Managing and Running a Small Business: Report on Bella Retailer

This report provides a comprehensive analysis of Bella Organic Retailer, a small business specializing in organic food. It examines various aspects of business management, including capacity management, customer relationship management, and financial planning. The report delves into the retailer's mission, objectives, product offerings, and operational strategies. It analyzes the importance of customer satisfaction and retention, exploring communication methods and strategies for building customer loyalty. Furthermore, the report discusses the financial aspects of the business, including cash flow analysis and the potential for internationalization. The report also assesses the benefits and drawbacks of international expansion, considering factors such as market reach, tax benefits, labor exploitation, and operational costs. Overall, the report offers valuable insights into the challenges and opportunities faced by small businesses in the competitive retail sector.

Managing and Running a
Small Business
Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY ONE.............................................................................................................................3
Critical analysis of capacity management...................................................................................3
Customer relationship management............................................................................................6
ACTIVITY TWO............................................................................................................................8
Internationalization......................................................................................................................8
Financial management.................................................................................................................9
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Every busines big or small is always concerned with managing the business in different
perspectives. This is important for company to survive in volatile economy and industry
competition. Small business especially needs to exercise proper cautions with financial decision
and allocation of resources as it takes more than good idea to run business. Organic food has the
change in genic makeups of the consumable ideas to the human body. The report will have
discussion on Bella organic retailer targeting population with different healthy preference. the
report will have discussion on effective utilization of resources with managing effective
customer relationship. In addition, the report will have discussion on the financial aspect and
legal aspects.
ACTIVITY ONE
Critical analysis of capacity management
Overview of Business
Bella organic retailers is the small size business fussing on organic and creative food. the
business will be locating in the prime locations more importantly focusing on the financial
success by offing the high-quality services and extremely fresh, organically food items to
customer in different corner of the target markets.
Mission
Bella organic retailer are committed in providing the highest quality, fresh and natural food
along with health and wellness products. Firm staff are friendly, engager to serves and ready to
educates.
Products
The firm is offering the customer with organic and locally grown produces which are free from
chemical and preservatives, cruelty fee body and eco household products. The product which
have been offered by the company are such as
 Free of artificial preservatives.
 Free of artificial colours.
 Free of chemical additives.
 Organically grown, whenever possible.
 The least processed or unadulterated version available.
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 Non-irradiated.
 Cruelty free.
Objectives of the firm
 The firm need to provide the customer with fresh, organically grown fruits and vegetable
without additional colour, flavours and additives
 To increase the sale of company by 30% by the need of six months
 To increase h profits by 20% in the end of first two quarters
 To increase the customer loyalty
Premises and Equipment’s
 To have proper flourishing the of the retail business, there is need to have high quality
industry specific retail POS. there will be following points-
 Stock room which have inclusion of trash bags, trash cans, tagging guns, a labeller and
pricing guns. Brooms, mops, tape guns and box cutters also tend to be pretty useful.
 Break room equipment will have the inclusion of refrigerator, chairs, tables, conduct
codes and other related items.
 Office equipment’s have consideration of cash registers, various bags of different sizes,
baskets, shopping carts, an open/closed sign, and a security system.
 Sales floor will have shelving racks, hangers, an audio system, and the inventory and
POP displays.
People Skills
Retail involves a lot of peoples communicating and making sure regarding fulfilments of each
other needs in respective manner. retail involves everything such as planning and communicating
deciding things in equal and necessary manners.
So, the skill requires in managing retail business are such as
 Eagle eye spread for deep insight as retail is wide spread business and need to
communicate multiple people at single moment of time.
 Excellent communication skills are must need for retail employees to convince people
standing ahead as term of fulfilment of the respective needs.
 Busines focus as there is need to have money going development sections which is
ultimate in craving best opportunities from all around.
 Relationship management is needed to be done by every member of the firm such as a
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PR professional, a marketing agent, an associate, a commercial manger and a finance
manager.
 Critical thinking is considered to be competencies to have resolution to each and every
critical issue a having standard significant s approach to handle.
 Good standard of IT and good numeric skills as employees to make the faster services as
every steps. As far as ats is concerned numeric plays an important roles in dealing with
hinting profits is always concern.
Organization Structure
James been already working in the MNC such Tesco have the proper experience of the
managing the business in the retail sectors. The firm have established with the standard
delivering the organic vegetarian item as to the target markets. James will ensure the right
distributed and legated structure as the standards and vegetarian retailer’s
Human Resources Recruitments
We will ensure people who are hired will be properly qualifies, honest and customer centric.
