Planning for Growth in Little Wonder Cafe

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 The key considerations and growth opportunities...................................................................3
P1 Evaluation of growth opportunities........................................................................................3
M1 Range of analytical frameworks............................................................................................3
D1 Specific options and pathways for growth.............................................................................4
P2 Ansoff’s growth matrix..........................................................................................................4
LO2 Methods of funding and types of funding...............................................................................5
P3 Potential sources of funding its benefits and drawbacks........................................................5
M2 Evaluation of sources............................................................................................................6
D2 Evaluation of the source which is to be adopted...................................................................6
LO3 Business plan for the organisation...........................................................................................6
BUSINESS PLAN.......................................................................................................................6
LO4 Ways to exit the business......................................................................................................12
P5 Exit and succession options..................................................................................................12
M4 Comparing and contrasting the options...............................................................................12
D4 Critical evaluation of exit and succession options...............................................................13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
To grow the business a proper set of plans are to be made. As clear goals and targets
increases the scope of growth as well as the increase its revenue and customer satisfaction. As
proper strategies are to be made and followed to grow the business. Little wonder café is a small
café which is into food and beverages industry. As being a small enterprise it uses various
strategies to grow its customer base and revenue as well. In future the company is planning to
increase its food products on the basis of the customers need. In this report it is analysed that
how the growth opportunities are grabbed and what are the frameworks that can be used. Will
analyse the sources of funding available their benefits as well as their drawbacks. Lastly will
design a business plan for the grow of the company including the financial information.
LO1 The key considerations and growth opportunities.
P1 Evaluation of growth opportunities
Growth is essential for every business. Goals or objectives set by business needs to be in
the direction of growth. While evaluating growth Little Wonder Café needs to take into
consideration some factors –
Revenue from new source – Increased revenue is a direct source of growth. If Little Wonder
Café increases its revenue it can invest it into new project leading the company towards growth.
Competition – It is very important for the company to give a good and healthy competition to its
rivals. Growth can be increased by having a edge over our rivals.
Search for target customer – Before expanding into any field or even if does not intends to
expand the company should always search for its perfect customer (Meng, 2021). Customer is
the king of any business. They can either make it or break any business.
Differentiation from others – The company should always have some differences from its
competitors. In case the company is having any USP it can create attention of market. It helps
company to gain a lot of market share. The company can work in the direction of its USP and
can make it work like its strength.
M1 Range of analytical frameworks
There are various options available for Little Wonder Café to have a competitive advantage over
its rivals like –
SWOT analysis – Under this option company analyzes its strength, weakness, opportunities,
threats. Strength are the strong points of the company in which it has benefit. Weaknesses are the

weak points on which company has to work (Teoli, Sanvictores and An, 2019). Opportunities are
the chances available to the company which it can use it in order to gain competitive advantage.
Threats are dangers for which company needs to find solution.
Growth share matrix – Company will identify and classify its products into four categories-
Star – Products with high growth and market share (Dawes, 2018). It is a good source of
investment.
Question marks – Products with high growth but low market share.
Cash cows – Products with low growth but high market share (Cleberg, 2019).
Pets – Products with low growth as well as low market share.
Porter’s five forces – Five factors need to be considered –
a) Bargaining power of supplies
b) Bargaining power of buyers
c) Intensity of rivalry
d) threat of new entrants
e) threat of substitutes.
D1 Specific options and pathways for growth
The company needs to be cautious while selecting the pathway for increasing growth
opportunities. Company can use porter five forces to evaluate different five factors. In SWOT
analysis company needs to be proactive in order to grab every opportunity and needs to be
reactive in order to face threats. Company needs to classify its products properly under four
categories – star, question marks, cash cows, pets.
P2 Ansoff’s growth matrix
Ansoff matrix is the matrix used by business in evaluating for the new opportunities.
Little Wonder Café can look for new opportunities. This matrix shows whether the company
should make new product or enter into new market. Under this matrix company has four
strategies under which it creates a combination of existing products or new products and existing
market or new market. This matrix shows four categories of growth opportunities –
Market Penetration – Under this strategy company focuses on increasing customer base by
selling existing products only. The company does not intends to make new product or enter into
new market. Existing customers loyalty needs to be improved by focusing on after sales services
or company can also give discount to regular customer.