Managing and running a small business

Managing and running
a small business

Contents
INTRODUCTION...........................................................................................................................3
Activity 1.........................................................................................................................................3
Covered in Brochure...............................................................................................................3
Activity 2.........................................................................................................................................3
P4) Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................3
P5) Explain how break-even analysis could be applied to an organisational situation..........5
P6) Interpretation of the key financial statements..................................................................6
P7) Key legislation and regulations that have implications on small business......................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Small business are privately owned corporations that operates with limited investment and it
contributes to the overall development of the economy as it offers various opportunities to the
people such as easily availability of products and services as well as employment opportunity
and many more (Stanciu, 2015). For an entrepreneur it is important to understand various aspects
that are related with running a small business and a social enterprise by managing various
activities related to the business such as efficient allocation of resources, recruitment of staff,
forecasting and management of operations and other functions in relation to the operations. In
this report the organisation to whom the consultancy services are provided is Airdri, that
manufacturers hand dryers. It was founded in the year 1974 and its headquarters are in
Oxfordshire. In this report main considerations of a small business are taken into discussed that
facilitates resource allocation along with the processes of customer relationship management.
Apart from this the interpretation of the financial statement and various legal implications are
discussed that has impact on the small business and social enterprises.
Activity 1
Covered in Brochure
Activity 2
P4) Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation
Cash flow statement is a financial statement with the help of which a company can identify
and analyse the flow of cash for a specific period of time. With the help of annual itemized
monthly cash flow forecast the Airdri can efficiently plan for their requirement of the resources
as well as investment options for them (Durst and Lee, 2015). It is crucial for the Airdri to
classify their fixed and variable cost against the income so that they can determine the profit
margins for the organisation. On the basis of the analysis of cash flow forecast the small
organisations plan their strategic growth by expanding their operations to other countries. With
the help of cash flow statement investors of the organisation determine the position of the
company which facilitate the company to attract more investors. With the help of operating,