Managing and Running a Small Business: Considerations, Resource Allocation, CRM, Business Development, Financial Statements, Regulations

LO1
Main considerations of small business which they need to address while doing planning and for allocating the business resources for achieving the
objectives
Business planning
This is the critical activity for the business operations of Oakman Inns & Resturants. The plan will help the company to achieve their business
objectives. The owner should identify what type of business they are doing (Considerations when starting a small business, 2017). By identifying this
they are able think about the funding options available to them. The funding options for the company are as follows –
Angle Investment – These are the individuals who show keen interest for making investment as they have surplus cash. These investors expect 30%
equity in return. They have capability to take high risk in order to expect higher returns.
Venture Capital – These types of investors invest their money in small business only if they find that the company has huge potential (Amir, Anggraeni
and Yani, 2020). The Venture capitalist only invests in the business where they find an acquisition or IPO. They invest in the company in exchange of
equity. Thus, it is generally not suitable for small business.
Business Accelerators and Incubators – The business can take help of these incubators & accelerators for assessing the funding, as this provides
funding to the startup business. They also provide financial assistance to the business and provide training and shelter tool to the business. Incubators
mainly assist the business and accelerators helps to run the business.
Once the funding options are being chosen then the company has to think about the vision and mission statement and has to define a business
purpose. Oakman Inns vision is to create the environment which is perfect for their customers and client to enjoy drink and food whilst through catching
up their family, friends and neighbors. Then the company has to think about Unique selling propositions. Oakman can provide food delivery to their
customers in just 20 min time. This will assist the firm to achieve competitive advantage. Then the company has to think about effective marketing
strategy through which they can attract large number of customers towards their business. Oakman Inns and Restaurants can do social media
advertisement for increasing their customer’s base.
Allocation of resources
Resource allocation refer as a process of managing and assigning the assets in a way through which its supports the organizational goals. Resource
allocation includes managing tangible assets like cooking equipments in Oakman Inns & restaurants Ltd. The company is focusing on managing their
human capital. The company should allocate their resources by balancing their competitive priorities and needs. They should determine effective course
of actions for maximizing the effective use of resources and for gaining the best return on their investments (Diaz-Briquets, 2019). The resources that are
limited in number if not allocate in proper manner than chances of completion of employees tasks in the company will get delayed. The company has to
INTRODUCTION
Managing a small business is ambition for some of
the people. The business idea could be anything from a
coffee shop to a vehicle repair workshop. The report is based
on Oakman Inns & restaurants Ltd. It is founded in the year
2007. The firm is specialist in restaurant, rooms, and bar,
wood fired pizzas oven, Josper oven and pub. The
headquarters of the company are situated in Tring,
Hertfordshire in UK. The report will discuss about the main
considerations which a small business needs for addressing
the allocation of the resources and planning for achieving the
organizational objectives.
Furthermore, report will evaluate various processes of
customer’s relationship management for the small or social
enterprise. Then, the study will determine how a small
business can develop transnationally and will also evaluate
its drawbacks and benefits. The report will produce monthly
cash flow for forecasting variable and fixed costs. It will
explain how break even analysis can be applied to company’s
situation. Moreover, it will interpret financial statements for
the organization in context of how they contribute in success
of organization. Lastly, it will discuss the regulations and key
legislation that have impact on small business.
Furthermore, report will evaluate various processes of
customer’s relationship management for the social or small
enterprise. Then, the study will determine how a small business can
develop transnational and will also evaluate its drawbacks and
benefits. The report will produce monthly cash flow for forecasting
variable and fixed costs. It will explain how break even analysis can
be applied to company’s situation. Moreover, it will interpret
financial statements for the organization in context of how they
contribute in success of organization. Lastly, it will discuss the
regulations and key legislation that have impact on small business.
UNIT 46: MANAGING AND RUNNING A SMALL BUSINESS

identify what type of resources they need in their restaurants. They need to gather information related to resource availability.
LO2
Evaluate and describe the various processes of customer relationship management for a small firm.
Customer Relationship Management (CRM) refers to methods and tools that aim to integrate all past and past business and customer communications
with the aim of improving customer relationships with that business (Trevino and Nelson, 2016). In other words, the purpose of CRM is to gather
enough information about the customer and use it sufficiently to increase good customer communication with Oakman Inns and restaurants, thereby
increasing the company's sales. CRM systems work collaboratively; data collection across all categories of customer marketing, sales, and service
relationships, provides a complete picture, allowing Oakman Inns owners and restaurant owners to make informed decisions.
CRM is a way to manage Oakman Inns interactions with the restaurant and reunite with existing potential customers. It uses data analysis on customer
and corporate history to improve business relationships with customers, especially focusing on customer retention and ultimately continuing sales
growth. One important feature of the CRM approach is a CRM system that integrates information from many different social networks, including
Oakman website, phone, email, live chat, advertising materials and more recently, social media. By using the CRM method and the systems used to run
it effectively, businesses learn more about their audiences and how to meet their needs.
CRM is a combination of Oakman Inns' practices, strategies and technologies used to leverage products to manage and analyze customer
communications and data in all customer areas, with the aim of improving customer service relationships and assisting customer retention and sales
continuity (Burns, 2016). CRM systems that integrate customer data across all different channels, or customer contact points, can include the Oakman
Inns website and restaurant by phone, live chat, direct email, promotional materials and social media. CRM systems can also provide customer-focused
staff with detailed customer information, purchase history, purchase preferences and concerns.
Explain how a small business can develop its business differently and write down its difficulties and benefits.
Benefits -
Attracting New Customers - The first business benefit to Oakman Inns and Free is the ability to attract and retain new customers. If you add new
products to your portfolio or enter new markets, you can bring customer markets that have never been opened. Reaching these new clients with an
extension is one thing, but getting involved in building long-term relationships is important. Growing a loyal customer base is the best way to earn a
consistent profit and grow over time.
Economic Scale - As you grow your business, you often spread the risk of doing business and reduce the power of one product or one bad decision that
hurt your business (Yan and Yan, 2016). Working in multiple markets or product areas allows companies to spread the cost of doing business in the
market or to multiple customers. This reduces the cost of doing business with each customer, which enhances the ability to make a profit by adding new
customers. It also offers economic benefits equal to Oakman Inns and Resort.
Problems -
Huge Financial Needs - What’s confusing about business growth is that when a company like Oakman Inns and Turkey invests and other resources to
grow the business, it has less money available on other business items (S Storey, 2016). This makes it very important to think about market growth
opportunities before making money. Think of the potential return on investment from each product or market you may be developing before investing in
it as you go. Extensions often mean debt consideration. Your credit obligations can be controlled as long as the sale is consistent and cash flow is timely.
Limited Extensions - Another risk to business growth is that you can distribute resources with your very sensible company. Often, Oakman Inns leaders
and restaurants think they should expand if things go well. However, involvement in multiple markets or products can cause a company to increase its
capacity to the point that it is not working well anywhere. Business expansion makes sense only if your company has enough people and resources to
cover this new relevant space (Soundararajan, Spence and Rees, 2018). Business owners and senior executives can feel the effects of a growing business.