Managing and running a small business

This document discusses the management and running of a small business, including resource allocation, customer relationship management, and international business development. It covers topics such as planning, budgeting, forecasting, cash flow management, and key financial statements. It also explores the implications of key legislation and regulations on small businesses.

ACADEMIC YEAR
2019-2020
UNIT 49
Travel/Tourism Start-up

UN
Managing and running a small business
INTRODUCTION
Small business management is an act and process which utilise
by entrepreneur during running their manufacturing actions and
functions. Businesspersons may require acknowledging that how to
manage workforce, effective fiscal data and get monetary assets or
organisation resource and make several trade determinations (Steingold
and Steingold, 2019). To administrate a small business, the
management of venture improves and designs strategies, plans and
policies so that business can run in effective manner. This written
document is supported to Eddy Travels which is a provider of AI
Travel assistant to help users flight and hotel deals in their proffered
chat application. It also provides a search for car rentals, travel
insurance, restaurants, travel tips and many more. This organisation
was incorporated in 2018 and there are 12 employees who make their
contribution in running the business of this establishment. This report
will explains about needs of small business to tackle resources to
achieve business goals and hit set targets, evaluation of several activity
of customer relationship management and strategies of making
business development and expansion at international extent.
TASK 1
P1. The main consideration of small enterprise which needs to address in
planning while allocating assets to accomplish business objectives
It is analysed that the contribution of small scale business to UK economy is
main. It is needed that these enterprises should be make development in the economy.
They have contributed to more than 5% in the economy of nation from past few years.
Eddy Travels is one of these small scale firms incorporated in UK. There are several
resources to be administrated by the establishment considering its human resource m
finance, land and more (Rowe, 2020). It is the responsibility of human resource
manager in the firm to assure that all the objective and aims f the firm satisfied. The
main elements of respective venture are defined as under:
Mission, vision and target: It is needed for a company to analyze its mission and
aims. This will assist in leading all the people in an establishment to words their aims,
goals and target. It is required to form from strategies for the future actions to be
completed. When tasking Eddy Travels into deliberation, the firm has a clear vision to
reach out international market and also bring in modification. The mission of venture
is to offer better qualities of commodities and facilities to their consumers. Respective
firm assure that they know all the needs of target audiences and satisfy them
effectively.
Flexibility: It mentions to an essential section of an establishment in which it
is needed by the establishment to modify its plan of actions and policies along the
changing business atmospheres. It is seen that at the time of changing requirements and
needs of consumers the business atmosphere is dynamic in nature (Tidd and Bessant,
2018). When taking Eddy Travels into consideration the administration of firm assure
that all the policies and production functions of organisation are flexible enough to

Managing and running a small business
They maintain on organising regular market determination so
that needed trends in the marketplace can be brought in the company.
Financial resources: There are range of financial assets which
form an essential portion in firm. It s often seen that fiscal resource are
backbone of a number of divisions in company. When taking Eddy
Travels into consideration the firm has good fiscal situation which
always supports all the departments of the firm. It is required for
enterprise to offer fiscal audit so that trust of stakeholder in the fiscal
ability of the company can be brought in the firm.
Quality and human resources: Human resources are a great
backbone for any company. All the work in an organization is
conducted by the human resource and it is needed that the personal and
professional goals of the whole workers performing in an enterprise are
brought together by the management of firm. When taking Eddy
Travels into deliberation the enterprise executes to hire skilled and
qualified workers for their company. They also offer a lot of training
and development to all the workers in the company. With the assistance
of training and development offered to the manpower in the firm they
can efficiently bring in increment in ability of employees.
Control: Control is an efficient and as initial tool for each
company. This component of an enterprise has the administration to
compare the execution of company matches the plan of the firm so that
there are no loose of control in the middle (Crane and et. al., 2019). It i
required that the administration of firm constantly bring in controlling
tools so that if there is any deviation among the prepared plans and the
accurate output of the firm the reason for the modification can be found
out and eliminated.
P2. Evaluate different process of customer relationship management for a
small business or social enterprise
Consumer relationship management is an method that is utilised by a
company to assure that the existing potential consumers often company is
administrated well by the firm (O'brien, 2019). It is needed for an establishment to
determine different information of history and current while conception of the
target audiences in reference to manage the customer relation.
Portfolio analysis: It is a structure and method that utilised by companies to
determine its several consumers and market structure. This will assist the firm in
finding target audiences as per their commodities and facilities buy and also
several demographic, psychological components. Brand administration is an
essential aspect of consumer portfolio development.
Advantages: Different consumers and the determinations towards buy they
make along with an authority in the marketplace can be acknowledged with the
assistance of this determination.
Disadvantages: However, this determination does not offer any particular data
towards the company and judgement of the person becomes complex.
Customer life-cycle management: It is a tool where consumer relation in an
enterprise and their cooperation with each other along with purpose to administrate
the end consumer is completed by an establishment. It is a constant activity which
is continue and it is needed by firm to utilize a number of tools so that they can
maximize profit of the firm and target audiences interest in the enterprise.
Advantages: The main benefits of this technique is that utilization of different
tools can assist the firm in bringing in advantages for long time duration.

