Report: Managing and Running a Small Business - Austin Fraser

This report provides a comprehensive overview of managing and running a small business, using Austin Fraser as a case study. It covers key considerations for small enterprises, including financial resources, employee skills, and setting clear objectives. The report explores customer relationship management (CRM) processes, emphasizing assessment of customer value, effective communication channels, and the role of digital marketing. It also discusses the potential for transnational business development, outlining the advantages and disadvantages of expanding operations. Furthermore, the report analyzes financial aspects such as cash flow forecasting and break-even analysis, and it concludes with a discussion of relevant regulations and legislations impacting small businesses.

Managing and running a small
business

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations of social enterprise or small enterprise needs.......................................1
TASK 2............................................................................................................................................3
P2 Different process of customer relationship management.......................................................3
P3 Small enterprise can develop transnationally and determine its advantages and
disadvantages..............................................................................................................................4
TASK 3............................................................................................................................................6
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost set against
income.........................................................................................................................................6
P5 Break even analysis is implemented within the company.....................................................9
P6 Organisation financial statements........................................................................................10
TASK 4..........................................................................................................................................11
P7 Regulations and legislations that have impact on small enterprise......................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small enterprises are an integral part of country and contributes to their economy as well.
In small companies, few individuals are working as well as these organisations gives various
opportunity of employment to applicants for improving their country's economy and living
standard (Ali and Babiker, 2017). For managing a small company in a better manner, there is
more needs for preparing proper techniques and policies which provides effective direction to
their employees for meeting firms objectives within a limited period of time. Small organisation
have limited enterprise linked operations as well as influence by those elements which are
existing within a workplace. Austin Fraser is an small organisation which is a recruitment and
consultancy company. Important areas where they are giving services of recruitment and
consultancy are human resource, engineering, information technology and many more. In this
report, it will be mentioned that some major considerations of small enterprise need to address
when the allocating and planning resources to complete enterprise linked objectives. Different
process of consumer relationship management for small enterprises as well as discussed about
key legislation and regulations which have influence on small organisation.
TASK 1
P1 Main considerations of social enterprise or small enterprise needs
Austin Fraser is a small organisation of recruitment and consultancy company in a field
of accountancy, information technology, animation, engineering and many more. As it is a small
size so it is not having much resources and money to provide its services to end users. This
organisation gives the best opportunity of employment to small companies as well as provide
best recruitment to local persons. Additionally, Austin Fraser enterprise management need to
have a good support of their retailer which aid in providing best services of consultancy to
unemployed along with employed persons (Bridge and O'Neill, 2012). The main purpose of this
enterprise to provide best services of employment to local persons for raising a living standard of
individual. Their are different factors which are needed to address by administration as per future
planning for meeting a common purpose. Some of main considerations are discussed in detail
below: Financial resources: These are very important resources as well as it is a backbone of
enterprise as it helps in conducting activities in a proper way. Having a minimum
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finance will give a adverse effect on the operations of small firms but it is not possible
to manage or run a enterprise activities. For better funds management within Austin
Fraser firm, there is a requirement to company to analyse their financial accounts of
organisation such as cash flow statements, profit and loss statement, balance sheet and
many others. It is helpful in rendering profit as well as loss of business. Employees and their skills: Workers are a main asset for a enterprise. Additionally, it is
a responsibility of HR to recruit a capable employees as well as they provide them
training so that they can work effectively within the firm. It is duty of human resource
department to deal with workers in a proper manner as well as involve them in making a
decision (Burns, 2016). It will be useful in meeting organisation targets within a limited
period of time. Vision, objectives and goals: It is important for every company to discuss their goals,
vision and objectives with their staff members which are linked with enterprise. It
provides best opportunity to Austin Fraser managers to develop different functions
which are needed to perform by employees. This kinds of model provide effective
guidance to employees for meeting their goals. In term of this, Austin Fraser
management have to provide training to workers by using best technologies and
strategies for improving effectiveness of work.
Techniques and tools in a analytical as well as structured way
There are two various strategies used by Austin Fraser company for efficient allocation of
resources as well as planning which are discussed in detail below: Critical path analysis: It is an proper approach used by manager of Austin Fraser for
finding out the different paths which are needed to complete for finish project on an
particular period of time. In this context, largest path is always selected due to it
consumes more time to complete (Chauma, 2017). through this respective organisation
find out short as well as easiest way of finishing project in appropriate manner. Gantt chart: This type of bar chart provides information linked with a schedule of
project. It is useful to determine within a limited period of time to accomplish a specific
project. It aid in effectiveness improvement of an employer about efficient allocations of
roles as well as responsibilities to all employees. With the assistance of Gantt Chart
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Austin Fraser can assign particular task to individual with there starting and finishing
date.
