Small Business Success Strategies

This assignment delves into various aspects crucial for the success of small businesses. It examines the importance of long-range planning, ethical considerations in business practices, the role of networks in driving innovation and performance, and the utilization of SWOT analysis as a strategic tool. The assignment also touches upon the impact of technology on small businesses, particularly cloud computing and ERP integration. Furthermore, it considers the influence of socio-cultural factors on entrepreneurial activity and highlights the need for universities to play an active role in enterprise education.

SMALL BUSINESS
ENTERPRISES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Small business enterprises with its strong and weak factors.................................................1
1.2 Business analysis by using comparative measures...............................................................3
TASK 2............................................................................................................................................5
2.1 Appropriate actions in order to defeat with weaknesses ......................................................5
2.2 Methods to improve existing performance...........................................................................5
2.3 Recommendations where activities of Cafe Finix can be expanded.....................................6
TASK 3 ...........................................................................................................................................7
3.1 Assessing existing business plans and objectives.................................................................7
3.2 Revision of business plans to incorporate changes...............................................................8
3.3 Preparation of Action Plans..................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on business and its personnel................................................10
4.2 Managing changes in business............................................................................................11
4.3 Observing improvements in performance of business........................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In the modern business world people are mostly focusing on establishing their own
business by developing unique ideas which are helpful for them in order to achieve success in
their operations. Small Business are described as those firms whose operations are executed at
smaller scales in the economy and they have less number of employees working under them and
there resources are also very few. These business are helpful in the growth and development of
economy as they are providing employment to large group thus there basic needs are fulfilled
and improving their living standards (Altman, Sabato and Wilson, 2010). Cafe Finix are small
coffee shops in UK and they are providing quality products to all their customers all around UK.
The undermentioned report are based on the strong and weak areas of small business enterprises,
measuring performance of business different tools and techniques which can be adopted by firm
in order to improve their performances. The management plans which are developed by business
should be revised on continuous basis in order to analysis those places where changes have to be
made.
TASK 1
1.1 Small business enterprises with its strong and weak factors
Small business are playing vital role in growth and development of economy and they are
providing opportunities to people to become employed. There business operations are limited to
a geographical areas and the number of employees are low who are involved in performing
business operations. Cafe Finix are executing their activities on smaller scales in economy and
they are offering valuable goods and services to those people who want to take advantage of their
products. The main aim of these business are linked with satisfying their customers by provide
them products according to their demands at economical prices (Battisti and Perry, 2011). The
selected business are adopting the best price strategy for their products and they are focusing on
quality aspects also in order to gain attention of large group of customers who can enhance their
sales and profitability ratios. These business have established good image at market places as
they are offering quality products to all their potential clients at very low and economic rates.
The activities of these business were started with limited amount of money as this was a start up
business. The products offered include coffee, tea, fast food etc. This is the best place for family
members where can can spend their time by consuming quality coffee.
SWOT Analysis
1

SWOT analysis are vital factors for every business as they are making plans and policies
which are useful in order to enhance performance of business organisations. This is the most
vital methods which are used in order to evaluate strong, weak points and also threats and
opportunities. These four are most important factors which are valuable in order to make
improvements in business activities.
Strength
This is evaluated as the most power factors of
business by which they can achieve growth and
success. The main strong factors of firms are
that they are offering quality products to their
customers at lower prices. They are analysing
trends at market places and they are
manufacturing products according to demands
of their clients. This is valuable for firms as
they can easily achieve competitive gains. The
major strengths of Cafe Finix are as:
 High products products are offered to
all customers (Blackburn, Hart and
Wainwright, 2013).
 Established strong images at market
areas. Flexible system at work place so
changes can be made easily.
Weaknesses
These are the weak factors of firms and they
are affecting all business operations in negative
ways. These factors are affecting growth and
success of business. The major weak factors
are described below as:
 Timely delivery of goods and services.
 Huge rivalry available at market places.
 Prices of goods are higher.
 Manufacturing process are not acurate.
Opportunities
These are described as the the pathway to
success by which company can easily expand
their business operations. This is valuable
factor for firms as they can achieve high
competitive gains. The main opportunities are:
There investment ratios are high at market
places thus gaining growth and success in their
Threats
These factors are directing affecting operations
of business thus they are not able to achieve
success in their operation's. The main threats
are evaluated as:
Changes in plans and policies of government
like tax rates.
2