Disadvantages: The key demerit of this determination is that the
changing trends and needs of customers can not be analyzed as it is
needed by firm to continually design several plan of actions and
bringing innovative thoughts for the custom (Giacosa, Mazzoleni and
Usai, 2018).
P3. Explain how a small business can develop transnationally and
determine the benefits and drawbacks
It is required for an establishment to assure that they are
traditionally maximising at business extent internationally. This will
assist them to maximise the advantages and profits and market share of
the enterprise. There are a range of different benefits which firm can
grow internationally.
Advantages
Attracting new customers: When an establishment is venturing
into global marketplace, it becomes require for company to get
attention new target audiences (Hugos, 2018). Attracting new
consumers will assist in maximizing the market share and revenue of
the enterprise and also the consumers of the enterprise will enlarge
profits of it.
Economies of scale : An establishment which is dealing globally
can efficiently bring economies of scale by huge production. It is often
determined that companies are minimising their finance by offering
quality services. This will assist the enterprise in earning more revenue
because when the cost of production can be decreased then the profits
can be improved.
Disadvantages:
Resource requirements: It is also monitored that there are a range of assets
which consider manpower, finance and offering services etc. It is required that the
respective enterprise has availability to all these sources when expanding business
globally. It becomes hard for enterprise to organize their business without
accessibility of all these assets.
Huge Capital requirements: It is often analysed that ventures need more
resources to operate internationally. It is needed to conduct market research and
drive new marketing strategy for the new marketplace. A number of small ventures
so not operate globally as they have not more fund and cannot arrange such kind of
finance.
ACTIVITY 3
P4. Cash flow of organization
Cash flow statement is a document that is basically used by an enterprise in
context of acknowledges the outflow and inflow of fund within an establishment in
a granted timeframe (Hugos, 2018). It is an effective tool and method for an
enterprise.
Managing and running a small business

Managing and running a small business
Budgeting, planning and forecasting
The execution of firm is associated to different three factors of a
company which are planning, budgeting and forecasting. These are three
essential components of fiscal administration in an enterprise that assists
the stakeholders to acknowledge how the company is performing in
financial term. In context of Eddy Travels when it is determined that
establishment is liable to execute an effective budget, strategy and
forecast of the system so that the needed fund of the establishment can be
managed. It also assists in taking appropriate decisions. There are a range
of options that companies may find out and also assure that they are
minimising their cost of production by offering quality services and
commodities.
P5 Break-even analysis
When taking Eddy Travels into consideration an algebraic method is
accepted by the firm for determination devising and also looking for complex
situation in the firm (Hugos, 2018). The calculation of breakeven point:
Different advantages of Break Even analysis
 This analysis assists the firm in finding out all the cost of an
establishment that considers cost and variable cost which will assist the
firm in managing its cash flow statement.
 With the assistance of this analysis an organization like Eddy Travels,
the firm can acknowledge an overview of various sales costs and it can
take decision appropriately.
 Breakeven analysis also assists the firm to find out a range of its assets
of administration that will assist in functioning of management. This
majorly includes the fiscal assets of the enterprise and also monitors that
how waste can be ignored in order to optimal use of assets.
 The respective analysis also offers several advantages to firm and assure
its financial position in marketplace (Kot, 2018). With the assistance of
breakeven analysis, they can bring the needed modifications in all its
court so that the sales and profitability of respective firm can be
maximised.

