Planning for Growth: Key Considerations, Growth Opportunities, Funding Sources, and Business Plan

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
P1. Analyse key considerations for evaluation of growth opportunities.....................................3
P2 Evaluate growth opportunities through usage of Ansoff's growth vector matrix...................6
P3 Assess potential sources of funding.......................................................................................7
P4 Business plan for growth and financial information along with strategic objectives for
scaling up a business....................................................................................................................8
PART 2..........................................................................................................................................12
P5. Exit or succession strategies for business............................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for a growth is a strategic business activity which enables an individual to
formulate plan and track growth in terms of business revenue. It allows business to distribute
limited resources with an aim to make modifications within organisation through digital
evolution and offering distinguished services to their customers. For growing and sustaining
within competitive environment organisation need to build up effectual through which they can
attain growth within market. When organisation is looking forward for expansion then they need
to carefully examine each and every resource which is available or can be attained easily along
with other factors such as cost, services, human capital, etc. Organisation need to plan their
growth through expansion of their services by the use of latest trends, techniques and
equipments. To understand the concept of planning for growth, The Little One Coffee Shop is
taken into consideration. This was found by Ben & Lisa in 2009. They render their customers
with muffins, coffee and crepes. This report deals with growth opportunities along with sources
of funds & plan for growth of organisation. Apart from it, succession as well as exit options for
small business are also discussed.
Part 1
P1. Analyse key considerations for evaluation of growth opportunities.
It is tough for small businesses to catch or grab apt prospect in a competitive market. With
respect to this, management must devise strategies for their business accordingly for their
survival as well as upholding their existent position so that benefits can be gained from market.
The Little One Coffee Shop is a small shop which possesses less number of employees but they
made sure that they have proper strategies and plans for furnishing their services. For this they
have to take some factors into consideration, they are illustrated below:
Competitive Advantages
This denotes a condition where organisation or other coffee shop aims at producing
identical products and services at low prices in an effectual and efficient manner. This is a major
role of management of organisation to formulate as well as plan strategies by which The Little
One Coffee Shop can acquire competitive edge within market. For this, the organisation can use
Porter’s Generic model which is mentioned below:

Cost Leadership: This strategy will aid organisation to develop their unique position in
market by rendering services at reasonable amount. The Little One Coffee Shop can utilise such
methods or tricks for conducting market analysis and target audiences so that their requirements
can be acknowledged. With respect to this, the prices of services offered by them are kept low
and quality which is rendered by them is kept high in order to attract more number of customers.
Aim of this strategy is utilise the opportunities to fullest so that market shares can be enhanced as
well as its size. Thereby, leads to high competition within marketplace.
Differentiation Leadership: The goods and services which are rendered by coffee shop
cannot be compared with services offered by other competitors within the market. As The Little
One Coffee Shop provides high quality services which assist them to captivate large number of
customers. By the usage of these strategies, organisation can have innovative and unique features
in their services; this will enable them to enter in target market. An instance can be taken to
explicate this like; if The Little One Coffee Shop has creativity within services or they are served
in a unique way then this will grab attention of more number of customers. This will also create a
strong impact on buying patterns of their customer.
Cost Focus: With respect to this, emphasis is on niche market as they renders good and
services at low prices. With the assistance of this specific strategy, organisation can carry out
analysis of market as well as needs of customers and provide their services at low cost. It is
crucial for them to have this so that services & products can be designed accordingly. For an
instance, this strategy will aid to acknowledge exact requirements of customers which will aid
them to eliminate waste while producing their services.
Differentiation Focus: In context of this, organisation emphasise on furnishing their
goods as well as services by bringing innovations as well as creativity in their products. The
Little One Coffee Shop must examine what are the expectations of customers at specific duration
of time. By bringing differentiation in products, organisation can bring in opportunities for
survival in competitive market that will aid them to intensify profits and number of sales
incurred during specified time duration.
Competitive Advantage with Opportunities for Growth
With respect to growth opportunities, The Little One Coffee Shop is making use of
external environment analysis i.e. Pestle. By this organisation can acknowledge the various
factors which can create an impact on overall operations of business. They are illustrated below: