Managing and Running a Small Business

UNIT 29
MANAGING AND
RUNNING A SMALL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 &TASK 2...........................................................................................................................1
COVERED IN BROCHURE......................................................................................................1
TASK 3............................................................................................................................................1
P4 Produce annual itemised monthly cash flow forecast with fixed and variable cost set
against income for specific organisation.....................................................................................1
P5 Explain break even analysis could applied to organisational situation..................................3
P6 Interpret key statement for organisation in relation to their contribution to successful
management of organisation.......................................................................................................4
TASK 4 ...........................................................................................................................................8
P7 Discuss key legislation and regulations and impact on small and social businesses.............8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Managing and running a small venture includes the varieties of determinants by which a
person can work independently to generate maximum market share and revenues. Small business
enterprise is one of the privately owned venture, in which capital is supplied by a single person
or a group of person due to this they generate less profits as compare to the large or medium size
firm. To manage the small enterprise this report can examine properly financial resources and
capitals so that firm can invest in essential project for gaining higher profits and beating the
competition into the marketplace. This project report is based on the independent consulting firm
that is operated on Oldham that helps the local community by properly focus on the small and
social enterprise. This study involves the way of start up an business firm, types of secure
funding and ways of minimise risk that will impact the success of the organisation. It involves
the information that includes capacity management by examine resources and the objectives of
the business. Further it involves the customer relationship management process with their
advantage and disadvantage so that risk can be removed and profits can be enhanced. It also
explains the term transitional operation that analyse both drawback and benefits. Further this
project study the analysation of cash flow forecast, break even analysis and budget that helps in
interpreting the financial statement so that profits can be gained on higher terms and clients
easily understand the financial management of social and small business ventures(Spence, 2016).
TASK 1 &TASK 2
COVERED IN BROCHURE
TASK 3
P4 Produce annual itemised monthly cash flow forecast with fixed and variable cost set against
income for specific organisation
Cash flow forecast refers to that document that is helpful for estimating the amount of
financial resources that includes cash inflow and outflow of the business. It is adopted by the
consulting firm for analysing the overall income of the firm. This represents as a useful tool in
which business can control their extra expenses. It includes various sources of cash flow that can
be shown below.
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 Equity finance- It refers to that activity in which organisation get funds from their
investors. In this investors can sign the deal and decide the amount of sharing profit and
loss of the landed money. In this consultancy firm is the small enterprise in Oldham so
this is not an effective option to them as they lend money from their family and
friends(Lombardi, Makhni and Lombardi, 2019).
 Bank loan- It is most common way of borrowing money that is adopted by the
consultancy firm and many other business who want to expand and explore their business
enterprise. It is helpful for the company in arranging the funds so that they perform their
function smoothly. In this firm will pay the principle amount of interest to the bank on
their borrowed money.
 Budgeting, planning and controlling- This factor can helps the manager of consultancy
firm in taking the decisions regarding financial resources. It helps the organisation in
providing long term and short term benefits related to plans to the firm(Soundararajan,
Spence and Rees, 2018).
◦ Time series data- This is an effective tool for the manager of consultancy firm
because it helps in determines the production schedules that is beneficial for the
employees in completing their task on time frame and in the set price.
Balance sheet
Year 2017 (value in £) 2018 (value in £)
Fixed assets 150 200
Stock 25 30
Debtors 60 45
Bank 15 25
Total 250 300
Creditors 150 200
Bank overdraft 100 100
Total 250 300
Profit and loss account
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