Key Considerations for Achieving Growth Opportunities in SME Companies

This report discusses the key considerations for SME companies to achieve growth opportunities, including product development, innovation, skilled employees, technology, value chain management, and market expansion. It applies Ansoff Matrix and Vector Matrix to explore growth options. It also explores different sources of funding and their benefits and drawbacks. The report includes the development of a business plan for growth and assesses exit strategies for small businesses.

Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1-key consideration to achieve growth opportunities................................................................3
P2-Apply Ansoff Matrix and Vector Matrix...............................................................................4
M1- Growth options for SME companies....................................................................................5
D1- Growth pathways for companies..........................................................................................6
LO2..................................................................................................................................................6
P 3 Sources of funding’s available to business with their benefits as well as drawbacks...........6
M 2 Justification for adaptation of appropriate source of funding..............................................9
D 2 Justification of adaptation of particular source based on organizational needs....................9
LO3..................................................................................................................................................9
P4- Business plaining for growth with financial information and strategic objectives...............9
M3- develop business plan to secure investment.......................................................................11
D3- Business plan to demonstrate understanding and knowledge.............................................11
LO4 ...............................................................................................................................................11
P5) Assess exit strategies or succession option for small business ..........................................11
M4) Evaluate the exit and succession options ..........................................................................13
D4) Provide critical evaluation of exit or succession options ...................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business cannot create value without growth in the market, but this cannot happen
automatically (Abor., 2017). Company has to make proper planning and strategies to achieve
their business objectives. There are some strategies for growth such as business expansion on the
global level, development of product etc.
This report will take Brexit,FTI consulting firm for the case study. They are providing
services to SME companies in UK. This report will analyse the key consideration small size
companies should consider when they evaluate growth opportunities in their business, so they
can achieve success in their business. Report will apply Ansoff Matrix and Vector Matrix to
achieve growth opportunities. It will also include methods to access funding so company make
their financial resources strong. Report will provide sources which can help this company to
arrange funds for growth strategies and implement in their business. This report will develop
business plan for Brexit consultant firm, so they can have proper planning and strategies to grow
their business positively. In the end of this report will provide business exit strategies for
companies which is needed for exit from business.
LO1
P1-key consideration to achieve growth opportunities.
There are some key consideration which can help SME companies to achieve growth
opportunities to be success in their business (Ballaro and Polk., 2017). Here are some growth
strategies which can help them gain those opportunities, and they can increase their growth on
the national scale.
Product development
Development in the product is necessary for companies to take competitive advantages.
Competition is increasing day by day, so companies should develop their products and provide
customers quality products.
Innovation
Changes in the company should be implemented with the time to gain growth
opportunities in the market. Companies can bring new technology in their workplace for the
innovation.
Skilful employees

Employees always matter in the success of any firm because they run all activities in the
firm and make business success (Birkin, Clarke and Clarke., 2017). It is important for SME
companies to bring employees who have knowledge and skills to work in the company. They
should provide job to the right people who have necessary skills which is required for particular
job. Companies can also implement some strategies such as training and development of
employees, so they can keep motivate employees. Employees also create new opportunities for
companies, so they should focus on their workforce.
Technology
Technology play important role in every organization so SME companies should follow
new technology trends in the market, so they can create growth opportunities for their business.
SME companies can lay the groundwork for the business progress. Upcoming future will require
companies to create a proper and deep insight which goes behind their current base. Key partners
for the consideration include most of the progressive companies like Amazon but there are some
other sides which offer opportunities for the small companies to join their business with them.
Part of value chain management
SME companies should make their proper value chain, and they should create a good
relationship with their suppliers, so they can add some values in their product and satisfy their
customers (Bridge and Dodds., 2018). Business can be successful if they can offer affordable
price to the customers, then it will help them to fulfil their needs and demands by using products.
Companies should make good relation to provide affordable price to their customers and it will
help them to achieve high growth in the market, and they can take competitive advantages.
Market expansion
With the increment in the product demand market create opportunities for the business to
gain competitive advantages. It is important for SMEs firm to keep analyse through different
marketing tools, so they can achieve growth opportunities. Tools will help them to know that
what are their strength, weakness and opportunities, so they can expand their business properly
and successfully.
P2-Apply Ansoff Matrix and Vector Matrix
Ansoff Matrix
Market Penetration