overall business operations.
There have done merger of business activities
with large business.
Instability in economic conditions.
Higher competition from rivalry business.
1.2 Business analysis by using comparative measures
It is very essential factors for firms in order to compare their performances with past
years in order to make changes in those areas where growth is not achieved. This is valuable
factor in order to carry out all business operations in right directions and success can be achieved
if plans are made in order to achieve all outputs in desired time frames. Measurement are helpful
in order to achieve all business goals and objective in right time. There are different tools which
are used while making comparison like balance sheets etc. This is valuable factors so firms can
make effective decisions which are valuable for their growth and development. The tools used
for comparing performances are described below as:
For the year ended 30 April 2014 and 30 April 2015
2014 2015
£ £
Sales 140,000 300,00
Overheads 12,000 18,000
Gross profit 50,000 40,000
Net profit 40,000 45,000
Cost of sales 60,000 170,000
BALANCE SHEET as at 30 APRIL 2014 and 30 APRIL 2015
2014 2015
Fixed assets 16000 14,000
Current assets
Stock 8,000 19,000
Debtors 13,000 37,000
Bank 2,000 0
22,000 58,000
Less Current liabilities
3

Creditors 6,000 15,000
Bank overdraft 0 10,000
8,000 28,000
Working capital 15,000 26,000
Net Assets 28,000 44,000
Financed by capital
Opening capital 24,000 28,000
Add net profit 31,000 34,000
54,000 68,000
Less drawings 24,000 24,000
Closing capital 26,000 42,000
The analysis of performance of Cafe Finix are measured with two years that is 2014 and
2015. It can be evaluated that closing stocks of firms at the end of the year 2014 was 26000 and
comparing with with year 2015 it has been increased to 42000. It determines that company had
achieved higher profits from the previous year. It can be stated that the maximum amount of
inventory will be not sold thus stock will also be unsold and this is not an effective condition for
firms.
a) Current ratio is derived by dividing current asset with current liability
2014 2015
CR = CA / CL = 22000/ 8000 = 58000/ 28000
= 2.75 times = 2.07 times
According to current ratios analysis the selected firms have used their money in order to
pay all their debt. This is effective factors as all their borrowing will be easily repay by keeping
into considerations the current ratios of firms. The firms have to make debt twice in a year thus
it reflects the situation of losses for firms while making comparison with last year.
2) QUICK RATIO (ACID TEST) = current asset – inventory/current liabilities
2014 2015
Q r= CA– INVENTOR / Current Liability
=22000– 8000/ 8000 =58000-19000/28000
= 1.75 = 1.39
4

Quick Ratios are valuable in order to identify how company is performing their business
operations. If company is facing problems related to fund then their issues are resolved in
effective ways. Firms had used quick ratios in order to repay all their debts.
TASK 2
2.1 Appropriate actions in order to defeat with weaknesses
Issues and problems are unenviable by nature and these can arise at any time and place
and they are greatly affecting business operations. Planning should be made in order to resolve
difficulties so that operations of business will not be affected thus firms can easily achieve
growth in their operations. The main problems which have been faced by Cafe Finix are large
number of competitors, rent is very high, quality factor, modifications in plans and policies of
government, technological advancement etc. All these factors are having negative impact on
business operations thus there profitability factors can be greatly affected. In order to solve all
the problems firms have to make plans in order to execute new and innovative machinery by
which working of business will be executed, They should focus on quality of products in order to
retain loyal customers who will enhance their sales and profitability factors. The raw material
which are purchased by firms should contain quality in order to make further operations execute
in effective ways. The main issues are the expensive rent of the stores so firms and made plans in
order to attract customers by running small food outlets in front of their shops as it results in
earning money and they will easily pay the rent which is very high. As the operations of firms
are executed on small scales and less workers are involved in operations so it becomes difficult
for firm in order to make changes easily in plans and policies (Bridge and O'Neill, 2012). This
problem can be solved if firms are making plans in order to complete their operations by using
innovative tools and techniques and hiring more staff for business operations. This is one of the
valuable factors by which firms can easily achieve competitive gains thus gaining good positions
at market areas.
2.2 Methods to improve existing performance
It is most vital task for each business in order to monitoring performances of their
employees and identify those places where changes had to be adopted in order to make
organisation achieve success in their operations. Cafe Finix are having opportunities which
employees can avail and they can develop innovative ideas by which they will achieve strong
5

