Managing and Running a Small Business

Managing and Running a
Small Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Activity 1- Covered in brochure......................................................................................................3
Activity -2......................................................................................................................................14
Financial management of social enterprise................................................................................14
Cash flow forecast and break even analysing............................................................................15
Break even analysis...................................................................................................................16
Legislation and regulation that impact on small business.........................................................17
CONCLUSION..............................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................19

 INTRODUCTION
Managing small business is necessary as it helps in optimum utilisation of resources and
achievements of specific goals for which firm have been established in market. Manager of firm
is responsible for planning and allocation of resources so that particular task can be completed
within limited amount of wastage of raw material and time. Company needs to make strong
relationship with customers in order to retained higher profit margin and market share in long
run. Nisa is groceries wholesaler in United Kingdom that has employees around 213 and net
worth around £30.77 million. The report discussed about importance of planning and allocation
of resources to achievement of business objectives. It has also evaluates several stages,
component and process related to customers relationship management. It has also explained
about challenges and benefits of transnational operations using stage model of
internationalisation. At last, it covered information about key legislation that impact on small
business.
 Activity 1- Covered in brochure
Importance of planning and allocation of resources for achievements of company goals
It can be stated that planning and allocation of resource is important for SME as it contributed in
optimum or effective utilisation of resources so that maximum values can be render to end
customers. Company by planning in advance about total amount of resource required to
complete task is able to make various strategies that can be helpful in gaining raw material at
minimum prices so that products can be delivered to customers at lower rates (Aley, 2017).
There are various importance of planning and allocation of resources such as:
Boost productivity: Managers by planning in advance about areas that requires specific
resources is able to effectively cater needs of various individual by manufacturing qualitative
products and services. It can be stated that manager through better utilisation of resources is able
to delivered products that are in high value and beyond their experienced.
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Helps in increasing employee’s motivation level: Another benefits of allocation and planning
for SME is that it helps in raising employee morale and motivation level to work hard for growth
and success of enterprise. Planning in advance and better allocation of resources helps in
reducing amount of confusion and conflict between several individual thus contributed in
effective coordination and achievements of company goals.
Contribute in adapting external changes: Manager through planning in advance is able to
know about acceptable changes in future circumstances (Dondjio and Haafst, 2019). Thus,
formulate better strategies to cope with environmental changes such as customer’s preference,
technological up-gradation so that wants of customers can be fulfilled in best possible manner.
Key consideration in planning and allocation of resources
There are several components or key considerations which have to be used by manager of
company while planning and allocating resources within firms. Manager used key consideration
in planning and allocation of resources are illustrated below:
Scope of operation: The first thing that is considered by manager while planning of resources is
scope of operation of business such as nisa have small scale of operation so it requires limited
amount of resources to fulfil needs of few individual and achieve its objectives. Manager by
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