Planning for Growth

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...............................................................................................................3
TASK 1...............................................................................................................................3
Key considerations for evaluating growth opportunities................................................3
TASK 2...............................................................................................................................7
Potential sources of funding:..........................................................................................7
TASK 3 ..............................................................................................................................9
Potential sources of funding available to businesses ...................................................9
TASK 1.............................................................................................................................12
Exit option for small Business......................................................................................12
CONCLUSION.................................................................................................................14
REFERENCES................................................................................................................15

INTRODUCTION
Small medium-sized enterprises are companies which establish their new
business in form of legally independent company with not more than 500 employees.
These emerging new companies are the backbone of an economy, primarily
responsible for economic growth, job creation and prosperity (Al-Tit A, Omri and
Euchi,2019).Their capacity for inducting innovation and flexibility in a fast changing
business environment makes them crucial for success. In this report, the key
considerations taken by a SME company for evaluating growth and opportunities in
economy is explained. Prufrock cafe has been taken as the SME from UK serving wide
food and beverage options to the customers with friendly atmosphere. In this report key
analytical frameworks to demonstrate the understanding of competitive advantage,
pathway taken for growth and the risk mitigation steps taken by company are explained.
The potential sources of funding available to business, with the benefits and drawbacks
of each source and when to utilize different funds. This report explains an elaborative
business plan for Prufrock cafe explaining the market analysis, competitive market
analysis and the various operational strategies company can take in future for mitigating
the risks. This report also explains various exiting strategies for SME, which one is
appropriate for the company and also appropriate course of actions company can adopt
with justification towards business goals are explained.
TASK 1
Key considerations for evaluating growth opportunities
It is important to considerate on various key areas for small medium-sized
companies while evaluating the growth opportunities for establishing a firm position in
the market place which can be understood as.
Market size: One of the most important factor in evaluating a business opportunity is
analysing the market size, the number of competitors in same industry. It involves
determining the target customers, estimating the growth in the market share. Prufrock
cafe need to work on the market size for justifying the consideration as an important tool
to evaluate the growth opportunities.

Management skill sets: Management skill sets can be understood as having good
communication skills and organizational awareness which enables the company to grow
by providing quality services in comparison to other competitors. SME by increasing the
investments in management can enhance the management skill sets of employees and
diversify the services and products. Prufrock cafe should aim to build the management
skill sets for enhancing the services and attain growth in market(Al‐Jinini, Dahiyat and
Bontis, 2019.)
Passion and Persistence: Small sized enterprise owners need to have the passion
and persistence in talent to attract the potential target customers in economy. It is an
important consideration which can assist companies to evaluate the business growth
opportunities and to take further course of actions to grow on a large scale. Prufrock
cafe owners need to work with passion and persistence to justify this consideration for
evaluating the growth potentialities.
Ability to manage the cash flow :Small sized enterprise need to keep the cash flow of
companies in a positive state with large amount of cash reserves to use in crisis
situations and keep the productivity levels in accordance with the profit margins. It is an
important consideration for evaluating the growth opportunities in the market-share.
Prufrock cafe needs to focus on the ability to keep the cash flow in a good shape for
justifying the consideration to evaluate growth opportunities.
Pestle analysis : SME need to analyse various external factors for increasing their
market share which are political, economical, social, technological, legal and
environmental factors. Prufrock cafe needs to analyse the external factors properly, how
they affect the working structure. It is an important considerate to evaluate the growth
opportunities as by working on the management strategies to mitigate the external
factors, company will be able to achieve enhanced performance standards.
Porter 5 forces : This model identifies the five competitive forces that shape the market
growth of industry which are analysing the competition in the industry, potential of new
entrants in the industry, power of supplies, power of customers and threats of new
entrants. It is an important considerate for Prufrock cafe to evaluate the growth
opportunities as it enables management to formulate strategies for growing in the
competitive market and mitigate the risks related to it.