Managing and running a small business

This document discusses the management and operation of small businesses, using AKS IT Services as an example. It covers topics such as cash flow forecasting, break-even analysis, and interpreting financial statements. It also discusses key legislations and regulations that have implications on small businesses.

Managing and running
a small business

Executive Summary
From the written document it can be analysed that small business are operating by less fund
and individual for offering goods and services so people get influence and take purchasing
determinations. To understand about small business AKS IT Service organization has been taken
that is operations business by offering variety of consulting facilities to its consumers and assists
to maximise the business execution in rivalry business atmosphere. This will assist to maximise
the acknowledging about small business, essentialness of fiscal document and legislation which
are crucial to operate business.
Contents

Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
ACTIVITY 1...................................................................................................................................1
Covered in to Brochure................................................................................................................1
ACTIVITY 2...................................................................................................................................1
TASK 3............................................................................................................................................1
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income........................................................................................................................1
P5. Explain how break even analysis could be applied to an organisational situation................6
P6. Interpret key financial statements for an organisation in relation to how they contribute t
the successful management of the concern..................................................................................7
TASK 4............................................................................................................................................8
P7. Discuss key legislations and regulations that have implications on small business or social
enterprise......................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Small business management is an activity entrepreneurs utilise when running their business
operations. Entrepreneurs may need to understand how to administrate employees, accurately
report financial information, obtain economic resources or business resources and make diverse
business determinations. To operate and manage a small business, the administration of company
frames effective plans, policies and strategies so that business can operate in effective manner
(Steingold and Steingold, 2019). To develop the understanding about small business and its
requirement AKS IT Services has been chosen that is a small computer consultant organisation
offer different facility to target audiences by offering Software that utilises to discuss about
salaries and other consultant services. This document will discuss about needs of small business
to address when planning and allocating resources to attain business aims, evaluation of different
processes of customer relationship management and strategies of developing transnationally.
ACTIVITY 1
Covered in to Brochure
ACTIVITY 2
TASK 3
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income
Cash Flow– It states a statement which is designed by accumulation of different activities in
relation to cash, is known as cash flow. It assists to refer the profitability position of their
business in rivalry business atmosphere. In other words, amount of money that is being
transferred for the motive of changing in to liquidity is cash flow. Each firm should prepare cash
flow document by recording and determining their activities which can assist to manage the high
profit and productivity in competitive environment of business. Businesses is based on finance
and it ebullient items which assist to operate business by executing each process and developing
manufacturing appropriately (Soundararajan, Spence and Rees, 2018). The AKS IT Services also
recommend its consumers to keep effective records of business transaction with the assistance of
a Software and frame cash flow document so all actions can be execute efficiently.
Sources of funds:
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To operate a business funds and finances are essential that make considerable of each
actions and process by utilising money and maintain the high execution in competitive business
atmosphere. Without finance it become hard for business firm, to organize its activities and
operate business constantly. So there are several sources that are utilises to operate business and
maximising the production that are as defined:
Own saving– It means of an individual has determined to set up and operate business then it
should have own saving that can be utilise to purchase raw material and keep effective
relationship with providers (Amir and et. al., 2020). It assists establishment to stand
independently by satisfying basic requirements and demands of their business so all activities
can be coordinate adequately.
Equity finance– It is another source of money which utilises by organisations by issuing the
equity share to public and workers who are performing in business enterprise. It assists to
coordinate the business by gathering finance in efficient manner. AKS IT Services has this
option to organise the monetary value from equity assets by gathering finance and keeping the
activities constant.
Loans from family and friends– This source of finance is flexible that can be organise by
business concern for the motive of operating business and developing profitability margins. The
administrator of AKS IT Services organisation have change to coordinate finance by taking loan
from friends and family so that business of an establishment can be set up in ease manner and
manage profit appropriately.
Bank loan– It is another source of fund which is usages by most of the business ventures to
operate and administrate the business activities and operations of an organisation. Individual who
are getting loans from banks and financial institutes, they require to offer security for guarantee
that they can assist to operate small business in effective manner (Wong, Holmes and Schaper,
2018). AKS IT Services establishment can manage all actions and design and frame cash flow by
getting loans from bank that requires to pay after a fixed time so all acts can be administrated
appropriately and maintain the effective execution.
