Report on Managing and Running a Small Business for COMATCH

This report examines the key elements of managing and running a small business, using COMATCH UK as a case study. It delves into capacity management, including resource planning (premises, equipment, people, and skills) and establishing an appropriate organizational culture. The report explores customer relationship management, emphasizing strategies for building and maintaining strong customer relationships through analysis of customer portfolios, customer intimacy, network development, and the use of digital platforms. It also covers business expansion strategies, highlighting transactional sales methods such as mobile phone, email, website, and online sales. Furthermore, the report discusses financial management, including funding sources like personal savings and bank loans, and concludes with a section on legal considerations relevant to small businesses.

Managing & running a
small business

Table of Contents
INTRODUCTION...........................................................................................................................1
Chapter 1: Capacity management ...................................................................................................1
Chapter 2: Building a meaningful relationship ...............................................................................3
Chapter 3: Expansion of business ...................................................................................................4
Chapter 4: Application of financial management ...........................................................................5
Chapter 5: Legal considerations ....................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
To start a new venture is always a challenging way for entrepreneurs in the competitive
world which is require many resources and skills to start. This refers as risk which is taken by a
person who wants to start or run their own business. While running a business different types of
problems are faced by business person in every steps which starts from generating idea to
initiating and operating business successfully (Bridge and O'Neill, 2012). To understand about
small business management COMATCH UK has been selected that is consultant company
provide consultancy services to start ups and other running business. This organisation was
founded in 2014 by Dr. Jan Schachtele and Dr. Christoph Hardt. This is small size organisation
where number of employees are 125, providing management consulting services. This report is
divided in to five parts such as capacity management, building a meaningful relationship,
Expanding business, Application offinancial management and legal considerations which helps
to maintain the business successfully. In other words in a business there is required capacity
utilisation and management, identifying resources and skills which helps to develop appropriate
job specification. In context to COMATCH organisation, member advice to people to run their
own business by arranging premises, equipment, people and skills which helps to attain the
organisational goals and objectives.
Chapter 1: Capacity management
Capacity management is the process of attracting people and completing the task
effectively by using skills and knowledge. Organisation mainly focus on goals and targets of a
business which need to be complete by using resources properly. To start a new and small
business there is need to different planning resources which helps to run a business and make
profits independently. In context to COMATCH organisation, different services are provided to
complete the task and running a business. Different types of planning resources are as defined:
Premises: This refers as building and land which is require to start and run a business at
every place. This planning resources help businesses to run their own business and get the profits
(Blackburn, Hart and Wainwright 2013).
Equipment: To start any new venture machines and equipment are also required which
is used to perform the business activities and increase the organisational productivity and
profitability.
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People: This refers as people which is required to perform business activities by using
their skills and knowledge properly which helps to maintain the business activities effectively.
Skills: This refers as ability and capacity to complete the project which helps to attain the
organisational goals and objectives. To run a business skills and knowledge is required to
complete the project which helps to maintain the productivity and profitability.
Establishment of appropriate organisational culture
Organisation culture is refers as values and behaviours which contributes to unique social
and psychological environment that helps to attracts employees and increase organisational
productivity. The culture of organisation should be appropriate and acceptable by employees
where employees can work effectively and increase production level. For instance, COMATCH
is suggesting to all start ups and other business to keep appropriate and flexible culture where
goals of organisation can be achieved properly and maintain the profits (Burns, 2016).
How organisation apply relevant tool and technique to plan for resource allocation
Different types of tools and techniques are applied by organisation which helps to
allocate the resources appropriately. Tools and techniques are those equipment which are used to
keep a proper business and maintain the productivity of business. The main purpose of
organisation is to build organisation goals and make efforts to attain the business objectives. For
example, COMATCH is a consultancy organisation that provides different types of services to
start ups which guides small businesses to allocate the business successfully. Some tools and
technique are given below:
Critical Path analysis - This is consider as appropriate method which reflects in the
form of bar chart and offer data, helps to define the completion of every project time. By using
this small business and others can gather proper data and method of operations which helps to
attain the organisational goals.
Gantt chart – It is another tool and technique which states path and time to complete the
project and task effectively. Goals and objectives are set by business concern in order to
complete the project by utilising resources properly (Stokes, Wilson and Wilson, 2010).
There are many benefits which is used by allocating the resources properly:
Appropriate structure and culture of organisation give benefits to employer as they
complete the project, uses human resources management in order to recruit and retain the
employees which helps to increase organisational performance by building effective team.
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Organisation also uses outsourcing, network and external advisers to run a business perfect
manner which helps to attain the organisational goals.