Importance of allocating and planning resources
There are some importance of planning and allocating resources which are discussed
below:
 Useful in meeting higher profits in a better way.
 Growth of employees potential skills.
 Make changes in internal strength of Austin Fraser by achieving flexibility in the
operations of enterprise (Cojoacă, 2017).
TASK 2
P2 Different process of customer relationship management
Consumer relationship management
It refers to practices, technology and strategies which company use to manage as well as
analyse interaction with customers with an purpose of improving their customers relationship. It
is a best techniques for managing a interaction and also maintain harmonious relations with new
as well as previous customers. It is useful in improving profit level of organisation. It aids in
sustaining their customers for a long time as well as sales improvement. In this, information and
data is collected with the help of different channels of communication like as email, telephone
etc.
Process of consumer relationship management Assessment of consumer value: It is useful for organisation in making good relations
with their customers. It is an management obligations to find out all requirements and
preferences in respect of quality as well as cost of previous products. It is a best approach
to collect customers view points and also their feedbacks for the aim of organising a
market research. By this, company they can know present trends of markets and
techniques to make changes in their present products. Those types of activities aid in
conducting a better practices to satisfy different needs as well as sustain loyalty for a long
period along with their trust towards the products or services. Major benefit of customer
value assessment is that company know about taste and preferences of customers as well
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as help in maintaining good relation with customers. Along with this, this is time
consuming process and require market researcher professional. Enforcement of proper channel of communication: For maintaining a good customers
relations, Austin Fraser needs to make a useful as well as better communication channel.
It is useful in grabbing of best opportunity as well as try to provide better services to
employment. Some of best communication channels such as websites, social media etc.
for reaching at a targeted customers. Proper communication channel help organisation in
transferring information from top to bottom level in effective manner.
 Role of E-mail and digital marketing for Effective relations: These sources are a best
way to provide information regarding current operations. It will be useful in adopting a
certain programme which influence on customer behaviour. The application of digital
marketing is having a wider reach towards customers as well as also contribute for
making aware of services to customers. By the help of using these two various
approaches organisation can interact with buyers along with that also attract them in an
proper way (Drucker, 2012). Through emails and digital marketing company can remain
in touch with there customers and provide them information. Whereas, there is
requirement of individual person who do work related to handling email and other digital
marketing tool which result in extra expenses.
P3 Small enterprise can develop transnationally and determine its advantages and disadvantages
Transnational sales is an important concept which is useful for organisation to analyse
profit and revenue level. It is the sales of companies products as well as services outside the
boundaries on the base of demand as it is developed at a place of market. Additionally, it is an
responsibility of Austin Fraser to implement different kinds of tactics regarding current situations
which are represent in specific nation for more profits as well as create a better image of brand at
a place of market. This type of techniques is used by Austin Fraser organisation to provide
generic products which purpose is to earn a higher profits. If company will expand their
enterprise in a new cities or countries, there is a requirement for enterprise to make a best plan
for it (Durst and Runar Edvardsson, 2012).
In this context, there is a need of enterprise to provide higher efforts which provides
opportunity linked to exploration of different type of functions at a level of international. It is
important that Austin Fraser firm should give services as well as goods to customers at a cheaper
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rate. All types of enterprise linked with activities which is useful in expanding a enterprise
activities in an proper way. There are some advantages as well as disadvantages which are
ascertained by expanding a enterprise activities which are discussed below:
Advantages Lifestyle: In small enterprises, definite style of working is followed by employees which
are working in a enterprise. By the help of workers can earn higher profits. Independence: In this, it is a manager right for better decision making for expanding all
the enterprise linked operations. Their is a requirement for managers to make a decision
on daily basis time interval to give best opportunity for running a enterprise in an
effective way.
 Efficiency: Small enterprise follow the effective structure of working for the aim of
raising efficiency of business process as well as provide various benefits to the company.
Disadvantages Lengthy: For raising operations of firms in a better way as well as make higher profits,
there is a requirement to Austin Fraser to adopt and use a creative as well as innovation
ideas. This process consumes a lots of time. Financial risk: It is very important risk which is faced by enterprise at a time of
expanding a enterprise linked functions at a level of international. In this context, Austin
Fraser is a small sized firm and it is not having more finance (Durst and Wilhelm, 2012).
