Nescot College: L/508/0566 Unit 29 Small Business Management Report

This report delves into the multifaceted world of small business management, providing a comprehensive analysis of key strategies and practices. The report begins by exploring the critical aspects of capacity management, emphasizing the importance of maximizing project potential and resource allocation to achieve business objectives. It then examines resource allocation, outlining essential techniques such as defining requirements, assigning roles, and prioritizing tasks to optimize resource utilization. The report also covers customer relationship management, highlighting the significance of maintaining strong customer interactions and communication. Furthermore, it addresses financial management, including cash flow projections and break-even analysis, and concludes with a discussion of key legislation and regulations relevant to small businesses. The report aims to equip readers with the knowledge and tools necessary to effectively manage and grow their small businesses.

Managing and running a
small business

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY-1...................................................................................................................................3
Capacity management..................................................................................................................3
Resource allocation......................................................................................................................5
Customer Relationship.................................................................................................................7
ACTIVITY-2...................................................................................................................................7
Financial Management.................................................................................................................7
Cash flow projection....................................................................................................................8
Break even analysis.....................................................................................................................9
Key legislation and regulations...................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Managing a business is considered to be one of the key aspect for every organisation that is
working in the aspect of development. Businesses are said to be many and industries are said to
be immense. When an industry is dealing with certain atrocities then the management will have
to provide strategies that are necessary for the organisation to combat with the challenges that are
appeared to be in the lane of business. Be it a small business or a biggest MNC it depends upon
how far are the strategies that are implied in the business are worked for (Kühlmann and Heinz,
2017). Businesses are meant to be one of the profitable aspects unless and until they are worked
in the prospect of growth. Business management requires many strategies and enhancement of
every ideology with the aim of reaching best possible mark. Small businesses or MNC are said to
be one of the prominent ones that are in the path of rising. MNCs are regarded as one of the
finest aspects unless and until there are a set of employees that work towards development of the
organisation. Every minute structure of the organisation will have to be taken care about in order
to reach the best of its ability to meet its demands. There is a great competition in the marketing
world with regard to any operational strategy that the organisation is working for. It is important
to identify the choices that are in regard for the organisation that that every competitive
advantage that is revolving around the organisation can be made within no time. The entire
report deals with small business management and the strategies that are to be incorporated. There
are aspects that are to be taken care about and those are explained in the report with prior
explanation. Knowing about the small business it becomes easy for those who are talking with
the ideologies that are scattered and those that can be re-modelled in order to move the business
to our next level.
ACTIVITY-1
Capacity management
Every business that is operating in its industry will have to focus upon the potential of
maximizing its project to the other level. There will be terms and conditions that will fall in the
path of the organisation when it is still in the developing stage (Van Looy, 2019). The
management will have to ensure that the business maximizes in the stipulated time through
which the objectives as well as a particular time bound is being maintained. In this time bound,
there is an allocation of resources that is usually done by businesses or Industries such that the
capacity to which it can probably develop will therefore be identified. This is mostly done in all

the companies where the business measures will follow in identifying the choices of capacity
such that they can achieve the targets in a very short time. This is what is called as capacity
management. Capacity management is the most probable act that is being followed by business
in order to identify the maximization of its techniques as well as technologies in order to produce
or derive an output. This will contain different conditions as well as challenges in order to bring
out the potential to which they can extend. Examples can be taken in this prospect in order to
identify the proper definition of capacity management. For example, there will be a call centre
whose stipulated time is a month and per week the management decides the capacity of calls the
employees will have to take up. When it comes to Cafe the management prepare the target of
supplying 'n' number of coffee cups per day (Huang and et.al, 2020). The capacity of the
organisation is decided by the fact that employees in the organisation can inculcate and will
produce the best out of the lot. It depends upon how far the management is training its employees
such that they go above and beyond in order to reach the target as well as generate surplus
amount. Capacity management is very important in order to identify the growth prospects as well
as the time in which the organisation can increase its performance. Sometimes it is a mere fact to
accomplish the ad it will draw profits that is necessary for the organisation. On analysing the
capacity to which it can extend the business can move ahead with strategies that are necessary
for it to accomplish even prior. This can also save time because on identifying the choices that
are to be delivered by the organisation it becomes easy for the management to design strategies
to implement them.
When a business is operating in an industry there will probably be external atrocities that are
affecting the business. All these demands will include changes that are to be made in the
organisation. Capacity management entirely depends upon how far the organisation is managing
the resources that are allocated. Every allocation that is made in the sector that is divided in the
organisation will help the management to analyse the cost-effective measures that are to be
employed. Companies must maintain a status that is necessary for them to determine the pace
with which they are operating. For this, inventory measures will have to be adopted by the
organisation such that implementing capacity management will not affect the entire operations of
the organisation. There will be different purchases that are to be made in order to get the
additional equipment that are necessary to make changes. Capacity management is a need for
every company in order to experience push-up in the revenue of the organisation (Rebelo and

