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

This report discusses evaluating growth opportunities, funding sources, and designing a business plan for growth for Cafe Pod Coffee Co. It covers Ansoff's growth vector matrix, sources of funding, and financial projections.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P 1 Evaluate the main considerations for evaluating growth opportunities and justify these
consideration according to the organisational context ..........................................................3
M2 Assess the main sources of funding and justification for the adoption of the proper sources
of funding for the given organisational context .........................................................................7
M3 Develop the proper and detailed plan of business for growth and securing investment that
sets out strategic objectives, strategies for the achievement of objectives ..............................12
D3 Present the in depth business plan which demonstrates the understanding and knowledge
of how to apply, formulate and achieve objectives of business into successful terms ............12
P 5 Evaluate the exit or succession options for the small business which explains about the
benefits and drawbacks of every option ...................................................................................13
M4 Assess succession or exit options for the small business which contrast and compare the
options and also make valid recommendations ........................................................................14
D4 Give the evaluation into critical terms of the exit or succession options for a small
business and decide the proper course of action with justified recommendation to support
implementation ........................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning basically refers to the activity of strategic business which enables the
business owners to track and plan the organic growth in their revenue. For planning the growth it
is important that to set the higher level of goals and then identify the inputs and outputs. In the
further step, it is important to run for growth experiments and validate the growth experiments
and at the end fost the extreme accountability. In the present report, Cafe Pod Coffee Co. is
taken into consideration(Bagheri and et.al., 2018). It is an independent craft coffee business
which was established in the year of 2011. They conceive the quality coffee for adventurous
coffee drinkers to enjoy at home. They are basically inspired by the coffee of London which they
love to drink and also got creativity, passion and pushes the boundaries as well. The present
report will cover discussion about the key considerations for evaluating growth opportunities and
also about opportunities for growth with the application of Ansoff's growth vector matrix. In
addition to this, the report will cover analysis about the potential sources of funding which are
required for the business. Moreover, the report will cover discussion about the business plan for
the growth.
MAIN BODY
P 1 Evaluate the main considerations for evaluating growth opportunities and justify these
consideration according to the organisational context
There are many considerations for evaluating growth opportunities which are defined into
the following manner:
 Hypothesis: It is important to have good hypothesis as to why certain metrics needs to be
changed. They have to take into account about the opportunity size that is number of
users which might be affected by the feature(Bolay., 2020). It does not matter whether
the idea is good or not if there are very few people get affected by it into the initial place.
There are mostly hypotheses who fall under the category of increasing intent or
decreasing intent.
 Investment:Growth is majorly about making the smart investments. Growth is very
challenging that if the experiment fails then all that hard work gets undone and the
individual goes back to the initial stage along with the learnings. There is also another

thing which needs to be taken into consideration is not just the time to to develop the
feature but also time to maintain the feature.
 Precedent: It is the factor which looks at the past experiments which has been ran by the
team or in the industry. At the initial stage, there is no previous results which the
individual needs to look at so there is requirement to see what works within the industry.
According to changing period of time, the individual needs to majorly rely on their own
past experiment results as well(Cardoni and et.al., 2020). It is necessary to know about
the past experiment results are much more valuable pieces of information than the results
of industry.
 Experience: While working on growth, there is a common problem which is focused on
one north star, making ship decisions and metric solely on that metric. When there is
optimisation for only one metric then the experience will trend towards the extreme
which performs into well mannered way for that metric.
In context to Cafe Pod Coffee Co., there are certain parameters which needs to be taken into
consideration from the perspective of growth. It is important to have hypothesis because without
it there is no idea that why this metrics needs to be changed. It is necessary to consider the
investment parameter because on the basis of this parameter further growth can be done into
positive context. When the organisation have previous experiences then it helps them in order to
take their further decision into positive manner. When there is reliance majorly only on one
metrics then the further steps have bee decided accordingly for it.
P 2 Analyse the growth opportunities applying Ansoff's growth vector matrix
Ansoff growth vector matrix is a kind of framework which is into the form of tow by two
that has been used by the teams of management and analyst community to support in terms of
evaluating and plan the growth initiatives. In context to Cafe Pod Coffee Co., the ansoff growth
vector matrix is defined into the following manner:
 Market penetration: It is about the concept where sales has been increased of the
existing products into an existing market(Carvallo and et.al., 2018). In context to Cafe
Pod Coffee Co, they can increase their sales with the existing coffee into the the London
market.

