Report: Managing and Running a Small Business and Social Ventures

This report delves into the core elements of managing and running a small business, using Unisex beauty salon as a case study. It examines the crucial considerations for resource allocation, including financial and human resources, vision, mission, and the use of tools like Gantt charts and critical path analysis. The report explores customer relationship management (CRM) procedures, such as customer portfolio analysis, customer intimacy, and customer lifecycle management, and how they contribute to business objectives. It further discusses transnational advantages and disadvantages, the application of financial statements, cash flow, and break-even analysis, as well as the implications of key legislation and regulations affecting small businesses. The report provides a comprehensive overview of the strategies and challenges involved in establishing and sustaining a small business, emphasizing practical applications and critical analysis.

MANAGING AND RUNNING A
SMALL BUSINESS
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Explanation of Main consideration a small trade or social venture require when setting up
and allocating resources...............................................................................................................4
M1Importance of allocating of resource and planning in Unisex beauty salon..........................5
M2. Importance of planning and allocating resources to achieve business objectives.............6
D1. Critical analysis of the application of appropriate resources................................................6
TASK 2............................................................................................................................................6
P2 Various procedure of customer relationship management for small trade organisation.......6
P3 Way of small business can develop transnational advantages and disadvantages.................7
M3. Apply and evaluate the elements of the customer relationship management process in
relation to achieving the business objectives...............................................................................8
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M4. Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges.......................................................8
D2. Critically evaluate the customer relationship management process at all stages and
provide recommendations for overcoming challenges of developing transnational operations..8
TASK 3............................................................................................................................................9
P4 Cash flow statement...............................................................................................................9
P5 Explanation of how BEP apply in business organization.......................................................9
P6 Interpretation of financial statement of..................................................................................9
TASK 4............................................................................................................................................9
P7Key legislation and regulations that have implication on small business or social venture....9
M6. Evaluate the implications of key legislation and regulations in an organisational context.
...................................................................................................................................................11
D4. Critically evaluate key legislation and regulations that affect small businesses or social
enterprise organisations, taking future developments and changes into account......................11
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................11
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INTRODUCTION
Small business organizations play vital role in enhancing the economy f United Kingdom. These
small entities help in increasing GDP rate as well as reducing the unemployment rate. In order to
understand the concept of small organizations, Unisex beauty salon has been take, which is
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situated on high street and provide effective beauty service to their customers. In this report,
essential resource and element require for establishment of organization, uses of customer
relation management method to enhance the sales has been described in brief. This report also
includes use of financial statement, cash flow and break even analysis’ to understand the position
of organization and build future policies. It considers the rules and law Unisex beauty salon need
to follow to run their business in effective way.
TASK 1
P1 Explanation of Main consideration a small trade or social venture require when setting up
and allocating resources
Small business organizations need various resources for establishment of their organization in
effective so that they are able to run their business organization in market for long time period.
Although they have facing server problems due to lack of monetary resource (Ivanyos, Sándor-
Kriszt and Messnarz, 2015). Unisex beauty salon required to consider following factor these
are mention below
Financial resources: It is the main resource which required by organizations in order to fulfil all
the requirement of running business activities. Financial resource provides base for allocation of
other resource and for planning policies regarding purchasing of raw material, and other goods
and equipment for organization. Success of the business depends in how effectively they manage
their financial resource. In context with Unisex beauty salon their owner collect financial from
banks and other financial institution it they use financial for operating day to day business
activities and invest in long term purpose.
Human resource: These are the most essential factor for considering small business. Human
resource done all the operating work in the organization from hiring personals to providing them
salaries, formulation of policies ad allocate resource and given compnesataion.HR department
are help in directing all the human resource activities and influence and motivate work force
toward achievement of business goals. Unisex beauty salon is small organization and it is
establishes thus it is required for them to hired skills personals they have great skills to provide
beauty services to costumers. For small business organization their success depends on how
effectively their employers provide service to clients.
Vision and mission: For establishment of small organizations it is required to take decision
regarding the vision for which the organization is established decade. All the policies are
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formulated in order to achieve the long term vision. Unisex beauty salon take their vision as
achieve the goal of becoming best parlour in High Street by providing high qualities of series at
low cost. For this they developed mission for 3 o 4 years and increase their sales rate from 12 to
30% in one year, and also set small goals and objective which provides direction to owner to
worlds towards them (Edwards, 2014).
Gantt chart: This chart is a part of project management procedure with the use of Gant chart
mangers will be able identity the away they need to perform their business rejects n particular
time period. This chart has 2 axes on which each business activity has been define within tits
projected time period. Unisex beauty salon use Gantt chart to done their customers work within
the given time period and tit will also useful to save them from conflicts and issue of dates
regarding their serves of clients.
