Managing and Running a Small Business

This report discusses the main considerations for managing and running a small business, including resource allocation and planning. It explores different processes of customer relationship management and evaluates their effectiveness for small businesses. The report also explains how a small business can develop transnationally and discusses the benefits and drawbacks of this approach. Additionally, it covers how to produce an annual itemized monthly cash flow forecast and apply break-even analysis. Finally, it interprets key financial statements and discusses the implications of key legislation and regulations on small businesses.

Managing and running a small business
INTRODUCTION
For every organisation, it is important to manage and run their
business effectively and efficiently. Managing a small business is
considered as an ambition for few of an individual. The idea of
business may be coffee shop to repairing workshops no matter which
is. For this report, the undertaken organisation is Oakman Inns &
restaurants Ltd. which was established in year 2007. It is developed
with unique concept that is ‘Modern public house’ and having
headquarters is in Tring Hertfordshire, United Kingdom. The topics
that will be discussed in this report are essential consideration that
small business required to address resource allocation and planning.
Moreover, evaluation of several consumer relationship procedures,
determination of small business can formed transnational along with
their advantage and limitations. Along with this, monthly cash flow
forecast, application of break even analysis on firm’s situation and
Interpretation of key financial statements. Apart from this, some key
legislation which have implication on small business are also discussed
in this report.
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs
to address when planning and allocating resources to achieve business
objectives.
Currently, small business are motivated through society as well as
government as this is helpful in boosting country’s economy as by this they can
drives towards maximisation of individuals competencies, employment rate and
others. So, there are numerous key considerations that a small or societal
enterprise required to execute during resource allocation and planning for
accomplishing objectives. Likewise, Oakman Inns & restaurants Ltd. should
consider this aspect while performing their business practices: some of them are
discussed underneath:
Ascertaining the project scope: As per Oakman Inns & restaurants Ltd., it
has to ascertain their business scope. Within this, it will determine the customer
reactions either they have keen interest on it or not. So, with the assistance of this,
they can able to analyse its business sustainability periods.
Determining the requirement of resources: In context of Oakman Inns
& restaurants Ltd, they has to analyse the resource requirement which are essential
for attainment of its goals appropriately. So, for respective organisation the
essential resources will be human resources and advanced technology for tracking
customer address, its views related to food items and others.
Formulate effective plan for resource allocation: In this context,
Oakman Inns & restaurants Ltd. should formulate effective resource allocation
plan as with the assistance of this resource are utilised efficiently without more
wastage. Also, this will direct their management to utilise the resource in more
appropriate way.
Therefore, the above mentioned are some key consideration that of

CRM and Transnational Operations
P2 Explain and evaluate different processes of customer
relationship management for a small business or social enterprise
Customer relationship management is considered as a techniques
which intent for encompassing overall interactions of business with
past, present as well as future client with an aim to improve consumer
relation in that enterprises. Moreover, its objectives is to accumulate
appropriate data regarding clients as well as utilise it effectively for
enhancing the optimistic customer interaction with Oakman Inns &
restaurants Ltd. which would be outcomes into sales maximisation. The
system of CRM is generally collaborative, the accumulating
information with the help of whole customer relationship phases such
as service facilitator, marketing and others enable respective
organisation managers to develop appropriate decisions.
The management of consumer relation is an approach for
handling Oakman Inns & restaurants Ltd. communication with present
as well as targeted clients. This utilises data analysis related to history
of consumers for improving business relation with audiences, mainly
concentrating upon consumer retention as well as ultimately drives the
growth of sales. One of the essential aspects of this CRM system which
compile information from ranges of various communication channels
involving respective organisation websites, live cha, social media and
many others. So, with the assistance of this system as well as approach,
the Oakman Inns & restaurants Ltd. get knowledge regarding its
targeted customers and how to accomplish their requirements in
effective way.
Customer relationship management is also regarded as the accumulation of
strategies, technologies and activities which Oakman Inns & restaurants Ltd. apply
for managing as well as analysing information and interaction of customer all over
consumer life cycle with intent of developing customer relations and helps into
client retention, enhancing sales tec. The system of customer relationship compiles
consumer information across various channels that involve Oakman Inns &
restaurants Ltd. marketing material, direct mails, website, social media and others.
This also facilitates consumer facing employee data upon clients’ buying history,
preferences, personal data and many more.
So, for Oakman Inns & restaurants Ltd, customer relationship management
includes:
 Procedures which assists them to determine and targeted their potential
clients, produced effective sales leads as well as execution of marketing
campaigns with appropriate objectives.
 Procedures which assists to develop effective relation with clients for
improving consumer satisfaction as well as facilitates higher degree of
client’s services to the very much potential and profitable consumers.
 Procedures which facilitate staff with the data, they required for
understanding its clients requirements as well as desires and develops
effective relations among organisation and their clients.