et.al, 2017). Companies with poor execution of capacity management will probably not see any
profits or benefits that are associated with customers as well as their market share. Capacity
management defines the resources that are to be allocated because on identifying the products
that are to be developed by the unit of the organisation through which the business is operating it
is necessary to estimate the resources that are necessary to be allotted. If the company is
operating in a retailing sector it is necessary for the organisation to determine to how far it can
extend the categories of its products. It is not until when a company completely gains knowledge
regarding the ability to invent things on a timely basis that the business will push to a great limit.
There will be numerous challenges that are associated with business on an attempt to grow in the
marketing world. In order to meet all these Expectations that are being derived from other
developed agency is it is important for small businesses to maintain capacity management such
that whenever there is a need to a things it becomes easier for them to incorporate (Saaranen,
2018).
Resource allocation
Resource management is said to be one of the essential factor for every organisation and that
with regard to small businesses it is an essential factor to be maintained. All the resources that
are allocated for development and many other implementation prospects of the organisation will
have to be carry forwarded by the management in the better possible way such that there will not
be any wastage in the resources. The capacity management major concern is how far the
resources are being used in implementing choices that are carry forward it by the business.
Therefore in order to meet the targets it is necessary to maintain resources in the initial stage.
The techniques as well as strategies in order to maintain resources that are allocated are as
follows:
Defining requirement: requirements are said to be identified from initial stage to the final stage
of product formation as well as selling. Requirement is an essential factor in determining the
resources that are needed for an organisation in order to move ahead with the implementation
policies. This is mostly done on spreading the data of entire requirement that is usually gathered
from sources. Upon identifying the requirement that are necessary for the organisation the
capacity to which the resources can be allocated will be known (Werner and et.al, 2021). In most
of the cases the requirements will serve to be one of those reference for the resources to be
captivated. This will also help to not waste resources which are customised.

Roles: resource allocation goes with capacity management on identifying the multiple roles of a
person. It is important for the organisation to ensure that every role of a person in the
organisation is not mandatory provided with the stipulated resources. Few might be in a position
of contributing hundred percent towards the development aspects of the organisation where as
some may not be that skilled in processing at. The management will first have to identify the
roles in order to deal with the capacity of resources that are to be allocated. Many small
businesses go in a wrong path with this prospect. The management usually analyses that every
employee of the organisation will have to be treated equally at there are few choices that are
made by the organisation on maintaining capacity management with regard to resources which is
one of the essential factors that is to be taken care about. There is no wrong in determining the
work that is contributed by the employees when the business is small. Therefore, differentiating
employees on the basis of their work well probably not waste any resources.
Prioritisation: there will be different aspects in the organisation that are to be taken care with
priority. Implementation and development processes will have to start from identifying the areas
that requires much amount of resources and attention. When small businesses are operating in a
marketing world the entire marketing world revolves around few formulas and those are to be
identified and implemented in the business strategy such that it will stand in the competition
every now and then. The growth prospect with regard to small businesses will only deal with
how far the management is being able to make the best choices out of the resources that are
allocated. This is what is known as capacity management that is to be followed by every small
business in order to move ahead with greatest achievements. The prioritised areas in the
organisations will have to be selected and worked upon in order to deal with circumstances of
capacity management.
Resource capacity: resource capacity occupies a major part in the capacity management
prospect. There are different examples to go with this. When a person is hired on a probable
working hour basis then the person can only perform duties in that stipulated time during the
time of recruitment. When the person is going beyond the limit that is mentioned or that is
allocated to him then that is beyond capacity of working (Tóth and et.al, 2020). When an
organisation is going beyond the line of its capacity then probably the productivity will be
minimising. When the capacity of an organisation is identified then the organisation will have to