Critical path analysis: This tool is apply in the organizing to manage all the budget and
activities of the organization it will useful for Unisex beauty salon to identify the time period
require to fulfil each task.
M1Importance of allocating of resource and planning in Unisex beauty salon
For planning and allocation of resources the Unisex beauty salon use financial , human
resource as these are the main art and help in allocation of other resource they also used Gantt
chart and CPM method though which they can identify the path and time period require to fulfil
each project of the organization.
Useful in entering at the new market through which Unisex beauty salon will able to generate
more profits.
Disadvantage:
This type of sale is a of idea for expansion of market but it require higher monetary resources
and Unisex beauty salon is not able to invest in these types of transaction as the firm is already
have lack of resource thus they did not take risk in investing in foreign market where the rate of
competition is already higher.
For maintain the position in foreign market various law and regulation needs to follow and after
the BRIXIT agreement the restrictions is and rules becomes more rigid. These types of sales
increase the rate of labours exploitation (Edwards, 2014).
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M2. Importance of planning and allocating resources to achieve business objectives
Planning and resource is requires for every business. In context to Unisex beauty salon they can
only achieve success when they decide their vision mission and formulate polices and allocate
resources on the basis of achievement of their goals. These with the uses of technique of
planning get direction and order to how work their activities to attain the goal
D1. Critical analysis of the application of appropriate resources.
Unisex beauty salon is small business entity in order to maintain the position of market they need
to produced effective policies through which they can analysis the requirement f fiancé and how
they allocate their equipments, human resource in each department and thin which direction they
work. BY link between planning and allocating they can achieve goals by achieving their target
in given time period and providing high quality of series to their customers. As it useful in
proper utilization of financial and hum resources in effected way to achieve the goal.
TASK 2
P2 Various procedure of customer relationship management for small trade organisation
Customer relationship management is effective approach through which organizations able to
concept their customers. In this approach mangers use the previous data of the customers in order
to identify the list of royal and potential customers of the organization. For this purpose they use
various communication channel, social media, and telephone. Mails, chat marketing materials.
They focus on their target audience to building strong relation with their customers. Unisex
beauty salon is run their business in providing manicure, pedicure, SPA and other salon service
to their clients. it is essential for this business to plan effective customer relationship
management strategy as they are social organization and for sustains position in market they
need to build strong connection with their relative customer. For this their employers behave in
familiar and providing services other then they take feedback for clients provide offer, and take
a record of potential customers give them gifts for and vouchers for using the service and
products of the Saloon. They use following technique for maintain relation with their customers
Customer portfolio analysis: This method is used to identify the perception, need desire and
requirement of the customers. So the organization will ale to provides them service according to
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their requirement. With eh use of this tool manger will be able to determine the purchasing
power and lifestyle of their clients (Warwick, Wyness and Conway, 2017).
Customer’s intimacy: They use this method of customer relation manage to build strong and
familiar connection with the clients their clients not attract with other rival industries. In this
method is take require and feedback from their customers an on the basis of that they analysis the
performance of the organization and change services according to their feedback. It will attract
the customers. They also know about what kind of products and customers like and their
perception regarding their rival organization. Unisex beauty salon uses this method to maintain
their relation with other potential clients.
Customer life cycle management: This considers all the business activities which is started with
finding of potential customers and formulate strategies to maintain strong relation with them and
analysis their perception and maintain here to with them.
P3 Way of small business can develop transnational advantages and disadvantages
Transnational sales are a tool which is used for selling product and service in international
market. In order to attain higher profits and expand market in foreign countries. This saes also
useful for performance measurement by providing information regarding actual and budgeted
sales. It useful t identify the opportunities in the international market. Unisex beauty salon se this
tool to expand their saloon business and established branch of this saloon to foreign market. It
also useful for them to increase their brand images. And use to attain their vision in market.
Advantage: This type of selling method help in achieving business goals by enhancing ales rat of
the organization.
Transnational sale also useful for providing and information the new opportunities and threat
working in international market. Unisex beauty salon is small organization and they want to
expand their serve to foreign market by the use of this method they can ale to achieve their goal
of increasing the market.
This will also helpful in taking decision regarding sales (Macht, and Weatherston, 2014).
Disadvantage:
This type of sale is a of idea for expansion of market but it require higher monetary resources
and Unisex beauty salon is not able to invest in these types of transaction as the firm is already
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have lack of resource thus they did not take risk in investing in foreign market where the rate of
competition is already higher.
For maintain the position in foreign market various law and regulation needs to follow and after
the BRIXIT agreement the restrictions is and rules becomes more rigid. These types of sales
increase the rate of labours exploitation (Edwards, 2014).
