Report on Managing and Running a Small Business: Fruition Consultant

This report delves into the multifaceted aspects of managing and running a small business, using Fruition Consultant Limited as a case study. It begins by exploring key considerations for resource allocation, including financial and human resources, and examines tools like Gantt charts for effective planning. The report then analyzes Customer Relationship Management (CRM), discussing its benefits and limitations, along with strategies for transnational expansion. Furthermore, it covers financial planning, including cash flow forecasting, break-even analysis, and the significance of financial statements. The report concludes by examining relevant regulations impacting small businesses and offering recommendations for overcoming challenges in customer relationship management and transnational operations. The analysis provides a comprehensive overview of the critical elements necessary for small business success in today's competitive market.

Managing and Running a Small Business

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1. Explain key consideration of undersized organisation for communal firm required to tackle
while scheduling and assigning funds to accomplishing goal of organisation.................................3
M1 Explain important tools as well as technique that help in planning and assigning resources in
context of organisation.....................................................................................................................3
M2 Analyse the significance of planning and assigning resources to accomplishing goal of
organisation......................................................................................................................................4
D1 Explain purpose of proper resources to show linkage among resource portion and
accomplishing of objective of organisation......................................................................................4
TASK 2.................................................................................................................................................4
P2 Discuss CRM as well as assess key areas within user resource administration, offer benefits
and limitation....................................................................................................................................4
P3 Determine how small organisation can improve transnationally and signifies the advantages as
well as limitations.............................................................................................................................5
M3 Assess relationship administration with user in context of accomplishing goal........................6
M4 Assess possible to improve translational operation by using different stages of
internationalisation analysing and advantages and disadvantages...................................................6
D2 Assess relationship administration of user procedure and offer recommendation for
overcoming these kinds of challenges for improving transnational operation.................................7
TASK 3.................................................................................................................................................8
P4 Make cash flow...........................................................................................................................8
P5 Define break even analysis in context of organization.............................................................10
P6 Explain financial statement for company in context of how they provide contribution to
administration of company.............................................................................................................11
M5 Explain quantitative tool to offer an properly explained cash flow forecasting as well as
break even analysis.........................................................................................................................11
D3 Make appropriate cash flow forecasting as well as break even analysis along with important
assessment of financial statement provides contribution to administration of organisation..........12
TASK 4...............................................................................................................................................12
P7 Explain regulation that possess implication on undersized organisation for stock legislation
signifies those which is implemented by government....................................................................12
M6 Assess the affect of legislation in context of company............................................................13
D4 Explain legislation that imposes direct effect on small organisation as well as social
organisations,..................................................................................................................................13
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................13
Books & Journal.................................................................................................................................13

.INTRODUCTION
In market, the organisation has different kinds such as small, medium as well as large. It is
necessary to manage and run small kind of organisation in order to make appropriate research and
gaining knowledge that help in achieving goal in timely manner. The primary purpose of this report
is to increase understanding level how small organisation is handled within corporate industry.
Fruition consultant Limited is determined as a tax consultant organisation which is located in UK. It
provide a consultancy facility that help in managing business and boosting its services. This
assignment provides description regarding small organisation or social organization, various
procedure of administration, customer relationship. In addition to this, developing small
organisation, cash flow financial statement as well as break-even analysis that imposes direct
impact on the organisation (Arnold, 2017).
.TASK 1
P1. Explain key consideration of undersized organisation for communal firm required to tackle
while scheduling and assigning funds to accomplishing goal of organisation
Small organisation as well as social firm plays an important role that helps in enhancing the
profit margin at larger level. In context of UK, the marketer focuses on conducting small business in
order to bring stability in economy of nation. In context of chosen organisation, there are different
kinds of consideration that are needed to be determined while planning that is going to be
mentioned below:
Financial resources it is significant resources as these are required for making appropriate
transaction, auditing and many more. There are different kind of resources like equity, funding, cash
as well as loan and many more. In context of chosen organisation, they adopt financial resources by
using different method during particular phase of time period.
Human resource these are those kinds of resources which is important to assign while
handling small organisation. This is determined as a significant assets of company because they
focus is on fulfil the responsible related to formulation as well as regulation of policies.
M1 Explain important tools as well as technique that help in planning and assigning resources in
context of organisation