work on strategies in order to bring forth the results within that particular boundaries. That is
when the organisation will not go bankrupt while the resources will not be wasted.
Customer Relationship
Customer relationship management is a process that will include every measure that is being
taken by the organisation in order to focus upon its customer base. It is important to maintain a
particular relationship with the customers which is more of an interaction such that the amount of
information that can be gathered on the organisation side with regard to customers can be
attained. Every business operates upon different samples which are required for communication
purposes. Communication will deal with wide range of data that can be maintained on companies
website or through email. Businesses will get developed on maintaining strategies that are
important to increase the customer base. The sales of the organisation depends upon how far and
how potential the organisation is in extending its interaction procedure with customers. Customer
relationship management have started earlier and seventies when service are made in order to
bring forth a platform to maximize the sales of every business or an organisation to which the
customers are of major priority. The business operations include marketing processes which
means that taking the entire product into the customers within no time. There are different
platforms of communication like those of social media which is one of the major reputed
platforms nowadays. Through social media the organisation can extend its hand on interacting
with customers such that they can get the nerve of their customers.
ACTIVITY-2
Financial Management
Financial Management is one of those basic factors that is to be taken care about in an
organisation (Schiuma and Lerro, 2017). When a business is in its initial stage of development it
is necessary that the financial aspects of the organisation will have to be dealt in a careful
manner. There are many benefits that are associated with financial management. When a
business is in the prospect of growth then there must not be any wastage of resources. A
company which is making its own profits within the boundaries that are set by the management
then the financial management will therefore be a profitable one. The profits of an organisation is
determined by the amount of finances and the way they are managed. Financial management will
help a business to go into more accountability and inventory rather than wastage of resources. In
order to select the categories of the capacity management in an organisation or in order to deal

with any kind of implementations then the financial information is needed such that it can hold
all the possibilities whether the business can process for the need that is to be met. Financial
management helps to determine the pace with which the organisation is moving ahead in the
marketing world. There are different services that are to be rendered by the organisation in order
to make profits and the services determines the finance that are to be allocated. An effective
Financial Management is required for a business in order to aim for a better future. First it is a
mandatory to identify the choices whether it is only the finances that are required for the
organisation to grow or just the customer base that is to be maintained. A proper determination
will help the organisation to analyse the factors that are to be prioritised. An application process
is required to pen down all the requirements of the organisation such that the allocation of
finances can be done in no time. Proper budgeting will have to be done by the organisation
which is one of the best financial management practices. In this budgeting process the business
list all the requirements that are necessary to track business expenses as well as to develop a plan
for future. Economy of the organisation is determined by how far the budgeting process is carry
forwarded. This can be helpful in expanding the organisational capacity to a very next level from
the point of initiation. This will also include in making profits with the expenditure that are
stipulated for the operational unit of the organisation (Mamaeva, 2019). A cash flow projection is
essential in order to determine how much expenses are being overflown from the business
perspective. It is required to identify the projections in order to move ahead with the
disbursements that are done in the business transactions. Cash flow projections will identify the
visibility as well as the liquidity problems.
Cash flow projection
Operational cash out-flows 1/2020 2/2020 3/2020 4/2020 5/2020
Cash paid for goods 1,25,000 1,40,000 1,50,000 1,55,000 1,45,000
Salaries 80,000 80,000 80,000 80,000 80,000
Employee Benefits 16,000 16,000 16,000 16,000 16,000
Payroll taxes 25,000 28,000 30,000 35,000 28,000
Office Supplies 2,500 2,500 2,500 2,500 2,500
Utilities 2,000 3,000 10,000 3,000 1,000
Insurance 5,000 5,000 5,000 5,000 5,000
Total operational cash outflow 2,55,500 2,74,500 2,93,500 2,96,500 2,77,500

