Managing and Running a Small Business, Hospitality Start-Up

This report includes all the details that are necessary for the stage of start up to manage the operations of the business so that it can achieve success in the market.

MANAGING AND RUNNING A
SMALL BUSINESS,
HOSPITALITY START-UP

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P 1 The main considerations a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives...............................................3
P2 Various Process of customer relation management for social and small enterprises.............4
P3 How small business can develop transitionally and its pros and cons...................................5
P4 Monthly cash flow statement including fixed and variable cost............................................7
P5 How break even analysis is used in a situation......................................................................9
P6 Key financial statement and how it contribute in successful management..........................10
P7 Key legislations as well as regulations that have various implications on small as well as
social enterprises........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
This report includes all the details that are necessary for the stage of start up to manage the
operations of the business so that it can achieve success in the market. This report contains
assessment of issues such as planning and allocating resources to achieve business objectives.
Different processes of customer relationship management for a small business or social
enterprise. Small business can develop transnational and determine the benefits and drawbacks.
Annual itemized monthly cash flow forecast, showing fixed and variable costs set against income
for a specific organization. Break- even analysis could be applied to an organizational situation.
financial statements for an organization in relation to how they contribute to the successful
management of the organization. Legislation and regulations that have implications on small
businesses or social enterprises (Gregg and Lodato, 2017).
MAIN BODY
P 1 The main considerations a small business or social enterprise needs to address when planning
and allocating resources to achieve business objectives
Determine the Scope of the Project-
It is important that duration of project is assessed and match it up with its scope so that
resources allocated are right (Karadağ, 2018). With the scope of the project company will be
able to assess that how much investment of resources will be viable for it.
Identify the Resources-
This aspect is concerned with making sure that resources such as personnel, equipment
and venues where it will take place are available with the company or not so that they can keep
up with it.
Evaluate the Human Resources-
With the help of this aspect the company will be able to list the role and responsibilities
of every employee so that suitable and interested employees are assigned the area they can excel
in and achieve the goals of the company (Chung and D’Annunzio-Green, 2018).
Determine the priority of the project-
It is necessary aspect if the company deals with more than one project at a time and are
capable of multi task then it will be helpful to prioritize the project. It is necessary that company
focuses on those than needs to be delivered first and on the basis of that they can allocate the
resources.

Resource Allocation Plan-
This plan must involve all the information that is decided till now and the details covered
must be such as responsibilities of the employees, specifications of the tool, purpose of the
project served and the date before everything needs to be finished. Also it is important to review
the plan so that anything left can be added to it.
Prepare for Emergencies-
It is necessary that company calculates the uncertain events such as sick leaves of
employees, manage their stress. Also the strength of equipment or its failure between the task if
this happens company will have to face with another challenge (Ahmad, Bakar, A.R.A. and
Ahmad, 2018). That is why it is necessary to have a contingency or backup plan so that any
uncertainties which affect the operations can be handled.
Make sure that team is aware of it-
Before the allocation of resources it is necessary that manager of the company consults
with the employees and they are aware of the decision taken by the company. if the company sets
the time of the project on the basis of their speed of work and hire equipment that is appropriate
for the work and for them will help them to allocate it in a better way (Mxunyelwa and Vallabh,
2017).
P2 Various Process of customer relation management for social and small enterprises
Consumer Relationship management focuses on the way where firms tries to build as well
as maintain a strong type of relationship with their consumers through improving their
experiences. It is consider as one of the key regarding business success. A good consumer
relationship enables consumers enables consumer to retain with the firm that improves brand as
well as profitability of an entity (Karadağ, 2018). There are various process and ways through
which social and small entity can build as well as maintain CRM involves.
Generating brand awareness- It is vital for attracting people for firms to make them aware
regarding effectiveness as well as features of products and services of the brand. If people do not
have knowledge regarding products as well as effectiveness of some products they do not prefer
buying from such unknown brand products. So regarding to this step social as well as small
business needs to generate brand awareness and performing market awareness.
Acquiring leads- When the consumers aware regarding the effectiveness of products as well as
services then the firm needs to boosts them to engaged with brand through asking them they can