To assign resources in analytical way, there are various or different kind of tools and
techniques that are needed like Gantt chart. It is important tool adopted by organisation to assign
resources in good way. By using this tool, the selected organisation is capable to assign resources in
an appropriate manner. Furthermore, these techniques help in assigning resources and divide or
categorise team into various department that help in allocating resources in an appropriate manner.
M2 Analyse the significance of planning and assigning resources to accomplishing goal of
organisation
It is significant to assign resources in order to take decisions during particular phase of time
period. Planning as well as allocating resources that is needed because it give a clear image
regarding work that has been performed by an individual person within business organisation
(Galyer, 2019).
D1 Explain purpose of proper resources to show linkage among resource portion and accomplishing
of objective of organisation
Financial resources in management are those types of resources that is linked with
accomplishing objective of organisation by using such kind of resources like conducting different
activity that needed finance, training as well as development, recruitment and many more.
Human resource outside and inside the company: It is other kind of application of human
resource that helps in recruitment, selection as well as hiring of subordinates.
TASK 2
P2 Discuss CRM as well as assess key areas within user resource administration, offer benefits and
limitation
In organisation, it is necessary to manage relation with customer and maintain favourable
ambience with old as well as new customer that is determined as a CRM. It is important for
improving business as it provides support in managing sales, offer customer insight by increasing
involvement in social media.
Portfolio analysis is the framework used by organisation to assess market structure as well as
customer. Through this, it is very easy to assess proper assets in order to achieve success of
organisation.

Advantage by using this tool, it is very easy to divide both organisation and user in most
appropriate way. It is useful in segmenting user at Marketplace.
Disadvantage this technique does not signifies nature related to portfolio as well as
marketing strategy that is depend upon the customer that is to be divided which is difficult for
organisation to execute it.
CLM
It is considered as a procedure which signifies the different stages of user encounter during
the process of interaction with specific brand. CLM is significant because it helps in increasing their
understanding level in which they analyse behaviour and attitude of its user that is significant for
growth of organisation (Ghasia, Wamukoya and Otike, 2017).
Benefits through CLM assist in assessing need and behaviour that is related to purchasing
process.
Drawback it is determined as a time-consuming process that needed market information and
also connection to execute it in proper manner.
CRM
It refers to customer relationship management in which it refers to managing of customers
relationship with business organisations. It is important to focus on CRM process as it help
company in achieving of goals & objectives in proper manner. It comprises of several stages which
is further discussed below-

Identifying target market & value proposition
It is first stage of CRM in which target market is needed to be identified and examined.
Market can be targeted on basis of different variables such as demographic, psycho-graphic etc. In
relevance of chosen firm, they target market on basis of geographic variable.
Defining overall strategy
In this step, main aim is to understand the strategy which is to be adopted. So, in context of
chosen firm they have adopted market development strategy within their business.
Customer handling
It is a stage in which way through which customers can be handled are determined. For
example- selected firm handle their customers by reviewing online feedbacks.
Selection of software for performance management
It is also crucial step in which it is important to select software for performance management
so that measurement is done in proper manner. So, to measure performance company uses The 5As
Goal Setting.
Re-engage customers-
It is last stage in which re-engaging of customer is focused because it is crucial to engage
customers continuously with brand.
P3 Determine how small organisation can improve transnationally and signifies the advantages as
well as limitations
Small organisation in a nation is important for growth and development, it is significant to
boost their organisation in order to increase profit margin in future period of time. Transnationally
development signifies the organisation increase investment and operates their functions at
international level.
Advantage
Make entity international it is necessary to operate business organisation at global level that
help in providing different kind of services to its user. It also provides opportunity to joint venture
with other organisation.
Availability of resources when organisation is improved at transnational level, it is easy for

organisation to have an optimum resources and they can utilise them in an appropriate manner.
Disadvantage
Risk this strategy is quite risky because there is a need of huge amount of capital and the
chance is related to uncertainty of event are increased. The manager focuses on external atmosphere
which imposes direct impact on organisation
SWOT Analysis. It is the framework that is adopted by organisation to assess the internal
environment capability that increases its impact on organisation. It is determined as time-consuming
process because it is necessary to have needed level of information to perform different processes.
Strength
The main strength or advantage of
transnationally organisation is that their focus is
on its strength and boosts their base of
organisation.
Weakness
The small organisation has opportunity in
translationally because they start their business
with some innovative brand that provide them
path to explore innovative opportunity.
Opportunities
It is complex for small organisation to use
transnationally because there is a need of large
amount of investment which is determined as a
main weakness of organisation.
Threat
Uncertainty is determined as a biggest threat
which can arise while using transnationally by
small organisation like Fruition consultant
Limited because it imposes direct impact on
overall structure of organisation (Hickman and
Silva, 2018).
M3 Assess relationship administration with user in context of accomplishing goal..
CRM consist four kinds of factor that is given below:
Know this factors help in understanding customer and market trends in particular phase of
time period.
Target herein, the organisation focuses on targeting its customer by offering discount and
other benefits.
Sell their main purpose is to acquire large number of user (Halaška and Šperka, 2020).