Break even analysis
Every organisation will have to deal with up and down in regard to finances. A break-even
situation as where an organisation is involved in generating more money or losing money.
Complete knowledge regarding the variable cost as well as the fixed cost will have to be
understood before dealing with break-even analysis. This can gradually lead to fixed costs that
are important for organisation at a point of sale. Components of break-even analysis are as
follows:
Fixed cost: are also called the overhead costs that are a result of economic activity that is being
performed by the organisation. These fixed costs are those that our earth in relation to the
production level which is not related to the quantity of production. these costs are said to be
those that are fixed without any production purposes. Production values or production costs are
not included in this particular costs. Even if the organisation is not dealing with any production
in that particular time then the cost will be incurred.
Variable cost: the production volume will have a particular relation which is called the direct
relation. The variable cost will either increase or decrease this direct relation while determining
production volume. In other words, the variable cost referred to as production cost.
Key legislation and regulations
When operating upon our small business the organisation will have to deal with different
government policies as well as the legislation that seem to be impacting at performance. This
will act as a barrier because a contribution to what government policies will leave the company
with biggest strategies that are usually required to be employed. There is an aspect called code of
federal which is of many pages from testing of all the regulations that are to be followed by small
businesses in order to incorporate the aspects of operating its services in the country. Few
regulations that are listed in this will sound to be easy where are the others are regarded to be
troublesome in dealing with the atrocities that are related to finances as well as the management
policies. the important regulations that fall in this regard are as follows:
Federal Tax code: the Federal Tax code is almost Impossible on to every small business and this
is recorded to be one of the troublesome aspect to deal with. Most of the business as claimed that
half of their burdens are related to the taxation policies. It is not just the tax that is to be paid but
it has a complete set of detailed structure that is full of regulations. This includes not just the

income tax of the payroll tax but there are many things beyond that. For this purpose the business
has come up with the federal code aspects which can help them in dealing with the taxation
policies.
Affordable care act: the affordable care act entirely revolves around employees and the work
they commit. Employees in an organisation are not just in a place where they are performing
their regular duties but it is a fact that there is a lot of data that is to be collected by the employer
is every now and then which seems to be rather a hectic task to accomplish. In order to collect
data from all the possible sources this requires much dedication from the employees. This act
deals with this dedication policies that act as one of the astonishing aspect with regard to
employees and therefore in order to safeguard their senses the act revolves around employees.
Overtime rules: there are different set of employees are eligible for overtime rules and overtime
pay. This is one of the regulation that is recently issued by department of labour. This rule seems
to be the one which doubles the salary of those that are dealing with the threshold. Employees
above a particular salary level will not be allowed for overtime pay. Irrespective of the duties
that are being performed by the employee is this applies to those that are dealing with threshold
amount of work. The increase in cost perspective can be pop up with different facts of part time
work rather than going full time and cutting the pay of worker.
Independent contractor test: contracts are not actually the employees in an organisation. They
are not eligible for the norms and policies of the organisation at their work on a contract basis for
a stipulated period of time. This particular regulation employees to all those people working in
small businesses and are affected by business taxation policies although they are not being a part
of the organisation. It is usually said that when a person is on a contract basis for the organisation
he or she is not eligible for any taxation policies which will be for the regarded as unfair
advantage. With this particular contract there can be a distinction that will be made between
employee is as well as independent contractor (Chahki and et.al, 2018). The independent
contractor are those that although work for an overtime yet are not concerned with the
organisation policies. Example of these kind of independent contractors are Uber drivers.
Expansion of clean water act jurisdiction: it is a fact that every small business that has
established its standards as well as the outline performance in a particular environment cannot
actually hold the property rights and therefore this act revolves around those small businesses to
process few rights that are needed. The land in which the businesses operating is said to be one

