Report: Managing and Running a Small Business Analysis

This report provides a comprehensive analysis of managing and running a small business, using Red Robin as a case study. It delves into the interpretation of monthly cash flow, assessing fixed and variable costs against income. The report assesses break-even analysis, offering insights into financial statements and working capital management. It further explores the lawful obligations impacting small enterprises, including legislations such as record keeping, data protection, payment of wages, and cyber security. The report covers topics such as scalable enterprises, financing sources, and the importance of adhering to legal frameworks. The conclusion summarizes the key findings, emphasizing the importance of strategic financial planning and legal compliance for small business success.

Managing and Running a
Small Business

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY – 1 ................................................................................................................................3
Covered in Brochure....................................................................................................................3
ACTIVITY – 2.................................................................................................................................3
P4. Interpret the monthly cash flow for annual year with fixed and variable cost to set beside
income..........................................................................................................................................3
P5. Assess Break-Even Analysis for a business administration..................................................5
P6. Give relevant final accounts for organisation that relates to success....................................5
ACTIVITY 3....................................................................................................................................7
P7. Analyse the lawful obligation which impact small enterprise...............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The main activity performed by Board of Executives within an organisation is to develop
business plan by forecasting strategies that creates prospect to compete with opponents. The
client selected for Suzanne Oldham Consulting Firm is Red Robin for being an American
restaurant founded in September 1969, situated at Seattle, Yakima, Washington, United States.
This project interprets cash flow for analysing the fixed and variable cost that has to be set
against earned income (Akpamah, 2019). It further assesses Break-Even Analysis and gives
relevant final accounts for small business which results in achieving victory. Additionally, it
analyses the legally recognized obligations which impact the business activities of petite
enterprise.
ACTIVITY – 1
Covered in Brochure
ACTIVITY – 2
P4. Interpret the monthly cash flow for annual year with fixed and variable cost to set beside
income
Scalable Enterprise:- This enterprise is described as newly established business which
aims to tap at international marketplace with its competitive strategies for maximising revenue.
The managers of Red Robins focus on expanding their business with the motive to enlarge sales
for attracting customers to purchase more of their specialised products and services at low cost. It
creates threats for others being stable at global market which aims to analyse their strategies
(Anbuoli, 2018).
Financing sources for scalable business:- There are various financial sources that
provides funds for company to remain sustainable at competitive market. It is most important for
organisation to utilise their scarce resources effectively for capital generation. Managers of Red
Robins further aims to invest and fund high monetary terms within the business for tapping into
international market through foreign direct investment.
 Personal Saving:- The entrepreneurs of Red Robins further aims to invest money from
their personal saving by transferring their retained earnings from existing business
(Bagley, Abubaker and Shahnaz, 2018).

 Bank Loans:- The managers of Red Robins focus on taking bank loans for huge amount
which creates opportunity for company to utilise its scarce resources effectively. It
further aims to generate high profit-margins that enable managers to increase capital
generation by taking high risks which lead to assess and measure effectively for paying
interest of bank loans.
 Funding from family and peers:- Red Robins directors are highly profitable in
generating and receiving funds from their colleagues, relatives and peers that create
opportunity to invest money with huge risk. This results in gaining profitability ratios as
well as restricts the interest charges for its investment at international market.
 Hire Purchase:- The managers of Red Robins emphasize on generating hire purchase
that results in developing expansion of business by improving brand positioning among
its end-users. This majorly focuses on hiring existing business brand portfolio for
generating good image and reputation among its customers. It enlarges sales and results
in maximising profitability ratios that develop prospect for company to remain stable
(Bryant, 2019).
Cash Flow Statement for Red Robins:- It is the process of managers for analysing the
cash inflow and outflow within business administration. The cash inflow describes the incoming
of monetary terms whereas outflow demonstrates outgoing of money transactions. It further
analyse the income and expenditure of company that aims to focus on maximising sales by
expense on promotional activity in accordance with estimated budget.
Balance Sheet, Profit & Loss A/C and Cash Flow Statement of Red Robin
Covered in Excel
Profit and Loss Account
Covered in Excel
Cash Flow Statement
Covered in Excel