M3. Apply and evaluate the elements of the customer relationship management process in
relation to achieving the business objectives.
Customer relationship management method is applied by the Unisex beauty salon to build
effective a strong relation it their customers or this purpose they use, social, media, mails take
them feedback and review and analysis their perception though mails, and online survey .They
use customer analysis, costumer intimacy and life cycle management tools.
M4. Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges
Translation al model is used to enhance the sales of the organization in foreign market. Unisex
beauty salon us this model tend these a market grow but due to lack of financial resource they
need high investment to enter in foreign market.
D2. Critically evaluate the customer relationship management process at all stages and provide
recommendations for overcoming challenges of developing transnational operations
Customer’s relation management is implemented to increase the market area by establishing
good position among the customers. For this purpose they use effected tools of relationship
management they use transition sales in which sales representative contact with their customers
and bud personal relation to attract toward the organization. It totality depends on the skills of
the sales personals how they are able to influence their customers to purchase their products and
services of the Unisex beauty salon.
TASK 3
P4 Cash flow statement
Particular Amount Amount
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Operating activities
Sales
Selling and Distribution
Office and Administration
Expenses
Vehicle Maintenance Costs
Interest on Loan
Miscellaneous Expenses
Inventory
Debtors/Receivables
1,000,000
-50,000
-35,000
-45000
-90000
-30000
1000
3200 -148680
Investing activities
Land and Buildings
Furniture
Machinery
investments
-200000
-12000
-18000
-120000 -170000
Financing activities
Capital
10% Loan
Creditors/Accounts
1700000
440000
20000 1764000
Net profit
Cash balance at starting of year
Net balance of cash at the end
of year
300000
5000
1480320
P5 Explanation of how BEP apply in business organization
Break even analysis is used to determinate point of no profit and no loss
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CALCULATING THE BREAK-EVEN POINT IN UNITS
=Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
=10000/(5 – 3)
=10000/2
=5000 units
Break-Even Sales =5000Unit*5
=25000
It also useful to determine the relation of the profits with other its of profit and loss statement and
effect of changes of sales on the profit volume ratio (Zlatev, 2018).
P6 Interpretation of financial statement of
Financial statements are prepared for determine the financial position of the organization. Every
business entities need to build it for analysis their profit and loss and performance and situation
of assets and liabilities. Unisex beauty salon use following statement
Profit and loss: These formulated to define the profit and los vale of the organization. This
statement also represent the expend incurred on operating business activities. The Unisex beauty
salon able to earn 300000 net profits and 550000 gross profit for the previous year.
Cash flow: This statement is prepared to identify the cash inflow and cash out flow activities for
particular time period. The cash flow represent the equity , facial operating and investing
activities of the organization.
Balance sheet: This is the most important facial report element. It defines the value of asset and
liabilities of the organization. With the use of balance sheet Unisex beauty salon able to
understand their financial position and formulate policies and take decision regarding future. At
the end of the financial year value of the asset and liabilities is 2160000 of the Unisex beauty
salon.
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TASK 4
P7Key legislation and regulations that have implication on small business or social venture
Every business corporation need to follow some specific rules and regulations related to
entering in market. They need to follow rules of the contract act, labour ct, companies act
partnership act and ethical rules of conducting and behaving business activities. If Unisex beauty
salon not fallow the rules of the acts then they need to face issues and give penalties even the UK
government is not reliable if they suffers from case of fraud or corruption. Thus rules and laws
of flowing ct should be followed
Consumer law: Consumers safety law was been constitute for preventing consumers from any
fraud business practices. According to theses law organizations need to provide right qualities of
products and service which is not defected, consumer have right to select their product , seller
not force on them and consumers has right o inquiry of every products and services. It is require
for the Unisex beauty salon to follow all the rules as their organization service related with the
service industry.
Contract act: They need to follow the rules of contract act, f they came in any contract with
their client then they did not breach law. Their contract is valid if it fulfils all the condition of
being a valid contact (Pedroza-Gutiérrez,, 2019).
Employment law: Human resource are the most valuable asset of the organization..This law has
been implement which protect the right of the workers and employers. According to this act
organization need to provides better work condition and faculties to their employers and protect
their right. Thus Unisex beauty salon need to facilities’ every facility which require by their
workers during the business time
Wages act: This act also proved security to worker. According to this act every workers get
have right to get minimum wage .This Unisex beauty salon need to pay sufficient salaries and
wagers to their workers.
Data protection: Information security act has been implemented according o which it is the
right of the business entities search and their valuable and relive information from external
wolrd.No business entities ill not have right to proved any personal information of their
employer without any valid reason. Thus Unisex beauty salon needs to follow these rules and
protect the personal information of their employers as work as organization also.
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