Managing and Running a Small Business

This document provides insights into managing and running a small business, including the considerations for planning and allocating resources, different processes of customer relationship management, and the development of transnationally. It discusses the benefits and drawbacks of transnational development. The subject is Small Business Management.

Managing and
Running a Small
Business

Executive Summary
From the written report, it can be determined that small business are running and
establishing by less amount of finance and individual for providing products and services so
individual and take buying decisions. To acknowledge about small business AKS IT Services
Company has been taken that is operations business by providing range of consulting services to
its customers and helps to increase the business performance in competitive business
environment. This will help to increase the understanding about small business, essentialness of
financial document and legislation which are important to expand business.

Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
P2. Explain and evaluate different processes of customer relationship management.................1
P3. Explain how a business can develop transnationally and determine benefits and drawbacks
.....................................................................................................................................................2
ACTIVITY 2...................................................................................................................................2
TASK 3............................................................................................................................................2
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income........................................................................................................................2
P5. Explain how break even analysis could be applied to an organisational situation................7
P6. Interpret key financial statements for an organisation in relation to how they contribute t
the successful management of the concern..................................................................................8
TASK 4............................................................................................................................................9
P7. Discuss key legislations and regulations that have implications on small business or social
enterprise......................................................................................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Small business management is a process entrepreneurs use when operating their business
operations. Entrepreneurs may require acknowledging how to manage workers, accurately report
fiscal data, and acquire economic assets or business origins and devise several business analyses.
To run and administrate a small business, the management of establishment frames efficient
plans, policies and plan of actions so that business can run in effectual manner (Steingold and
Steingold, 2019). To improve the understanding about small business and its need AKS IT
Services has been selected that is a small computer consultant company provide several services
to customers by providing software that uses to analyses about payment and other consultant
services. This document will explains about requirements of small business to tackle origins to
accomplish business goals, assessment of several processes o customer relationship management
and plan of actions of expanding transnationally.
TASK 1
P1. The main considerations a small business or social enterprise needs to address when planning
and allocating resources to accomplish business objectives
Small Business –Small business is defined as a privately owned entity with limited resources as
compared to corporate. Business volume is limited with limited employees and resources. Small
businesses are mainly privately owned firms which are operated by individuals. Individuals are
taking all risk and initiatives to achieve all targets set for the business growth.
Planning Resources –Resources planning is critical for the small businesses as the resources are
very limited in nature. So optimum utilization of resources is very critical for the business.
Hence it is essential for the business to make policies and plan of action to achieve the maximum
output from the available resources. It includes recruitment of right human resources, planning
for resources to get optimized results. AKS IT Services is using various planning tools and
techniques to optimize the productivity of resources. Various types of planning resources are
utilized by small businesses explained hereunder:
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Premises and equipment–Business location for a business is one of the most critical aspect. It
helps greatly at initial stage of the business for new customer find the business location. ASK IT
services is having good infrastructure in line with their business requirement helping them for