competitive advantage. If workers are expert in business operations then it valuable for firms in
order to expand their business operations on large scales. Various methods which can be adopted
by firm in order to maintain performances of business are evaluated as:
 If mangers are making plans in order to monitor performances of employees on regular
basis then it will help them to know about disliking and liking of clients. Thus measures
can be adopted by them in order to make improvements in their weak areas.
 Enhancing productivity ratios of firms by using innovative tools and techniques for
performing business activities.
 Analysing the trends at market places and adopting best and effective strategies from
competitors.
 All the gaols and objectives should be achieved in desired times which have been allotted
to them thus achievement of growth for business.
 The major competitive factor and strengths should be used by firms and these should be
applied at those places where they want to gain success.
 Firms should maintain strong positions at market places and use effective strategies in
order to attract customers who will buy their products.
2.3 Recommendations where activities of Cafe Finix can be expanded
The areas where Cafe Finix can easily expand their business operations are evaluated
below as:
The number of employees should be increased in order to plan to execute more activities
thus firms can easily achieve success in their operations.
The business should develop action plans in order to evaluate which activities are
important and they should be given priority and the resources which are available in the
economy should be used in effective and planned ways (Buck, 2011).
There should be new varieties in their menus in order to satisfy their customers thus
retaining them for long time.
The system of taking payment at Cafe Finix should be according to new technologies like
card systems, Paytm, E wallet etc. in order to provide comfort to all their potential customers. If
the clients are not having cash then card should be expected widely.
6

The firms should invest money in CSR activities and they should apply different themes
at their cafe in order to attract young people and they should also develop their own websites so
people can easily collect informations which they need.
There should be promotional activities designed in order to develop awareness about their
operations thus their sales will be maximised.
There should be different department developed inside the coffee like reading corner in
which person can read book while consuming coffee. Soft music should be played in order to
make customers relax while they are spending their free time.
Plans should be developed in order to take feedback from customers so that they can easily know
where changes have to be made in their operations in order to maximise their profitability ratios.
TASK 3
3.1 Assessing existing business plans and objectives
If business wants to enhance their performances then it is suggested to develop action
plans which are valuable in order to achieve growth for firms. These plans are valuable for firms
as they can easily identify those places where improvements had to be made and this can be
achieved with the help of proper research. The planning should be linked with goals and
objectives of firms. The factors which should be included in strategies adopted by Cafe Finix are
evaluated as:
1. Strategic Goals for organisation: In order to achieve growth and development for firms
they should focus on adopting qualitative goals as they can be easily measured by firms
on regular basis by analysing their total sales ratios and the response given by customers.
The goals and objectives should define roles and responsibilities of workers at business
places (Burns, 2010).
2. Objectives for firms: All the set objectives should be effective and these should be
achieved in desired times with the help of using SMART objectives.
Specific: All the products should be deliver to their potential clients in specific time
which have been allotted to them.
Measurable: The performance of business should be measured with the help of time
quotas and taking reviews and feedback from customers so that products can be made available
according to their choices.
7

Attainable: The products for delivery should be allotted to workers which are in their
designed limits.
Realistic: All the products and manufacturing process should not be based on hypothesis
and these should be executed in real times.
Time Bound: All the process which have been assigned to workers should be achieved in
desired time which have been allotted to them thus enhancing their productivity and profitability
ratios.
3. Action Plan Performance: The roles and responsibilities which are assigned to
employees are included in the training programmes. The action plans are formulated by firm sin
order to systematically run all their business operations. The structures of business should be
defined clearly and the working should be equally divided among all the employees at work
place as it helps in maintaining good relations among employers and employees. In cafe it is very
vital factor to maintain effective communication in order to understand what the customers wants
thus effective services can be provided to them.
4. Measures for Cafe Finix: If firms want to achieve competitive gains then they had to
develop plans in order to monitor performances of employees regularly (Demil and Lecocq,
2010). This is the most important functions for firms as they are analysing the performance as
company can easily achieve set goals and objectives or not.
Managers at work place should should develop plans in order to motivate employees so they
will develop innovative ideas in order to perform all their business operation's in effectual and
planned ways. The plans can be effective if they can easily fulfil expectations of all their
customers. Thus strategic planning are executed in order to know the value of plans at business
organisation.
3.2 Revision of business plans to incorporate changes
The firms should develop strategies in order to revise their business plans and then plans
should be developed in order to implement them. If there had to be any changes executed in
plans then it is vital to maintain good relationship at work place. All the outcomes which are
achieved had to be measured with their predetermined goals and objectives thus performances
can be easily measured (Storey, 2016). The plans can be implemented with growth and
development of firms which are evaluated as:
8