Market Penetration strategies focus to increase sales of the product in the existing market
of the company (Burke., 2017). This can help SMEs to achieve growth in the market. They can
also show their product portfolio so people can see their product popularity and company can
make new customers in the same market. Companies advertise their product more, so they can
reach more customers. Social media platforms are best options for the SME companies because
these platforms are best for small business, and they can advertise their product in low cost and
budget. There is one more benefits to advertise product on social media, companies can target
those people who have interest, or they are searching for similar products.
Product Development
Product development is necessary for the new business and small firms because demand
and needs change continuously in the market. Company have to understand what customer needs
and how they can attract customers to buy their product. Companies can focus on new packing
design, so they can attract customers. This will also help companies to compete with the popular
brand, and they can also show their presence in the market and achieve new opportunities.
Market Development
SME companies should make market development strategies to take competitive
advantages. They have to analyse market by understanding customers demand and what they
need changes in the product (Carr and McDonough., 2018). This data will help them to search
proper market for their product and companies can be successful and gain opportunities.
Diversification
Diversification strategy can be risky for SME companies because they can suffer from
losses. In this strategy companies enter the market with new product and take risk to expand their
business in the market. They should take consultancy from the experts, so they can get
suggestions from the experts. This is risky but it can help companies to show their presence in
the market and expand their business more.
M1- Growth options for SME companies
There are many growth options which are available for companies to take competitive
advantages. Cost strategies and Investors are one of them. Companies should make proper
strategies to provide quality product to the customers in low price range so customers can be
happy by using those products. Growth cannot possible without having enough investment in the
business, so company should allow investors to invest in their company (Cassidy., 2016). It will

make their firm financially strong and company can invest this money to develop their product
and provide training to their employees, so they can make better and strong workforce.
D1- Growth pathways for companies
Options are available which can help SME companies to take growth in the market like
financial planning and cost strategies but risk also involve in those strategies. Investors invest to
get benefits and revenue. If company will not provide these benefits to them then it can create
problem for company, and they can lose those investors, so they should predict outcome from
their business before investors invest their money, and they should also have proper planning to
expand their business. In the cost strategies also they should have proper planing because their
first motive to gain profit from the customers, so they should provide cost which can satisfy
customers and company can also make profit by selling their product. If companies do not have
proper planning for their cost strategies then they can suffer from the losses and it can create
problems such as business shutdown (David, David and David., 2017). Value chain partnership
and collaboration with other companies are also options of the growth. In a value chain
partnership company will not able to make good terms with supplier then they will not able to
add value in their product. Collaboration also provide growth in the business but most of the
partnership does not work properly and conflicts can take place.
LO2
P 3 Sources of funding’s available to business with their benefits as well as drawbacks
Source of fund is one of the most important things which is required by the business. it is
important for organizations. Based upon the chosen source of funding organizations can further
bring changes within their business strategies (Lash, Kaufman and Hernán, 2018). Financial
source of funding’s plays a vital role in fulfilling organizational needs. There are various kinds of
sources of funding’s available for a business. it is important for organizations to understand and
evaluate the type of source of funding’s which is suitable to them and can fulfil their basic
organizational needs on order to achieve main business objectives as each of the sources of
funding’s have their own benefits and drawbacks. Some of the basic source of funding business
are as follows:
Own Saving or personal investment: One of the most basic sources of funding available to
business is one’s own savings where entrepreneurs can invest their own savings within their
business only if they can afford it (Dastory, Schäfer and Stephan, 2018). There are various

