Managing and Running a Small Business

Managing and Running
a Small Business
Table of Contents

INTRODUCTION...............................................................................................................................3
TASK 1................................................................................................................................................3
P1 Discuss main considerations a small business or social enterprise needs to address when
planning and allocating resources to attain business objectives. .....................................................3
M1 Use tools and techniques in a structured & analytical way to plan/ allocate resources in
business.............................................................................................................................................3
M2 Analyse importance of planning and allocating resources to achieve objectives.....................4
D1 Examine application of appropriate resources to demonstrate links between resource
allocation & achievement of business objectives. ...........................................................................4
TASK 2 ...............................................................................................................................................4
P2 Discuss CRM & determine main sectors within CRM provide advantages or disadvantages....4
P3 Explain how a small business can develop transnationally with positive & negative aspects....5
M4 Determine potential develop transnational operations using stage model of
internationalisation...........................................................................................................................6
D2 Examine CRM process at all aspects & provide suggestions for overcoming challenges of
developing transnational operations. ...............................................................................................6
TASK 3................................................................................................................................................7
P4 Prepare annual monthly cash flow forecast showing fixed and variable costs...........................7
P5 Explain how break even analysis could be applied to an organisation.......................................9
P6 Present financial statements for an entity in relation with how they contribute to successful
management of corporation............................................................................................................10
M5 Use appropriate quantitative & analytical techniques to provide an appropriately detailed
cash flow forecast and break-even analysis....................................................................................10
D3 Present accurate cash flow forecast/ BEA with a analysis of how key financial statements
contribute to successful management of business..........................................................................11
TASK 4..............................................................................................................................................11
P7 Determine legislation or regulations that have effect on small businesses or social firms......11
M6 Evaluate effects of key legislation/ regulations in an organisation..........................................12
D4 Discuss key legislation that impact upon small businesses or social organisations.................12
. CONCLUSION................................................................................................................................13
REFERENCES..................................................................................................................................14
Books & Journal:............................................................................................................................14

INTRODUCTION
In market, businesses are of many types such as small, medium and large. Managing and
running small business is not easy task and which require deep level of research as well as
knowledge. Main aim of this report is to understand how small business can be managed in
corporate sector. Fruition Consultants Ltd, a tax consultant firm in Aldgate East, headquartered in
United Kingdom. It is consultancy services firm which is managing business and expanding their
services at slower level. This report comprises of consideration of small business or social
enterprise, different process of CRM, small business development, annual monthly cash flow, and
break even analysis, financial statement of enterprise and key legislation & regulations affecting
business.
TASK 1
P1 Discuss main focal of a small business or social enterprise needs to address when planning and
allocating resources to attain business objectives.
Small businesses & social enterprise both are essential part of market which increases the
profit ration at higher level. In U.K, most of market sector is being covered by small businesses and
this bis major reason for stability of economy of country. In relation with selected firm, there are
many types of considerations which are needed to be considered when planning and are discussed
below-
Financial resource- It is important resource as these are needed for making transactions,
auditing etc. There are various types of resources in this category such as equity funding & loans,
cash, etc. In relevance with Fruition Consultants Ltd, they carry out their financial resources in a
way that these are used at appropriate period of time (Emeh, 2020).
Human resource- They are also resources which are necessary to be allocated while managing
small business. It is because these are being considered as important assets part of enterprise
because they are one who is responsible for regulating & formulation of policies (Tóth, 2020).
Identification of resources
Tangible resource- These are those type of resources which can be touched or feel. There
are various type of resource such as inventory, machinery, cash etc. In relation of chosen firm,
these resources are allocated with proper internal analysis.
Intangible resource-
These are those type of resources which cannot be touched or feel. It is crucial to allocate

them for example experience, skills of employee, growth of valuable resources comes under this
category. These are important for both social & small enterprises at higher level.
Planning-
In this, planning is also essential as it without allocating proper planning it is not possible
to achieve objectives. So, with help of planning workforce activities & planning is done &
required in both social as well as small firm.
M1 Use tools and techniques in a structured & analytical way to plan/ allocate resources in business
To allocate resources in structured/ analytical way in entity, various types of tools as well as
techniques are required such as Gantt chat. It is an effective tool which is used by entity to allocate
resources in proper manner. By applying this tool, chosen firm is able to allocate resources in well-
structured way. Further technique for allocating resources is to divide team into different
departments so that it is easy to allocate resources in analytical manner.
M2 Analyse importance of planning and allocating resources to achieve objectives
It is crucial to allocate planning & allocate resources so that decision making is done in
correct way. Planning & allocating resources are required because they give clear picture the
amount of work which has been done & in what ways (Cheng, 2019).
D1 Examine application of appropriate resources to demonstrate links between resource allocation
& achievement of business objectives.
Financial resources in management- These are resources which are linked with achievement
of business objectives as because such resources assists in carrying out every activity which require
finance or capital such as training & development, recruitment etc.
Human resources outside & inside the enterprise- It is another application of human
resources in which they are mostly used for recruitment, selection, hiring of candidates (Pavlíček,
2016).
TASK 2
P2 Discuss CRM & determine main sectors within CRM provide advantages or disadvantages
In enterprise, customer relationship management which is also known as CRM is used by
entity to manage & maintain positive relationship with their past, old or new customers. It is
beneficial for development of business as it support sales management, provide customer insights
through engaging with social media.