Chapter 2: Building a meaningful relationship
Customer relationship management is consider as strategy and process which is used to
maintain the good relationship with customers. Customers are important for any business
organisation which helps to run a business successfully. COMATCH consultancy assists its
client who are going to start new business or running small business, how to attracts customers
and also maintain the good relations with customers. There are various steps which is used by
business to maintain the customer relationship as:
Analysis of customer portfolio - This is first step where organisation need to analysis
the customer base that states what kind and group of customers are most profitable. Target base
is customers for organisation which helps to attain the goals (CRM process, 2019).
Customer intimacy – This states a process which help to get familiar with individual
customers in organisation's target customer base. Every interaction with customers is consider as
opportunity which helps to improve the intimacy of customers and learn about target market.
Network development - This contains identification and development of good and
strong relationship with business entity, networks and people which helps to serving customers
properly. This covers external partners like investors, suppliers, shareholders and internal
partners which increases organisational productivity and profitability (Drucker, 2012).
Value proposition development: This phases bases on gathering information while
working on intimacy of customers. This helps to increase the value of customers as well as
organisation by maintaining good relations with customers.
Customer life cycle management – This refers as ideal customer journey which starts
from providing quality of products and services. To manage this cycle there is require to
structure and proper attention which helps to increase organisational productivity and
profitability.
Therefore, COMATCH consultancy suggested to its clients and small business to use
customer relationship process in order to maintain the good relationships and increase
organisational productivity.
Digital platforms for effective customer relationship
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Business organisation should adopt effective customer relationship by including email
marketing such as mobile devices, online chat and forums for real time response and solution,
online testimonials and social media which helps to increase the organisational sale and
productivity effectively.
Transactional sales – This means business activities or tools which is used to increase
the business sale by facing the competition. This differs from consultative sales that driven by
incentives and price instead of tailoring message and product to solve the pain of customers.
Some points are covered in transactional sale:
Knowledge opportunity - This states that management should carry proper research and
gather information which provides opportunity in get a competitive position in competitive
market.
Network positioning - Different types of marketing and promotional tools should be use
by organisation in order to communicate with customers and maintain good relationship with
customers (Nickels, McHugh and McHugh, 2008).
Relationship commitment decision - This commitment indicate towards quality of
products and services which are offer to customers and provide them satisfaction which helps to
increase the transactional sale of organisation.
Chapter 3: Expansion of business
Business expansion said to a process of increasing the business activities and
performance by applying effective strategies. Expansion and development of business is needed
for organisation which helps to increase the organisational productivity and profitability. In order
to develop a business there are various activities which are generated by business firm by using
knowledge and skills. COMATCH is small consultancy which suggest its client to develop their
sales by using transactional method such as:
Mobile phone: This method is consider as transactional sale method which can be used
by business organisation increase their sale by providing phone facility to customers which make
happy to them and run business effectively.
Email: This is another method from where customer gather information and select the
products and services in order to purchase which helps to increase the sale of organisation.
Moreover, customers get home delivery of their ordered products.
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Company's website: This way is also consider as transactional method of sale which can
be used by organisation to sale their products and services. As information about product,
quality, price, uses and other information are updated by management which helps customers to
place order of products which expand the sale of business industry.
Online sale: This means corporation can increase sale through online way such as social
media, print media, you tube etc. which helps to increase the sale of business organisation. This
should be use for the purpose of expanding brand image and sale of business organisation.
All method are having some benefits and drawbacks that are as defined:
Benefits:
Increase in sale: All methods are giving benefits to organisation as they can increase
their sale by using online, social media, own websites, mobile phone and emails which helps to
improve the sale. Customers buys products with the help of such method and maintain the
profitability (Teece, 2012).
Expansion of business: As customers uses such method which helps to become the
international organisation because any person can by products by using mobile application,
online shopping which helps small business to change in internationalism.
Save time and cost: With the help of transaction sale organisation can save their
unwanted cost and time to become internationalism which helps to make profits.
Drawbacks:
Risk: To use such method there is risk also which can occur while running a business
which are faced by business organisation in order to run a business. To use all option there may
be financial and fraud risk which may be in context to customer and organisation (Hill, 2008).
Customer dissatisfaction: Some time customer feels dissatisfaction for buying products
because there is difference between pictures and original products which creates negative
feedback. Therefore, lack of personal touch may a reason of customer dissatisfaction and low
productivity.
Chapter 4: Application of financial management
Financial resources is said to an activity which which is used to run a business
effectively. This is one of the important source of a business organisation which is used to
increase the organisational productivity and profitability. To run a business successfully fund
helps to get the resources and complete all operation which helps to maintain the higher profits.
