Small Scale Enterprise Growth Plans and Exit Strategies

This report discusses the importance of innovation and effective planning for small scale businesses to sustain in the market. It highlights the key functions of small scale enterprise (SSE) companies, including Talent Plus, which provides human resource solutions to big organisations in the UK. The report also explores development plans that help achieve organisational goals, as well as exit and succession plans for SSE companies.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing The major considerations for evaluating growth opportunities ......................1
P2 Evaluating the opportunities of growth in relation to Ansoff matrix. .............................3
LO 2.................................................................................................................................................5
P3 Description on the potential resources of funding to business enterprise and define various
benefits in relation to this.......................................................................................................5
P4 Draw an effective business plan. ......................................................................................5
P5 800 Exist and success plan for small businesses...............................................................7
CONCLUSION................................................................................................................................9

INTRODUCTION
Planning activity is very important for any business for sustaining in competitive
environment. Every successful organisation regularly reassess its business plan in order to ensure
that the strategies is able to fulfil the need of company. It is very significant for manager in
business entity to analyse and measure the current performance of firm on regular basis>as this
will assist manger in formulating as well as implementing suitable strategy for enhancing
organisational growth. Business Plan drives enterprise towards achievement of goal. It Provides
outline about various activities that are required to be executed for achieving business objectives.
Plans support firm in ensuring success and growth. These plans can be very useful for small
medium enterprise for fostering growth process.
The report has focus on analysing the effect of digital supporting small business
enterprise in its growth and innovation process. It will emphasize on identifying the strategies
adopt by Talent Plus which is small enterprise in UK. The company provides human resource
solution to other organisation.
TASK 1
P1 Analysing The major considerations for evaluating growth opportunities
Competitive advantage:
Core competencies: Advance position in the industry and expertise in the field of human
resource management. The organisation has Well qualified and diverse team of employees.
Effective communication skills and attractive marketing strategies. Advance technology for
provide Human resource solution. Expertise in field.
Resources: Pro resources have potential of producing a larger, stronger and more qualified
employee selection for fulling customised staff requirement. The uniqueness of the firm is that it
have focus on providing benefit to their own team. Talent plus has unique and expensive
resources. It has both tangible and intangible resources. Being a small and medium enterprise, it
has good brand name and recognition in market. Advance Technology is the valuable resources
that has provided Talent plus an opportunity to innovation process and identifying various
techniques to attract applicants. Technology has provided firm a chance to reach wide number of
job seekers and provide them effective career solutions. Another valuable resources is its team of
expertise that has enabled business entity to provide effective as well as suitable career solutions
to candidates.
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Strategy-The Strategy of Talent Plus to create total employment package including training and
development programmes in order to attract better and talented workers that enables business
entity to foster growth and achieve success. The strategy of business unit have focus on using
innovative, proactive recruiting methods that also includes Job fairs, diverse advertisement
placement etc. It has introduces many referral incentive program in order to attract more number
of applicants.
Capabilities- The company has Capabilities and potential to grow its business and facilitate
innovation techniques to attract customers.
Porters Five force Model
The porters fiver force model have been structured in order to support organisation to
develop understating about the industry and environment in which it is operating. It also assists
business entity in identifying the position which is more profitable. The Porters Five Forces will
allow enterprise to determine the chances of organisation in industry to generate profits on
capital investment. Porters Five forces Intends to define the Position of Ta;lent Plus company in
the industry and allow to analysis the way for improvement.
Threat of New entry: As talent plus is dealing in Human resource and career solution sector there
could be low risk of new entry due to evolving regulations related to human resource
management practices..
Threat of substitute-There is less threat of substitute product as it is dealing in service sector. But
company has threat from existing competitors within the industry that has potential to introduce
additional services and new products. The Professional Placement and Stud er group are the big
competitor of Talent Plus. As studer group is offering Quick as well as effective services to
applicants. Professional Group is providing various educational packages and kits in order to
attract customers. This factors have great effect on the growth and revenue generation capacity
of Talent Plus.
Bargaining power of Buyer-There is high bargaining power of buyer. As they are job seekers
they have high potential to bargain with placement agencies in order to reduce the prices of
services and products.
Bargaining Power of Supplier-The bargaining power of supplier is high. As the suppliers are
more interested in constructing deal with big organisation in order to deliver their goods and
services to customers. Supplier does not get much profit working with small enterpriser.
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Rivalry-The entry of new competitors with new policies can lead to increase in competition.
Talent Plus in dealing in big industries and in service sector there are large number of
companies. Organisation has to face stiff and fierce competition with other enterprise providing
same services. Entry of new competitors may have great effect on the profitability of Talent plus.
Porters Generic strategy
Low cost strategy-It is Required by Talent plus to adopt low cost strategy as this will help
company in attracting more number of applicants and increasing its revenue.
Focus Strategy-It is very essential for organisation to conduct analysis in order to identify the
problems of candidates and analyse effective solutions. Talent plus should emphasize on its
marketing strategy and techniques as this will assist business entity in achieving its marketing
objectives and fostering growth.
