Small Business Success Factors

This assignment explores the critical factors contributing to the success of small and medium-sized enterprises (SMEs). It examines various aspects such as entrepreneurship, risk management, financial considerations, ethical practices, and internationalization strategies. Students are expected to analyze scholarly articles and online resources to understand the complexities of SME growth and sustainability in today's dynamic business environment.

Small business enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profit of small business with strength and weaknesses of the company. .............................1
1.2 Analysis of business using the comparative measures of the performance..........................3
TASK 2............................................................................................................................................5
2.1 Action to overcome the weaknesses which a company have. ..............................................5
2.3 Recommendation for the new area for a business expansion..............................................5
TASK 3............................................................................................................................................6
3.1 The assessment for the existing business plan an objective..................................................6
3.2 Revise the business plan to incorporate the changes............................................................7
3.3 Action plan to implement the changes..................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of the changes on the business and its personnel......................................................9
4.2 Plan for how the changes will be managed in the enterprise................................................9
4.3 Monitor the improvements in the performance of the business in a given period of time. 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business segment use to play an essential role in creating more job possibility and try to
lead help in the creating of more wealth so that the people of community can be able to live their
life easy. Economy of a nation is a combination of different business, and from that all small
business enterprise aids in developing the economy of any local region in proper manner. In this
assessment the example of a small business is caffe Finix it is a small coffee shop which is
established in UK (A. Harris and P. Patten, 2014). In this report the strength and weakness is also
been done to know about its weaknesses and strength of small business enterprise. The
comparison measure of the business is shown and there are various more information is been
written in the given report by which a learner can be able to understand the information which
are related to small business enterprise.
TASK 1
1.1 Profit of small business with strength and weaknesses of the company.
Small business is having a limited area to perform their operations and there are less
employees to work in small business, and they do have limited number of resources with them
and therefore they have to use all that accordingly. Caffe Finix is a small business enterprise in
United Kingdom. They use to provide finest quality of coffee and various services which are
related to ancillary services to the people which come to their coffee shop. They mainly focus
properly on their pricing strategies and quality measures as they can be able to attract more
people towards their shop (Altman, Sabato and Wilson, 2010).
Therefore they are very famous in their area. The person who had started this business
was had limited funds with him, but because of their ability, hard-working they are increasing to
high level, now they have many varieties of things such as tea, coffee, breakfast and food items.
They are mainly famous for their coffee and people like to come here and enjoy their coffee with
friends and family.
SWOT analysis
This is most ideal approach to detail technique as indicated by limit of business. It
remains for Strength, opportunity, Weakness and Threat. This is utilized by association with the
goal that they can recognize its quality and shortcoming that gives help to make enhancements.

Strength Weakness Opportunity Threats
It is key fragment that
states openings which
are accessible in
concern. The capacity
of firm satisfy
necessarily and request
of industry is likewise
thoughtful in quality.
It gives upper hand to
organization in
showcase.
The restriction exists
in business. At some
point, it influences
enterprise in negative
way. This makes
prevention in
development and
improvement of
business.
It is part of condition
that offers preferred
standpoint to
association. It helps to
secure upper hand
over its rival.
These are variables of
condition that makes
deterrent in the
accomplishment of
organization. It makes
boundary in
accomplishing
objectives and goals.
This is made because
of horrible patterns in
showcase.
Quality of Caffe Finix
as:-
 Procedure for
creating quality
item and
administration.
 Area of
business i.e. at
high road at
strip mall.
 Brand an
incentive in
showcase.
 Adaptability to
receive
adjustments.
Following are the
defect of above firm
as:-
 Absence of
value help.
 Frail
sustenance
division and
high lease
charges.
 Abnormal state
of rivalry in
showcase
among this
business.
 Least incentive
to future
Openings are as per
the following:-
 Diversifying of
their business
is one of the
improvement
opportunity.
 Greater interest
in UK since
this industry is
making
development.
 Converge with
huge scale
business.
Dangers are as:-
 Contenders of
market.
 Changes in
legislative
approaches and
plan.
 Political
flimsiness
which came
about into
variety in
assessment and
financing cost.