Components of the process of consumer relationship management
Some of the main elements which play a very important role in the process of consumer
relationship management which are discussed in detail below: Understanding markets and customers: The foremost as well as first priority of an firm
to find out customers needs as well as determine current trends of marketing and then
manufacture a better products. Acquire customers trust: It is important for Austin Fraser firms to maintain a good
relations with consumers as well as gain their trust towards organisation. Offer development: make changes in the current products as well as add many more
new or latest features in new goods.
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 Sustain customers: For sustaining customers for a long period of time, there is a need to
provide better offers as well as discounts as per their loyalty. It will be useful in making
a harmonious along with long term relations among customers as well as organisation.
Potential to develop transnational operations
It is an responsibility of management of company to make a better plan as per doing all
enterprise operations in an effective way by an model of internationalisation. This is having a
four different parts which are discussed in detail below: Knowledge opportunity: It is important that manager of Austin Fraser should have better
opportunities to grab which will be useful in completing goals within a limited period of
time (Five Step Process for CRM, 2018). Relationship commitment decision: Service providence and products on the effective
time base on consumers along with it expand suppliers of operating enterprise. Network positioning: For better activities of promotion, companies require to introduce
a effective network at a place of market. Learning curve: There is an need to adopt various as well as new programmes for
introducing a new goods.
Process of consumers relationship management
Different efforts are accomplished by a organisation to maintain as well as develop a
better relation with their consumers. Different steps are involved in the process but it is based on
4 Cs which are discussed in detail below:
 Correlate: In this, manager organise various programmes to communicate as well as
interact with consumers. Initially, consumers are invited for attending a program.
 Combine: in this context, relations are developed among both organisation as well as
consumers (Hammer, 2015).
 Cognize: In this Austin Fraser manager are using different tools for gathering information
about different enterprise activities.
 Connect: In this they developed a relation with third parties, consumers, workers and
suppliers.
Stage model of internationalization - this model is analysed as an successful and
necessary driver for improving growth of Austin Fraser and accomplishing competitive
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advantages. Moreover, there are two incremental model of internationalization procedure in the
enterprise. In this model there are three stages explanation of these area s follows:-
 First stage – this is also known as early stage and main motive of first stage is to
introduce the initial market exploration for helping export related activities. Apart from
this, in first phase company start experiencing the familiar foreign market areas by
exploring particular characteristics which includes habits, culture,taste, language etc..
 Second Stage – In this phase company start excepting profit from the internationalization
procedure.
 Third Stage – In this stage it has been expected that every kind of expansion is not
advantageous sometimes company may loose there power. This may result in high cost of
the business instead of unique chance.
Benefits Drawbacks
Major benefit of internationalization process to
Austin Fraser is they get broader market base.
In some chances market expansion can result
in failure for Austin Fraser.
TASK 3
P4 Annual itemised monthly cash flow forecast showing variable and fixed cost set against
income
Sources of funds
There are different sources which provide opportunity to the manager of Austin Fraser to
raise money for its performance of different enterprise linked activities. It is useful in making a
company stronger. Various sources of finance are given below: Leader and hire purchase: This approach aid in raise finance from leasing property
along with that equipments to other people. In this, finance come from rent as well as
interest. Bank loan: It is an external source of funds. It is useful for Austin Fraser company to
take all better loans of commercial from bank at a interest as well as fixed rate which
company require to pay on annual basis.
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 Equity finance: It involves problems of equity as well as preferences shared by
organisation to trade on stock exchange. It is an very effective source of raising long term
capital.
Forecasting and Budgeting
Forecasting refers to a procedure of predicting a future which will be depend on past as
well as present data. It is used by Austin Fraser to find out all trends of future (Harmon, 2015).
On other side, budgeting is a process of making a better development plan to spend finance in an
effective way. There are different tools which are used by company for budgeting as well as
forecasting which are discussed in detail given below: Calculating moving average: It is useful in preferences of previews consumers as per
present trends which are represent at a place of market.
 Time series data: Additionally, Austin Fraser management provides an emphasis linked
to find out within a limited time period which will need to accomplish specific project.
Profit & Loss, Balance Sheet and cash flow statement of Austin Fraser company:
Year 2017 ( in £) 2018 ( in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
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Working capital 30 80
Profit & Loss Account at the ended year
2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
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