of the most confidential one for the small businesses and therefore under this rule the owners that
are dealing with the business can actually on the land. It is a method to deal with different
Federal permits before going deep into the business policies as well as the significant issues that
are pertaining. Different businesses tackle with issues that arise because of the land ownership
since it is being occupied by different people all over and the ones that are operating in a
business will not actually find rights and dealing with them. According to this expansion of clean
water act jurisdiction the environment in which the business is operating is said to be dealing
with the property rights which in case there is an issue that is pertaining where the business
strategies along with the ownership will therefore be sold at an instance. It provides a kind of
protection towards small businesses that arrives as a petite conception.
CONCLUSION
The entire report concludes upon explaining the aspects of managing a business. The report
stresses upon the fact that business are also one of those prospects that are necessary to be dealt
in order to combat challenges. Through this report one can easily understand the prospects of
capacity management. Project report it is depicted that management will have to enter business
maximization within the stipulated time such that the objective can be achieved. The report also
emphasizes the fact that businesses or Industries will have to maintain capacity management in
order to develop towards growth prospective. The report emphasizes upon the importance of
capacity management and its dependence upon various factors in the organisation. Through this
report one can easily understand the aspects that are pertaining to the small businesses which are
erasing as small conceptions. The resource allocation criteria is mentioned in the report with an
understanding of all the essential factors in the business. The different techniques that are to be
allotted in order to carry resource allocation along with capacity management are put forth in the
report defining requirement roles prioritisation as well as resource capacity are explained in the
report with proper explanation. Strategies that are made by the organisation with regard to
customer relationship is also effectively portrayed in the report. The customer relationship is
explained as one of the key criteria for every small business and also emphasised upon the fact
that every organisation that is growing in the growth prospects will have to maintain proper

customer relationship strategies in order to aim for perfection. Activity 2 of the report will
conclude upon explaining financial management as one of the basic factors which will have to be
taken care about in the organisation. Every organisation will have to emphasize upon financial
development in the initial stage that the necessary amendments can be beneficial for future
aspects. A cash flow projection is portrayed in the report through which one can easily
understand how can they be able to categorise and affect their price strategy. The importance of
break even analysis is put forth in the report with their components that are listed in it which are
fixed cost and variable cost. The different key legislation and regulations that are employed in
small businesses is put forth with and importance that is given to every component.

REFERENCES
Books and journals
Chahki and et.al, 2018. LOCAL AUTHORITIES AND MANAGING BUSINESS
INTERACTION. National academy of managerial staff of culture and arts herald. (3).
Huang and et.al, 2020. Managing intellectual capital in healthcare organizations. A conceptual
proposal to promote innovation. Journal of Intellectual Capital.
Kühlmann and Heinz, 2017. Managing cultural diversity in small and medium-sized
organizations. Springer Fachmedien Wiesbaden.
Mamaeva, 2019. Improving The Mechanism For Managing The Financial Sustainability Of A
Small Business Organization. Business Strategies.
Rebelo and et.al, 2017. The integration of standardized management systems: managing business
risk. International Journal of Quality & Reliability Management.
Saaranen, 2018. Applying General Data Protection Regulation in Small Organizations:
Simplified Framework and Templates for Managing a Privacy Program.
Schiuma and Lerro, 2017. The business model prism: Managing and innovating business models
of arts and cultural organisations. Journal of Open Innovation: Technology, Market, and
Complexity. 3(3). p.13.
Tóth and et.al, 2020. Becoming a more attractive supplier by managing references–The case of
small and medium-sized enterprises in a digitally enhanced business environment.
Industrial Marketing Management. 84. pp.312-327.
Van Looy, 2019. Capabilities for managing business processes: a measurement instrument.
Business Process Management Journal.
Werner and et.al, 2021. Continuously Managing NFRs: Opportunities and Challenges in
Practice. IEEE Transactions on Software Engineering.
Online
Managing business: [Online]. Available through: < Business Management Definition:
Everything You Need to Know (upcounsel.com) >
1

2