Investing in the future and developing an exit plan for business

Investing in the future and
developing an exit plan

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Analyse Key considerations for evaluating growth opportunities and justify these
considerations within The Canvas Cafe......................................................................................3
Evaluate the opportunities for growth applying Ansoff's growth Vector Matrix.......................5
TASK 2............................................................................................................................................7
Assess the Potential sources of Funding available to business and discuss benefits and
drawbacks of each source............................................................................................................7
TASK 3..........................................................................................................................................10
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business...........................................................................................................10
TASK 4..........................................................................................................................................12
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each.......................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

Introduction
SMEs refers to Small and Medium sized Enterprise, it is a business in which employee
are fewer than a limit (Rauch, Dallasega and Unterhofer, 2019). In UK 99% of businesses are
small and medium sized business. There are three types of SME Business they are Micro SME,
Small SME, Medium sized SME. The Micro business perform functioning of activities with less
than 10 employees and have less than turnover of €2 million. Small businesses re working with
less than 50 employees and have turnover less than €10 million. The Medium size business have
less than 250 employees and their turnover must be less than €50 million. These are the strength
of employees to qualify SME. The growth of SME is important as it creates a lot of employment
opportunities for people. Planning helps the business to identify their goals. The Chosen
organisation for this project is The Canvas Cafe which is situated in London, UK. It is a Vegan
Cafe and an event space which supports the positive social change through innovative projects in
area. The Cafe is a mobilisation Hub that opens a gate for people to show their creativity and
passion in projects. The Canvas Cafe host 60 community events such as yoga session, mental
health drop session and environmental workshops. This project consists growth opportunities,
sources for funding available in business, a plan for business growth, exit and succession plan for
small business.
TASK 1
Analyse Key considerations for evaluating growth opportunities and justify these considerations
within The Canvas Cafe.
For analysing the growth opportunities there are several factors such as resources,
capabilities, core competencies, innovating capabilities for new product of Organisation. The
resources, capabilities and core competencies of The Canvas Cafe is that they offer 100% Vegan
food which makes them competitive in the market. They serve the foods without harming
animals. In UK there are few cafe which serves 100% Vegan foods to the customers. The Canvas
Cafe have a capability to compete with its competitors as they perform the activities of Charity in
which they provide foods to homeless people which makes them unique from other Cafe and
with the help of this they can gain the competitive advantage in Market. They consumes wastage
of food and make effectively use for the peoples who need the food. For promoting their
business they can go through with advertisement in which they can create an awareness among

the customers to reduce wastage of food and help to distribute food to people who have no food
to eat. With the help of this advertisement through social media or ads in television they can gain
the loyalty of customers and attract more customers towards the Shop. To assess the resources,
capabilities and Core competencies VRIO model is suitable model to evaluate growth
opportunities.
VRIO Analysis
VRIO Model is generally conducted to analyse internal environment of organisation. The
analysis consist resources and capabilities of firm to lookout whether they can compete with their
resources or not for sustaining competitive advantage (Spina and Spina, 2020). VRIO refers to
valuable, rare, inimitable and organisable. It is a resource based view model that ascertains
Cafe's Internal characteristics and its performance.
Illustration 1: VRIO Analysis
§§
(Source: VRIO Analysis, 2021)
For analysing the growth opportunities The Canvas Cafe must conduct VRIO analysis-
Valuable-
The most valuable resources for The Canvas Cafe is their employees as they are the one
who leads business without them they cannot run their business smoothly. The employees are
key element of any organisation. The Canvas Cafe ensures that their employee must feel happy
with the services offered by the Cafe. It is the responsibility of cafe owner to fulfil the
requirements and needs of their workers as they are more valuable for the business.
Rare-

The Rare about The Canvas Cafe is that it doesn't harm animals to serve food for Human
beings. The Cafe not only offers food they also offer kindness and compassion to the people who
are in genuine need and also provide Home cooked meal for people who are homeless. The Cafe
offers 100% vegan foods to Customers.
Imitable-
The Canvas Cafe food recipe are Imitable which cannot be pursue by other Cafe. The
Cafe's valuable, rare and costly to imitate resources can achieve competitive edge in market. The
Canvas Cafe have to make their recipes imitable which cannot be copied by their competitors.
Organisable-
It is important to organise the resources to gain competitive advantages. The Cafe must
manage its process, policies, structure and culture to realise its potential for imitating resources
and capabilities.
PESTLE Analysis
Pestle analysis is conducted to analyse the environmental factors which can affect the
performance of Cafe (Griffiths, Fenton and Fletcher, 2019).
Political Factor-
The government create an impact on regulatory frameworks of Cafe, it includes
cleanliness of kitchen, storing standards, transporting produce and requirement of labours in
Cafe. They also ensure that customers didn't get poor quality nutrition.
Economical Factor-
Nowadays, people spend their money on luxuries as a result revenue of the Cafe get high
due to customers cook less and eat from outside.
Social Factor-
The Social factor can affect the Cafe negatively or positively as people are more health
conscious. They consider organic food instead of any junk food this might affect the menu of
Cafe as both type of customers get cater whether spicy or organic food. So, The Canvas Cafe can
increase their customer base by providing both type of food.
Technological Factor-
The new Technologies can create an impact on cafe, they have to take care of their
accounts and operation by using manual register. People are going towards online food delivery

platform so The Canvas Cafe have to tie up with Online food delivery platform so that they can
target large customer base.
Environmental Factor-
The Cafe's External and internal environment must be clean on regular basis and place
should be hassle free so that customer get attracted towards the cafe and can reach easily. The
Canvas Cafe must use recycled material and follow the food waste management policy.
Environmental factor could impacts the expansion and customer base of Cafe.
Legal Factor-
The Canvas Cafe have to follow the laws and they have to work under it the laws are
consumer protection laws, employment law, health and safety laws and patent laws. The cafe
should know what is legal and what is not legal while conducting business.
Evaluation:
VRIO Analysis is used to identify Resources, competencies and core competence of The
Canvas Cafe. Through this analysis it is identified that The Cafe has rare resources which makes
it different from its competitors. They offer Vegan product without harming animals. The Cafe
also serve foods to people who are Homeless. The Pestle analysis is used to identify the impacts
of External environment on The Canvas Cafe. From the analysis it is been concluded that they
have to focus on attracting customer so that the Cafe growth can increased. There are various
environmental issues which can create an impact on Outlet they have to work and maintain the
place so that customer feel safe and Healthy. The Political Factor can also influence The Canvas
Cafe as there are many protocols which they must follow for running their business successfully.
So, these analysis helps to find out the Competitive advantage and techniques to increase growth.
Evaluate the opportunities for growth applying Ansoff's growth Vector Matrix.
Ansoff Growth Vector Matrix
Ansoff's matrix is used for strategic planning where the company can apply this model to look
out the growth opportunities for Firm by developing new products or services (Van Hijfte,
2020). This Model is used to analyse and plan strategies for increasing profit and productivity of
The Canvas Cafe. Ansoff Growth Vector Matrix is also refers as product or market expansion
matrix. The matrix shows four strategies that helps The Canvas Cafe to increase their growth and
customer base so that they can compete with their competitors.