 Market development: It majorly focuses on selling the existing products into new
markets. In context to Cafe Pod Coffee Co, they can sell their coffee into new markets as
well by focusing on the target of new kind of market as well.
 Product development: It majorly focuses on introducing the new products to an existing
market(Follmann and et.al., 2021). In context to Cafe Pod Coffee Co, they can introduce
new variety or range into their coffee products into their existing London market.
 Diversification: It is the concept of entering a new market with altogether new products.
In context to Cafe Pod Coffee Co, they can enter into new market along with their new
variety or range into this international market.
These are the main parameters of this growth vector matrix where increasing the growth
opportunities for the company they have to work on it into the serious form. So in this manner,
the growth opportunities can be enhanced into positive manner with the right kind of approach.
They can also introduce new products or variety into their coffee due to which they can attract
the attention of people on the larger scale into this international market.
M1 Discuss the growth options with support of analytical frameworks to demonstrate the
understanding of competitive advantage according to the organisational context
One of the best option for growth option is the diversification within the products and
services. So this option help the Cafe Pod Coffee Co to grow themselves into positive context
with the right kind of approach. There is also one framework which help the organisation in
creating competitive advantage within the market. These framework basically include Porter's
five forces, SWOT analysis etc which help the organisation in terms of taking their further steps
and actions into positive manner with the right kind of approach(Gumel., 2019). So the growth
options are very important which needs to be taken into consideration into positive context with
the right kind of approach. The growth options are very important which needs to be considered
into serious forms so that these frameworks can be used into helpful terms at the competitive
level.
D 1 Evaluate particular options and pathways into critical terms for growth which takes into
account of the risks of each option and in which manner they can be mitigated
It has been observed at the organisational level, it is very important that diversification
option needs to be considered into proper manner. As this option is very helpful but it
somewhere can't be applicable to every kind of situation so its very important that to consider

this option into positive manner. As this option involves certain level of risk because it is not
necessary that the diversified option is helpful into every context and can be attracted by every
kind of customers. So its very important that to implement this option by taking into
consideration into serious terms at the organisational of Cafe Pod Coffee Co.
P 3 Evaluate the main sources of funding which is available to business and discuss the
drawbacks and benefits of every source
There are certain main sources of funding which can help the Cafe Pod Coffee Co
business into positive context which are defined into the following manner:
 Retained earnings: businesses aim to maximise their profits through selling the product
or rendering service for a price higher than what it costs them to produce the
goods(Jayawarna and Dissanayake., 2019). Under this head, companies generally exist in
order to earn profit through selling the products and services for more than it costs to
produce.
Pros of retained earnings: It is the parameter which don't owe anyone anything and also the
inexpensive form of financing. Flexibility to use the retained earnings as the management desires
and do not dilute the ownership.
Cons of retained earnings: It basically act as the loss of value for shareholders and earnings
also belongs to shareholders as well.
 Debt Capital: Companies can borrow money just like individuals and they do as well. It
basically comes into the form of traditional loans and debt issues as well. They are also
known as the corporate bonds.
Pros of debt capital: Interest on financing is tax deductible and interest costs is also lower than
the other sources of capital(Leick and Lang., 2018). It also help in terms of boosting the credit
score and also the profit sharing is not necessary.
Cons of Debt Capital: Under this head, companies are also obligated to repay the lenders and
failure to repay also result into default or bankruptcy.
 Equity Capital: Under this head, company can raise the capital through selling off
ownership stakes in the form of shares to investors who become the stockholders. It is
also known as the equity funding.
Pros of equity capital: Under this head, there is no requirement of no repayment. It also don't
requires the the good credit history.