share their details of E-mails so that consumers are make aware regarding offers as well as
others. Within such step firm needs to focuses on E-mail as well as Communicating with
consumers as well as impacting them.
Converting leads into consumers- After boosting them to connect with the firm, small as well
as social firms needs to convert all leads into consumers through giving them several special
offers as well as discounts on several products. It is also vital to note that communication is
consider as one of key success within a firm that needs deciding of chosen best tools as well as
various platforms where they can communicate with their consumers. When firm communicate
as well as gives special offers then consumers becomes agree to purchase goods.
Providing superior services- After making agreed to consumers as well as converting leads into
consumers as firm needs retaining them for long period of time (Ahmad, Bakar, A.R.A. and
Ahmad, 2018). Through giving unique features of services and products at more fair prices and
as well as affordable price. To connect with consumers on regular basis as well as keeping them
updated regarding new features ,arrivals ,discounts that makes them feels very secured as well as
improves their relation.
Ways how social business aids to develop transnational with various drawbacks and benefits.
One of the best way for developing it to improves the market strategy as well as marketing
functions that enables firms to target consumers as well as promoting goods. Selection is
consider as one of the appropriate as well as best mode regarding communications through which
they can communicate with the consumers as well as promoting goods (Bikse, Lusena–Ezera.
and Rivza, 2018). Here selection is consider as one of the best as well as appropriate modes
regarding communications through which they can easily communicate with consumers as here
communication is consider as one the key strategy for the development as well as expanding
business and also attracting consumes up to a great extent.
P3 How small business can develop transitionally and its pros and cons
It is necessary for small business to grow and develop so that they are able to sustain in market
for long term. However, these business are different from large ones thus they need to find out
new way to grow in the market. There are various models and concept through which small
business can develop. Here, transaction ally refers to growing beyond a nation boundary. It is
highly useful in entering into new markets. But in order to develop transactionally small firms
must determine target market and then wide their scope. Besides that, the suitable to expand into

other countries is by improving marketing strategy. In this they can find out target market and
then create awareness about product and service. It enables in easily reaching audience and in
effective promotion. Moreover, in this business can use effective model of communication. This
allows in interacting with customers and attracting them. Furthermore, key message of using
product is delivered to customers that makes things easier to engage in buying company product.
In this concept there is another way for small business to develop transactionally is with help of
pricing strategy. Here, they can offer products and services at low prices. So, it will be useful in
attracting large number of people (Ahmad, Bakar, A.R.A. and Ahmad, 2018). Thus, profits and
sales will be increased. Also, it is evaluated that products offered by them are unique and consist
of new features so in this penetration pricing strategy can be applied. With that it is easy for them
to enter in new market and compete with large companies. One of the best way for developing it
to improves the market strategy as well as marketing functions that enables firms to target
consumers as well as promoting goods.
giving unique features of services and products at more fair prices and as well as affordable
price. To connect with consumers on regular basis as well as keeping them updated regarding
new features ,arrivals ,discounts that makes them feels very secured as well as improves their
relation. Furthermore, customer are highly attracted towards low price products as well. But
there are some benefit and drawbacks to develop business transactionally. It is specified as below
Benefit
In this new opportunity of growth are identified across in different nations. It is easier to
establish social field in those countries. . It makes entrepreneur flexible or increasing ability to
adapt changing situations. They can better explain uses of resources and social networks as well.
There are various models and concept through which small business can develop.
Drawbacks
There are certain drawbacks as well of it. Here, stafd required in it is few so operations
are not performed up to high standards. Besides that, working condition are also not proper as
there is high production with less investment. In addition to it, profits earned are from overseas
market rather than local one. Also, business has to follow various international laws and local
market is ignored in it.

