Planning for Growth: Potential Funding, Business Plan, and Exit Options

Planning for growth

Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3. Assessment of potential sources of funding available to businesses.....................................1
TASK 3............................................................................................................................................4
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................4
TASK 4............................................................................................................................................9
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is considered as essential as well as efficacious areas for enterprises that
is associated with evaluation as well as performing towards opportunities and growth
determination. Furthermore, this is vital for aspects that have to be obeyed through societal or
simulated venture in order to assure effectual competitive advantage along with effective and
planned sustainability into market area where entity performs (Cai and et. al., 2020). The
undertaken company for this report is ThirdWay Group which is Operating in Commercial Real
Estate sector having its main headquarter in London, England. Also, they facilitate best, real
estate investment, technology, furniture, workplace consultancy and design-and-build practices.
The topics which are going to be covered in this report are potential sources of funding, business
plan and the several exist and succession options for business.
TASK 2
P3. Assessment of potential sources of funding available to businesses.
Finance is undertaken as essential prospects of whole ventures by which they might able to
manage their practices in consequent way and become capable to formulate numerous tactics for
rendering many benefits to their audiences. In addition to this, for the development as well as
growth of entity, it is essential to opt appropriate sources of funding. As this is considered to be
allocation of monetary resources in such manner that assists business in order to ensure that
effective growth strategy could be implemented (Egidi and et. al., 2020). Furthermore, this is
vital that firm determined whole potential sources that are available and opt the effective source.
In context of ThirdWay Group, this also requires several amounts to gain higher goals. As per
this, financial prospects are divided onto two wherein initial term is undertaken for equity
finance which states exchanging parts of business ownership. Along with this, another aspect is
Debt which describes to manage financial resources effectively and efficaciously. Therefore,
some sources of funding that ThirdWay Group can use are discussed below:
 Bank loan: This is considered as one of the effective funding source wherein entity takes
loans from bank by putting some security. Moreover, this is also described as the
agreement among firm as well as banks in which they provide whole requested amount
from bank along with rate of interests. Therefore, entity lending loan amount from bank
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as it aids them to boost their sales as well as also repaid the money to bank along with its
applicable interest rate at certain time duration.
o Benefits: The key benefits of respective source of funding is, this very safe as
well as simple as by this guaranteed funds could be raised.
o Drawbacks: Its key drawback is, entity would be need to pay interest amount at
monthly basis at certain periods that could be some how risky.
 Crowd funding: This is considered as the way by which entity form appeal within
marketplace for paying its funds, in return to have smaller parts of share into firm that
they could gain as well as retain later on when their scope would be boarder (Faraji,
Hashemi-Dezaki and Ketabi, 2020).
o Benefits: The key advantage of utilising respective source of funding is that it is
helpful in enhancing growth as well as success at future time duration.
o Drawbacks: Its key drawback is this needs huge amount of funds as well as
potential for operating its business effective and efficient manner.
 Angel finances: This is considered as the effective source of funds whcih aids in
rendering capital to new ventures or start ups. Moreover, this is appropriate for that who
are exploring funds at marketplace. The respective firm may simply undertake such funds
as this do not bear any kind of collateral security as well as risks. Some of its benefits and
drawbacks are discussed below:
o Benefits: One of the key benefit of respective funding source is that it do not
needs any kind of collateral security as new ventures undertakes loan for their
establishment. Moreover, this do not needs any monthly payments as well as
interest.
o Drawbacks: The main drawbacks of angel funding is, this is time taking as
various formalities are going to be verified. Also, this needs much control in
business.
 Retained earnings: It is undertaken as the sources of funds as well as this is associated
with saving that firms gains among their profitability and revenues. Moreover, it is one of
the essential internal sources that can be stated as the earning left after paying dividend to
the shareholders or drawing through owners of capital (Gomes, 2020). Also, this is a
longer term source of funds for firm as there is noy any essential maturity such as
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