Cons of equity capital: Under this head, it also act as the dilution in ownership and investors
expect the share of profits. There is also no tax benefits and also can be the possibility of tension
between management and investors(Lucarelli and Heldt Cassel., 2020). One of the best option
for Cafe Pod Coffee Co is the debt capital which can be used at the organisational level in order
to get the best source of funding which has been available within the business environment. So
these are the main sources of funding which can be used by the organisation in order to grow
themselves into result oriented form.
M2 Assess the main sources of funding and justification for the adoption of the proper sources of
funding for the given organisational context
At the organisational level or within the business environment there are different kind of
sources of funding which can be utilised into result oriented form. These sources of funding
basically include retained earnings, debt capital and equity capital as well. In context to Cafe
Pod Coffee Co, they can adopt or use the debt capital option as the source of funding so that their
organisation can further grow into positive context. This is the best option because interest on
financing is tax deductible and interest costs is also lower than the other sources of capital. It also
help in terms of boosting the credit score and also the profit sharing is not necessary. So in the
overall manner, it is very important that to consider this option into desirable terms with the right
kind of approach.
D2 Assess the main sources of funding into critical terms with justified argument for the
adoption of a specific source
Within the business environment, the main sources of funding basically include retained
earnings, debt capital and equity capital. So these are the options which can be used at the
organisational level of Cafe Pod Coffee Co but can't be helpful in every kind of situation of the
business(McLean and et.al., 2018). When debt capital has been used by the Cafe Pod Coffee then
it is beneficial for them and also does not affect from the long term perspective. So this is the
best option which can be utilised by the organisation from the perspective of their further growth
and development as well.
P 4 Design the plan of business for growth which include financial information and strategic
objectives for scaling up the business
Business Plan: It refers to the document which defines into the detailed form about the
company's objectives and in which manner it plans to achieve its goals.

Executive Summary: The overall company is mainly into providing coffee to their wide range
of customers. The main mission statement is that to provide the coffee for laughter and
satisfaction level(Morison., 2020).The main products and services of the company is that they
provide coffee into different ranges, marsh mallows, caramel, espresso etc.
Company description: It is an independent craft coffee business which was established in the
year of 2011. They conceive the quality coffee for adventurous coffee drinkers to enjoy at home.
Market analysis: It is important because Cafe Pod Coffee Co needs to do the market analysis so
that they can find new opportunities to target new market and find their competitors into this
international market.
Organisation and management: As it is a cafe which is not a very big organisation so it
majorly follows the hierarchical structure (Nikolopoulos and et.al., 2021). The management of
the organisation is organised in such a manner that for every department, appropriate people has
been assigned for it.
Service or product line: The main product line is of coffee where the services can also be
provided on the online and offline basis as well.
Marketing and sales: For increasing the sales and marketing of the Cafe Pod Coffee Co, they
can use different kinds of social media platforms which help the organisation to grow into further
form and development as well.
Financial projection: The already established business basically include income statements,
balance sheets and cash flow statement.
Cash flow statement

Balance sheet

Profit and loss statement for three years
M3 Develop the proper and detailed plan of business for growth and securing investment that
sets out strategic objectives, strategies for the achievement of objectives
The main objective of Cafe Pod Coffee Co is to provide the best kind of services into
qualitative form so that they can satisfy their customers into positive form. There are different
kinds of strategies which can be adopted in order to execute the business plan into effective
terms(Onder and Nyadera., 2019). When the business plan is followed into effective terms then it
is easier to follow the strategies set by the organisation into result oriented form. So in this
manner, the business plan can be followed into effective terms with the right kind of approach.
D3 Present the in depth business plan which demonstrates the understanding and knowledge of
how to apply, formulate and achieve objectives of business into successful terms
Within the business plan, there are different parameters which needs to be implemented
into effective terms with the right kind of approach(Parker and et.al., 2020). It basically include
executive summary, company description, mission statement, market analysis, organisation and
management, service or product line, marketing and sales and financial projection as well.

