Small Business Journal and Entrepreneurship Topics

This assignment involves analyzing multiple sources on small business journals and entrepreneurship topics. It covers a range of subjects such as the five-step process for CRM (Customer Relationship Management), personal initiative training for small business owners, contract farming, challenges faced by women in apparel entrepreneurship, the impact of regulation on small businesses, market orientation, and more. The assignment aims to understand how different factors influence small business performance and success.

Managing and Running a
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1 Main considerations a small business or social enterprise needs..........................................1
TASK 2............................................................................................................................................3
P2 Various processes of customer relationship management.....................................................3
P3 Small business can develop transnationally and benefits and drawbacks.............................4
TASK 3............................................................................................................................................5
P4 Annual itemised monthly cash flow forecast showing fixed and variable costs...................5
P5 Break- even analysis..............................................................................................................9
P6 Financial statements for an organisation................................................................................9
TASK 4..........................................................................................................................................10
P7 Legislation and regulations that have implications on small businesses.............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small business plays essential role in enhancing economy of country as they provide
different forms of items and services to people to fulfil their needs and wants. Along this,
organisation even increases employment opportunities and give individuals means to earn
adequate income for running a standard living. Entrepreneur formulate appropriate strategies and
tactics to direct members and execute business operations effectively; thereby accomplish goals
and objectives within specified time. Present report is based on Austin Fraser which is popular
small firm established in UK (Crane and Matten, 2016). Company provide recruitment and
consultancy services to clients with help of information technology, engineering, human resource
and various other aspects. This assignment specifies information about various considerations
such as formulate policies in respect to government legislations, constructing good relations with
customers, building plan to utilise resources, frame budget and interpret financial statements.
Along this, management conduct recruitment process and training programmes to enhance
capabilities of staff to retain skilled and competent people for longer period. This help company
to establish strong position in market and accomplish goals and objectives.
TASK 1
P1 Main considerations a small business or social enterprise needs
Small business and social firms require to use capital in adequately as they have little
money which needs to be properly designated by administration. It is necessary that organisation
provide appropriate things and consists technologies in system. This helps seniors to utilise
material efficiently; thereby deliver items and services in respect to needs and wants of public.
Along this, numerous employment opportunities are provided by corporations to give adequate
chances to earn money for their living (Steingold, 2017).
Austin Fraser which is small scale consultancy and recruitment enterprise operating
business in areas of information technology, engineering, accountancy and animation.
Management require to utilise funds, resources and manpower efficiently so that appropriate
things are delivered by firm to clients. They even require to take care that system includes
adequate tools and techniques which help seniors to provide quality and quick services to
customers. These are various components that executive require to consider while designing
1

system and make appropriate plan which specifies information about future activities conducted
by manager to achieve end outcomes are defined below:
Goals, objectives and vision: Administration frame statement which includes mission,
vision, goal and objectives. These are various elements which are used by seniors to direct
members and organise activities according to end results required to be achieved by them. In
Austin Fraser, management provide duties and targets to employees to make them function
effectively and complete work within specified deadlines. This helps company to make system
function and use appropriate technologies to provide quality services to clients (Burns, 2016).
Financial resources: It is necessary that management have adequate funds to purchase
adequate material and workforce to conduct business activities effectively. Small and social
firms have less capital which require that seniors utilises assets and organise things in according
to needs and wants of clients. Austin Fraser have small amount of funds, so top personnels
require to use resources and execute activities to provide quality things and services to people. It
is a recruitment and consultancy firm which require to have adequate technologies implemented
in system. Company provide appropriate services only if appropriate tools and techniques are
used by members. Balance sheet, profit and loss, budget and various other financial statements
are constituted by management to have accurate and complete information about expenses and
incomes generated by firm; thereby take appropriate decisions and select things accordingly
(Trevino and Nelson, 2016).
Staff members and skills: Small and social firms require to have adequate manpower so
that business operations are executed in appropriate manner. It is essential that employees are
skilled and have ability to carry out activities in adequate manner. Members knowledge and
capabilities determine quality of items and services that are delivered by Austin Fraser to clients.
Company will be able to retain customers longer period by providing them adequate recruitment
and consultancy services. Along this, management conduct performance appraisal to
acknowledge deviations of actual activities from benchmarks set by seniors. Training and
development programs are formulated by superiors to enhance capabilities of members and make
them competent to perform activities in proficient manner.
2