P3 Explain how a small business can develop transnationally and
determine the benefits and drawbacks.
Small enterprise can formulate transnational with the assistance
of numerous aspects, this is considered as the development of activities
that is performed all over the country. The Oakman Inns & restaurants
Ltd. management want to develop its business internationally so or this
it required consumer relationship management procedures that’s
involve developing portfolio of potential consumer as by this it can
able to build network effectively and also their management require to
ascertain understanding in respect of plan and strategy formulation. So,
some benefits and limitations are discussed below:
Benefits:
Grab the attention of new customers: It is considered to be the
fundamental advantages of Oakman Inns & restaurants Ltd. business
expansion. This is essential for them to grab the attention as well as
retain new consumers. For example: when firm add new services to its
portfolio or moves in new marketplace then they may bring into
beforehand untapped consumers market. So, to reach out the new
clients with expansion is a thing, but obtaining them for longer period
is fundamental. Therefore, developing loyal base of customer is
effective way to attain stability as well as gaining profitability over
time.
Economies of scale: While exploring business, the firm often
broaden the risk related to performing business as well as minimising
product potential or a worst decision that impact its business
negatively.
Performing into various market places enable them to increase business cost across
potential market or clients. So, this is helpful into less business cost performance
upon per consumer basis that develops towards profitability through adding extra
consumers. Therefore, it is beneficial for Oakman Inns & restaurants Ltd.
Limitations:
Limited expansion: The Oakman Inns & restaurants Ltd. manager wants to
expand its business effectively. So, through involving into various services or
markets may cause the firm to increase their competencies out to the point which
is not effective. Expansion of business only creates a sense that in case firm has
appropriate resource for covering the new marketplace or expertise with them.
Therefore, a respective organisation manager feels that it affects their business
pessimistically.
Requirements of huge capital: The limitation of expanding business is that
if a firm or restaurants like Oakman Inns & restaurants Ltd. invest its money as
well as some other resources for expanding their operation, there is not more
capital available with them for another business transaction. Undertaken the potent
return upon investment for every services or new marketplace it could explore
within, before investing its capital into a way of expansion. Firm’s obligation of
debt may be manageable if cash flow is analysed timely and sales inconsistent.
CRM and Transnational Operations

Finance
P4 Produce an annual itemized monthly cash flow forecast, showing
fixed and variable costs set against income for a specific organization.
Cash flow statement is considered as the financial statement which
facilitates aggregate information in respect of whole cash flows a firm
obtains from their continuous practices as well as external sources of
investment. This includes overall outflows of cash which are paid for the
practices of business as well as investment at specified duration. Herein,
whole transaction of cash are included from small to large whole are
shown effectively. Moreover, this is helpful to measure all the cash
position within an accounting period as well as this also aids enterprises to
get knowledge about the availability of cash into its business. In context
of Oakman Inns & Restaurants Ltd., its manager has to formulate
financial statement in order to make plans as well as strategies effectively
for accomplishment of objectives