They will be always read to work and build prosperous business which will be benefitting all the
stakeholders that area owners, workforces and customer. As matter of fact, profit sharing
arrangement will be available to all the senior management staff on their bias of their
performances.
In view of that, we have decided to hire qualified and competent hands to occupy the following
positions;
 Chief Executive Officer (Owner)
 Retail Manager
 Human Resources and Admin Manager
 Sales and Marketing Manager
 Information Technologist
 Accountants / Cashiers
 Van Drivers / Deliverers
 Cleaners
Performance Managements
This is helpful in building high performance cultures for both individuals and teams. This is
because as it takes responsibility imposing the busines performances on the continuous basis
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along with upgrading the own skill in leadership frame working respective manner.
 Connect the Customer Experience to Performance
 Train Employees to Go the Extra Mile
 Managing the performance appraisal process.
Health and Safety Issues
 All employment passage ways, stores and services shall be kept clean and sanitary
condition.
 the floor every workroom shall be clean and possible conditions
 storage of materials shall not relate hazard, bag, containers with interlocked and limited
in weight.
Customer relationship management
Managing customer relation is one of the main keys of the success of small business.
Businessman or restaurant owner can increase profit margin and sales only when it attracts
customers to the great extent and satisfy customers’ needs. It is possible when they chose better
modes of communication and interact with customers. Continuous and better modes of
communication allow employers to known about needs, current trends and accordingly it
satisfies their needs (Lee and et.al.,2018).
The main of the firm is capturing the customer retention and develop relationship with them.
Awareness
The firm should be aware different customer and competitors brands offering the similar product
and services. This is made up of enquiry to look into customer retentions with help of various
resources such as advertising, word-of-mouth, and social media, among others. The main aim for
the firm is to have capture the customer’s attention and develop a relationship with them
Acquisitions
There is need to have conversion of interest into the product of customers. The firm need to be
attentive by dealing with best options to need of customer in possible manner.
Conversion
After gaining attentions providing the satisfactory products an buying experience will be helpful
of Bella organic retail to have expansion in customer basis and leading productivity of firm.
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Retention
Loyal customer is happy customer which lead to successful business. successful business has the
need to concentrate in retaining old customer rather than acquiring the new one. This process has
involvements of cultivating relationship with customers and responding the quires on time
advocacy
Some effective ways of managing customers’ relation via appropriate communication modes
include:
Online chat: There are several social media platforms and app which allow employers to chat
with their customers online and knowing their current needs. Online chat also allows employers
to know about current trends and needs o customers’ as what they want. By focusing on this they
can increase customers’ satisfaction and improve relation by providing them products according
to their needs.
Email marketing are the promotional ways for digital marketing strategy based on sending
emails and developing the effective relationship with efficient prospectors with customer. Bell
organic will be used email marketing to targets it customer as it has been automating process.
Social media influencer is the biggest buzzword of digital marketing between the narnds.as
been the small business, the goal is simple tats is to increase the profitability and sales of the
company
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ACTIVITY TWO
Executive summary
The restaurant plan is for Bella organic retailer located in the trendy neighbourhood. The
restaurant will pay proper emphasis on the organic ingredients as dedication to sustainable
restaurant. Additionally, the firm will have proper procurement local foods along with reducing
their dependency in the fossil fuels for transportation. The firm will, pay proper emphasis on
organic and ethnic food.
Internationalization
Internationalization is growing and associated with larger corporations which redefined the
business sell the product at global level. this helps the business to internationalize and becomes
successful on global scale. Benefit for the Bella restaurant to expand at the international level
will help out in-
Benefits
 Wide customer ranges
When company expand to multiple countries around word strengthening with different
cultures exposed on daily basis. As there is difference in between different cultures makes
proper strong exposures to the products or service to overall people.
 Tax benefits
As the firm will have expansion in different countries will lead the firm under government
development policies. This is extended to provide maximum rebate to firm an several tax
benefits to flourish in domestic land.
 Greater efficiency
The firm will have improved level of efficiency an get into first mover advantages by getting
into markets. the Bella retailer will be able to quickly attracts their new market
segmentations. there will long list of early adopters in board and no one else is present for
competitors.
 Generate employments
It is rather easy to have recruitments of international sale forces. Marketing can be
developed as local levees as in allot all the corner of the world. The increase localizations
help in establishing the local relationships, develop customer loyalty and promote increase
level of sales.
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 Enhancement of exports
Small home markets usually mean customer are short supply. This is helpful in effecting
company potential for growth. Bigger market and more customer.