Leasing and hire purchase– This option represent that a business concern can coordinate
the funds by offering material goods on lease so it can get rent timely which can assist and
enable in continuing the business and manage all business profit margins effectively and
efficiently.
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Balance Sheet, P&L and cash flow statement of the Syient London Limited:
Profit and Loss Account at the year ended
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Cash flow Statement
Cash budget for the year
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Forecasting and budgeting
Forecasting states to determines the requirements and assessing the amount that are going to
acquired in business with the motive of operating business. It is essential that should be
performed by administrators who have information and experience towards budget and assessing
the income and expenditures that are needed in business (Russell and et. al., 2020). In AKS IT
Services, administrator are utilising forecasting and preparing budgets by analysing incomes and
expenditures so all business activities and operations can be operate in effective manner.
The techniques for budgeting and forecasting are as defined:
Calculating the moving average– This tool is utilises by administration of respective
company for getting the opinion and affecting the standard by operating business. It assists to
maximise the acknowledging and understanding information regarding budgets and assist to
develop the business.
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Time series data– This technique is utilised to assessing and showing the information series
in list and visual communication that can be easy to understand and develop the business
execution in rivalry business atmosphere (Pakroo, 2018). It also enable in carrying out all
activities and operation in AKS IT Service organisation by designing and framing graphs and
series that manage all business activities and profits in adequate manner.
Dealing with seasonality– This tool refers that the reliability of a business is covenanting
with several period As in some season the need of commodities and facilities maximises and in
some time it minimises that become a confront for company to contract with it. AKS IT Service
is recommending to its target audiences to utilise this tool and method so all information in term
of demand of commodities in season can be recognised appropriately.
P5. Explain how break even analysis could be applied to an organisational situation
Break Even analysis– It is consider as a structure that includes with fiscal technique in order to
get the relevancy and equitability of cost. These refer the position of business by operating
business and keep equal position in rivalry business environment (Bone and et. al., 2019). By
utilising this, a business concern get knowledge and information at what costs consumers are
prepared to manage the equality such as no profitability and no loss circumstances. It is also
assists to indicate the relations among fixed and variable cost in company.
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Uses of budgets, performance monitoring and control– Budgets are essential that should be
equipped by business concern by assessing income and expenditures which are acquiring in
company. This can assists to keep the good execution and determining the actions by
coordinating the finance (Pham, Driml and Walters, 2018). AKS IT Services establishment is
determining and controlling the finance and actions by designing the business actions. It assists
to maximise the business execution in rivalry business atmosphere.
Variance analysis– It is related with that happens in company and refers the diversity among
actual and approximated units. It is the total of overall execution in business that is assessed by
administrators which can assist to maximise the business actions and maintain a high profit
margins. AKS IT Services are utilising variance determine by assessing amounts and bring
developments in their execution efficiently.
P6. Interpret key financial statements for an organisation in relation to how they contribute t the
successful management of the concern
Each company operating their business and devising it successful by concerning and
preparing diverse kinds of fiscal document that are crucial. Small business is also required to
ready fiscal statement so they can get their business execution in competitive atmosphere. AKS
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IT Services are designing and recommending utilising software for framing diverse fiscal
document that are described as:
Balance sheet– It is the recorded document of resources and liabilities which occurs in
establishment. It is framed with the support of all statement like income statement, cash flow,
and trial balance (Pham, Driml and Walters, 2018). AKS IT Services company in designing
balance sheet by explaining resources and liabilities that need to be pay off while operating small
business.
Cash flow statement– To identify the liquidity situation and all activities in context to
monetary value a cash flow statement is framed by administration that have particular knowledge
and accounting policies to operate business and determining the profitability. Such as AKS IT
Service is concentrating operating, endowing and fiscal actions that assists to know cash
accessibility.
Profit and loss account– It is another statement and document which is designed by AKS
IT Services to know the profits and loss situation of their business. It assists to develop the
business profit margins and working capital that utilises to operate business.