efficient customer engagement. In addition to the business premises right set of equipment for IT
business is critical i.e. network infrastructure, hardware equipment. Scarcity of right set of
equipment will hamper the business adversely.
People and skills–Once the right set of infrastructure is created then next step is to choose right
set of human resources with proper set of skills. As the major responsibilities are on the
individual promoter only, it becomes more critical for the small business to have limited people
with right set of skills to do multitasking.
A business plan–Once all resources are in place it is important to align them with the set
organization goals. The administrative of AKS IT services has proper mission and vision for the
company in the place which helps directing the resources in right manner to achieve maximum
productivity.
TASK 2
P2. Explain and evaluate different processes of customer relationship management
Customer relationship management–Customer is the center for any business be it small or
large. For small business customer servicing is more important due to the small size of
business.The promoter of AKS IT services are playing the key role to identify the new clients,
understanding their needs and fulfilling them.
Assessment of customer value–Once the services are rendered to the customer it is
important to take the customer feedback to ascertain the customer satisfaction level. Higher level
of the customer satisfaction leads to repetitive business as well as new clients to the business. It
is a logistic and systematic action and process that are run by administration in reference to
maximise the business productiveness. Several kinds of planning assets are utilises by
establishments like manageable, semi-controllable that are administrated by administrators which
assists to maintain the effective execution. AKS IT Service is making usages of planning tools
and techniques by determining aims and objectives that are crucial which maintain the
productivity.
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Developing effective channel for customer communication– Communication is an
important process which is running business concern that helps to operate the business. It is
essential business organisation to have customer communication which can increase business
involvement. Customer are main assets for respective firm who manage effective relation with
customers by using IVR mobile, new papers, direct selling and web self services which elps to
attracts clients and increase profitability.
E-mail and digital marketing keep strong relationship– It stages is connected to customer
relation personally and usages diverse tools and origins to make effective communicate. In
London, numerous channels and resources that uses to administrate better relationships with
customers. The manger of AKS IT Services id providing different types of origins E-mail and
digital marketing like e-mails and print media to make development in business performance and
maintain profitability.
Network development– It is another practice which is utilises to improve network
enlargement by developing efficient relations with target audiences that helps in enlarge the
business performance. Respective business venture is using different networking sites which help
in building appropriate relations with clients (Tidd and Bessant, 2018). It enable in
administrating the development of their business by increasing profitability. The managers of
such organisation are developing good relations with dealers, investors, target audiences and
many more that helps to improve manufacturing.
Thus, CRM is an act through respective firm can helps to increase the business performance
(Park, 2018). Small business is having effective relations and network that enlarges business
profitability ratio.
P3. Explain how a business can develop transnationally and determine benefits and drawbacks
Transactional Sales: The main objective of the establishment of company is to maximize
the sales of selling the products and increase the profit of the company. Company want the
maximize the sales in less time. Company gives the best quality products and tries to fulfill the
needs of the customers and making rapid sales by maximizing numbers of target audiences.
Internationalization: The meaning of internationalization is sales of commodities and
services provides in all over the world. In other words company sell their products and services
in international level, so company can take the maximum profit margins.
The benefits of transactional sales in AKS IT Services are as explained
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Independence: A business is utilizes transactional sales in reference to operate business
independently without any interference. So productivity and margin can be increase
appropriately. Company can increase the quality of the products and give the better facilities of
the employees. So company can take the effectively and determine the right business decision.
The administration of AKS IT Services are developing their customers by selling their IT and
facilities to target audiences so they feel better and maximize the foreign investments.