Service herein, the actual services facilities offer to its user and retaining this strategy. All
these types of element help in achieving objectives of organisation in timely manner.
M4 Assess possible to improve translational operation by using different stages of
internationalisation analysing and advantages and disadvantages
For improving transnational operation of organisation, by adopting internationalisation level
is appropriate strategy that can be adopted by small organisation. There are different kinds of stages
that are included in this process that is going to be mentioned below:
Established domestic market in the basic level of internationalisation model, the product as
well as services are must be tested within domestic country.
Export Research and planning in this stage, the organisation focuses on collecting
information that help in increasing profit margin in future period of time. For instance, the chosen
organisation focuses on target its country like Australia, Canada in which the consultancy facility
possesses high level of growth.
Export and expansion of international sales in the level, the expansion of sales at global
level is being performed (Kühlmann and Heinz, 2017).
Advantages of internationalisation model
By performing internationalisation model, it is advantageous for small organisation to
achieve more resources and assess potential of subordinate to expand their business globally.
Disadvantage
It is determined as a risky procedure and also time-consuming which is determined as a
main advantage for organisation.
D2 Assess relationship administration of user procedure and offer recommendation for overcoming
these kinds of challenges for improving transnational operation
Customer relationship procedure has five levels that is given below:
Reach it is assessed as a first level of customer relationship administration in which their
main focus is to increase the brand awareness and attracts a large number of user during particular
phase of time period.

Acquisition furthermore, in this stage the primary purpose is to gain more information related
to goods and services by its user.
Conversion the main focus is to convert lead into user. Therefore, the main purpose is to
understand the behaviour of its user during particular phase of time period.
Retention this level emphasized on enhancing the attention of customer for a longer time
period and this can be achieved by providing appropriate services in better way.
TASK 3
P4 Make cash flow.
It is determined as a statement that is adopted by organisation for assessing cash flow
activities within an organisation. This statement is determined as helpful for increasing awareness
regarding entrepreneurship and cash available for organisation (Langevang, Gough, and Namatovu,
2016).
Budget planning and forecasting budgeting is determined as a plan that is prepared for the aim
of managing or handling capital related to fund flow within business organisation. Planning
signifies the procedure through which how and why activity of organisation related to business that
must be performed to achieve objective of organisation. Forecasting signifies the procedure of
forecasting activities related to future happening that is completely depend upon past and current
data statistics.
Year 2018 (value in £) 2019 (value in £)
Fixed assets 120 220
Stock 30 45
Debtors 80 65
Bank 30 35
Total 230 340

Creditors 130 150
Bank overdraft 80 50
Total 670 905
Working capital 30 80
Profit and Loss Account at the year ended
2018 2019
Sales 40 60
Cost of sales 20 17
Gross profit 20 43
Overheads 8 9
Net. Profit 12 34
Cash flow Statement
Cash budget
for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 28000 30250 31550 29650 28750
Budgeted cash receipts 13400 37550 64690 92370 118170
Total cash available 41400 67800 96240 122020 146920

Cash distributed
Direct material 1500 1050 1650 1500 1550
Direct labour 1300 660 850 850 680
Overhead 500 650 630 700 670
Selling as well as
distribution 550 750 740 800 760
Total use of cost 3850 3110 3870 3850 3660
Cash surplus/ deficit 37550 64690 92370 118170 143260
P5 Define break even analysis in context of organization
Break even analysis it is kind of tool that is adopted by organisation to assess the structure and
cost of organisation. This is used for the purpose of increasing understanding level and also the
relationship among fixed variable as well as revenue cost. It signifies that it is determined as a level
through which the organisation increase profit as well as loss and also have an equilibrium line.
Handle size of unit to be sold by using break even analysis, the organisation focuses on how
much quantity is needed for actual cost.
Budgeting and setting target through break even analysis, the organisation focuses on
increasing awareness regarding the profit margin and loss. It is easy to prepare an effective budget
that help in achieving objective in timely manner (Torry, 2017).
It is calculated as-
Break even quantity= TFC/ (P -AVC)
TFC= Total fixed cost
AVC= Average variable cost
Advantages-
Measure profit when it is used by organisation, it assist in assessing profit of organisation as per

various sales as well as variable. Furthermore, by assessing profit help in analysing whether ratio
are determined as right or not.
Forecasting the other benefit is related to using effective tool and forecasting is performed in an
appropriate manner for assessing changes related to price sales.
Disadvantage
Assumption this is depending upon assumption and does not provide appropriate results related
to business organisation.
Time consuming it is determined as a time consuming process and complex to maintain charts
in an appropriate manner.
P6 Explain financial statement for company in context of how they provide contribution to
administration of company
Financial statements related to organisation are determined as essential part because it
assists in accomplishing goal and objective and also provide their contribution to successful
administration of organisation. Financial statement is adopted by chosen organisation that is going
to be mentioned below:
Balance sheet it is kind of statement through which all assets and liabilities are being placed
at right place. The investor focus is on assessing to invest in specific business or organisation or not.
In context of chosen organisation, the accounting team focuses on preparing effective balance sheet
on monthly as well as yearly basis.
Cash flow is other kind of financial statement which involves cash that is measured by
organisation. It is prepared for examining different kind of cost, profit and loss account. This
statement is a financial statement which signifies the expenses as well as revenue during particular
period of time.
Profit and loss account has been maintained for making comparison with accounting period
which is spending on cost, research as well as development. In context of chosen organisation, they
maintain profit and loss account statement in order to make appropriate decisions which will be
beneficial for company (Upadhyay Kundu and Nair, 2016).