TASK 2
P2 Various processes of customer relationship management
Each and every organisation require to have adequate resources so that appropriate items
and services are delivered in marketplace. Management responsibility is to design system and
implement adequate tools and techniques which help firm to provide things in respect to needs
and wants of people.
Customer relationship management concept determine that management require to
construct good connection with people to retain them for longer period. It is necessary that
adequate items and services are provided by firm to consumers in according to their needs and
wants. Austin Fraser provide recruitment and consultancy services to clients; so it is necessary
that adequate tools and techniques are used by management to give quality and quick services to
people. Along this, various tactics such as e-mail, telephone and message are various tools used
by firm to retain customers for longer period by constructing connection with them and
informing them about items and services (Spence, 2016).
Customer relationship management process: These are various steps that are executed
by members to construct connection with clients are stated below (Five Step Process for CRM,
2018):
Assessment of customer value: This is starting phase which determine that management
conduct market research and survey which help them to have complete information about
demands of people. Austin Fraser which is small consultancy firm have accurate data in respect
to requirements of public. Along this, seniors take feedback from clients which benefit them to
anticipate market trends; thereby frame strategies and tactics in according to needs and wants of
consumers. This helps company to satisfy people and construct loyal customers by providing
things in respect to their demands (Villamizar and et. al., 2016).
Execution of effective communication channels: It is necessary that appropriate
techniques are used by management of Austin Fraser to provide information to consumers about
items and services. Telephone, e-mail, message and websites is adequate tool which help firm to
communicate about products, prices and benefits. Timely information are given to clients about
changes in system, technology and services.
Role of digital marketing and E-mail for effective relation:- Organisation require to
construct connection with clients to retain them for longer period. With technological
3

advancements, management uses websites to inform clients about different items and services.
Digital marketing and e-mail are technique that are used by Austin Fraser to sustain customers
by communicating information about items and services. These tools benefit seniors to utilise
funds and resources in efficient manner. Digital marketing advantage firm to have large customer
base by providing information to public about recruitment and consultancy services provided by
Austin Fraser. Along this, e-mail helps company to communicate clients about products and
different form of software used by firm to provide appropriate things to them. This also
advantage enterprise to use money adequately and increase customer reach with help of these
tools (Kitching, Hart and Wilson, 2015).
P3 Small business can develop transnationally and benefits and drawbacks
Transnational sales is defined as tactic which is used by management to have accurate
and complete information about market reputation and goodwill of Austin Fraser. This concept
helps company to assess profitability and income generated in respect to providing adequate
things to clients. Small business require to utilise capital and resources in such manner that
adequate things are delivered by Austin Fraser to customers. Transnationally is process which
have certain advantages and limitations on system functionality. It is essential that management
uses strengths of system and overcome from difficulties and problems. Market have
opportunities which require to be used by company to provide creative and innovative things to
clients with help of latest tools and techniques implemented in system (Glover and Kusterer,
2016).
Benefits: These are various advantages that transnational sales have on enhancing market
position of Austin Fraser and accomplishment of goals objectives of company within defined
time are stated below:
Lifestyle: Small and social firms prime objective is to provide benefits and various
components to enhance economy of country. These enterprises increases number of job
opportunities and help individuals to work and generate adequate funds to purchase things for
executing their living standards. Austin Fraser is one of small firm which provide recruitment
and consultancy services to clients. For executing business operations, management require to
have adequate manpower. This help public to generate adequate income and purchase things to
conduct living in standard way (Donnelly and et. al., 2015).
4