Lifestyle: It is very important the modifications in lifestyle of individual who are offering
several lifestyle which enable in making the accurate business determinations. Company using
transactional sales AKS IT Services can be maximize and maintain the good profits. Company
can offers a assistance to consumers towards lifestyle and deliver them effective quality of
facilities.
Brand recognition: When the company sales the maximum profits then brand image
managed appropriately. So company can enable the maximizing the business execution by
maintaining high profits. AKS IT Services offering the better quality of facilities that assist to
managing the brand image by delivering services.
Increase in revenues: Company sale their products in other countries and expand their
business and fulfill the needs of the consumers. So company can manage the high profitability by
operating business in effective manner. The company can make the foreign investment and
maximizing profits margin.
Drawbacks are transactional sales are as defined:
Financial Risk: When the company expands their business company can face the many
problems it can be financial risk, threat of the competitors. The threat of fiscal loss means the
company not confident about investments to get successes that maximize risk is there. On the
other hand business can experience the financial risk when they have poor management or
flawed financial reasoning.
Lengthy process: Globalization of transactional sales are long term activity which can
generate issues for company to operate business and gaining profits. Company can take the
permissions from international authorities where business is set up. It not very easy process to
take the permission and arrange the assets to set the company it is the major drawback of AKS IT
Services.
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ACTIVITY 2
TASK 3
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income
Cash Flow– It refers to a statement which is framed and formulated by addition of diverse
activities in relation to money is acknowledged as Cash flow. It enables in indicating the profit
state of their business in competitive business surroundings. Each business venture should
develop cash flow statement by recording and analysing their acts which can help in
administrating the high profitability and productivity in rivalry atmosphere of business. Business
is based on finance and it ebullient commodities which help to run business by performing each
activity and improving or developing producing effectively. The AKS IT Services also suggested
its clients to maintain efficient records of business transaction with the assistance of a software
and design cash flow statement so all activity can be perform effectively.
Sources of funds:
To run a business capitals and funds are crucial that make considerable of each actions
and process by using money and manage the elevated performance in rivalry business
surroundings. Without funds it becomes hard for business establishment, to conduct its business
activities and operations (Crane and et. al., 2019). So there are different assets that are uses to
operate business and increasing the production that are as explained:
Own saving– It states of a person has analysed to establish and run business then it should
have own saving that can be use to buy commodities and raw material and maintain efficient
relations with suppliers. It enables in set up to stand autonomously by fulfilling basic needs and
requirements of their business so all functions can be synchronize appropriately.
Equity finance– It is other source of finance which uses by companies by issuing the equity
share to public and workers who are executing in business venture. It helps to organize the
business by collecting fund in effective form (Psychogios and Prouska, 2019). AKS IT Services
has this option to conduct the monetary fund from equity resources by collecting fund and
maintaining the actions continual.
Loans from family and friends– This source of fund is supple that can be systematize by
business concern for the purpose of running business and improving profitability ratio. The
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manager of respective company have modify to organise fund by taking loan from friends and
family so that business of an organisation can be establish in easier way and administrate
profitability effectively.
sBank loan– It is another source of finance which is uses by most of the business firm to run
and manage the business practices and operations of an establishment. Individual who are raising
loans from banks and financial institutes. They need to provide security for guarantee that they
can help to operate small business in efficient way (Król, 2018). AKS IT Services organisation
can administration all activities and design and formulate cash flow by collecting loans from
bank that needs to pay after a fixed time so all activities and functions can be managed
effectively and manage the efficient performance.
Balance Sheet, P&L and cash flow statement of the Syient London Limited:
6