technique.
1.2 Analysis of business using the comparative measures of the performance.
Any enterprise firm need to make a reasonable examination between their existing charge
of execution with foregone year. This guide in influencing a legitimate decision finished which
administration to can define compelling plans and make their activity viable. This prompts
influence them in accomplish the greater part of their objectives on time with the goal that
business to can keep running in an appropriate way (Audretsch and Link, 2012). In this setting
assortments of methodologies are utilized as a part of which contrasting monetary record,
proportions and a few different things are thought about. Estimation of execution by utilizing
different strategies are:
For the year finished 30 April 2015 and 30 April 2016
2015 2016
£ £
Deals 120,000 200,00
Cost of offers 80,000 150,000
Net benefit 40,000 50,000
Overheads 10,000 15,000
Net benefit 30,000 35,000
Accounting report as at 30 APRIL 2015 and 30 APRIL 2016
2015 2016
Settled resources 15,000 12,000
Current resources
Stock 7,000 18,000
Indebted individuals 12,000 36,000
Bank 1,000 0
20,000 54,000
Less Current liabilities
Lenders 6,000 15,000
Bank overdraft 0 10,000
6,000 25,000
Working capital 14,000 29,000

Net Assets 29,000 41,000
Financed by capital
Opening capital 22,000 29,000
Include net benefit 30,000 35,000
52,000 64,000
Less illustrations 23,000 23,000
Shutting capital 29,000 41,000
With legitimate breaking down of accounting report of Caffe Finix of year from 2015 to
2016, it is obviously get distinguished that in 2015 shutting supply of an organization was 29,000
however finally of year finishing 2016 there shutting stock prompts get increment 41,000 which
demonstrates that they are not creating increasingly benefit.
a) Current proportion = current resource/current obligation
2015 2016
CR = CA/CL = 20000/6000 = 54000/25000
= 3.33 times = 2.16 times
As indicated by current proportion investigation, at the season of year 2015 organization
utilizing their proportion to pay their obligations is 3 times. Thus their condition regards pay the
majority of their obligations by utilizing their present proportion yet then again by considering
proportion of 2016, refereed to firm proportion is just twice which means that they are in terrible
position when contrasted with earlier year.
2) QUICK RATIO (ACID TEST) = CURRENT ASSET – stock/current liabilities
2015 2016
Q r= CA– INVENTOR/CL
=20000– 7000/6000 =54000-18000/25000
= 2.17 = 1.44
Brisk proportion is ascertained to distinguish that how well an organization is working
their business to meet their fleeting money related issues. In 2015, organization is utilizing their
fast proportion to pay off their transient obligations and their proportion is twice which is great
yet in 29016 their proportion get decay and progress toward becoming 1.

TASK 2
2.1 Action to overcome the weaknesses which a company have.
It is an important task for the enterprise to solve the problems that is been faced by the
customers by the products and services of the company. That might create the barriers for the
company in their growth and development process. There is lots of problems are their which are
faced by the Caffe Finix in the market area and it is essential for them to look out that and to
measure the effectiveness so that they can be able to address that problems in proper manner.
The problems which arise in the firm can be like quality, expensive rents, goodwills, etc. these
are the elements which can affect the business in a negative way (Bridge and O'Neill, 2012).
The quality assurance could be used by the company so that they can overcome with the
problems which are related to the quality of the products and services which they are providing
to the people.
The effective procedures are required in the company to establish the business that could
ensure the decoration and taste. It is very essential for the organization to use the standardise
materials by which they can be able to provide quality to the customers of the firm. In UK
different types of programmes and seminars use to conducted and on these occasions they get the
chance to provide their services to people and can increase their brand value among other.
2.2 Performance could be maintained and strengthened
It is essential for a cited firm is to maintain their strength which can provide competitive position
in the market. These are:
 Customer wants a better taste and quality in which company need to increase their quality
standards.
 Customer required a good environment which is one of the most significant aspects in the
coffee business. Caffe Finix are required to conduct feedback and meet their
requirements. For instance, customer needed Wi-Fi at the store should be provided by the
company.
 They also required to increase their outlets which helps to maintain their market share
and profitability.
With the help of above elements company can maintained their position in the market longer run.

2.3 Recommendation for the new area for a business expansion
In the present time the coffee shop is been located in Stratford, and now the management
of the company wants to expend their business to various other places. And for that firstly they
have to analyse the market area properly and then they have to target the customers and than-
after they has to work of the issues which can be affected to the business as well its operations.
The company has to work on the below given term (Burns, 2010).
Location- the place which is chosen should be convenient for the targeted customers and they
have to taken in care about it. The shop should be build in the area where people can easily see
and find it.
Products- To attract more people they should offer new range of products to their customers so
that it can be easy for them to build more customers. The products which is been provided by the
company should have a good quality products to their targeted customers and according to their
needs and wants.
Employees- The people which are working in the firm should be knowledgable, skilled and
polite. They should be talented and know how to treat customers.
Ansoff matrix is been considered as one of the advantageous scheme.
Market penetration- the organisation tries to develop more market share in the current market
and for this they sometimes reduces the prices of their services and products, they use to find the
position in the market by connecting to new customers (Burrows, ed., 2015).
Market development- in this they have to expand their business in the market and that is very
helpful for them and for that they have to target different sort of groups which can be good for
them.
TASK 3
3.1 The assessment for the existing business plan an objective
For all the firm, It is very necessary for the organisation to set target and the objective. In
this they have to formulate some of the plans and strategies in which all of the performance of
the activity is get finished. It is essential to formulate all the activities in a proper manner to
business that will help in promoting and making the business to successfully perform their
activities. This even help in doing the work in appropriate manner, as if they will not perform or