Thus, it is found that develop transactionally small business enable in making things easy to
analyse market and make changes in it. Besides, with proper and effective promotion growth is
done. But there are some pros and cons as well of this concept.
P4 Monthly cash flow statement including fixed and variable cost
In every business there needs to be prepare a cash flow statement so that it is evaluated how
much is fixed and variable cost (Bikse, Lusena–Ezera. and Rivza, 2018). The budget is
prepared for particular time period. The CFS shows how much cash is generated and from which
source.
Particu
lars
Jan
uar
y
Febr
uary
Ma
rch
Apr
il May
Jun
e July
Aug
ust
Septe
mber
Oct
ober
Nove
mber
Dece
mber
Cash
inflows
Openin
g cash
inflow
700
0 8300
106
82
131
45.8
8
156
91.4
5
183
18.4
3
210
26.4
8
238
15.1
6
2668
3.94
296
32.1
9
3265
9.19
3576
4.11
Sales
revenue
100
00
1020
0
104
04
106
12
108
24
110
41
112
61.6
2
114
86.8
6
1171
7
119
51
1219
0
1243
4
Other
income
200
0 2000
200
0
200
0
200
0
200
0
200
0
200
0 2000
200
0 2000 2000
Total
cash
inflows
190
00
2050
0
230
86
257
57.9
6
285
15.7
7
313
59.2
4
342
88.1
1
373
02.0
2
4040
0.53
435
83.1
2
4684
9.14
5019
7.85
Cash

outflow
s
Materia
l
250
0 1530
156
0.6
159
1.81
2
162
3.64
8
165
6.12
1
168
9.24
4
172
3.02
9
1757.
489
179
2.63
9
1828.
492
1865.
061
Lab our
200
0 2000
200
0
200
0
200
0
200
0
200
0
200
0 2000
200
0 2000 2000
Other
expens
es
220
0 2288
238
0
247
5
257
4
267
7
278
3.70
2
289
5 3011
313
1 3257 3387
Admini
stration
expens
es
400
0 4000
400
0
400
0
400
0
400
0
400
0
400
0 4000
400
0 4000 4000
Total
cash
outflo
ws
107
00 9818
994
0.1
2
100
66.5
1
101
97.3
4
103
32.7
6
104
72.9
5
106
18.0
8
1076
8.34
109
23.9
2
1108
5.03
1125
1.86
Cash
deficit
/
surplus
or
closing
cash
balanc
e
830
0
1068
2
131
46
156
91
183
18
210
26
238
15.1
6
266
84
2963
2
326
59
3576
4
3894
6

P5 How break even analysis is used in a situation
A break even point state that at which stage business will be profitable. It means that how long
will it take for business to be in profit. This gives an insight on time period required to earn
revenue in the market. Therefore, this analysis is applied in different situations that depends on
business (Savolainen, 2018). Here, it is applied when business want to enter in new market. With
help of this, it will be easy for business to predict time required to be profitable in that market.
Moreover, it will provide them relevant data that how much sales is to be done to generate
revenue of product. So, according strategy is developed and market analysis is done. It is
beneficial to estimate growth as well.
Break-Even analysis
Particulars Formula Figures
Selling price per unit 10
Variable cost per unit 6
Contribution per unit
Selling price per unit -
variable cost per unit 4
Fixed cost 20000
BEP (in units)
Fixed cost / contribution per
unit 5000
BEP (in value or monetary terms)
BEP (in units) * selling price
per unit 50000

Units need to sell for attaining desired profit margin
Particulars Formula Figures
Fixed cost or expenses 20000
Desired profit 5000
Contribution per unit 4
Number of units required to sell
Fixed cost + desired profit
margin / contribution per
unit 6250
P6 Key financial statement and how it contribute in successful management
In business there are different types of financial statements that are prepared. These all allows in
analyzing financial performance of business. Along with that, it becomes easy to find to identify
income and expenses (Strobl. and Kronenberg, 2016). Hence, from above statement it is stated
that inflow of Cash is increasing in every month with slight variation in amount. Thus, there is
rise in revenue as well. Hence, Total revenue of each month increases to some extent. However,
in similar way there is rise in outflow of cash as well. So, business require expense so some
amount that is invested or incurred on operations. But it is analysed that cash outflow is less than
cash inflow in each month. So, there is sufficient operating cash in business and profits earned is
also in good amount. Therefore, company can invest in more areas which will help in their
growth. So, when there are more profit than it shows company is highly profitable so, in each
month, company find growth and it is a good indication for company.
However, in context of break-even analysis it can be said that it is one of the best strategy which
shows actual point of profitability and gives an insight on time period required to earn revenue in
the market. With help of this, it will be easy for business to predict time required to be profitable
in that market. Moreover, it will provide them relevant data that how much sales is to be done to
generate revenue of product. With above data it is interpreted that company break even point is
6250. Hence, it requires effective strategy to be built for generating profits.

P7 Key legislations as well as regulations that have various implications on small as well as
social enterprises.
Key implications and legislations that plays a vital roles as well as enables social as well
as small business actions within an effective manner as well as also prevents themselves against
various laws. Here business environment changes within nature as well as changes can impact
the performance of the entity (Savolainen, 2018). There is a need for small as well as social
entity to applies various regulations such as safety related regulations, employment law ,compare
as well as security laws as well as others.
Workplace safety and health- Staff members are unable to prefer with firms who are unable to
have protect safety workplace as well as unsafe working environment ,through implementing
such acts, firms can also prevent staff members as well as itself against serious hazards as well as
injury. It also aids firms out in enhance firms out within enhancing staff retention rate.
Anti discriminate act- Here legislation also plays a vital role as according to act, staff can
boosts to all staff members to increases their relations with their co- workers through respecting
each other’s values. Firms also prevent staff against discriminate on the basis of the gender, race,
culture as well as feel valued (Strobl. and Kronenberg, 2016). Firms also needs equal as well as
fair opportunities to all the staff members to all the staff members as it is also beneficial for both
employers as well as employees. This act also makes employees more motivated as well as feels
valued that enables employees as well as improves workplace within environment.
Employee law- It is known as vital for protecting against various lawsuits. As according to the
fair labor standard act, firms also focuses on overtime pay as well as standard of wages.
According to this law, staff employees have right to discussed overtime pay as well as unable to
file a case against a firm. So it is said that implementing as well as following this firm can also
prevents itself as well as their workers against violations regarding rights.
Thus from the above discussions it is focused that laws if social as well as small firms
follows rules regarding such legislations as it can prevent them against lawsuits (Li, Huang. and
Song, 2020). Firms also increases productivity through maintaining safety at workplace as well
as also enables staff members to respect as well as provides values to each other.
CONCLUSION
From the above studies it has been assessed that it is necessary that company consider all the
alternatives and the evaluation of market so that they can successfully assess the stages of start

up of business in the sector of hospitality as the competition is very high. It will be helpful to
them if they maintain a cash flow so that they can predict the past records and on the basis of that
take decisions for the future for the costs that are fixed and variable through which income of the
company is not affected and they are able to meet the requirements of the business. Other than
this report also includes the factors of legal and regulatory aspects that business maintaining their
operations on small scale needs to follow so that they are allowed to serve in the market with the
support of the government. It also focused on workplace safety, anti discriminatory act and
employees so that beneficial for both firms and employees.
REFERENCES
Books and Journal
Ahmad, S.Z., Bakar, A.R.A. and Ahmad, N., 2018. The International Journal of Management
Education. International Journal of Management, 16, pp.14-25.

Bikse, V., Lusena–Ezera, I. and Rivza, B., 2018. Innovative start-ups: challenges and
development opportunities in Latvia. International Journal of Innovation Science.
Sohl, J.E., Harrison, R.T. and Mason, C.M., 2018. In memory: William E. Wetzel Jr.
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector. Worldwide Hospitality and Tourism
Themes.
Gregg, M. and Lodato, T., 2017. Managing community: Coworking, hospitality and the
precarious future. Affect in Relation-Families, Places, Technologies. Essays on
Affectivity and Subject Formation in the 21th Century.
Karadağ, H., 2018. Cash, receivables and inventory management practices in small enterprises:
Their associations with financial performance and competitiveness. Small enterprise
research, 25(1), pp.69-89.
Li, Y., Huang, S.S. and Song, L., 2020. Opportunity and necessity entrepreneurship in the
hospitality sector: Examining the institutional environment influences. Tourism
Management Perspectives, 34, p.100665.
Mxunyelwa, S. and Vallabh, D., 2017. Skills as impediment to small and medium tourism
enterprises (SMTEs), Eastern Cape, South Africa. African Journal of Hospitality,
Tourism and Leisure, 6(4), pp.1-8.
Savolainen, T., 2018, March. Trust as Leadership Resource and Skill in the Services and
Tourism Business: Views on Managing Intangibles in the Digital Era. In International
Conference on Tourism Research (pp. 129-X). Academic Conferences International
Limited.
Strobl, A. and Kronenberg, C., 2016. Entrepreneurial networks across the business life cycle:
the case of Alpine hospitality entrepreneurs. International Journal of Contemporary
Hospitality Management.