Comprehensive Report: Managing and Running a Small Business (BUS101)

This report examines the core aspects of managing and running a small business, focusing on the perspectives of a consultancy service, Continuity Company Limited. It delves into the importance of cash flow forecasting and break-even analysis, crucial for financial stability and decision-making. The report provides an overview of financial statements, including balance sheets, profit and loss accounts, and cash flow statements, illustrating how these tools contribute to successful business management. It also highlights key legislation and regulations impacting small businesses, such as consumer law, competition law, and employment law, emphasizing the need for ethical and compliant business practices. Through these analyses, the report provides a comprehensive understanding of the challenges and opportunities in the small business environment, supporting sustainable growth and economic contributions.

Managing and Running a
Small Business

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Covered in Poster...................................................................................................................3
PART 2............................................................................................................................................3
Cash flow forecast and break even analysis for the organisation...........................................3
Implement of the financial statements for an organisation to contribute for successful business
management............................................................................................................................6
Key legislation and regulations that affect small business.....................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Small business organisation refers to a business that manage and control their business
with limited number of employees, resources and asset. SME perform their activities in a small
market area to fulfil needs and wants of customers properly. This report is written from
perspective of Continuity Company limited which provides consultancy services to companies
that support their business to retain for longer period in organisation. According to present
market conditions small and medium enterprise are supporting economy of a country that
satisfies needs and wants of customers properly. This report highlights on aspects that
demonstrate how business develop its business transitionally and importance of break-even
analysis as per different organisational conditions. With this report management also understand
aspects that are required to accomplish business aims and objectives. In the present case,
management is providing issue that are related for identifying business in developing small
medium enterprise to retain for longer period in dynamic business environment.
PART 1
Covered in Poster
PART 2
Cash flow forecast and break even analysis for the organisation
With this section understanding of cash flow and break-even is included in this report. Both of
this aspect work as an effective strategy for current business scenario that provides better
reflection and evaluation for individual income. From the analysis of cash flow forecasting it
easy for management to complete work by reducing uncertain and unnecessary expenses to
manage and complete work properly (Winarno and Wijijayanti, 2018). There are numerous
sources managed that is used to calculate cash flow in easy manner.
Equity finance- This is one of the major finance activity that leads an individual to
manage and collect funds from investor by providing them report of organisational aspects.
Moreover, investor also required huge amount of profits for blocking amount in business
organisation. This technique must apply in supermarket operations to complete work as per small
business requirements.
Bank and financial loan- Loan is one of the easiest methods that helps business to
perform its work in proper manner. With the analysis of current business organisation

management complete work as per analyse that generates in managing funds for limited time
frame that support business to manage business operations in proper manner.
Forecasting and planning- The first factor to manage business leads supermarket
management to evaluate trends and policies for relating better monetary resources. All this
technique management is helping firms that determine long term plans and short term plans for
completing all work in proper manner. With this evaluation management is completing work as
per following process.
 Measuring moving average- This process helps to measure and evaluate current
position in market to perform its business as per current market area (Tidd and
Bessant, 2018). It also leads to analyse and gather information that help to set business
goals and objectives.
 Time series data- According to this technique authorities and manager of super
market set their programs as per production schedule. It help in assessing time required
by employees for completion of work as per production process. This also helps to
execute plan as per estimate price.
Balance sheet
Year 2018 2019
Variable and fixed asset 140 190
Available resources & stock 35 25
Debtors 50 50
Bank 20 20
Total 245 285
Creditor 110 200
Bank loans 90 110
Total 200 310
Profit and loss account
2018 2019
Sales 15 25
Cost of sales 25 20
Gross profit 40 45

Expenses or overhead 10 5
Net profit 30 40
Cash flow statement
Cash
distributed Jan Feb March April May June July August
Septem
ber Oct. Nov. Dec
Cash
distributed
Variable cost
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785 1500
Direct labour 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589 1250
Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250 1000
Fixed cost
Selling and
distribution 750 750 750 800 850 950 850 650 720 715 785 795 750
Total cost
use 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419 4500
Cash
surplus/
deficit
28000 26250 24250 21950 18020
13190 8355 3915 32 -3426 -7114 -10580
28000
Break even analysis and its implementation for supermarket
Break even analysis examination is thought to be a compelling method for relating
between benefits, costs, costs and benefits at differed levels for yield age. It is best in
investigating relationship of different benefit based terms utilized by JS Store. This procedure
helps chiefs and proprietors of super market in comprehension and assessing that at which stage
income age and cost of creation will be same (Steingold and Steingold, 2019).
This is a viable procedure that can be applied in two distinct circumstances income
relationship just as non-direct expense. Thus, this procedure has likewise been known as benefit
commitment examination. These strategies can be applied in logarithmic articulation and
graphical portrayal of cost benefit investigation. Supervisors of supermarket or Grocery store
utilizes arithmetical technique for assessing various circumstances and further aides in basic
dynamic.
Break even analysis investigation can additionally be determined as expressed under:
TFC= Total fixed cost
P= Price

