Planning for Growth in Business Opportunities

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1.................................................................................................................................................3
P1 Key considerations for evaluating growth in business opportunities.....................................3
P2 Ansoff's growth vector matrix:...............................................................................................5
L02...................................................................................................................................................6
P3 Potential source of funding with benefits and drawbacks......................................................6
LO3..................................................................................................................................................7
P4 Business plan for growth........................................................................................................7
LO4..................................................................................................................................................8
P5 The exit options with benefits and drawbacks........................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Small medium-sized enterprise is defined as companies who establish their new business
in form of independent company with less than 500 employees. These emerging new companies
are the backbone of an economy. In this report the key considerations taken by a SME company
for evaluating growth and opportunities in economy is explained (Hu, 2016). Verdant Leisure
has been taken as the SME which is a luxury holiday park destination offering self-catering
lodge services, holiday home ownership across Scotland and northern parts of England.In this
report the analysis of key-terms and factors which demonstrate the understanding of competitive
advantage, steps taken for growth and risk mitigation steps taken by company is explained. The
main sources of funding available to business, with the benefits and drawbacks are explained. In
this report the benefits of business plans including the financial information and objectives for
scaling up the business on a large scale platform is explained. In this report the vision and goals
of Verdant Leisure as a fast spreading small medium-sized enterprise, the points of expansion
undertaken and various management strategies to upgrade its business is explained.
LO1
P1 Key considerations for evaluating growth in business opportunities
SMEs can be understood as large part of the UK economy, boosting SME productivity
growth levels would have a significant impact on the overall UK productivity (Pred, 2017).
Innovation and expansion in market according to the competitive industry and building a
dynamic market environment with changing consumer demands is an important step taken by
emerging companies for enhancement in their position in the industry.
Access to customers:The access to customer is one of the key consideration for evaluating
growth and business opportunities for Verdant Leisure as it aims to provide freedom and
flexibility with a comfortable holiday experience with exciting adventure parks and tranquil
escapes (Aremu, Shahzad,and Hassan, S 2020).The company offers a relaxed environment with
spectacular locations across Scotland and Northern England with self-catering lodges and many
activities to spend quality time in their bespoke leisure parks. The access to customers and the
way they communicate their services is definitely a key consideration in measuring the growth in
business opportunity for a SME. This justifies as company has online websites and portals for

easy access to customers for booking their holidays, get information related to all services and
the details of picturesque spots where they can finalize their holidays.
Financial components: The financial components are important factors for evaluating the
business opportunities in SME. Evaluating the financial resources is crucial for small sized
companies to enter the marketplace, the inputs in form of inventories and how much market
return it needs for keeping the profit margins high (Litman, 2017). This consideration justifies
that company focuses on using the financial components wisely and evaluating further business
growth opportunities by increasing the financial capital in company.
Skill set required: The skill set required in management teams is definitely an important
consideration for evaluating the business opportunities in growth of company. Management
teams should be trained with efficient skills for hosting guests and giving them a good hospitable
stay (Trigeorgis and Reuer, 2017). This consideration is justified as Verdant Leisure aims to
provide proper training and skills of hospitality in the management teams for giving satisfied
customer services.
Diversification: The diversification or the extension in services with the dynamic attitude to
spread in the competitive market is a key consideration for evaluating growth opportunity of a
small sizes enterprise. This consideration explains the justification with the wide range of hotel
stay services, entertainment activities and attractive locations it offers to all customers (Kyttä and
et.al., 2016). The company aims to be diversified and adopt dynamic business culture for
spreading its market reach.
Market analysis: The analysis of market share is a key consideration for an SME to consider
when evaluating the business opportunities. Analysing the market share of competitive industries
in economy, how much financial funds it needs to pool in for establishing a prominent place in
the industry is important for evaluating the business opportunities (Kemp, 2018). The
justification is done as gives immense importance in boosting the productivity levels of its hotels
and keeping up with the customer satisfaction levels.
Opportunity identification: The analysis of opportunity identification is a key consideration for
an SME to establish business growth and evaluate the future opportunities. SMEs should identify
the strengths and opportunities where they can establish their business and how to expand with
further growth by understanding the customer needs, trends and insights of industry (Willis. ed.,
2018). This consideration is justified as it lays importance in identifying the growth opportunities