P5. Assess Break-Even Analysis for a business administration
Budget:- The budget is defined as capability board of executives for estimating the
futuristic income and expenditure as per the visualisation of current business activities being
performed in organisation (Burtet, Verschoore and Bittencourt, 2018). The managers of Red
Robins further plan various strategies to minimise their promotional and increasing debts with
waste management tactics. It mostly aims to recycle the waste disposal effectively which leads to
minimise cost of services for attracting clients to book their accommodation at hotel industry.
Break-Even Analysis:- The process of analysing actual investment made upon investing
business with the motive to generate capital in future by risk assessment and measurement. It
refers as ability of managers to effectively utilise scarce resources for transferring loss into profit
margin. The centric point from loss to profit which describes equality of total cost equals the
total revenue is termed as break-even analysis (Chou and Zolkiewski, 2018).
The managers of Red Robin implement this analysis for developing a situation towards
manufacturers by the position of no profit and no loss (Break Even Analysis. 2015). This is
essential for analysing the level of profit at certain point with the motive to achieve
organisational goals and objectives.
For managers of an organisation are highly capable in analysing varied strategies to
minimise the loss through effective utilisation of scarce resources. This results in meeting the
changing needs and wants of end-users for its customers to gain high profitability ratios (Durst,
Lindvall and Bruns, 2018). It is the process that leads company to sustain at competitive market
with minimising the cost that leads to generate high profitability ratios.
P6. Give relevant final accounts for organisation that relates to success
Financial Statements of Red Robin:- The financial statements of an organisation aims
to analyse, predict, estimate and perform its business activities for gaining high profitability

ratios. This is essential for managers of business administration to interpret trading, profit & loss
account and balance sheet for developing high profit-margins. Managers of Red Robins aim to
increase their income and cash flow statement with maximisation of cash inflow and restricting
cash outflow. It plays major role for organisation in analysing its current and actual position of
company at perfect competition market with the motive to create threat for rivalries (Jacks,
2019).
Working Capital:- The working capital is described as measurement of company’s
liquidity, operational efficiency and short-term financial health for generating high assets as
compared to liabilities. It is most important for managers of an organisation to develop
competitive advantage by increasing their current and quick assets which leads to generate ideal
ratio of liquidity accounting.
Working Capital = Current Assets – Current Liabilities
The managers of Red Robins aims to maximise their current assets through increasing
monetary transactions by selling more of their commodities and services at large level which
tends to utilise high revenue and income generation (Jeanne and Korinek, 2019).
The components of working capital to manage cash flow effectively:- The are
different varieties of components for working capital through which some of them have been
explained as under:-
 Cash management:- The managers of Red Robins emphasize on managing their cash
transactions effectively by increasing its inflow that leads to generate income and restrict
cash outflow by minimising the unnecessary expenditure (Kiiru, Kamau and Nzioki,
2018).
 Receivable management:- Red Robins directors are highly capable in increasing their
sales or high accommodation booking strategy by enlarging customers to purchase more
tickets for its residence in order to gain comfort and adventurous lifestyle.
 Inventory management:- The managers of Red Robins further analyse the ability to sell
their inventory or service at high range with superior quality that leads to satisfy the
changing demands of customers.

 Account Payable management:- Red Robins executives aims at bad debts which are not
yet recovered and adopts various harsh or strict strategies to cover that in order to
minimise expenditure.
ACTIVITY 3
P7. Analyse the lawful obligation which impact small enterprise
Legislations are enacted laws that explains what an organisation must adhere while
launching and managing a business. A new business have to make sure that they work or
comply their practices with all the legislations that are enacted by government of the nation.
Some of key legislations that are adhered by small business are heath and safety act, corporate
governance policy and company law. Various actions are implemented by a business in different
manner in order to ensure that they adhere to law. For example, Red Robins will provide
employment at more rates that are stated in Minimum Wages act so to hire talents to make
business successful. Along with this, it will also provide safety to its employees through hiring a
manager that will only look towards health and wellbeing of the employees and will reduce
chances of injuries at workplace.
Social Enterprise:- The social enterprise refers as ability of entrepreneurs or managers
for maximising societal welfare through huge amount of charity and donations (Ogbonnaya and
Valizade, 2018). These are represented as individuals who work for human well-being through
delivering various services such as food, cloth, shelter, etc. The managers of Red Robins also
used to provide social welfare by investing some amount of their profits as charity and donations.
Lawful Obligation:- It is most important for an organisation to follow all the rules and
regulations being imposed by government of United Kingdom which is mandatory for every
enterprise. The managers of Red Robins further aims to analyse variety of legislations that has to
implement within the organisation for boosting the morale of its employees in order to keep
performing their best actions towards company goals. It further creates opportunity for company
to generate good image and reputation among its clients for satisfying their changing demands.
 Record Keeping, 2006:- The managers of Red Robins emphasize on maintaining record
for each and every transaction taking place within the business environment that leads to
analyse profitability margins (Rua, França and Ortiz, 2018).

