Planning for Growth: Evaluating Opportunities, Funding, and Business Plan

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
Evaluating growth opportunities.................................................................................................1
LO2..................................................................................................................................................4
Different sources of funding.......................................................................................................4
LO3..................................................................................................................................................6
Effective Business plan...............................................................................................................6
LO4..................................................................................................................................................7
Various options to exiting a business..........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth refers to set of business activities which enables enterprisers to grow
and expand their business units in different locations (Planning for growth, 2020). These are
strategic course of actions which permits business owners to utilise their scarce and limited
resources in a better way to perform their business functions differently from its competitors.
Business growth is an essential aspect for any organisation but it brings some changes within
business models, plans and strategies.
Ella's Kitchen is a flourish and small food manufacturing organisation in UK. Company deals in
making and selling of organic and toddler baby food. Sold out products in different supermarkets
and stores in UK as well as overseas. Firm is an existing member of Organic Trade Board and
has 62 employees in total. This report exhibits detailed information regarding regarding various
various key growth drivers in order to determine growth opportunities for given organisation. It
justify different product and market expansion strategies with help of Ansoff Model. Further, it
explains various source of funding by which business owner can raise their capital for purpose of
growth expansion. Lastly, it explores exit and succession options and represent new business
plan for growth development.
LO1
Evaluating growth opportunities.
There are number of growth opportunities are available for small and medium enterprises
in order expand their business and for product development. There are different factors that
prevailed in external environment which must be consider by small business owners in order to
formulate and implement their growth strategies effectively and efficiently. In addition to these
factors there are five major business growth drivers that required to be consider by every
organisation before planning out for growth expansion (Keough, 2015).
.
1. Strategy: it is one of the main driver for growth expansion as strategy define as business
plan or master plan based on innovative ideas that enables firm to start fast growing
business units with purpose of growth expansion. In context of Ella's kitchen, currently
company is producing baby food products for infants and toddler customer base. For

market share expansion company adopt product expansion strategy in order to enlarge its
customer base and profits.
2. People and Operations: People refer to how many number of skilled employees are
present in organisation. Whereas, operations define current production process is being
used by company to produce its products (Park and LaFrombois, 2019). In case of Ella's
Kitchen, company required to enlarge its staff and employee more skilled people who
bring fresh innovative ideas for providing exclusive product range to its customers. In
Addition to this, company required to opt latest and advance version of technology in
order to manufacture products it will reduce cost and increase quality.
3. Infrastructure: this key driver refers to the internal facilities that an organisation has at
workplace. Infrastructure include proper inventory storage, floor spacing, ventilation,
distribution system, supply chain so on (Coulson and et. al., 2015). For growth
expansion, Ella's kitchen required to maintain effective level of infrastructure in order to
avoid unnecessary obstacles and delay in delivery system. Also, company can enlarge its
distribution and supply chain network so that it can provide its products to market on
time.
4. Funding: No business can grow without proper capital or funds. Funding is also a main
key driver through which company can raise its capital and invest in various other units
in order to expand its brand name (Crow, 2015). There are various sources of funds to
choose from. Presently, Ella's kitchen is at its small scale organisation and wants to
enlarge its business for that company can arrange its funds from external source of
finance such as bank loan, venture capital, lease financing etc.
5. Risk and Reporting: Risk is refer to uncertainty that might affect overall result of strategy
and growth. In case of Ella's Kitchen, it is important for firm to assess all these risks
factors before applying strategies. Also, company required to prepare proper report of
evaluation in order to formulate more better strategies and policies for future. In addition
to this, company can formulate mitigate strategy or backup plan in case of failure of
applied strategy.
Ansoff's Growth Matrix Model
This framework refers to product and market growth model which explains various
business strategies and practices in order to grow with help of introducing existing and new