Independence: Management of Austin Fraser is able to take decisions and select
alternatives which are beneficial for firm. Small firms provide benefit to government of UK to
enhance economy of country by providing appropriate items and services to people. Along this,
employment opportunities are increased which benefits regulatory bodies so they give freedom
to small firms to operate business in their own manner. Social enterprises also don't require to
regulate and manage system in respect to legal formalities.
Efficiency: This concept determine that small and social enterprises require to utilise
funds, material and manpower properly. Austin Fraser firm have latest tools and techniques
implemented in system which help management provide quality and quick services to clients
(Senderovitz, Klyver and Steffens, 2016).
Drawbacks
Lengthy: Austin Fraser which is small consultancy firm require that management uses
technologies and funds in adequate manner. It is necessary that manpower are utilised
effectively; thereby appropriate items and services are delivered in marketplace. But, this
enhances operations and particular person will require to conduct large number of operations.
Financial risk: Small firms even faces problem in respect to resources which are limited
and required to be utilised by management in adequate manner. Austin Fraser which is
consultancy and recruitment firm require to implement appropriate tools and techniques in
system which help executive to uses funds efficiently and deliver adequate things to clients
(Ramalho, de Moura and Cunha, 2015).
TASK 3
P4 Annual itemised monthly cash flow forecast showing fixed and variable costs
Small and social firms require to have adequate amount of funds to execute business
operations in effective manner. It is necessary that management design system and uses
appropriate tools and techniques which help them to provide items and services in respect to
needs and wants of people. Budgeting is adequate tool used by finance department to have
accurate and complete information about distribution of money in different activities. This also
help top personnels to acknowledge income and expenses generated by Austin Fraser to provide
adequate services to clients. Finance unit responsibilities include formulation of monthly cash
5

flow to anticipate fixed and variable costs that are generated by seniors to provide appropriate
things to customers.
Sources of Funds: Entrepreneur require to have adequate capital to purchase material
and have manpower to execute business activities in according to needs and wants of people.
Market has various forms of techniques that is short and long term sources of finance (Hodges
and et. al., 2015). These are various sources of funds which are used by business person of
Austin Fraser to have adequate money for providing recruitment and consultancy services to
clients are defined beneath:
Equity finance: This component includes issue of preference and equity shares which are
made by management to attract people and make them purchase company shares in respect to
providing funds to them. Austin Fraser which is small consultancy firm increase funds with help
of equity finance tools which specifies that entrepreneur provide rights to shareholders to take
part in decision making processes. This is effective technique which helps investors to generate
adequate profit and dividend from business.
Bank loan: Financial institutions are appropriate devices which help Austin Fraser to
have adequate funds in respect to organising business operations in according to accomplish
goals and objectives within specified time. Entrepreneur have right to increase capital by taking
loan from commercial bank at fixed rate of interest which is paid by company in annual basis.
Budgeting and Forecasting: These are two tactics which are executed by business
person of Austin Fraser to construct appropriate plan determining expenditures which are
executed by firm to deliver appropriate items and services in marketplace. With help of
forecasting, management acknowledge different areas where funds will require to be invested.
Market survey is adequate tool which helps firm to anticipate needs and wants of people; thereby
executed activities which help enterprise provide recruitment and consultancy services to clients
(Osiyevskyy and Dewald, 2015). These are various techniques that are used by Austin Fraser to
construct financial statement which includes balance sheet, cash flow, profit and loss to have
complete information about market position and reputation of firm are described below:
Calculate moving average: This tactic specifies that Austin Fraser conducts market
survey which helps management to have complete information about needs and wants of people.
This help company to design system and use appropriate technologies and techniques which help
business person provide appropriate recruitment and consultancy services to customers.
6

Time series data: This concept define that administration of Austin Fraser require to have
appropriate information about time schedule determine by seniors for each business activity in
according to provide appropriate items and services to clients (Laukkanen and et. al., 2016).
Balance Sheet, P&L and cash flow statement of Austin Fraser:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 170 250
Stock 50 65
Debtors 90 75
Bank 50 70
Total 360 460
Creditors 160 200
Bank overdraft 110 80
Total 270 280
Working capital 90 180
Profit and Loss Account at the year ended
2017 (value in £) 2018 (value in £)
Sales 50 70
Cost of sales 25 50
7

Gross profit 75 120
Overheads 15 20
Net. profit 60 100
Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5
Beginning
cash balance
26000 32000 31000 29000 27000
Budgeted cash
receipts
12800 3000 3500 2500 10000
Total cash
available
38800 35000 34500 31500 37000
Cash
distributed
Direct labour 1400 1250 1250 1400 1600
8

