Managing and Running a Small Business

MANAGING AND
RUNNING A SMALL
BUSINESS

Contents
INTRODUCTION...........................................................................................................................1
Activity 1.........................................................................................................................................1
Main considerations while planning & allocating resources to attain business goals............1
Tools and techniques in an analytical manner on how to plan as well as allocate resources in
an organizational context........................................................................................................3
Significance of planning & allocating resources in order to achieve business aims.............3
Different processes of CRM for small business organisation................................................4
Explanation of how small entities can develop transnationally along with its Advantages and
limitations...............................................................................................................................4
Elements of the CRM process................................................................................................5
Potential to develop transnational operations.........................................................................6
Activity 2.........................................................................................................................................6
An annual itemised monthly cash flow forecast showing fixed & variable costs in contrast to
income of companies..............................................................................................................6
Break-even analysis in context to organisational situations...................................................8
Explanation on key financial statements of a company for involvement in successful
management..........................................................................................................................10
Quantitative and analytical techniques.................................................................................14
Break even analysis & cash flow statement.........................................................................15
Key legislation & regulations that have high implications on small business entities........15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
In today’s scenario, small and social enterprises is highly impacted on the growth and
development of an economy. Business people and Entrepreneurs consider it as an opportunity
which assist them to earn money beyond their expectations. One of the major and factual point is
offering unique idea and performing it properly in market help enterprises to remain in market
for longer time period (Crane, 2019). It is important for companies to determine the customer
requirements and market trends in order to gain success and contribute towards development of
societies. The activity 1 of report will discuss about importance of planning as well as allocation
resources for attaining business objectives. Along with this, it covers factors that is considered at
the time for planning & allocating resources. Moreover customer relationship management
process is going to discuss along with its application of tools & techniques, which help in
planning and allocating resources in a proper way. The activity 2 of present report will discuss
cash flow forecast, break-even analysis and a discussion about how financial statements
underwrite towards successful management of companies. Later, legislations as well as
regulations, which impact small business is described in report properly.
Activity 1
Main considerations while planning & allocating resources to attain business goals
In the current time, UK business sector provide a number of business and growth
opportunities for person who has the ability to perform and earn profits as well. One of them
main reason of development of such opportunities is Brexit as it give an advantage to individuals
to setup their business at small level in United Kingdom. It influence persons to focus on
populated areas & opening outlet that offer services to potential customers and generate revenue
in an effective manner. It take place when an appropriate and innovative idea is developed by
considering customer requirements and market trends as well (Galyer, 2019). Some of the
activities that is done by an entity on regular basis are planning and allocating resources,
recruitment and selection, forecasting and budgeting, interpretation of financial statements and
so on. In addition to this, it is important for entrepreneurs to make use of all the resources
optimally and properly in order to gain better results in an effective manner.
In order to gain growth, it is essential for owners of companies such as JS supermarket
Ltd to consider the right plan and it take by developing of effective strategy and consider the
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factors that is required for allocating of resources. The elements that is required to undertaken
while planning as well as allocating of resources is described below:
Financial resources: One of the major factor that plays an essential role in development
of right plan and allocation of resources. Availability of funds help an entity to implement task in
a smooth and proper manner. For example, JS supermarket Ltd is a small company and did not
involve number of investors so it is not easy to accumulate appropriate funds for well developed
plan. The owner of JS supermarket Ltd. has less number of options from which it can acquire
funds that is Bank loan, family and friends. JS supermarket deals at small level and it is
important for company to adopt saving approach as it help in declining expenses in an effective
manner. In addition to this, the company is plan to enhance its customer base level and for this
funds are required for activities such as promotions and so on.
Human resource: It is consider as one of the factor that help company to reach on higher
growth and success level. Their skills and abilities help an entity to offer quality to users and
develop them as loyal customers that has positive influence on performance as well as
profitability of an organisation. For instance, JS supermarket Ltd have develop policies and make
use of effective approaches that help in hiring best and talented candidate for company (Hickman
and Silva, 2018). It is important for manager of JS supermarket to maintain effective relationship
with their employees as if it does not occur, it may lead to decline in efficiency level of company
and enables it to attain objectives on time period. It is suggested to company to develop better
policies, provide compensation, training to employees as it motivate them and enhance their
level of skills and capabilities to perform task. It will help small companies to make
improvements on its performance level and attain objectives within stipulated time frame.
Goals, vision and targets: In order to gain leading position at marketplace, it is important
to increase number of customer and turn them as loyal towards company. The vision of company
is to gain leading position within retail sector. In addition to this, the goal of JS supermarket, a
small company is to develop a positive brand image by offering quality service in market that
satisfy customers. It is determine that the target audience of company is people belong from age
group 20 to 45 years. All this take place by JS supermarket by considering all factors of planning
and allocate the resources in optimal manner, which will also help in attaining objectives in a
timely and proper manner.
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Premises and equipment: Another important factor which is required to be consider
while planning and allocating resources are premises in which all the activities is performed and
the equipments that assist in proper implementation of activities. Availability of proper
equipments along with a proper space is essential in order to execute operations and allocating
resources in an effective manner.
Business plan: it is significant for higher authorities to determine their business plan
before planning as well as allocation of resources. Considering all the strategies and tactics
involved in business plan help in proper and effective allocation of resources that directly leads
to attainment of growth and succeeds as well.
Performance management: It is consider as a tool which is adopted by companies in
order to gain an insight about the performance and skills of staff members working in an
organisation. In addition to this, it is analysed that analysing performance and allocating
resources accolading to it plays vital role in attaining business objectives in a timely and
effective manner.
Health and safety issues: One of the main factor that is needed to be undertaken is
health and safety of employees which is important for proper functioning and implementation of
activities. In addition to this, considering health and safety of employees assist in proper
planning & allocating of resources and also help in achieving desired goals in an effective
manner.
Tools and techniques in an analytical manner on how to plan as well as allocate resources in an
organizational context
The various techniques as well as tools help an entity to easily plan resources in a
structured way is given below in context to chosen organisation/;
Gantt chart: This chart represents the overall schedule of particular project and consist of
initial and completion days a well. In addition to this, Gantt chart us considered as a particular
chart which represents accurate time is going to consume for completion of project. By the
assistance of this tool, small companies can gain knowledge about task to be achieved and at
what time as well.
Critical path analysis: By the assistance of this tool, companies that is large or small in
nature needed to stay right on order along with the budget specified for particular project
(Hodges and Link, 2019). Critical path analysis tool help managers to achieve task with time
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