So in this manner, the business plan needs to be implemented by following all the
required steps with the right kind of approach. That's why its very important that to have the
deeper understanding about the business plan.
P 5 Evaluate the exit or succession options for the small business which explains about the
benefits and drawbacks of every option
There are different kinds of exit or succession options which can be utilised by the small
businesses which are defined into the following manner:
 Continuing the legacy within the family: There are many businessman who want to
keep their business within the family from long term perspective(Peter and Yang., 2019).
It means that making plans for transitioning the company to a child or another relative at
a certain period of time.
Pros of continuing the business within the family: There is option for choosing the person from
whom they want to continue the business. There is also no requirement of completely separating
from the business and also be able to stay in some sort of transition as well.
Cons of continuing the business within the family: There is possibility that there is no family
member who have enough capability of taking on the business. It is the process which brings lots
of emotions, finances and general stress to the family.
 Merge or acquired by the another business: Within this strategy, the company is either
merge or purchased with a company with similar or aligned the goals according to the
business. This is the strategy where it also depends that to whom the business has bee
sold or merge with the business to which also can act as flexibility in terms of the
involvement or the freedom to talk away.
Pros of merge or acquired by the another business: There is a clean break from the business and
can also negotiate the price, terms and other details of the merger or acquisition.
Cons of merge or acquired by the another business: It is basically the time consuming, costly and
can be unsuccessful from the perspective of the process(Segers and et.al., 2020). The business
may cease to exist as it once was have the range of possible consequences which is related with
this action.
 Employee or management buyout: Under this head, it is possible that when the
individual is ready to exit the business where people also already work for the individual
then they can buy the company from the individual. These are the people who know that

how to manage the organisation into successful terms. It is the business exit strategy,
which results into smoother transition and increases the loyalty to the legacy of business.
Pros of Employee or management buyout: Under this head, there is possibility to hand off the
business to someone who has experience in the organisation and also there is also possibility of
making some money off the deal(Sell and et.al., 2018). When the individual wants to remain
involved in some capacity then the employees who are buying the business should be more likely
to make something work.
Cons of Employee or management buyout: The individual is not be able to find an employee or
manager who want to buy the business from the individual. It has been find out that these
management changes are very difficult to implement and also have negative effects on the
existing clients.
In context to Cafe Pod Coffee Co., these are the exit or succession options which can be used by
the small business and can be implemented into positive manner at the organisational level.
M4 Assess succession or exit options for the small business which contrast and compare the
options and also make valid recommendations
There are different kinds of exit or succession options for the small business which can
be used at the organisational level. It basically include continuing the legacy within the family,
merge or acquired by the another business, employee or management buyout. Every option has
their own pros and cons as well (Soteropoulos and et.al., 2021). Continuing the business within
the family has its own advantage where they can easily find the member who can run the
business into successful terms. Another option is that merger and acquisition also gives the
advantage to the business where they can totally transfer the business to someone else by freeing
themselves into positive manner. Management buyout is also the best option which can be taken
by the business. It has been recommended for Cafe Pod Coffee Co., that they can use merger or
acquisition in order to grow themselves into positive manner with the right kind of approach.
D4 Give the evaluation into critical terms of the exit or succession options for a small business
and decide the proper course of action with justified recommendation to support
implementation
There are different kinds of exit or succession option which can be used by the small
business at the organisational level. When comparing these options then it has been find out that
every option can be implemented in those condition which totally depends on the situation of the

business as well. It has been recommended that Cafe Pod Coffee Co can consider the merger or
acquisition option which is very important that needs to be taken into consideration. This option
is the best because where the business got the opportunity to grow themselves into positive
context with the right kind of approach.
CONCLUSION
The above stated report concludes that planning for growth in order to achieve bigger
success at the organisational level. It has been concluded that there are different considerations
for evaluating the growth opportunities and also about the growth opportunities with the
application of Ansoff growth vector matrix. It has been determined that there are certain
potential sources of funding which has been available for the business. It has been observed that
there is a business plan for growth which basically include the financial information and strategic
objectives for scaling up the business. There are certain exit or succession options for a small
business that has their own pros and cons of each option. So at the organisational level, t is very
important to have proper growth and development as well so that organisation can grow
themselves into ethical and holistic manner as well. That's why growth is very important for any
kind of business within this competitive environment.

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