Selling and
distribution
750 850 750 700 700
Overhead 1000 700 750 750 700
Direct material 1500 1200 1250 1350 1600
Total cost use 4650 4000 4000 4200 4600
Cash surplus/
deficit
34150 31000 30500 27300 32400
P5 Break- even analysis
Break even analyse can be define as find out a point where total revenue are equal to total
expenses of an organisation. In this situation overall profits should be zero and company run no
profits and loss conditions. It is a very important financial parameter which are used by firm in
order to know their P & L position. By this technique, organisation has analyse profitability ratio
which shows enterprise performance as compare to different past years by which all shareholder
may know their investment return are positive or negative in nature. It is very important method
develop by Austin Fraser management in order to determine profits. It is very help full to find
out actual sales done by an organisation in annual, monthly and daily basis. Through this,
management of the company may develop strategies to capture high market share as well as
reduce conflicts thus affect selling activities negatively. With the help of break – even, investor
are analysis opportunities of investment into the company and make decision accordingly
through this they are able to run all business activities effectively in long run to get high market
share and competitive benefits as compare to their rivalries at market place (Frese, Hass and
Friedrich, 2016).
9

In addition to this, there are several situations in which enterprise required to forecasting
sales volume as well as manufacture units. Under this, break-even method has very essentials
components that play vital role in order to better utilisation of resources, minimising wastages ,
develop production capacities and many more. For example, Fixed cost is 1600 rupees, variable
cost Rs. 8 per unit and selling price is Rs. 10 per unit. The Break even point is:
BEP= Fixed cost/ contribution margin per unit= 16000/(10-8) = 8000.
It shows, company has earn profits margin Rs. 8000 so that performance are positive and
investment has return of 2 % of total investment. Through this, firm are capable to run entire
business activities in long period of time effectively which help to get long run sustainability as
compare to before. By implementation break-even points organisation has manage all
manufacturing activities appropriately to take competitive advantage in same industry.
P6 Financial statements for an organisation
There are various types of financial statements which are formulated by firms in order to
manage all the expenses and earn higher profitability ratios. The managers are assigned with the
role of collecting and interpreting the overall informations related with financial index. This is
the most beneficial factor as it results in formulating budgets for different department so that
resources can be allocated in effective and planned manner. The major financial statements
which are prepared by Austin Fraser are evaluated below as:
Balance sheet: This is one of the most important financial statement of firms as they are
beneficial in order to analyse the current assets and liabilities of firms. The investors are
effectively analysing the balance sheet of firms so that they can take right weather they have to
invest their money or not. This benefits Austin Fraser to have appropriate information about
fixed assets, liabilities and capital (Winterhalter, Zeschky and Gassmann, 2016).
Profit and loss account: The financial statement reflects all the overall profitability and
losses of business during their business operations. Finance department of Austin Fraser have
accurate information about sales, purchases in respect to raw material, inventory and other
expenses and income generated by firm to provide appropriate information to stakeholders in
respect to net and gross profit. This helps in identification of those areas where the expenses are
unnecessarily done so that operations will be completed with minimum cost. These are valuable
factor as it results in enhancing overall profitability of firms.
10

Cash flow statement: This is one of the most effective financial statement as it helps in
analysing the outflow and inflow of cash in business enterprises during specific time period. All
these are beneficial factor as it helps in enhancing effectiveness of finance manager and they will
utilise all the monetary funds in effective and planned manner. This statement is linked with the
differences in balance sheet which help finance members of Austin Fraser to have information
about financial position (Crane and Matten, 2016).
TASK 4
P7 Legislation and regulations that have implications on small businesses
Every organisation require that administrate formulate policies and strategies in
according to make system function in systematic and legal manner. Government frame laws and
act to regulate and manage business activities in adequate way. These are various legislations
which are considered by top personnels of Austin Fraser to organise operations effectively are
defined beneath: Healthy and safety act: This law was constituted by regulatory bodies to take care that
organisation provide positive working environment to members. Austin Fraser provide
appropriate conditions to staff to make them function effectively and complete duties and
tasks within specified time. This benefits company to retain skilled and competent people
for longer period by giving them secure and safe working environment (Steingold, 2017). Data protection act: This legislation was formulated by government to regulate and
secure businesses which are conducting e-commerce. Internet is complex and difficult
tactic as it includes various problems and difficulties in respect to steal and harm which
other individuals causes, as they interrupt and destroy private data. Austin Fraser which is
recruitment and consultancy firm require to use techniques and technologies to provide
appropriate services to clients. Employment act: This law define that human resource management require to provide
duties and tasks to members in respect to their skills and abilities. Austin Fraser is small
recruitment and consultancy firm which require to utilise funds and have adequate
manpower to execute business operations effectively. Small and social firm help
government to enhance state of economy as they provide large number of employment
11