Managing and running a small business
ACTIVITY 4
P6. Key financial statements for a company
Every business enterprise running their business and making it
growing by designing and preparing numerous financial statements that
is important for organisations. Small establishment is also need to
prepare fiscal reports so that they can also manage and determine their
trade performance in competitive business environment. In context of
Eddy Travels, the administration are framing and suggesting use of
software to formulate and develop different fiscal documents that
defined as below:
Balance sheet– This financial technique is the record of assets and
liabilities that arises in business enterprise. It is formulated with the help
of statements such as income document, cash flow and trial balance
sheet and many more (Polonsky and Waller, 2018). In reference to
respective firm, the financial division also frame and develop balance
sheet by defining and considering assets and liabilities that need to pay
off at the time of running small business entity.
Cash flow statement–For identifying the liquidity and all activities or
operations in reference to financing, a fund flow statement is formulated and
designed by management that specific information and accounting as well as
about monetary policies to run business and analysing profitability margins.
Therefore, in respective enterprise, the administration is made its focus on
running, investing and fiscal activities to understand the availability of finance.
Profit and loss account– In is an effective financial statement which
prepared and designed by accounting and finance function of Eddy Travels with
the purpose of acknowledging the profits and losses circumstances of their
manufacturing. It helps to develop and improve the business enterprise’s gains
and profitability that invests in order to execute business actions and operations.
P7. Key legislation and regulations that have implications on small business
or social enterprises
In Eddy Travels, the management is suggesting to its target audiences and
considering some laws and legislation and the description of them as under:
Consumer Law- This legislation was developed with the purpose of
protecting an individual from unfair and unethical activities that is arisen during
transaction from an individual and an establishment (Soundararajan, Spence and
Rees, 2018). Thus act consider different regulation such as Goods & Service Act
which state that quality commodities and facilities is offer the consumers so that
their needs can be satisfied in an efficient form. Furthermore, this act protects
consumers of being by organisations overcoming in market.
Employment Law- One of the main resource is worker that reaches a firm
regarding success and development. The workforce execute task and use their
effectiveness regarding the accomplishment of aims in set time period.

Managing and running a small business
It is crucial to protect the manpower and follow all the
legislations associated with employment law in an appropriate form.
With the help of it, respective firm can make workers feel valued and
essential section of a venture that instantly directs to maximise
effectiveness of establishment. Along with this, it also improves
favourable mind set of employees regarding the firm objectives and
aims as well.
Data Protection- It is essential for an enterprise to protect the
information of all the consumers and manpower secured in an
appropriate form. Along with this, it is crucial for a firm to should not
share the information of any consumer and worker without being
informing because it is unethical and also affect the brand image in
negative manner.
Health and safety act- It is a crucial act for respective
establishment to offer safety and security to manpower that directs to
maximise in productiveness of an enterprise (Bloom and et. al., 2019).
The health a worker needs to be good then only they can perform with
all their effectiveness. It is important for establishments to follow all
the regulations incorporated with health and safety act in reference to
offer security and prevention to all people of organisation.
CONCLUSION
It has been concluded from the defined content that the business firm need
different types of resources to run its business that also help in organising the
business. Business management also play an efficient role in it because they focus
on needs so that they can provide satisfaction by offering goods and services
accordingly. Fiscal document are framed and prepared by manager and executives
as they have data about particular area f business in which establishment invest
capital and gain profitability.
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Contemporary Hospitality Industry
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Online
Eddy Travels. 2020. [Online]. Available Through: < https://craft.co/eddy-travels>.