All the long term plans and policies which are developed by firms should be monitored
effectively because if cafe is not able to enhance their sales ratios by framing strategies so that
customers will be satisfied with the products. The strategies should be executed according to the
business situations and efforts should be made in order to adopt new technologies by which their
working will be executed in effective ways thus achievement of growth and success for firms.
The plans should be revised timely and according to trends at market places and factors
operating in business environment changes should be made (Schaper and et. al., 2014)
Company should focus on making decision in order to face those situations if they are
facing losses in the future times. If their investment plans are not successful then it can results in
heavy losses for firms. In order to make changes in business process firms should have money in
order to buy new and advanced technologies for performing different activities. The trends at
market places can be analysed with the helps of making plans and policies. The strategies can be
implemented effectively at work place with the help of sales forecasting methods. Thus firms
should make themselves prepared in order to face challenges at market places. Working should
be allotted to employees according to their skill and knowledge level.
Thus it is recommended that Cafe Finix should implement changes in their business
operations in order to attract customers who will buy their products. These changes are valuable
for firms in order to make improvement in their operations thus establishing strong images at
market place (Fassin, Van Rossem and Buelens, 2011). The loyal customers can be retained by
business if they provide quality products to customers.
3.3 Preparation of Action Plans
According to the current positions of firms Cafe Finix they should implement changes in
their business operations by analysing the trends at market places. The weak factors should be
removed so they can easily achieve all their assigned goals and objectives. Those business who
are running their operations in restaurant should analyse all the factors which are operating in
external and internal environment as they are making changes in the action plans. The changes
which can be implemented are evaluated as:
In the menu card there should be more food items included in order to gain attention of
large group of customer's.
There branches should be expanded in different parts of the world so people can easily
approach them.
9

The inside areas of the cafe should be well designed with graphics, lighting and soft
sound.
The services should be offered to customers into 24*7 formats and there should be option
of home delivery in order to enhance their sales ratios.
Discounts should be given to people in order to attract them towards their services.
There should be effective portfolios developed by firms which consist of their mission and vision
statement, data forecasting and marketing positions of business. The most important task for
them is linked with assigning times in which each activities had to be completed thus gaining
success for firms. The firms should maintain performance record of all their employees as they
are valuable in order to achieve success in future.
Objectives Prepared by- Date- 10/10/2017
no. Action steps Responsibility Start Date Completion
Date
Budget(€)
1 Forecasting
financial gain
Managers 10/11/17 10/11/18 €10000
2 Franchise Director 15/08/19 25/02/20 €55,000
3 Expansion
with acquired
contacts
Managing
director
23/02/15 24/11/15 €8000
Firms should focus on developing plans in order to recommend changes which they have made
in their business operations. This is valuable factor in order to achieve valuable customers who
will enhance their profitability factors. The new actions will be executed which are described
below as:
All the elements of the environment are scanned in effective and planned ways and the
main preference is given to behaviour, attitude and preferences of customers.
The plans and policies should be developed with the mutual understanding of all the
employees and the best techniques should be adopted by analysing the external and internal
environmental factors (Gronum, Verreynne and Kastelle, 2012).
10

