-step-process-crm.html>.
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