Essays on Managing a Small Business Assignment

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The paper "Managing a Small Business" is an outstanding example of a business assignment. In this venture, the business that will be operated will be a courier service company. When the business is started, the start-up costs to be incurred will include the cost of renting offices, Cost of purchasing vehicles and motorbikes. Cost of purchasing furniture and stationery Cost of recruitment and orientation of staff Lighting costs The main operating costs that will be incurred by the business include: Monthly rent (fixed) Water bill (fixed) Electricity bill(variable) Warehouse costs (variable) Fuel costs (variable) Repair and maintenance costs (variable) Salaries and wages (fixed) Consider the statement: Small businesses require money to operate.

As long as you are careful with your spending there is no need to keep track of business costs. If money needs to be spent you have to spend it. Do you agree? I do not agree with the statement because, in a business environment, there is a need for accountability for all expenditure so that financial records can be balanced. Furthermore, the option of not being accountable can lure a business operator to use funds for other activities that are not related to the business and can result in the collapse of the business (McKeever 2012). Assessment Activity 3 Breakeven point The formula for BEP = Fixed Costs/ (sale price of an item-cost of an item) In this case, the cost of an item = £ 6, while the sales price of an item = £ 24 Hence BEP = 15000/ (24-60) = 833 units.

This implies that the company must sell 833 units in order to get the costs of investments. When the owner decides to increase the selling price of the 3-D glass to £ 30, the new BEP will be obtained as follows: BEP = 1500/ (30-6) = 625.

This shows that the owner will need to sell 625 units in order to breakeven. Assessment Activity 4 Choose a newly established small business. You could choose to create one which has not yet been established. What products/services will be sold? What pricing strategies would be appropriate? Explain your choice.

References

McKeever, M. P. 2012. How to write a business plan. Berkeley, CA: Nolo.

Pinson, L. 2008. Anatomy of a business plan: A step-by-step guide to building the business and

securing your company's future. Tustin, CA: Out of Your Mind & into the Marketplace.

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