TASK 4
4.1 Impact of proposed changes on business and its personnel
All the changes which are implemented at the work place should be executed in effective
ways. The major responsibility of executing this is with management teams as they had to
perform all their business operations effectively. All the function of business have to be analysed
effectively in order to make changes according to advanced technologies.
Impact on business
The financial planning are valuable for cafe in order to achieve all their predetermined
goals thus achieving success in their operations. If plans are made effectively then it results in
enhancing their sales and revenue ratios.
The firms should analyse their needs of hiring people and they should be made clear with
their jobs the roles which had to be played by them. At work place there should be machinery
adopted according to new technologies in order to attract large group of customers.
At the cafe place there should be services like modern machines for making payments,
loyalty and gift cards etc. these are valuable as they are attracting large group of customers who
will be using their services (Rae, 2010). Thus there will be improvements in customers
acquisition ratios.
Impact on Personnel
The employees had to make changes in the strategies which have been adopted them and
there should be adoption of new and innovative techniques in order to earn higher profits.
It is vital factor in order to provide training to all employees so they can easily achieve
their targets in desired time frames.
All these changes in business operations are having positive impact on the activities of firms as it
results in enhancing their profitability ratios and achieves value added customers who will buy
their products.
4.2 Managing changes in business
As the plans are implemented at work places it is important factor in order to manage all
the changes in effective ways thus their operations will be executed in planned ways. All the
activities at work place should be executed in effectual and systematic ways in order to achieve
success in their business operations. The changes which had to be managed are evaluated below
as:
11

Prioritize which change is important: The firms should analyse which elements are
important for them and which are not. Thus plans should be made in order to work on the
important factors thus they can easily expand their business operations.
Take opinions: If the firms are facing financial issues then they should make strategies
in order to borrow money from banks in those situations.
Test the change: The changes are must in order to make organisation achieve success in
their operations and these should be implemented by analysing trends and demands of customers
at market places.
Taking employees Feedback : This is an essential activity for firms as they can easily
analyse those areas where changes had to be implemented (Mensh and et. al., 2013).
Taking Customers Feedback: The opinions which have been given by clients are
effective as they are valuable in order to implement changes at work places.
4.3 Observing improvements in performance of business
It is most vital factors for firms in order to monitor business operation's and then
implement the changes accordingly. This is valuable factors in order to achieve all goals and
objectives in desired time frames. Managers should use various tools and techniques for making
improvement in performances such as Key Performance indicators 360 degree feedback, MBO,
appraisal etc. In order to achieve best results firms had to design training and development
programmes in order to make employees familiar with work process thus profitability and
productivity of firms can be greatly enhanced. On the other hand these tools are also valuable in
order to make effective decisions by evaluating employees performance.
CONCLUSION
From the above report it can be examined that small business are valuable for growth and
development of economy as they are providing employment to large group of people. The
profitability and revenues of these business are also low as there operations are not executed at
larger scales in economy. Cafe Finix had adopted tools in order to analyse all internal and
external factors which are affecting business operation's in order to analyse the weak factors and
make changes accordingly. Plans should be made in order to conduct research so that trends can
be analysed which are evaluating at market places.
12

REFERENCES
Books and Journals
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.
Battisti, M. and Perry, M., 2011. Walking the talk? Environmental responsibility from the
perspective of small‐business owners. Corporate Social Responsibility and
Environmental Management. 18(3). pp.172-185.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Buck, J. A., 2011. The looming expansion and transformation of public substance abuse
treatment under the Affordable Care Act. Health Affairs. 30(8). pp.1402-1410.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic
consistency. Long range planning. 43(2). pp.227-246.
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.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3).
pp.215-251.
Herbane, B., 2010. Small business research: Time for a crisis-based view. International Small
Business Journal. 28(1). pp.43-64.
13

Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
issues. International Journal of Information Management. 30(1). pp.28-37.
Marston, S., and et. al., 2011. Cloud computing—The business perspective. Decision support
systems. 51(1). pp.176-189.
Mensh, B. D., and et. al., 2013. Susceptibility of interstitial continuous glucose monitor
performance to sleeping position. Journal of diabetes science and technology. 7(4).
pp.863-870.Petit, Y., 2012. Project portfolios in dynamic environments: Organizing for
uncertainty. International Journal of Project Management. 30(5). pp.539-553.
Rae, D., 2010. Universities and enterprise education: responding to the challenges of the new
era. Journal of Small Business and Enterprise Development. 17(4). pp.591-606.
Schaper, M. T., and et. al., 2014. Entrepreneurship and small business.
Storey, D. J., 2016. Understanding the small business sector. Routledge.
Thornton, P. H., Ribeiro-Soriano, D. and Urbano, D., 2011. Socio-cultural factors and
entrepreneurial activity: An overview. International small business journal. 29(2).
pp.105-118.
Online
Action plan to change. 2017. [Online]. Available Through: <http://ctb.ku.edu/en/developing-
strategic-and-action-plans>. [Accessed on 13th October 2017].
14