Service Uniqueness- Talent Plus can select effective mode for communicating directly with
candidates as this will help them in gaining their customer loyalty. Organisation can use digital
media and internet in order to promote their products as well as services, It can introduce
Various attractive educational kits and packages in additional to their services as this will help
firm in attracting more number of applicants. This uniqueness strategy will support business
entity in differentiating their goods and services from that of competitors.
P2 Evaluating the opportunities of growth in relation to Ansoff matrix.
Ansoff’s growth vector matrix
Current products and services-
It can be seen that the management of Talon is also focussing on the effective application
of the Ansoff matrix so they can create impressive function with practices. The organisation
Talent plus having many opportunities so that they can have long-term sustainability in the
market. With the help of the Ansoff matrix there can be better development in the working
structure of the business enterprise. In this manner there are different factors which need to be
considered are as penetrate, diversification, product development etc. with the help of this they
can frame effective strategies which is very helpful in order to improve the existing product and
services available in the market. They need to provide those services which is helpful to attract
large number of customers. By focussing on the one strategy at a time they can able to gain
competitive advantage in the market. With the help of suitable strategies they can take effectiev
steps in order to expand the activities if the business enterprise. They are very effective done
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their rile in order to gain the large amount of profitability and productivity. The ansoff growth
matrix focus on the four factors are as -
 Market penetration strategy
 Product development strategy
 Market development strategy
 Diversification.
If the enterprise is having high market share than they can adopt Market penetration strategy.
They are provided effective services in relation to gain the competitive advantage in the market.
In this manner they can take effective product segments.
In order to have development in the commodities and to improve the product in more effective
manner. In order to develop the market development strategy they need to choose that place so
that services can be effective. With the help of diversification they can grow their market
practice in effectual manner. To make this process effective they need to have new resources and
capabilities so that activities of business can be improved.
The four growth stage are as-
Market penetration- In this firm is selling same products to all the customers. In this the firm is
taking various effective steps in relation to have increment in the customer loyalty so that they
are able to grow the lifetime values of the consumer. In this manner they can able to maintain the
customer retention rate in the market.
Market development- This is one of the best approach in this they can attract the customer in
effectively. In this the customer can be identifies with the help of geographical location. In this
it is important to evaluate that what is untapped demand in the market. In this manner there can
be improvement in product and services.
Product development- This is very helpful in relation to have improvement in the existing
product available in the market. This is very attractive process this is helpful in order to gather
the attraction of various customer in the market. By taking feedback from the customers they are
able to develop those strategies which can be helpful in relation to sell the product in the market.
Diversification- in this strategy there can find the highest risk. The person who is able to
perform the business function effective only he has to adopt this kind of strategies. Those people
need to be high skilled so that he can able to perform his function efficiently.
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The business who use Ansoff matrix are able to determine the best strategy for their
business and they are beneficial in manner to increase the sale growth of business enterprise.
LO 2
P3 Description on the potential resources of funding to business enterprise and define various
benefits in relation to this.
The business enterprise are having various sources with the help of them they can start
their business operation efficiently. The major sources of funding are defined in the following
manner are as-
Personal saving and interest- This is the major source of capital with the help of small fund
they can start their business effectively. These are the most effective sources in order to give start
up to the small business.
Retained profits- This is the another important and most effective source of finance. This kind
of cash can generated only when business is capable in trading effectively.
Investors- With the help of finding of investor they can able to start their business effectively.
In this manner there is no need to take risk of loan. Those investors will be active partner in the
firm and they can invest silently (PLANNING FOR GROWTH . 2017). The main drawback in
this relation is they that person also can have some authorised control on over the firm.
Bank loan- it is effective and easy source of funding. In the present time the band provide
various kinds of loan to person who recently started his business. In this way they can able to
give initiate to the business they want to start. The main disadvantage of this source of funding is
that this is time and cost effective process. Bank charged high rate of interest.
Government grant and loans- The officer of the small business enterprise is taking various
effective steps in order to provide grants to those people who really wished to start their own
business. Thy charged lower rate of interest. These are basically free and it is very beneficial
because it helps the people to sort our their budget issue.
P4 Draw an effective business plan.
Strategy for success advert to the plans for considering every one of the components that
are critical for the business to get build up in the market as without an arrangement organization
can't develop and grow in the market. Monetary arranging can be decide with these are as per the
following :
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Executive summary- Mission gives exhaustive money related wanting to the organization as the
mission of each organization in the market is to serve the best to the clients. Talent plus
organization has a mission to pull in and keep up the clients. Their fundamental point is to serve
the clients past their clients require. Targets are made to make benefit based industry whose
essential objective is to accomplish the consumer loyalty's.
Business ideas- Talent plus is pitching assortment of items to clients. They are occupied with
the business exercises as retail areas. The Talent plus is propelling its new items as carefully
assembled species, they are giving administrations to client in digitalisation mode.
