Managing & Running a Small Business (Doc)

Managing and Running a
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Main considerations required for small business needs for planning and allocating
resources to achieve objectives..............................................................................................4
M1...........................................................................................................................................6
M2...........................................................................................................................................6
TASK 2............................................................................................................................................6
P2. Evaluation of processes of customer relationship management for a small business......6
M3...........................................................................................................................................8
P3. Benefits and drawbacks which small business can develop for transnationally and
determination..........................................................................................................................8
M4.........................................................................................................................................11
TASK 3..........................................................................................................................................12
P4. Monthly cash flow showing fixed and variable costs set against income......................12
P5. How break- even analysis could be applied to an organisational situation....................13
M5.........................................................................................................................................14
P6 Interpretation of key financial statements and its contribution in successful management of
business.................................................................................................................................15
TASK 4..........................................................................................................................................17
P7. Key legislation and regulations that have implications on small businesses or social
enterprises.............................................................................................................................17
M6.........................................................................................................................................18
CONCLUSION..............................................................................................................................19
.......................................................................................................................................................20

INTRODUCTION
Managing and running a small business is a wide task that helps in executing ideas and
thoughts of an entrepreneur in a business plan. Main objective of implementing these ideas is to
provide quality products and services to customers on the basis of their requirements and needs.
In this report the organization chosen is The Entertainer, which is a toy retailing company. ‘‘The
Entertainer company’’ was founded by a team of husband and wife in the year of 1981. Apart
from that it is started by them in local toy shop. In 2001 it starts to expand its business
operations. The report is going to analyse needs of a business in order to plan and allocate
resources for achieving set goals and objectives. This report also covers evaluation of procedure
for customer relationship management, development of small business transnationally and its
drawbacks as well as benefits. An annually itemized monthly cash flow is presented in the report
which shows variable and fixed cost. At last, break even analysis presented for better
clarification of situations.
TASK 1
P1 Main considerations required for small business needs for planning and allocating resources
to achieve objectives.
The businesses need various type of resources to achieve the business objectives. ‘The
Entertainers’ also plan and allocate its resources very efficiently to achieve goals. There are
various ways in which resources allocated by the enterprises (Ali and Babiker, 2017). Some of
these as follows.
 Planning resources: ‘The Entertainers’ plan its resources carefully. It has to plan about
needs of premises, equipment’s, peoples. It need to address the required skills to achieve
objectives. These activities include the management operation too. Because plan will be
about all over business operation and management is a vital task. Utilization of
management decides the success percentage of a business. At this stage the resources and
skills needed to develop exact job specification.
 Organization structure: The organization structure is also a main thing to address
because it is too important for business purpose and organizational structure. By the help
of applying an appropriate organizational culture. The main focus will be on human
resource management. The proper conduct should be made by following appropriate

procedure such as recruitment and retention, performance appraisal and management.
Apart from that team building also a main concept because without it the work target
can't be achieved.
 Outsourcing: Outsourcing play a vital role in fulfilment and allocation of resources.
Outsourcing, external advisor and networks are important factors (Bajo and et.al., 2012).
By the help and analyses of these factors various needs of business may be fulfilled. The
external advisors help in allocating the resources in best ways.
 Employment legislation: It is the key aspect of business premises. The entertainer have
to use that aspect also to succeed in life span of business. It helps in recognition and
application of equality and diversity. The employment legislation some time work as
motivator for the employees. It helps to recognise the performance of employees. It
accesses to suit the guidance notes. The candidate profile must be shared fastly.
 Project management techniques: The project will be managed through the various
techniques. Managers may use various type of chats and some other methods such as
critical path method.
Apart from these there are various challenges faced due to resource allocation so ‘The
Entertainers’ have to address some of following challenges.
There are various resources required by company for running business successfully such
as:
Financial Resources- It is most important resources required for managing and running
new business. Finance is life blood of any organisation for carrying out various activities. Money
is required for purchase of raw materials, payment, carrying out task and others. In case of
shortage of fund, it can be borrowed from banks, financial institutions.
Human Resources- They are the person such as employee, manager, workers and other
for managing and running business. In order to get success of organisation, enterprise requires
skilled, knowledge, experienced people. They are important resources of any organisation. It is
necessary for firm to hire strong team of human resources through effective methods.
Physical Resources- There are some physical resources which are required by business
such as proper work space, adequate information systems, marketing materials, working
telephone line to carry out work in effective and efficient manner so that they can get success.