opportunities to people to generate adequate income for executing their living standards
(Burns, 2016).
 Discrimination act: This law was frame by government to regulate business activities
and take care that staff members get duties in according to their capabilities. Employees
require to get fair treatment and are not discriminated on grounds of age, gender, religion,
caste and background. Employer of Austin Fraser provide equal treatment and
opportunities to people on basis of their performance and outcomes. Members are given
compensation in respect to targets achieved by them and are not exploited in respect to
their background.
CONCLUSION
From the above report, it can be comprehended that entrepreneur require to organise and
conduct business activities which help small and social firms to deliver appropriate items and
services to people. Along this, these enterprise also help regulatory bodies to enhance economy
of country by providing employment opportunities to people. It is essential that organisation
goals and objectives are accomplished by administration. Along this, business person even want
to utilise resources that is, funds, material and manpower efficiently; thereby deliver appropriate
products to customers. People consists appropriate and important part in firm, as corporation
sales and profit depend upon taste and preferences of consumers. Management formulate
strategies and policies in according to government legislations and act which help firm to make
system function legally. This also helps enterprise to retain skilled and competent people by
providing them positive working environment and conditions; thereby improve market reputation
and goodwill.
12

REFERENCES
Books and Journals
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Donnelly, C. and et. al., 2015. Digital loyalty card ‘big data’and small business marketing:
Formal versus informal or complementary?. International Small Business Journal.
33(4). pp.422-442.
Five Step Process for CRM. 2018.[Online] Available through:<https://bizfluent.com/list-
6531382-five-step-process-crm.html>./
Frese, M., Hass, L. and Friedrich, C., 2016. Personal initiative training for small business
owners. Journal of Business Venturing Insights. 5. pp.27-36.
Glover, D. and Kusterer, K., 2016. Small farmers, big business: contract farming and rural
development. Springer.
Hodges, N. and et. al., 2015. Women and apparel entrepreneurship: An exploration of small
business challenges and strategies in three countries. International Journal of Gender
and Entrepreneurship. 7(2). pp.191-213.
Kitching, J., Hart, M. and Wilson, N., 2015. Burden or benefit? Regulation as a dynamic
influence on small business performance. International Small Business Journal. 33(2).
pp.130-147.
Laukkanen, T. and et. al., 2016. Does market orientation pay off without brand orientation? A
study of small business entrepreneurs. Journal of Marketing Management. 32(7-8).
pp.673-694.
Online
Osiyevskyy, O. and Dewald, J., 2015. Inducements, impediments, and immediacy: exploring the
cognitive drivers of small business managers' intentions to adopt business model
change. Journal of Small Business Management. 53(4). pp.1011-1032.
Ramalho, V., de Moura, A. P. and Cunha, L. M., 2015. Why do small business butcher shops fail
to fully implement HACCP?. Food control. 49. pp.85-91.
Senderovitz, M., Klyver, K. and Steffens, P., 2016. Four years on: Are the gazelles still running?
A longitudinal study of firm performance after a period of rapid growth. International
Small Business Journal. 34(4). pp.391-411.
Spence, L. J., 2016. Small business social responsibility: Expanding core CSR theory. Business
& Society. 55(1). pp.23-55.
Steingold, F. S., 2017. Legal guide for starting & running a small business. Nolo.
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Villamizar, M. and et. al., 2016, May. Infrastructure cost comparison of running web
applications in the cloud using AWS lambda and monolithic and microservice
architectures. In Cluster, Cloud and Grid Computing (CCGrid), 2016 16th IEEE/ACM
International Symposium on. pp. 179-182. IEEE.
Winterhalter, S., Zeschky, M. B. and Gassmann, O., 2016. Managing dual business models in
emerging markets: an ambidexterity perspective. R&D Management. 46(3). pp.464-479.
13

14