Profit and Loss Account at the year ended
Cash flow Statement
Cash budget for the year
7

Forecasting and budgeting
Forecasting mentions to analysis the needs and considering the amount that are going to
obtained in business with the purpose of running business. It is essential that should be executed
by managers who have data and experience regarding budgets and monitoring income and
expenses that are required in business (Sharafizad, 2018). It AKS IT Services, manager are using
forecasting and developing budgets by determining incomes and expenditures so all business
actions and functions can be run in efficient manner.
The techniques for budgeting and forecasting are as defined:
Calculating the moving average– This technique is use by management of respective firm
for obtaining the opinion and influencing the criterion by running business. It enables in
enlarging the recognising and acknowledging data towards budgets and help to improve the
business.
8

Time series data– This tool is used to analyse and mention the information series in list and
visual communication that can be easy to acknowledge and improve the business performance in
competitive business surroundings (Gregg and Lodato, 2018). It also help in carrying out all
functions and actions on respective business enterprise by framing and making graphs and series
that administrate all business functions and profit margins in appropriate form.
Dealing with seasonality– It mentions that the dependability of a business is covenanting
with different period. As in some season the requirement of goods and services enlarges and in
some time it reduces that become a deal for organisation to contract with it. AKS IT Services is
suggesting to its clients to usages this method and technique so all knowledge in form of
requirement of products in season can be acknowledged effectively.
P5. Explain how break even analysis could be applied to an organisational situation
Break Even analysis– It is analysed as a framework with finical method in reference to get
the relevancy and equitability of fund. These indicate the status and standard of business by
running establishment and maintain same position in competitive business atmosphere. By using
this, a business concern get information at what costs clients are ready to administrate the
equality such as no profits and loss conditions (Attaran and Woods, 2019). It is also enables in
mentioning the relationships between fixed and variable assets of organisation.
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Uses of budgets, performance monitoring and control– Budgets are crucial that should be
capable by business disquiet by determining earnings and expenses which are obtaining in firm
(Pakroo, 2018). It can help to maintain the good performance and analysing the actions by
organizing the funds. Respective firm is analysing and managing monetary value and functions
of company by framing business activities. It helps to increase the business performance in
competitive business environment.
Variance analysis– It is associated with that occurs in venture and indicates the differentiation
between actual and desired units. It is the total of overall performance of business that is
determined by limitations. Respective organisation is using variance determination by analysing
funds and brings enlargements in their performance appropriately.
P6. Interpret key financial statements for an organisation in relation to how they contribute t the
successful management of the concern
Every establishment running their business and making it developed and successful by
disquieting and preparing several types of financial statement that are essential (Polonsky and
Waller, 2018). Small business is also needed to prepare fiscal document so that they can obtain
their business performance in rivalry environment. AKS IT Services are framing and suggesting
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use of software to formulate and develop different monetary value documents that are defined as
below:
Balance sheet– This financial tool is the recorded document of assets and liabilities which
generates within company (Soundararajan, Spence and Rees, 2018). It is formulated with the
help of all statements such as income statement, cash flow and trail balance sheet etc. Respective
business firm is framing and creating balance sheet by defining and describing assets and
liabilities that require being pay off at the time of running small business enterprise.
Cash flow statement– To find out the liquidity condition and all functions in reference to
monetary value a cash flow document is formulated by management that have specific
information and accounting or financial policies to run business and analysing the profitability.
Such as, respective establishment is focusing on running, giving and financial activities to know
cash availability.
Profit and loss account– It is another document and statement which is framed by
respective firm to acknowledge the earnings or gains and loss circumstances of their business. It
helps to improve the business organisation’s profitability margins and working capital that
usages to operate business functions and operations.
TASK 4
P7. Discuss key legislations and regulations that have implications on small business or social
enterprise
AKS IT Services organisation is suggesting to its target audiences and following self
legislation that is explained:
Tax and employment 1976– As per this regulation a business concern is required to pay the
taxes to national authority and should provide job opportunities development option to all
individual that helps to engagement to devise the independent and social economic system.
Record Keeping 2006– These legislations are related to records and administrate
information effectively that can help to operate a business and increase the organisational
productivity in competitive business atmosphere (Yusof and Nor, 2018). AKS IT Service
organisation is following such lawful and administrating business knowledge and employees
data that are uses small and other business effectively.
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Health and safety act 1974– The management of organisation should make please to their
employees as they are part of their organization and making efficiency to run the business in
rivalry business environment by providing effective health and safety to them (Wong, Holmes
and Schaper, 2018). Respective Business Corporation is following the health and safety
legislation by satisfying employees and providing them effective health that increase business
performance.
CONCLUSION
As per the preceding defined information it can be determined that business are needed
different types of resources that can help to organise the business managers are playing crucial
and important role because they focuses on consumers needs and provide products and facilities
accordingly. Financial document are framed by managers as they have specific knowledge and
data to operate business and increase the profitability margins.
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REFERENCES
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(Pakroo, 2018)
(Berry and Berry, 2018)
(Pham, Driml and Walters, 2018)
(Kgoroeadira, Burke and van Stel, 2019)
(Steingold and Steingold, 2019)
(Tidd and Bessant, 2018)
(Park, 2018)
(Crane and et. al., 2019)
(Psychogios and Prouska, 2019)
(Król, 2018)
(Sharafizad, 2018)
(Gregg and Lodato, 2018)
(Attaran and Woods, 2019)
(Kgoroeadira, Burke and van Stel, 2019)
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