AVC= Average variable cost
Qb= Total fixed cost/ (P-AVC)
Further, with the detail understanding this is also understand with example of some
following values.
AVC= 9
TFC= 30000
P= 18
Thus, break event point for this case,
=40000/(18-9)
=44444.45
Implement of the financial statements for an organisation to contribute for successful business
management
Balance sheet 2018
All numbers in thousand
Period ending 30/11/17
Net income 416900
Operating activities, cash flow
provided by or used in
Depreciation 492500
Adjustments to net income 168300
Changes in accounts receivable -27500
Changes in liabilities -54100
Changes in inventory -

Changes in other operating
activities -34600
Total cash flow from
operating activities 961500
Investment activities, cash flow
provided by or used in
Capital expenditure -260200
Investments 14500
Other cash flow from
investment activities -400600
Total cash flow from
investment activities -646300
Financing activities, cash flow
provided by or used in
Dividends paid -
Sale purchase of stock -1035700
Net borrowings 813300
Other cash flow from financing
activities -92500
Total cash flow from
financing activities -329300
Effect of exchange rate
changes 9000
Change in cash and cash
equivalents -5100
Period Ending 9/30/2017 9/30/2016 9/30/2015
Net Income -2,372 1,173 -4,662
Operating Activities, Cash Flows Provided By or Used In
Depreciation 5,151 2,082 733

Adjustments To Net Income -3,589 -832 3,069
Changes In Accounts Receivables -2,393 -100 223
Changes In Liabilities 2,806 -514 -870
Changes In Inventories - - -
Changes In Other Operating Activities 619 -1,086 857
Total Cash Flow From Operating Activities 222 723 -650
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures -250 -120 -186
Investments - - -
Other Cash flows from Investing Activities -25,356 -9,395 -2,576
Total Cash Flows From Investing Activities -25,606 -9,515 -2,762
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid - - -
Sale Purchase of Stock 1,000 1,000 9,774
Net Borrowings 24,641 5,388 -598
Other Cash Flows from Financing Activities - - -
Total Cash Flows From Financing
Activities 25,641 5,388 9,176
Effect Of Exchange Rate Changes - - -
Change In Cash and Cash Equivalents 257 -3,404 5764
Interpretation- With the above table of cash flow statement it is analysed that organisation is
earning the profits 961500 that is obtained by supermarket to accomplish their activities in an
effective manner. But there are various aspects are included that relates with finance to make
better investment that is received by management and approximately is 329300 and 646300 in a
respective manner.
Key legislation and regulations that affect small business
With the analysis of business activity it is identified that management is performing their
work in small area through providing good quality of products. Along with this there are various
task are also performed through completing task in a positive manner that boost overall economy
of business (Soundararajan and et. al., 2018). In the present scenario, it is also identified by

management due to which there are various issue performed by management as per legislations.
There are various legislations, laws and rules are implemented that is used to manage and
complete business in proper manner through completing all task in an ethical manner. Some
major laws that are implemented by government are explained as below:
 Consumer law- This refers to the set of laws that is used for managing and completing
all business with the aim of protecting individuals. It also refers to make business as per
areas that are used for managing unfair trade practices (Skolud and et. al., 2016). Every
business concern must follow all laws that is used for retaining customers for longer
period of time. Along with this it is also used by management to provided better quality
of products and services for individuals. Along with business concern is also providing
services that offer better value in company products. It is also providing better
recruitment process to manage business as per right regulations.
 Competition law, According to this law it is identified by management for managing
business as per concern and monitoring business that makes better products areas.
According to this law, management is also focused to complete its work as per analysis of
considering work that satisfies needs and wants of customers in proper manner. But to
satisfy customers it is not necessary that management adopts unethical behaviour and
impact on organisation image (Polonsky and Waller, 2018). Example- to fight on price
issue that is impacting on both business and its product value.
 Employment law, The main role of employment law is to manage an effective
coordination between all employees. It refers to provide similar rights and protect staff
unethical and harmful acts that impacts on performance of organisation. With the aspect
of employment law all employees for business are motivated and complete organisational
work in an appropriate manner. For this management consider that all work which is
completed must be implemented by executing plans for offering similar rights and duties.
 Overtime rules- Small business perform their action and activities in an appropriate
manner that enhances market area. In the present scenario, there are various regulations is
implemented by management that is proposing various rules to complete work in proper
manner. For match with demands of market it is essential for management to complete
work in right manner. This aspect demonstrate organisation manage various areas so to

match with them all it is essential for management to manage employees and its needs
properly.
With the analysis of managing its work to complete work to determine all areas for completing
task in minimum time period. It also refers for completing areas that to manage its employees
needs and wants (Pearlson and et. al., 2019). Moreover, it is also impacted by business as there
are various areas identified for completing areas that manage work and identify eligible areas
that impact on goals and functions of business. So to perform all work in an effective manner
management must complete its operations with ethical approach.
CONCLUSION
With the analyse of all above report it is concluded that small business perform a crucial
role for country by supporting its economic factors. It is one of the most important task that also
leads business to complete work by analysing all laws and legislations which is made by
employees to understand and analyse consumer benefits. With analyse of this law it is identified
by management that all task are completed in proper factor that also improves goodwill for
organisation as projects are completed in ethical manner. Financial budgets perform an important
role that also lead business management to perform business activities in low cost. One key point
for business is to execute business activity according to decided plans. It also refers to assess
right consumer needs that increase profits for organisation. Continuous improvement model is
another most important factor that enhances business size by completing all activities in decided
manner.

REFERENCES
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