formulate any kind of the planning which are required for the firm then it can make very big loss
to them (Chittithaworn and et. al., 2011).
Subsequently some different indicates on which administration have keep their
concentration are:
1. Give quality items to their clients at aggressive costs. This help them in drawing in an ever
increasing number of clients.
2. Give more helpful technique from which help clients can without much of a stretch devour
their items. This complete while utilizing high quality products.
Every one of these things need to get consider under a strategy for success which is
moved toward becoming as need for refereed to firm. Subsequently, they are as of now enduring
low benefit emergencies which is not reasonable for them while managing huge scope of clients.
Along these lines money related issue is named as one of a noteworthy emergencies from which
Caffe Finix is enduring seriously.
3.2 Revise the business plan to incorporate the changes
For each and every organisation one of the major work which they have to perform is
change their business plans. All these work has to be done in according to the demand and need
of the time. Every one of these things need to complete in as per marketable strategies and
targets as with help of methodologies. Some SMART destinations likewise must be detail by
business element which are:
Specific: according to this idea, administration need to look such zones which truly require
change. Refereed to firm need to take think about nature of item which is dealt with as particular
in nature (Ebert, Griffin, Starke and Dracopoulos, 2014).
Measurable: Some components which helps in propel an individual are consider as quantifiable
substance. For this specific situation, refereed to firm need to utilize those methodologies from
which their representatives get urge to play out all assignment.
Attainable: Goals need to figure in such a way through which their accomplishment turn out to
be simple and conceivable. Henceforth, quality administration is consider as one of a noteworthy
thing in strategy for success which firm need to accomplish.
Relevant: Comparison of all outcomes need to complete. This thing need to achieve by
distinguishing and measure past outcomes and present results.

Time bound: Management need to separate all undertakings by bound them in a period. So
chiefs need to work in like manner.

3.3 Action plan to implement the changes
In any enterprise, administration work is to figure design and the work need to complete
by all representatives who aid in accomplish all undertaking in a reasonable way. In this specific
situation, an activity design is required with the goal that all work complete as indicated by that.
On the off chance that directors found any kind of deviation in working then they have
appropriate to make strict move against such thing. For such sort of factor advertising technique
is fundamental (Fassin, Van Rossem and Buelens, 2011) . At first they need to direct research
which is fundamental device for making their venture fruitful. After that they need to set a few
needs in which vital wording need to come at beginning spot. When needs get set, their
advantages need to get broke down which is must.
Objective
s
Actions Priority Benefits Material
Resource
s
Time
scale
Responsi
bility
Success
factor
Monitori
ng
strategy
1.
Consume
r loyalty
Direct
statistical
surveyin
g
Consume
r loyalty
is need
for any
business.
This
ought to
need to
complete
in least
day and
age.
Incremen
t offers
of item
Need
more
cash with
web and
different
types of
study.
One
month
Advertisi
ng and
client
benefit
group.
Itemized
informati
on.
Constant
examinat
ion of
data
which
assemble
through
client.
2.
Quality
items
with
Staff
necessity
.
Desperat
ely
critical in
light of
Enhance
staff
executio
n by give
Cash,
scene
and
different
Two
week
Human
asset
officer of
an
Characte
rize all
goals
obviousl
Client
review
and
inputs.

