Managing and Running a Small Business

Managing and running a small business
INTRODUCTION
Small business is consider a privately own business, partnership
or sole proprietorship which has very less annual revenue and staffs.
These types of business impacted greatly on the economy at the world
wide level as they provide employment opportunities, enhance leaving
standard and many more. In order to manage and running a small
business an organization need to have skilled, knowledgably and
capable employees who perform task in best way. Organization
selected for respective report is London Travel Market which is
conducting its business at the travel and tourism sector and it is
operating at the London, United Kingdom. It is a small travel company
operating at UK market. Topics covered in respective report are how
small business plan and allocate their resources, process of customer
relationship and benefits and challenges of transactional operations.
Along with this, it also include cash flow forecast, break even analysis
and budget as well as it also include interpretation of main financial
statement. It also includes regulation and legislation for small business.
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.
Now a day small business are encouraged by governed as well as society
because that aid in increasing the economy of a nation as through that it leads to
enhancement in employment rate, leaving standards, people skills and many more.
There are several key consideration which a small business or social enterprise
need to implement when they are planning as well as allocating resources in order
to attain gain. Similarly London Travel Market also need to considered those
factors while conducting business operations and functions, from which some
main are mentioned below:-
 Determine scope of project – According to this respective company need to
determine scope of their business. In this they will evaluate the respond of
audiences that whether they are interested as well as like company offering
or not. It is so because through it sustainability duration of business can be
determined.
 Identify required resource – In respect of this London Travel Market need
to determine requirement of the resources that are needed for the
accomplishment of work or project in the proper ways. In respect of Travel
Company their essential or required resources will be new technology for
booking, transports and many more.
 Develop proper resource allocation plan – In respect of this for a company
it is essential to develop proper allocation plan for the resources because
through that they can use resources in effective manner with minimum
wastage. Moreover, it will also guide management that how they use
resources in the west way for the fuller utilization.

Contemporary Hospitality Industry
 Employment legislations – This is other main aspect which is
need to be considered by respective company while conducting
their business as they need to determine legislations related to
employment which is required for effective working of business
operations and functions.
These are the main aspects which need to consider by London
Travel Market as they are working as a small business or social
enterprise as well as these factors help in attaining goal successfully.
TASK 2
P2 Explain and evaluate different processes of customer relationship
management for a small business or social enterprise.
Customer relationship management is considered as method
through which a company able to manage their relationship with the
potential customers which leads to their retention. For every company
it is essential to develop as well as maintain proper customer
relationship as that attain desire goal. There are different procedures
which a company may adopt for conducting effective customers
relationship management. From that some of the main procedures are
mentioned below in respect of London Travel Market:-
Digital platform
 Social media – It is one of the most common method which is used by a
company in order to develop as well as maintain customer relation
effectively around the world. There are several social media sites which
respective company may adopt in order to enhance their customer relation
and customer’s base such as facebook, instagram, twitter and many more.
 E – Mail – Respective company mat also adopt e mailing method for the
customer relationship effectively. According to this they can send e mail on
customer’s special day such as birthday, anniversary and so on. Along with
this, they may also ensure that enquiry of customer must resolve on time.
 Online chat – In respect of London Travel Market they can also provide
online chat option on their website as that will help in resolving as well as
directing audiences in effective manner. Through this customers can
resolve their issue effectively as well as in instant manner which improve
relationship with company.
Non digital platform
It is considered as platform which not involves any feature and facility
related to the digitalization. This may include face to face service provided by
company for attracting customers successfully. According to this, London Travel
Market may conduct advertisement as well as promotional activities through face
to face so that they attain their desire goal successfully.

P3 Explain how a small business can develop transnational and
determine the benefits and drawbacks.
A small business may develop transnational through the help of
several aspects or factors; it refers to the creation of practices which is
done across the boundaries of a county. As these aspects are very
essential for the development of transnational. The management of
London Travel Market want to grow business in the nation boundaries
and for that they need to develop effective customer relation which can
be developed through a process of customer relationship management
which will include develop of customer portfolio as through that
development of network can be done in effective manner as well as
management of respective company also need to determine customer
intimacy related to the development of strategy and plan. In addition to
this there are several advantage and disadvantage of the respective
aspects that are mentioned below:-
Advantages:
 The respective method can be adopted by London Travel Mar-
ket in order to enhance their sales as well as profit ration in a
specific time frame. In order to this company able to improve
its profit margin successfully. In addition to this it will also help
respective company in delivering quality services to the cus-
tomers which provide opportunity to expand business. It also
helps in determining issues which arise while conducting busi-
ness operations and functions according to which management
may develop strategies properly as well as initial stage. Along
with this, respective sales plan is also very
effective for the companies who merchandise good and services at the
potential marketplace.
Disadvantages:
It is considered as one of the effective method or tool but it is determined that for
small size business it is expensive in nature due to which it is high chance that
London Travel Market not able to implement it in the best manner.
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and
variable costs set against income for a specific organisation.
Cash flow statement is considered as type of statement which a company
adopted while they are evaluating or examine their profitability ration which is
mentioned at the cash inflow as well as outflow. In this statement all the cash
transactions are mentioned from small to big one and all are review properly. The
succession of a business is depend upon the aspects which enable a business to get
extra resources that may adopt for communication perspective budget as well as
predicting strategies. In respect of London Travel Company, their management
develops financial statement so that they can develop plan as well as strategies in
effective manner for the attainment of desire goal.
Contemporary Hospitality Industry