Managing and Running a Small Business

Unit 29 Managing and
Running a Small
Business

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Briefly discuss considerations of small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives ..................................................3
TASK 2 ................................................................................................................................................5
P2 Explain CRM & analyse main areas within customer resources management, provide benefits
& drawbacks of each area................................................................................................................5
P3 Discuss about transnational development. What are the benefits and Drawbacks of business
developing transnationally? Then implement SWOT analysis on the idea developing
transnationally..................................................................................................................................6
TASK 3.................................................................................................................................................7
P4 Develop annual monthly cash flow forecast showing fixed and variable costs.........................7
P5 Discuss how break even analysis is applied to organisation......................................................9
P6 Examine Interpretation on key financial statements of a company for contribution in
successful management..................................................................................................................11
TASK 4 ..............................................................................................................................................12
P7 Explain briefly legislation & regulations that have impact on small businesses.....................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14
Books & Journal:...........................................................................................................................14

INTRODUCTION
Business sector is increasing with rise in competition and it gives rise to economy as well as
growth. Small business within the market are developing and making the opportunity available
others to start new business. Fruition Consultants Ltd, a tax consultant firm in Aldgate East,
headquartered in UK. The firm provide services related to accounts, tax, audits to the clients
according to need & requirement. This report comprises of consideration of small and social needs
for allocation of resources, processes of CRM, business developing transnationally, annual cash
flow, break even analysis, interpretation of financial statements and key legislation as well as
regulation. The main purpose of this report is to carry out stages which are required for managing
small business.
TASK 1
P1 Briefly discuss considerations of small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives
In UK economy, large, small and medium businesses contribute and are major reason for
the growth of economy. In year 2018, business sector grew by 3.5 % with major proportion of
small businesses and firms (Sedzro, 2017). In market, each businesses have different needs
according to their specification or uses. Resource allocation is is necessary which is to be done with
proper considerations. It is defined as assigning or right resources to their right places with motive
of carrying out the functions and operations effectively. It is important to use resources in efficient
manners so that they can be used in future perspectives. By properly allocating of resources , it is
easier to fulfil the business needs. Small as well as social enterprise both provide 70% contribution
to the development of economy of UK. This is the reason why growth rate of these enterprises is
increasing in market.
In context of Fruition Consultants Ltd, it is independent small business which also requires
various resources such as capital, manpower, tools etc. There are several elements which are needed
by entity and are mentioned below-
Flexibility- It is also crucial resource which is required organisation because it help in
achieving of objectives properly. Flexibility is defined as making changes in enterprise without
facing problem or issue (Traina, 2018). By using this, it is easier to follow the market trends in
effective way. In reference with chosen firm, by adopting this resource it is possible to make
changes. It is used with correct consideration so that goals are achieved properly. If it is not used in
organisation, then subordinates won;t be able to work in correct way.

Employees- These are also needed by entities as they are work force who are able to
complete the give task on time period. Manpower also assist in increasing performance as well as
productivity of the enterprise which is beneficial for growth. Thus, selected entity have employees
but need more skilled staff more attracting more clients.
Assets- It is resource which can be owned, controlled to produce value for something which
is owned by enterprises. They are in physical form such as vehicles, real estate, furniture etc.
Without use of these assets, it is not possible to accomplish goals or objectives. In relation with
selected entity, to grow their small business they require assets with appropriate allocation. Without
use of assets, it is not possible to implement or initiate business activities (Forno, 2019).
Human Resource- This is crucial asset's of entity as they are the one who regulates and
formulates all policies as well as procedures. They are also considered as base of enterprise who
hire efficient and skilled employees for company. They manage employee & management & are
also responsible for developing work environment practices.
Financial resources- Then comes the financial resources which are essential to run the
business functions. In every corporation, there is need as well as requirement of capital at every
aspect. No company can run their activities without using financial resources. This is because to run
functions as well as operations, there always need of money so that necessary materials are
acquired. Therefore selected corporation use their financial resources in such a way that they are
used with optimum level (Pedwell, 2016).
Therefore, after analysing the above stated paragraph it has been seen that resources are
integral part of business without which core activities of firm cannot be carried out. It depends
upon the resources to give priority to which one. Moreover, allocating them is not easy & manager
or supervisors make assure that they are adopted with appropriate considerations so that it is easier
to attain objectives.
TASK 2
P2 Explain CRM & analyse main areas within customer resources management, provide benefits &
drawbacks of each area.
CRM is also known as Customer Relationship Management which refers to process by
which customer data is driven, accessed and managed by the firm. It is unpins sales management,
deliver customer insights by integrating with social media. This is helpful in achieving trust of end
users that their data era safe. Therefore, in relevance with Fruition Consultants Ltd. They also use