Managing and Running a Small Business | Desklib

Unit 29 Managing and
Running a Small
Business

Executive summary
On the basis of this report managing small businesses and its implications are considered
by the organization. The main concern of this report is on the small business and its financial
operations. In this report cash flow forecast, break even analysis, financial statements of the
company are discussed which can determine the financial situation of the selected organization.
At the last this report discussed various legislative regulations and acts which can useful to
improve the effectiveness of the company.

Table of Contents
Executive summary........................................................................................................................................2
Introduction....................................................................................................................................................4
TASK 3..........................................................................................................................................................4
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set against
income for a specific organisation.............................................................................................................4
P5 Explain how break-even analysis could be applied to an organisational situation...............................8
P6 Interpret key financial statements for an organisation in relation to how they contribute to the
successful management of the organisation...............................................................................................9
Analytical & Quantitative techniques......................................................................................................15
Break even analysis & cash flow statement.............................................................................................15
TASK 4........................................................................................................................................................16
P7 Discuss key legislation and regulations that have implications on small businesses.........................16
Conclusion...................................................................................................................................................16
REFERENCES............................................................................................................................................18

Introduction
Small businesses and startups are considered as the base line of the country economy which
can help full to improve the growth rate of country economy. In United Kingdom, small
businesses are playing an integral part to maintain the economic growth rate of the country in
order to managing and running a small business successfully, UK Government is taking
numerous initiatives and also formulate appropriate policies & procedure (Abu Amuna and et.
al., 2017). This project is based on the AMD consulting Group which is small scale management
consulting firm in London and found in the year 2019 and offering specific service like lead
generation, customer acquisition, growth hacking, customer engagement, revenue generation,
consultative sales and many others. This report will highlight financial aspects of the selected
firm and discuss about annual itemized monthly cash flow forecast, break even analysis,
financial statements and its contribution to attain business objectives. Lastly, this project will
discuss the key legislation and also regulations of the firm.
Activity 2
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation.
In order to maintain the financial structure of the business, it is mandatory to focus on the
cash flow forecast because it can help to maintain the financial considerations and identify the
specification and accountability of fixed cost and variable cost. The role of fixed cost and
variable cost is more which mainly determine the overall cost structure because it can combine
together and analyze the total cost. Cash flow forecast is can be interpreted in an effective way
which can useful to make the plan of the small scale organization in context of income. Cash
forecasting maintain the small entity and also monitor specific expenses so that company can
take care their cost structure and maintained the overall financial situation of the organization.
There are numerous sources are utilized to forecast the cash flow which are given below -