OFFERS Buy 4 assignments and get 1 absolutely FREE!
Search
25% off
+
FREETurnitin
report

Prices from

£7.41

£5.56
Safe & Trusted

Introduction

Small business play an integral part in a country, provides services related to convenience store, small grocery shops, bakeries and many more. Therefore, small business can be operated from houses or single room as it doesn't require a business license. For running their business in an effective manner it is necessary that a proper strategies and plan of action is formulated so that they can follow them for effective growth (Schaper and et. al., 2014). Goodhood is a small company in London, United Kingdom and deals in clothing. Currently they are selling products of 200 brands from their stores and because of which the are able to increase brand image. The report will throw light on main considerations that are required to be addressed while planning and allocating resources. Other than this, different process of customer relationship management is evaluated that is essential for small business. To develop the small business by determining the benefits and drawbacks. Annual itemised monthly cash flow forecast showing fixed and variable costs to set against income is mentioned in this report so as to understand it in a better manner. Lastly, key financial statements of an  organisation in relation to know how they can contribute for operating a successful business.

Task 1

P1 Main consideration for business while planning and allocating resources

Goodhood is a small organisation that is operating its business in United Kingdom and selling their product that are mostly clothing whether men's or ladies wear. Although the company is running in small level but they are providing job opportunities to many people. Company is taking help form consultancy firm so that they can expand their business in an effective manner  (Bridge and O'Neill, 2012). Therefore, all the employees are working together in order to achieve a common goal so as to increase their market shares and values at the same time. Some of the important considerations that are following by Goodhood are mentioned below:

Planning Resources: For managing a small business there are some of the criteria which have to be followed by an organisation and planning is one of them. This factor includes some of the components which are given beneath:

            Premises and equipment: Before making any plan it is important that superiors have a proper knowledge about the tools, technologies and resources that are available to them. This, will help the organisation in providing better training to employees so that they can give effective results. Other than this, a perfect environment at workplace should be given to employees so that they can help the organisation for better growth.

            Raw Materials: This is an important element which company need to focus because without this firm cannot manufacture goods and resources. In context with Goodhood company, their prime requirement is of threads, fabrics etc., so there is a need of maintaining a better relation with their suppliers in order to get stuffs on time and in a right way.

            People and skills: For running a business it is necessary that they company have ample number of employees with effective skills and knowledge that they can apply for future proceedings. Therefore, organisation also help them in doing so by providing them proper training programmes. 

            Hence, for accomplishing the targets it is necessary that a strategic planning is done along with the limited resources that are available to them  (Keller, Parameswaran and Jacob, 2011).       

            Financial Resources:  It is categorised as the most important element because in order to implement new and innovative idea it is necessary that company has sufficient amount of finance which they can use for future happenings. Goodhood has maintained a record of their financial status  by maintaining cash flow, balance sheet and many more. Other than this, for getting appropriate funds they can take loans from financial institutions like bank, stakeholders etc., moreover, company will be able to produce goods right on time. 

            Goals, objectives and Vision: These are the essential components which help an organisation in attaining the objectives and goals in certain period of time. Goodhood is maintaining a healthy relations with their employees and conveying the message in an effective manner so that all the task are accomplished right on t