TASK 4
P7. Discuss key legislations and regulations that have implications on small business or social
enterprise
AKS IT Services establishment is recommending to its consumers and following self
legislation that is defined:
Tax and employment 1976– According to such regulation a business concern is needed to
pay the taxes to national authority and should offer employment growth options to all individual
that assists to contribute to make the independent and social economic system.
Record Keeping 2006– These laws are associated to records and manage information
properly that can assist to run a business and maximise the organisational productivity in rivalry
business environment (Kgoroeadira, Burke and van Stel, 2019). AKS IT Services establishment
is following such legislation and managing business knowledge and workers information that are
utilises small and other business efficiently.
Health and safety act 1974– The administration of company should make happy to their
workers because they are part of their establishment and making effectiveness to operate the
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business in competitive business atmosphere by offering good health and safety to them (Torrès
and Thurik, 2019). AKS IT Service is following the health and safety legislation by fulfilling
workers and offering them good health that maximises business execution.
CONCLUSION
From the above mentioned information it can be summarised that business are required
diverse kinds of assets that can assist to coordinate the business administrators are playing
essential role as they concentrates on consumers demands and offer commodities and services
accordingly. Financial document are designed by administrators because they have particular
knowledge and information to operate business and maximise the profits margins.
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REFERENCES
Books & Journals
Steingold, F.S. and Steingold, D., 2019. Legal guide for starting & running a small business.
Nolo.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Park, K., 2018. The Korean American dream: Immigrants and small business in New York city.
Cornell University Press.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press,
USA.
Battisti, M. and Deakins, D., 2018. Microfoundations of small business tax behaviour: A
capability perspective. British Journal of Management, 29(3), pp.497-513.
Lombardi, J.M., Makhni, M.C. and Lombardi, J.S., 2019. Building and Managing a Successful
Private Practice. In Orthopedic Practice Management (pp. 73-83). Springer, Cham.
Sharafizad, J., 2018. Informal learning of women small business owners. Education+ Training.
Pakroo, P., 2018. The small business Start-up kit for California. Nolo.
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project
Soundararajan, V., Spence, L.J. and Rees, C., 2018. Small business and social irresponsibility in
developing countries: Working conditions and “evasion” institutional work. Business &
Society, 57(7), pp.1301-1336.
Amir, A.M. and et. al., 2020. FAMILY MANAGEMENT STRATEGIES IN MANAGING
FINANCES THROUGH SMALL BUSINESSES. Academy of Strategic Management
Journal, 19(3), pp.1-11.
Wong, A., Holmes, S. and Schaper, M.T., 2018. How do small business owners actually make
their financial decisions? Understanding SME financial behaviour using a case-based
approach. Small Enterprise Research, 25(1), pp.36-51.
Russell, H.C., Westby, M. and Watt, M.C., 2020. A Vignette-Based Approach to Predicting
Behavioral Intentions When Managing Running Injuries. SAGE Publications Ltd.
Pakroo, P., 2018. The small business start-up kit: A step-by-step legal guide. Nolo.
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Bone, S.A. and et. al., 2019. Shaping small business lending policy through matched-pair
mystery shopping. Journal of Public Policy & Marketing, 38(3), pp.391-399.
Pham, L.D.Q., Driml, S. and Walters, G., 2018. Managing seasonality in rural destinations: A
case study of South Gippsland–Australia. Tourism Recreation Research, 43(4), pp.445-
455.
Pham, L.D.Q., Driml, S. and Walters, G., 2018. Managing seasonality in rural destinations: A
case study of South Gippsland–Australia. Tourism Recreation Research, 43(4), pp.445-
455.
Kgoroeadira, R., Burke, A. and van Stel, A., 2019. Small business online loan crowdfunding:
who gets funded and what determines the rate of interest?. Small Business
Economics, 52(1), pp.67-87.
Massaro, M., Moro, A., Aschauer, E. and Fink, M., 2019. Trust, control and knowledge transfer
in small business networks. Review of Managerial Science, 13(2), pp.267-301.
Torrès, O. and Thurik, R., 2019. Small business owners and health. Small Business
Economics, 53(2), pp.311-321.
Online
AKS IT Services. 2020. [Online]. Available Through: < https://www.zoominfo.com/c/aks-it-
services-ltd/346413507 >.
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