Evaluating Factors in Small Business: CRM, Financials & Legislation

This report explores critical factors influencing small business success, including comprehensive knowledge of the business, passion, target market identification, strategic business location, and a solid grasp of the economy. It delves into Customer Relationship Management (CRM), highlighting the importance of communication techniques and channel competence, while also examining Transaction Development through internet presence and joint ventures, with their respective benefits and drawbacks. The report further analyzes break-even analysis as a tool for assessing financial viability and emphasizes the significance of financial statements in improving organizational performance and ensuring smooth functioning. Finally, it touches upon the relevant legislation and laws that impact small businesses, providing a holistic overview of the key elements for sustainable growth and profitability. Desklib offers this report along with a wealth of study resources to support students and professionals in their academic and career endeavors.

Unit 29

Table of Contents
INTRODUCTION...........................................................................................................................3
FACTORS TO BE CONSIDERED BY SMALL BUSINESSES...................................................3
CUSTOMER RELATIONSHIP MANAGEMENT........................................................................4
TRANSACTION DEVELOPMENT...............................................................................................5
BREAK-EVEN ANALYSIS...........................................................................................................6
DETERMINE FINANCIAL STATEMENT AND EMPHASIZE HOW IT IMPROVISE FOR
RUNNING ORGANIZATION.......................................................................................................7
STUDY LEGISLATION AND LAWS THAT INFLUENCE SMALL BUSINESS.....................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Business works in manner to achieve growth and boost organization productivity by maintaining
positive approach for business (Amankwah-Amoah, Khan and Wood, 2021). In this determine
several elements that helps business to attain aims and goals of organization. It summarizes of
customer relationship management by defining their benefits and drawbacks. Also, study about
transnational development, break even analysis, financial statement and laws, regulations related
to company’s act that described in the report. Further, examined each and every factor that plays
key role in performing organization and helps in gaining their objectives and targets respectively
that assessing in this to demonstrate about organization through determining benefits and
drawback in report.
FACTORS TO BE CONSIDERED BY SMALL BUSINESSES
Complete knowledge about the business: in order to move ahead with the business regulations
it is necessary that the right amount of knowledge will have to be incorporated. While starting a
business it is important and obvious that making money will have to be one of the priority by
also maintaining other categories in a better orientation (Choi and et.al, 2018). There are various
dangers that are following in regard to small businesses while they are starting a company and
therefore in order to state it remained with the fact of enhancing strategies it is also necessary to
have a complete knowledge that would bring about a proper enhancement to the greatest start.
Passion for the business: is one of the probable components that will have to be incorporated
while dealing with a business. Getting started with the right amount of knowledge along with the
right amount of passion is what is required for small businesses in order to travel through a long
journey. There are certain goals that will have to be kept and it is not until when the passion for
the business grows simultaneously with respect to the opportunities that everything goes in a
right path.
Target market: target market is one of the biggest of all kinds for any organisation. While
dealing with the business it is always necessary that the prioritised factor will have to be the
target market. This brings about a good base for the organisation and the business will also reach
its potential customers (Mišić and Perakis, 2020). The target market will have to be identified in
such a way that would bring about a good amount of customer base and also the better ideologies
to establish target market. For small businesses this is one of the biggest achievements because

there is a demand as well as the interest that will have to be inhibited in order to understand the
target market.
Business location: while planning for an offline sale it is always necessary to opt for a better
business location. To win the right business location is also one of the favourable entity for
determining the organisational growth. The location of the business will have to be such that the
customers will have to reach out to the place as and when possible. It is only than a right amount
of customer base can be maintained and the business idea ologies can also be fulfilled.
Economy: complete grip over the economical as well as financial standard will have to be
identified. For a business it is one of the serious impact and it can only go in a positive way when
the right amount of understanding is fortified. There are certain roles that are being played by
different business in the market and therefore it is always necessary to consider the economy as
one of the starting point for every business.
CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management is nothing but the right amount of interaction that is to be
fortified with respect to customers (Glock and et.al, 2019). Customers are the major effects for
the organisation and it is not until when the organisation maintains a pace with them that they get
to incorporate with the standard school stopped there is a certain amount of customer base for the
entire organisation that will have to be maintained and therefore the strategic approach towards
gratifying their wishes will be helpful in dealing with the circumstances of customers. The
relationship management and tightly focuses upon the organisational belief as well as an
approach towards its customers and how far they are being able to satisfy them with the right
number of needs. There are certain main areas that are falling in regard to maintaining customer
relationship management. They are as follows:
Communication techniques: the communication techniques are important in order to deal with
every department of the organisation. The communication techniques are necessary in order to
make sure that customers are moving ahead with the organisational norms and policies. For this
the employees will have to be trained accordingly and they will have to be extroverts while
dealing with customers. The advantages of communication techniques is that it can maintain a
proper orientation with customers and can also win over the customer support for the
organisation. The disadvantages at will fall in regard to not maintaining a proper communication
technique is that the customers will be lost. Losing customers is directly proportional to losing

