Managing and Running a Small Business

Unit 29 Managing and
Running a Small
Business

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1.................................................................................................................................................2
Discuss the main considerations a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives...................................................2
TASK 2.................................................................................................................................................3
Explain and evaluate different processes of customer relationship management for a small
business or social enterprise............................................................................................................3
P3 Explain how a small business can develop transnationally and determine the benefits and
drawbacks........................................................................................................................................4
TASK 4.................................................................................................................................................6
Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation.......................................................................................6
Discuss how break even analysis is applied to organisation............................................................9
Examine Interpretation on key financial statements of a company for contribution in successful
management...................................................................................................................................10
TASK 4...............................................................................................................................................11
Explain briefly legislation & regulations that have impact on small businesses...........................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................14
Books and Journals........................................................................................................................14

INTRODUCTION
Market is wider and broader in which different types of business operates their functions as
well as operations. Managing a small business is a critical task which required deep level of
understanding and expertise (Liebregts, 2019). Mills, 2016 Fruition Consultants Ltd, a tax
consultant firm in Aldgate East, headquartered in UK. Organisation deals in providing services
related to tax,accounts, audits etc. This report comprises of allocating of resources to achieve
business objectives, different process of CRM, evaluation of transnationally business, annual
monthly cash flow, break even analysis, interpretation of financial statements and key legislation as
well as regulation on small/ social firm. This report gives a brief knowledge about managing of
business functions as well as operations (Park, 2018).
TASK 1
Discuss the main considerations a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives
In United Kingdom, market is growing and developing at larger scale. This comprises of
small, medium and large businesses. The ratio of these businesses contributes the growth of
economy as well as overall development. In 2019, growth of small & social enterprises business
increases by 4.2% with including of major proportion of local and small business (Ung, 2017).
Resource allocation is essential part to run business in proper manner. It is defined as process of
using right resources at right place. It is essential to use resources with correct market analysis so
that all are used in proper manner (Hickman and Silva, 2018). In terms of social & small business
they contribute 80 % of profit revenue to market as well as economy's development. In this
competitive era, it is crucial for entrepreneurs to allocate resources in such way that problems do
not occur during process.
In relevance with Fruition Consultants, it is a small business which run its activities in a
limited region. Moreover, for this they allocate resources in efficient so that goals and objectives
are achieved. Manager of firm make ensure that resources are used with appropriate consideration
& after analysing their usage in business. Thus, there are various types of resources which are
required and are mentioned below-
Financial resources- These are those which comprises of capital, loans, etc. which are
needed to initiate or run a business. Without the use of these it is not possible for any entity to carry
out their operations smoothly. So, selected firm allocate them with correct use where they are

required for example- infrastructure, documents etc. With help these, continuity of business remain
present in market.
Assets- Then comes the assets in which it involves land, machinery, etc. These are types of
resources which is privately owned by enterprise. They are physically available like transportation,
furniture and many more. They help in initiation of activities & planning with use of assets. In
context of chosen entity, they use them for accomplishing their goals with use of such assets.
Human resource- They are also to be considered as most important resource of firm
because they are one who manages & coordinates all the activities of business. Also, they are
responsible for increasing productivity of firm. Thus, given entity have efficient human resource
who assist making decisions.
TASK 2
Explain and evaluate different processes of customer relationship management for a small business
or social enterprise.
Customer relationship management is defined as process of maintaining & managing &
data driven strategies which is used by organisations to analyse customers interactions with aim of
generating profit. This strategy help entities to use stay connected or with their end users. In
relation with Fruition Consultants Ltd. They use CRM with aim of understanding users demands or
requirements. With help of this, it is easier to implement effective decision making. There various
process which are explained below-
Portfolio Analysis- It is approach of management which is adopted by enterprise to examine
and categorise their product or services by comparing their effectiveness in market & with
competitors. Fruition Consultants Ltd. Use this process which help them to understand their
products or services performance level (Torry, 2017).
Benefits- With help of this process, company is able to develop strategies for business &
which also assist them in reducing of errors . It gives a clear picture of products that are essentials.
It encourages management to do evaluation of their services or product.
Drawbacks- Portfolio analysis do not provide exact credentials about market changing
environment which is crucial for implementing strategies. Also, it is difficult to change analysis
because it be a time consuming.
CLM- It is elaborated a customer life cycle management which refers to continuous process
of examining of customer metrics on the basis on basis of which decisions or strategies are
implemented. In context with given entity, they use this so that there products are used by potential
buyers. Moreover, with use of CLM customers preferences, attitude, behaviour are being analysed.
Advantages