Managing and Running a Small Business

Added on - 22 Jul 2020

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Managing and Running a Small Business
Table of ContentsINTRODUCTION...........................................................................................................................4TASK 1............................................................................................................................................4P 1 The main considerations a small business needs to address when planning and allocatingresources to achieve business objectives....................................................................................4TASK 2............................................................................................................................................6P2 Explaining and evaluating different procedures of customer relationship management for asmall business.............................................................................................................................6P 3 Explaining the way small business can develop transnationally and determine the benefitsand drawbacks...........................................................................................................................7TASK 3............................................................................................................................................9P 4 Preparing a monthly cash flow forecast showing fixed and variable costs set againstincome for a specific organisation............................................................................................9P 5 Explain how break- even analysis could be applied to an organisational situation...........10P6 Interpretation of key financial statements for an enterprise in context of the way theycontribute to the management of business................................................................................11TASK 4..........................................................................................................................................12P 7 Key legislations and regulations that have implications on small businesses..................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONSmall business enterprise are those which have few numbers of employees. These firmsare also recognised as privately owned corporations, or sole proprietor business units. Smallbusiness enterprise generally have low revenue. These business units are recognised orconsidered to be small in terms of size , scale of operations , business activities etc. In UK Smallmedium enterprise are contributing a lot towards generation of employment as well as economicdevelopment of nation. Managing the small organisation is considered to be as less difficult taskas compared to controlling or monitoring the operations of big companies. Whether its small orgiant business unit , an entrepreneur need to posses specialised skills , knowledge as well as corecompetencies in order to manage business in systematic manner. An organisation which areoperating at small scale have high potential to foster growth.The purpose of the project is to highlight the abilities or core competencies which arerequired to be achieved by an entrepreneur for running and managing business. It also intends toenable an individual to develop understanding about importantaspects of running a smallbusiness in Context ofTASK 1P 1 The mainconsiderations a small business needs to address when planning and allocatingresources to achieve business objectives.Resource allocation is considered to be very much difficult as well as critical taskespecially in small enterprise like Razzmatazz. An organisation is recognised aschildren'stheatre and drama company. Business entity have achieved leadership position in entertainmentindustry. Resource allocation is also considered to be as important part in making plans forbusiness. It is required by manager inRazzmatazz company to formulate suitable strategies orplans for allocating resources. As this will help management team in identifying the need formaterial and resources for conducting several operations within an enterprise. It will also assistmanager in ensuring the effective as well as efficient utilisation of resources. There are varioustypes of resources which might be required for executing various functions within anorganisation such asassets, finance, employees, equipment, technology, machinery, land, labour,expertise, time, information, equipments etc.It is very important for manager to include detailinformation about resource requirements in business plan and to ensure that an organisation have
sufficient resources to increase their activities. There are several techniques which can beadopted by the manager in Razzmatazz company for allocating resources these are:Business budgeting-It is required by manager in an enterprise to prepare the special budget anddecide he right level of resourcing for each department. Manager in an organisation shouldprioritise resources. It is very much crucial for management to ensure that funds are allocated insuch a way that all the business needs can be fulfilled as well as organisational objectives can beachieved.Determining the scope of business-Manager in an enterprise analyses the scope beforeallocating the resources. Determining the scope of projects is considered to be an importantactivity will assist an entrepreneur in identifying the several activities, and determining theamount of resources which will be required for accomplishing organisational objectives.,Forming a clear idea about the project scope assist an entrepreneur or manager in allocatingresources in effective manner. In context of Razzmatazz , business entity has scope toattractcustomers of every group.Identifying the resources which are required by an organisation -after analysing ordetermining the project or business scope , an entrepreneur or manager in an enterprise get asuitable guild lines which helps them in identifying the techniques which can be used for drivingfirm towards accomplishment of objectives. Now , it is required by business owner to recogniseor develop the understanding about resources which are essentially required for establishing ,managing and running a business in systematic as well as smooth way. In context ofRazzmatazz, an organisationneeds to work on in bringing some new technologies andequipments for the drama and theatre training sessions (Goksoy,Ozsoy and Vayvay,2012)Evaluation of human resource-business persons or manager utilise an organizational chartwhich is considered to be as an effective tool. As it helps in getting the idea about the workersroles as well as responsibilities. Human resource allocation is a chart which helps managementteam in identifying the person accountable for executing specific operation or activity within anenterprise.Prioritizing the task-As this activity will assist business person or management team inidentifying the important activity.
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