Drawbacks
 Labour Exploitation
As labour exploitation is leading issue the firm tends to face in international markets. This
have seized control on business. The political environments can be look different from the
Higher Operating Cost
As the firm tends to have international expansion, currency fluctuation plays an important
role in the value of profitability and operating cost in significant manner. Not ever country
will allow the form to operate it wants, so the firm have the need to look out the country
expectation and function as normal
 Decentralization
Decentralized is important aspect the firm have the need to understand while operating in
different countries. Going global is about visiting the foreign markets and understand the
local needs so the value proposition will don’t works likely work internationally.
Financial management
Annual Cash Flow
Cash flow analysis is the examination of Bella organic retail inflow and outflow of cash
during the specific times. This analysis being with scattering period and generating tending
values with all cash receipts during particular period. This is often used as financial
reporting purpose.
Particulars May June July August September October
Cash inflows
Opening cash inflow 377000 334500 317657 300089.54 281764.83 262648.68
Sales revenue 11000 11220 11444.4 11673 11907 12145
Other income 2500 2500 2500 2500 2500 2500
Total cash inflows 390500 348220 331601.4 314262.83 296171.58 277293.57
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Cash outflows
Material 28000 1683 1716.66 1750.9932 1786.0131 1821.7333
Labour 2000 2000 2000 2000 2000 2000
Other expenses 22000 22880 23795 24747 25737 26766
Administration expenses 4000 4000 4000 4000 4000 4000
Total cash outflows 56000 30563 31511.86 32498.001 33522.901 34588.097
Cash deficit / surplus or closing
cash balance 334500 317657 300090 281765 262649 242705
November December January February March April
242705.47 221898.07 200187.78 177534.28 153895.53 129227.76
12387.787 12635.542 12888 13146 13409 13677
2500 2500 2500 2500 2500 2500
257593.26 237033.61 215576.04 193180.3 169804.47 145404.88
1858.168 1895.3314 1933.238 1971.9027 2011.3408 2051.5676
2000 2000 2000 2000 2000 2000
27837.018 28950 30109 31313 32565 33868
4000 4000 4000 4000 4000 4000
35695.186 36845.83 38041.757 39284.763 40576.715 41919.557
221898.07 200188 177534 153896 129228 103485
Break even analysis
Break even analysis is widely used by the companies for determining profitability of
business. BEP entitling the calculations and examinations of the margin of safety which is
entirely based on collection of revenues and all the associated cost. In addition, analysing it
as different price levels area relating to various measure of business.
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This indicates the level of investments much reach business to recover the initial outlays.
this is broadly engaged from stocks and option trading to corporate cutting-edge form various
projects. this tool will be use by the Bella retail to have smart pricing for determine
appropriate price of the product and services. This can be increase in level of profits and cost
incurred can be properly recovered.
Bella break even analysis will be based on their first-year numbers for the total sales and
operation expenses. This are presented on the present unit revenues, per unit cost and fixed
cost. Bella retailer have realized as all are not fixed cost but there can be conservation
assumption to make the better level of estimate.
Break-even Analysis
Monthly Units Break-even 3,200
Monthly Revenue Break-even $34,100
Assumptions:
Average Per-Unit Revenue $10
Average Per-Unit Variable Cost $1.5
Estimated Monthly Fixed Cost $29,000
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Key financial statement
Financial statement are the one of companies which have proper communications for the
business financial decision. These stages have of profitability and financial strength of company.
The three basics financial management will have the discussion such as balance statements,
income statements and financial ratios.
Balance sheet
In the financial accounting of the business is the summary of the financial balances of an
individual. Balance sheet helps in current and potential investors to have better understanding of
the funding and have better future expansion .
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Balance Sheet
Assets
Current Assets Year 1 Year 2 Year 3
Cash $49,400 $61,900 $109,300
Other Current Assets $50,000 $50,000 $50,000
Total Current Assets $99,400 $111,900 $159,300
Total Long-term Assets $0 $0 $0
Total Assets $99,400 $111,900 $159,300
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $14,700 $15,200 $21,600
Long-term Liabilities $93,800 $83,800 $68,800
Total Liabilities $108,600 $99,100 $90,500
Paid-in Capital $40,000 $40,000 $40,000
Retained Earnings ($3,000) ($49,200) ($27,200)
Earnings ($46,200) $21,900 $56,000
Total Capital ($9,200) $12,700 $68,700
Total Liabilities and Capital $99,400 $111,900 $159,300
Net Worth ($9,200) $12,700 $68,700