sales. Therefore, it is necessary to maintain proper communication techniques in order to deal
with the proper facilities of the organisation (Grover and et.al, 2020).
Channel competence: this is the measure with which the interaction can be made prominent.
The different channels that can be used by the organisation in order to deal with their support
towards customers. Few of the channels that are in regard to this particular aspect as the mobile
lives at voice mail hand email social media. These are the platform that will have to be accessed
in order to deal with the customer support. This source is necessary in order to deal with the
increasing customer demands as well as queries. The advantage of this particular aspect is that
there are certain questions as well as queries that can be sold within no time. Welding with
customer negotiation it is also necessary to target over their requirement and their potential
towards dealing with them. The disadvantage is that they will have to be a support 24/7 in order
to make sure that the organisation is alive all the time which is one of the biggest challenge for
the organisation to deal with. For this it will have to move ahead with the type of recruitment
policies that are important.
TRANSACTION DEVELOPMENT
The transaction development is nothing but the network that will have to be integrated with the
organisational components. There are certain sustainable development moves that will have to be
made in order to deal with the economic interests as well as the efficiency of the organisation. To
maintain ecological balance as well as to move ahead with the well-being and equity of the
organisation that transactional development will stand as one of the biggest impact. This can also
be a measure for the business in order to expand on an international basis. There are certain ways
with which the transactional development can be made (Sabbaghtorkan and et.al, 2020). They
are as follows:
Internet: internet is known to be one of the wide component that is being used in business is
these days. This is one of the sustainable measure where the business can make its presence
online and also can be known as one of the best reputed one. The benefits of internet include:
1. Huge presence
2. Growth
3. International reputation
The drawbacks that are oriented with internet and transactional development include:
1. Security issues

2. Copyright issues
3. Cyber crimes.
Joint venture: joint venture is nothing but a collaboration between two businesses or more. In
order to deal with the right amount of products as well as the business orientation it is necessary
that the joint venture will stand as one of the variable entity to deal with the aspects of merging
of business. This is also known to be one of the better formulation in order to expand into
international markets where it is always essential for businesses while entering into host country
to deal with the prominence of its place. While getting collaborated with another business abroad
the companies can gain reputation and also stand as one of the unique features. Benefits of joint
ventures include:
1. Provide access to new market
2. New knowledge access
3. Business expertise
The drawbacks that are oriented in a joint venture include:
1. No separate laws
2. Create synergy
3. Risk oriented
BREAK-EVEN ANALYSIS
Break even analysis is a defined to be one of the concept in an organisation that deals with the
calculations as well as the examining of margin that is on safe side. The revenue of the entire
organisation is associated with coarse and therefore this analysis is brought about by the price
level that are related to various entities. There are certain fixed costs that will have to be
determined in order to derive the fixed values as well as the production cost. But it is one of the
prominent factor that will have to be analysed at all levels of production as well as the targeted
market. His study of the entire management is necessary in order to deal with the matrix and
calculations that will emphasize upon the financial institutions (Magon and et.al, 2018). This
break even point is calculated ash production by the price per individual unit. It is also in general
known to be one of the automatic orientation that will bring about an exemption towards the
variable cost. Certain special considerations are also brought forth in order to deal with the
break-even analysis. A determination of price is one of the probable criteria that is rest upon to
bring about a trade or investment. The fixed income security product is known to be one of the

biggest aspect while dealing with the break-even analysis. The contribution of margin is standing
as a better entity while dealing with the break even analysis. The calculation stand as the two
equations for break even analysis. The total fixed cost are calculated over the margin and are also
assumed to be the overall deficit that are in regard to the organisational benefit. The break even
analysis important for the organisation to move ahead with the speculations as well as the
contribution of certain dividend that are used by the resources in the organisation.
DETERMINE FINANCIAL STATEMENT AND EMPHASIZE HOW IT
IMPROVISE FOR RUNNING ORGANIZATION
The financial statement is refers to as procedure that consist of written records that
signifies organization practices that helps in raising financial performance. It assures accuracy,
tax and other aspects that come under organization in which summarizes performance of
business in respective manner. This helps business to boost productivity and efficiency of
organization that raise organization profitability in desired manner. As this helps in improvising
business through which runs business and raise organization productivity in respective manner.
By determining this financial statement of business helps in raising organization productivity and
efficiency. It helps in running business and smooth functioning of organization, also by
improvising their key factor boost organization efficiency (Haralayya, 2021). Through this
emphasizes it performing in in better form as working in effective form. In order to this from
picture observe that they improvise their business by making an innovation and creating
products, services of business in desired manner. The business achieves their desired goals and
objectives by maintaining financial position of business in respective manner. As financial
statement helps in determining financial aspect of business that estimate different factors that
occurred in business. It work in systematic manner and conducts smooth functioning of
organization by attaining more and more customers towards business. By this financial estimates
position of business by improvising works efficiency in respective manner. Organization role is
to perform functions and boost business productivity by estimating cost of goods sold and other
factor that helps in estimating cost that business determined. In accordance to this work in
effective manner for estimating growth of organization. This raise organization productivity and
efficiency by facilitating financial statement of business.