appropria
te staff
the fact
that with
the
assistanc
e of them
nature of
items get
moved
forward.
them
preparing
.
things
which
are
useful for
them.
organizat
ion.
y and
give
them
appropria
te
preparing
.
TASK 4
4.1 Impact of the changes on the business and its personnel
Changes dependably attempt to influence any business idea to an ever increasing extent.
With this specific situation, their working get influenced and along these lines their operation
don't get fulfil in an appropriate way. With these adjustment, none of a business substance will
work appropriately. Effects of this re-examine marketable strategy on any business is: Hierarchical capacities: With these adjustment may organization capacity get rises or
get decrease. Be that as it may, with this idea they enlist more able workers for their
business with whom enable their targets to get accomplish in least day and age. This
express a positive effect on business which increment their overall revenue
(Gunasekaran, Rai and Griffin, 2011). Useful assets: It is an ethical obligation of business to utilize the greater part of their
assets in a compelling way. Consequently, while considering this idea every last division
need to utilize all assets in an appropriate way.
 Mechanical assets: With new re-examine design it influence both effect positive and
negative. While utilizing this strategy, organization can expand their generation and
enhance their nature of merchandise which served by them.
4.2 Plan for how the changes will be managed in the enterprise
Change administration is characterize as dealing with every single such factor which may
influence any business element. This prompts give a rule on which a firm need to deal with the

greater part of their undertaking which may impact any business proposition. With the assistance
of this idea leaders can plan such sort of methodologies which bolster in dealing with all work in
a legitimate way. This change work into three fundamental areas which are:
Current → Transition → Future
1. Set up a feeling of desperation: Major work of administration is to analyse advertise and
recognize every one of the emergencies which are connected with that change.
2. Frame an effective coalition: Management need to shape such gatherings which can
manage any changed circumstance. In this specific situation, Caffe Finix need to set a
few techniques which are useful for them in their long run (Hilmersson, 2014).
3. Make a dream: Also with help of progress administration idea a reasonable vision need
to get set. This guide them in define such techniques which advance their working in long
haul.
4. Conveying the vision: Cited association need to pass that specific vision to each level so
appropriate usage of plans complete.
5. Engaging others to follow up on vision: Teams which detail to manage such changes
need to take a shot at all issues. In this unique situation, they have specialist to evacuate
and change structure on need premise.
6. Getting ready for and win here and now changes: This perspective working in a
powerful way by confining an arrangement on which all tasks complete. Additionally
they need to spur their workers by compensating them.
7. Merging upgrades delivering still more change: in the event that any technique which is
not fitting in any working edge need to get changed with the goal that proper choices can
be taken out.
8. Organizing new methodologies: This figure work actualizing all work in a compelling
way by introducing all techniques at the season of progress.
4.3 Monitor the improvements in the performance of the business in a given period of time.
It is extremely basic for an association to screen their execution on time to time premise.
This work can complete by applying and utilizing balance scorecard demonstrate. This approach
is useful for any firm in look at their execution. As indicated by BSM, organization specify the
greater part of their objectives, spending plans and vital components which streamlines their

working and operation. According to they isolate every single division and rank them as
indicated by completing things (Nga and Shamuganathan, 2010).
Refereed to firm need to pick this idea in making a substantial correlation between their
representatives execution and their own particular result. Parity scorecard is a compelling
methodology through which numerous issues get dealt with in a given time scale. This idea
express a reasonable era on which work must be finish. On the off chance that any of the worker
or group bombed in do as such then administration have appropriate to make some strict move
against them.
CONCLUSION
According to the above say report it get inferred that each extensive and private venture
have some quality and shortcoming which they can gauge with the assistance of relative measure
examination. This idea help them in making their work each and advantageous. Also if
organization discover any kind of shortcoming which is connected with their operation they need
to utilize suitable methodologies from which overcoming wind up noticeably conceivable.

REFERENCES
Books and Journals
A. Harris, M. and P. Patten, K., 2014. Mobile device security considerations for small-and
medium-sized enterprise business mobility. Information Management & Computer
Security. 22(1). pp.97-114.
Altman, E.I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Audretsch, D.B. and Link, A.N., 2012. Valuing an entrepreneurial enterprise. Small Business
Economics. 38(2). pp.139-145.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Burrows, R. ed., 2015. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship, Petty Capitalism and the Restructuring of Britain. Routledge.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Ebert and et. al., 2014. Business essentials. Pearson Education Canada.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Gunasekaran, A., Rai, B.K. and Griffin, M., 2011. Resilience and competitiveness of small and
medium size enterprises: an empirical research. International Journal of Production
Research. 49(18). pp.5489-5509.
Hilmersson, M., 2014. Small and medium-sized enterprise internationalisation strategy and
performance in times of market turbulence. International Small Business Journal. 32(4).
pp.386-400.
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Online
Kotters 8 Step Process: Identifying Important Elements to Successful Organisational Change.
2016. [Online]. Available through: <http://www.educational-business-articles.com/8-
step-process/>. [Accessed on 22nd August 2017]