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Organisation should arrange the funds and financial resources in order to perform well and
increase the profit margin. COMATCH assisting its client or small business to develop a cash
flow by arranging the funds from different resources such as:
Funding from personal saving - This is most common type funding resource which can
be used by business to run their small business. This can helps to run and increase the
organisational productivity and profitability because it helps to save from paying interest amount
and increase business activities (Gronum, Verreynne and Kastelle, 2012).
Bank Loan - This is another financial resource which is used by business industry or
small business to get loan for their start up and small business which helps to run a business
successfully. Entrepreneurs can use this sources to arrange the funds and maintain the production
level at national and international level. By using this resource organisation can manage the
funds properly which helps to generate higher profits.
Equity finance - Business who need funds for their expansion and development has an
option to arrange funds by issuing equity share publicly. This can help small and other business
for develop their business and increase the profitability. Equity finance states as those source
which helps to maintain the funds properly and increase business activities.
Angel investors - This is consider as individuals like family members and fiends which
provides funds to start and run a small business. At present, there are approximately 250,000
private angel investors which provides funds to people to run their business effectively and
increase profits (Hotho and Champion, 2011).
Venture capital - This is also consider in financial resources which is suitable option for
businesses beyond the start ups. This provides funds to those businesses who wants to expand
their business in larger market by increasing marketing share. A person who wants to increase
their performance and expand business can use venture capital because it can available larger
amount of fund to people for their business development and expansion.
Leasing and hire purchase – This source states that company can arrange funds by
giving its property to others at decided amount and specified period. This is also called as rent
which helps organisation to develop their start ups and increase business performance.
Overdraft – This source is used to get the funds and capital with the help of overdraft
which helps in start ups and small business. It is just like credit limit which allows to person to
get finance up to a limit and run business effectively.
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Forecasting and budgeting:
Techniques for forecasting and budgeting - There are different techniques which is
used by small and other business to forecast and prepare a budget in order to run a business
effectively. Using time and series data, calculating moving average, finding a trend and dealing
with seasonality which helps to prepare a budget by forecasting. By using time series data
organisation cam gather financial information and build a trend which helps to get a profits.
Developing budgets - This means organisation should prepare an estimated budget by
involving all income and expenditure which helps to know how much need to expand. This states
that what action should be taken in order to reduce the cost and increase profits. Moreover,
budget should get prepare by including “What if” that states if any changes are occurred in cost
then how it can be management for the purpose of making profits (Nga and Shamuganathan,
2010).
Using budget for performance monitoring and control: Budgets are mainly used to
know the performance and business activities of business organisation which states how much
profit and loss are getting by organisation from its business. Budgets is prepared by managers to
evaluate the profits by monitoring and controlling the business performance. This is helps to
increase the organisational productivity and profitability.
Variance analysis – This is consider as quantitative investigation of the difference
between actual and planned behaviour. This states the difference between actual and estimated
budget by comparing and define profits. This analysis is also used to maintain the control over
business by defining the difference and variance (Malhotra and Temponi, 2010).
Break even analysis: This is consider as financial tool which is used by business
organisation to know at which stage organisation and product or services will be profitable. This
is financial calculation which is used to determine the number of products and services that a
company sells to cover its cost. This helps to state is organisation earning profit or loss by using
such analysis. This is a point which indicate the profit in business firm that states organisation is
having no profit no loss condition. All income and expenditure are consider in such analysis
while calculating the profits. This helps to make various decisions and increase effectiveness of
financial performance (Schaper and et. al., 2014).
Another benefit of Break even analysis is this helps to generate the profits by reducing
the cost and wastages of products and services which is important for business industry. It bring
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efficiency in commercial activities by utilising resources properly. To calculate the no profit no
loss a formula is used by organisation such as:
Break even analysis = Fixed cost / contribution
For instance, cost of business organisation is 30000 along with variable cost 10 rupees
per unit and the selling prices is 15, find out the BEP :
Break even analysis = Fixed cost / contribution
= 30000/ (15-10) = 150000
Financial statement for small business
Key statement are required for small business – Key statement such as income statement,
cash flow statement and balance sheet which are important for small business that helps to know
how much organisation is getting profits by running a business successfully. Such statement
states the financial position of a business industry and maintain the profits. Income statement,
balance sheet and cash flow statement are prepare by managers by analysing all information and
financial data which helps to generate the profits. Such statement are interpreted by knowing the
profits states how much profits are getting by organisation by comparing with past years.
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Cash flow Statement
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