The financial statement plays key role in performing business function for raising profitability
and increase their growth in business by following functions (Dhole and et.al, 2021). Through
determining assets, liabilities and other key elements derived by working in point of time that
raise organization productivity. Its primary objective is to examined and generate organization
income for determining cash flow, allocation of resource etc. This helps investors for selecting
suitable place for organization in order to perform work and raise organization productivity in
respective manner through boost their performance in desired manner. As their main focus is on
to achieve organization objective and conducts sustainable growth of business in effective
manner.
STUDY LEGISLATION AND LAWS THAT INFLUENCE SMALL
BUSINESS
The laws and legislation helps business to grow and conducts sustainability development
of organization by following legislation in effective manner. In accordance to this, legislation is
defined as bunch of law that approved by Parliament (Strahl and et.al, 2021). To boost
organization effectiveness and perform their function in systematic manner laws helps in
conducting business functions in respective manner that influence small organization. Though
following this legislation helps in attaining more and more consumer towards organization by
systematic functioning of business. There are different acts come under this, by following act

facilitate smooth functioning of organization in effective manner. As their main focus is to
achieve desired goals and objectives of business by performing work in systematic manner. That
are;
Employment act, 1996- The act is passed by UK government that is constituted and established
for consideration of labor legislation. It includes different areas that are securing of wages,
suitable work hours and many other factors that come under this (Singh and Dahiya, 2021). As it
helps in discriminating laws to determine that satisfying workers needs and desires in respective
manner. In order to this, it comes under for facilitating that employment satisfaction is must as
by following rules and regulations they perform work accordingly by facilitating employees
work with satisfaction.
Data protection act, 1998- In order to this, act provides right access for securing and preserving
information of business in order to not harm and maintains privacy in systematic manner. The act
emphasizes information should be gathered, stored and operates in effective manner by
facilitating fairly judgement. It provides that personal information should be protected as their
data is stored in business. By emphasizing this act helps in maintaining legislation by protecting
data and collect information through securing, conducts safety in effective manner. Through
protecting data information preserve in confidential manner and conducts securing of data in
respective manner.
Company’s act, 2006- The act is governed by organization law that comes under UK, as their
main goal is to perform duty by following rules and regulations in perspective manner. It is
emphasizes by public and private organization that facilitate in this to maintain function of
organization (Sorabji and Vaughan, 2021). By considering company’s act helps in regulating rule
and legislation in effective manner. As it is essential for business to follow this act in order to
supervise functions of organization in perspective manner.
CONCLUSION
The report has been concluded about elements that described in this to attain aims and objectives
of business in respective manner. It will justify consumer relationship management that has been
examined in this through emphasizing benefits and drawback. Also, transnational development
has been study by providing justified examples that conduct growth for business and break even
analysis that estimated in it. Furthermore, determine financial statement and improvise statement

that helps business to run and facilitate growth for organization. Lastly, has been emphasize laws
and legislation that comes under company act by determining in this to emphasize objectives of
business in effective manner.

REFERENCES
Books and journals
Amankwah-Amoah, J., Khan, Z. and Wood, G., 2021. COVID-19 and business failures: The
paradoxes of experience, scale, and scope for theory and practice. European Management
Journal. 39(2). pp.179-184.
Choi and et.al, 2018. Big data analytics in operations management. Production and Operations
Management. 27(10). pp.1868-1883.
Dhole, S. and et.al, 2021. Economic policy uncertainty and financial statement comparability.
Journal of Accounting and Public Policy. 40(1). p.106800.
Glock and et.al, 2019. Applications of learning curves in production and operations
management: A systematic literature review. Computers & Industrial Engineering. 131.
pp.422-441.
Grover and et.al, 2020. Understanding artificial intelligence adoption in operations management:
insights from the review of academic literature and social media discussions. Annals of
Operations Research, pp.1-37.
Haralayya, B., 2021. Financial Statement Analysis of Shri Ram City Union Finance. Iconic
Research And Engineering Journals. 4(12). pp.183-196.
Magon and et.al, 2018. Sustainability and performance in operations management research.
Journal of Cleaner Production. 190. pp.104-117.
Mišić and Perakis, 2020. Data analytics in operations management: A review. Manufacturing &
Service Operations Management. 22(1). pp.158-169.
Sabbaghtorkan and et.al, 2020. Prepositioning of assets and supplies in disaster operations
management: Review and research gap identification. European Journal of Operational
Research. 284(1). pp.1-19.
Singh, P. and Dahiya, V., 2021. Labour Law Reforms a Critical Analysis. Parichay: Maharaja
Surajmal Institute Journal of Applied Research. p.49.
Sorabji, J. and Vaughan, S., 2021. “This Is Not A Rule”: COVID-19 in England & Wales and
Criminal Justice Governance via Guidance. European Journal of Risk Regulation. 12(1).
pp.143-158.
Strahl, B. and et.al, 2021. A multinational comparison of care-leaving policy and legislation.
Journal of International and Comparative Social Policy. 37(1). pp.34-49.
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Online
Factors to be considered by small businesses (2020): [Online]. Available through: < 10 Factors
to Consider when Starting a Small Business – Nigeria Resource Hub (naijaonlinebiz.com)>
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