Market analysis- the primary point of market examination is to decide the engaging quality of
market and to comprehend developing openings and dangers. It is useful in connection to pick
appropriate market for big business. It is should be done with a specific end goal to target
potential clients. The Talent plus is directing business sector investigation with a specific end
goal to sort the market into reasonable gatherings so item can get achievement.
Management team- They have to do their work in the correct way with the goal that
hierarchical targets can be accomplished. The group investigations and distinguished objectives
and destinations. In marketable strategy administration group is comprehensive of capacity as
Owners, Board of chiefs and supervisors. Talent plus chiefs need to perform business work
viably.
Marketing plan- It is an extensive report which various aspect to undertake the marketing
functions. Subsequently, there have to centre around particular period. Advertising design will
be comprehensive of cost, objectives, activity and steps.
Financial information- It is the formal records of the financial activities and position of the
business. Hence, relevant financial information has to be presented in the better mode. Hence,
financial information can be given as-
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P5 800 Exist and success plan for small businesses
Small scale enterprises are those organisations which creates its business on small level.
It doesn't have high technologies to expand their business growth. These organisations couldn't
achieve the huge amount of investments. For small scale enterprises it is very tough task to
sustain in the competitive market(Floyd, 2015.). For that they need to analyse the external
environment to adopt current changes and requirement of the customers. To make innovative
plans it is very important for the business to make successive action plans. Growth is very
important factor for the organisation to improve its market share. It helps to sustain in the market
and create management planning for future. It is measured that success of the organisation
depends upon the focus ability of the organisation. For every company success is the main
achievement of all efforts which gives brand value, high market growth, profit revenue etc.
Success also gives the way in which company expand their business in future times. Talent plus
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is the small scale enterprises which provides human resource solution it is a UK based company.
For the great succession CEO of company needs to take strategic planning for future
opportunities. In the organisation through better working they appoint new employees so that
they contribute their skills towards organisation goals. Talent Plus is the Human resource
solution company which provides talented employees to the other companies. They provide
talented individuals. It helps to increase the company value and growth. All the success of the
organisation is based on their employees. It gives more effective working so that company
achieve their target on time. Manager of the Talent Plus is responsible to explain the duties
properly and evaluate the work of employees. This process helps manager to accomplish the
overall target and enhance the future sustainability. There are different opportunities for the
organisation to exists its position in the market. Manger should also create some new changes for
the betterment of the company(Keough, 2015. ). Changes always gives new ideas and big
opportunities so that company will expand their product and services and earn higher profit
maximization. These all factors helps to sustain in the market as long time and earn revenue.
Succession of the Talent Plus is to provide talented Human resources according to the needs or
requirements of clients. It is the main core department which gives higher satisfaction to the
clients. For this Talent Plus company needs very high qualified employees which have good
communication power, polite language and have good interpersonal skills. It gives new
development plans and ideas to the organisation. The focus of the organisation is on promotion
and its expansion plans. Through which company maintain in the market. On the other side exit
plans of the organisation. Exit plans helps company to liquidate its assets in case of loss. These
things are happened with small scale business enterprises. Generally SSE companies have low
capital and small areas of scope. Small scale companies are generally started by individual
person or in partnership. This is the reason these small scale business have limited resources to
grow. At the time of loss company decides to exit from the market due to high competition. To
sustain in the market it is necessary to adopt new ideas and plans by which customers feel
satisfied and happy. Talent Plus company needs to motivate their employees for better
performance. Manager also gives good guidelines and give chance to come up with ideas so that
they make new effective changes and increase the company growth. Sometimes due to heavy
competitions small scale companies wind-up the company and decide to close their organisation
and invest on other business. To close the business there many plans through which owner closed
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their business(Lima, Robinson, and Edwards, 2014. ). Like Liquidation in this exit plan company
sale their assets and share in the market or reinvesting their money again to expand the business.
Or another plan is sell the all business to the employees or to the manager. Or another option of
exit the business is sell the whole assets to open market and walk away. In case of loss Talent
Plus owner takes this step to exit from the market. In this situation many investors and big
companies ready to overtake this organisation who is not capable to carry its business forward. It
gives another option to small scale businesses for exit. Small scale enterprises have limited
capital to purchase high technologies for its work. Or they cannot capable to pay high
remuneration to the employees. Overall there are many plans through which SSE can easily exit
the market or achieve successful plans as well. Small scale business have small market share and
involves highly risk. So that for growth it needs to make new challenging plans and increase the
profit revenue.
CONCLUSION
From the above report it was explained about the roles of small scale enterprises and its growth
plans. That innovation is the key factor for every organisation to sustain in the market. And the
important functions of making effective plans for the organisation. In this context, report
summarised about the Talent Plus Company which provides Human Resource Solution to the big
organisations. It is a small scale business based in UK. It was explained about the methods
strategies by which SSE companies will grow and maintain its position in the market. In this
given file it was also explained about the development plans that helps to achieve the
organisation goals. Furthermore, it was explained about the objective or goals which is needed
by the Talent Plus company. Adding to that the exit and succession plans of the SSE organisation
was also discussed. Overall all potential resources which gives power to small scale industries.
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REFERENCES
Journal & Book
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