Finance

Finance
P5 Explain how break-even analysis could be applied to an
organisational situation.
Break even analysis is considered as the monetary tools that
assist firm to determine and assess numerous income ratios as well as
situations facts. Within this situation, Oakman Inns & restaurants Ltd at
the centre in which there are not any profitability or nor any losses. So,
Herein, respective firm management required to formulate effective
decision by which it can shift towards obtaining profitability into
potential market area. Moreover, in context of Oakman Inns &
restaurants Ltd., it may apply arithmetic method as it will assist them
into procedures of decision making for various situations. So, equation
for the circumstances is described below:
Break even quantity = Total fixed cost / (Price - Average variable
cost)
Therefore, the assumption related to breakeven point analysis is:
Average per unit cots: It is considered as an incremental cost, variable cost
or sales per unit within Oakman Inns & restaurants Ltd. in case it purchases
products for resale then it will be whit they paid on average for the product’s firm
sell. If the company provide services then it is that they cost them per dollar for
facilitating that service. And in case, they are utilising a table for forecasting the
unit based sales for production and mixed types of business, it may project cost of
units from table of sales forecast
P6 Interpret key financial statements for an organisation in relation to how
they contribute to the successful management of the organisation.
Financial statements are considered as written records which deliver the
activities of business as well as financial performance of organisation. This is often
audited through accountants, government agencies and others for assuring
accuracy as well as for investing intent or tax. It includes Balance sheet, income
statement and cash flow statement. All these are formulated to determine that how
it contributes towards successful management of Oakman Inns & restaurants Ltd.
all three are discussed below:
Balance sheet: This is considered as important financial statement as it
assists in determining the financial position of organisation. This facilitates data
such as assets, liabilities and shareholders’ equity. Within it, the assets should be
equal to liabilities as well as equity. So, it provides assistance to perform the
management in successful manner within Oakman Inns & restaurants Ltd.

Laws and Regulations
Cash flow statement: The respective statement is formulated for
performing overall outflows and inflows. It facilitates clarity either
business is gaining profitability or not. This is categorised into three
such as investing, financial and operating practices. It is very much
vital as this states position of cash flow. In order to run the business
successfully, Oakman Inns & restaurants Ltd. must has appropriate
funds. As they required cash, to pay its daily expenditures, buying new
equipments and others.
Income statement: This facilitates information upon the
expenditures as well as revenues of the firm. Moreover, it also render
data related to company’s operating practices and direct, indirect and
capital expenses that are incurred will be shown here. This consists all
Oakman Inns & restaurants Ltd. cost such as administrative, salaries,
research and development expenditures.
TASK 4
P7. Discuss key legislation and regulations that have implications
on small businesses or social enterprises
Small enterprises have to comply all the requirements of legal
regulatory which involves to perform tax, health and safety, record
keeping and others. The several regulations that are complied through
Oakman Inns & restaurants Ltd. arte discussed below:
Employment Rights Act: This key legislation is imposed in year
1996 which states that employer have to clarify the essential staff
contract terms in written
. Moreover, it has to be facilitated to staff of Oakman Inns & restaurants Ltd into
two months from the initiating of its employment. The small business should
assure that staff must understand its contracts terms as well as conditions. It also
safeguards the staff from unfair dismissal.
Equality act 2010: This is considered as the legal regulation which safeguards the
individuals’ rights. Moreover, it also assures that all has to facilitate the equal
opportunity. This can also assures that no one will be discriminated as per its age,
culture, religion and many more. It is helpful in protecting the staff from any kind
of harassment at work area. Therefore, Oakman Inns & restaurants Ltd. must be
assure that none of their staffs gets discriminated into its organisation or
restaurants.
CONCLUSION
As per the above report, it has been concluded that managing a small business
is important as it is helpful in attaining their organisational objectives. Moreover, it
requires undertaking some key consideration in order to attain their objectives
effectively and efficiently. Also, there are some benefits such as grabbing the
attention of customer, economies of scale and others on other side there are few
limitations like limited resources etc. for business expansion. Along with this, cash
flow statement is helpful to measure all the cash position within an accounting
period as well as this also aids enterprises to get knowledge about the availability
of cash into its business. Part from this, break even analysis that assist firm to
determine and assess numerous income ratios as well as situations facts. Also,
organisation has to comply some legislation such as employment rights, equality
right and many more for the beneficial of the business.

Laws and Regulations
REFERENCES
Books and Journals
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Finances through Small Businesses. Academy of Strategic
Management Journal. 19(3). pp.1-11.
Dumlao, M. P. O. and et. al., 2020. Challenges encountered by women
Entrepreneurs in managing Food Businesses. International Journal
of Advanced Engineering, Management and Science. 6(2).
Rowe, S. F., 2020. Project management for small projects. Berrett-
Koehler Publishers.
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.
Šebestová, J. ed., 2020. Developing Entrepreneurial Competencies for
Start-Ups and Small Business. IGI Global.