 Data Protection, 1998:- Red Robins directors highly focus on sharing those images, data
and information which are absolute and do not consist of any confidential statistics which
affects its business stability at global market.
 Payment of Wages act, 2005: The act states that an employee must be paid wages as per
their competence and experience. By adhering the act, Red Robins will fix minimum
wages rates for certain employments and will also make timely payments.
 Cyber-security measures:- The managers of Red robins are highly engaged in cyber-
security measures through taking protective measures from hacking and unethical
practices which are illegal in governmental laws (Silvast, 2018).
 Company Law, 2013: The legislation regulates incorporation of organisation,
responsibilities of business, directors addition to dissolution. It includes various sections
and it is responsibility of directors to properly work and adhere all. It is a landmark law
having far reaching consequences on all types of business. While incorporation of Red
Robins, adhereing sections defined in the law are mandatory.
The potential sources of information:- There are various types of potential sources
which includes information are books, journals, encyclopaedias, magazines, etc.
In case when Red Robins will not adhere or work according to key legislations, they
have to face huge penalties and even shut down of business which will impacts on its
productivity and profitability.
CONCLUSION
From the above mentioned activity, it have been analysed that managers aims to develop
competitive advantages through managing and running small business effectively for attaining
victory. This project interprets cash flow for analysing the fixed and variable cost that has to be
set against earned income. It further assesses Break-Even Analysis and gives relevant final
accounts for small business which results in achieving victory. Apartly, it analyses the legally
recognized obligations which impact the business activities of petite enterprise.

REFERENCES
Books and journal
Akpamah, P., 2019. Staying Employed and Employing Others: Leadership Styles and
Management Strategies of Proprietors of Micro Enterprises in Developing
Countries. International Journal of Engineering and Management Sciences. 4(4). pp.
408-419.
Anbuoli, P., 2018. A study on determinants of women entrepreneurship in new business
environment. International Journal of Research in Social Sciences. 8(5). pp. 644-655.
Bagley, C., Abubaker, M. and Shahnaz, A., 2018. Woman and management: A conceptual
review, with a focus on Muslim women in management roles in Western and in
Muslim-majority countries. Open Journal of Business and Management. 6. pp. 498-517.
Bryant, C., 2019. Managing development in the Third World. Routledge.
Burtet, C. G., Verschoore, J. R. and Bittencourt, A. C., 2018. Open source innovation: what
makes it move?. International Journal of Business Innovation and Research. 16(3). pp.
324-341.
Chou, H. H. and Zolkiewski, J., 2018. Coopetition and value creation and appropriation: The role
of interdependencies, tensions and harmony. Industrial Marketing Management. 70. pp.
25-33.
Durst, S., Lindvall, B. and Bruns, G., 2018. Knowledge risk management in the public sector:
insights into a Swedish municipality. Journal of Knowledge Management.
Jacks, J., 2019. It's not how you start, or is it? The relationship between motivation to start a
business, motivation to exit a business and type of exit achieved (Doctoral dissertation,
University of Pretoria).
Jeanne, O. and Korinek, A., 2019. Managing credit booms and busts: A Pigouvian taxation
approach. Journal of Monetary Economics. 107. pp. 2-17.
Kiiru, S. M., Kamau, J. G. and Nzioki, P. M., 2018. EFFECT OF BUDGET PLANNING ON
FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN
NAKURU TOWN CENTRAL BUSINESS DISTRICT. INTERNATIONAL JOURNAL
OF BUSINESS AND PROCESSES (ISSN 2616-3209). 4(2).
Ogbonnaya, C. and Valizade, D., 2018. High performance work practices, employee outcomes
and organizational performance: a 2-1-2 multilevel mediation analysis. The
International Journal of Human Resource Management. 29(2). pp. 239-259.
Rua, O., França, A. and Ortiz, R. F., 2018. Key drivers of SMEs export performance: the
mediating effect of competitive advantage. Journal of Knowledge Management.
Silvast, A., 2018. Measuring Business Impacts in a Small Business: Case B-Impact Assessment
Tool.
Swanepoel, D. W., 2018. Assessing public value from the Department of Small Business
Development’s export promotion programme (Doctoral dissertation, Stellenbosch:
Stellenbosch University).
Wanjohi, I., 2018. Influence of Strategic Management Practices on Performance of Small Scale
Enterprises: A Case Study of Kiambu County (Doctoral dissertation, United States
International University-Africa).
Online:-

Organisational Culture. 2019. {Online}. Available through < https://realbusiness.co.uk/four-
types-of-company-culture/ >
Break-Even Analysis. 2015. {Online}. Available through
<https://passpmp.wordpress.com/2015/02/14/break-even-analysismake-or-buy-
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