benefits of this source of funding as entrepreneur have complete access of the funding plus they
can also control how much they are going to get in return. This also helps them to prove the
investors as well as the bank that one has long term commitment to their business and they are
ready to take any kind of risk. They never have to justify their investors for their personal
investments. But there is one major drawback of this source of funding i.e. this source of funding
comes with a great risk associated with it. If business suffers any kind of loss then they need to
suffer whole loss all alone.
Family members or friends: This is a kind of money which is loaned by any family member or
friends. This source of funding is also known as patient capital as it is a kind of money which is
generally repaid later as profit of the business increases (Saa, Bunout and Hirsch, 2019). But it is
one of the riskiest types of source of funding as it has various kinds of drawbacks associated with
it and benefits associated with it are quite less. Only benefit that this source has is that business
owner can pay the money when their business is in profit. But drawbacks of this source are: One
of the main drawbacks of this source is that if business suffers any loss or business owner fails to
repay back then it might affect their personal relationship. They also might want equity within
one’s business.
Venture Capital: it is another kind of source of funding for business but it is not necessary for
all kinds of business (Hale, Britt and Gibbons, 2019). business owners should know they venture
capitals mostly look for technology driven organization or organizations that have high potential
in information technology or communication sector. This source has high benefits if organization
has high opportunity for growth in future. But this source of funding’s has its own drawbacks
such as: venture capitalist wants their own equity within the organization, they also expect
healthy return on their investment.
Angle investors: They are mostly wealthy individuals or retired company executives who mostly
focus on investing in small firms that are mainly owned by others. They are kind of individuals
who not only invest within the organization but they are masters in their own field and they share
their experience, knowledge, contacts with the organization as well. They mostly focus on
investing on the initial stage of the business. one of the main benefits of this source of funding is
that when such investors are ready to invest within one’s own business, they readily invest their
money within the business as well as share their experience, knowledge and contacts with the
business owners as well (Hellowell, Appleby and Taylor, 2018). But even this source of funding

has its own drawbacks such as: in exchange of their money they tend to reserve rights to
supervise companies’ management practises, many times they also involve themselves in board
of directors as well.
Bank loans: It is one of the most commonly used sources of funding which is mostly used by
SME’s. It is a fact which should be known by all kinds of businesses i.e. al banks offer different
advantages whether it is customized repayment or personalized services. For maximum benefit,
business owners should find appropriate bank that can meet their basic requirements. But there
are few drawbacks of this source of funding such as mostly personal loans provided by banks
require personal guarantees from business owners. They also need to pay additional interest over
the loan taken by the bank. But it has some benefits such as: on the basis of personal guarantee
banks can easily provide required amount of loan as well as if the entrepreneur wants to
postponed the principle payment for few months up to 12 months then they can easily do that
(Dogan, Yamamoto-Ibusuki and Andre, 2017).
Government grands and subsidiaries: Government provides subsidiaries or grands that can be
used by the business in many ways. But usually government do not provide subsidiaries or
grands to the business owners until and unless their business is in specific industry or their serve
a specific targeted cause. But there are few drawbacks of this source of funding i.e. these grands
or subsidiaries are not available to business owners to start their own business, settle business
debts or pay for any kind of operational expenses. Trying to get this funding is mostly a waste of
time for business owners as there are many exceptions, criteria on the basis of which these
subsidiaries or grands are provided to business owners. But one of the main benefits of this
source of funding is that if the criteria matches then research grands may only require 40 percent
of the total cost or expenditure of the business might get reduced.
Crowdfunding: It is a new source of funding that can only be used for specific type of business
(Wang, Lee and Walsh, 2018). it is platform where business owners can pre sell their products to
their customers. If enough customers purchase one’s own products then transaction can be
cleared and business can move forward. One of the main benefits of this source that it is one of
the best sources for selling innovative products but it has one main drawback i.e. if products are
not accepted by the customers then it becomes difficult for the business owners to gather
appropriate amount of funds for the business.

M 2 Justification for adaptation of appropriate source of funding
One of the best sources of funding is for SME’s is bank loans. Bank loan is an appropriate
source of funding where business owners can get required amount of loan from the bank on the
basis of personal guarantee (Lash, Kaufman and Hernán, 2018). Not only this business owners
can even postpone principle for up to 12 months. Risk involved in this are less as compared to
other source of funding.
D 2 Justification of adaptation of particular source based on organizational needs
Business loan is an appropriate source of funding that can be used for fulfilment of by
organizations to fulfil their organizational needs. If business owners have a good business idea
with a backup business plan then this is an appropriate source of funding that can be used by
them. Other than this personal investment can also be used as a source of funding by the business
owners. This personal investment will help the business owners to reduce the amount of loan
they will be requiring. Combination of personal investment and bank loans can help the
organizations to fulfil their basic organizational needs.
LO3
P4- Business plaining for growth with financial information and strategic objectives.
There are some steps which will be needed to FTI consulting firm to develop their
business plan. Such steps are Executive summery, overview of the company, Market analysis,
organization and management structure, services, marketing and sales, funding request, financial
projections and appendix. This all make proper business planning for the company.
Executive summery
This report has covered business planning of FTI consulting firm and also provided
overview of the company. It has also provided market analyses and opportunities for the
company, Here This report also has research for industry FTI consulting firm is working. This
report has analysed management and structure of this company (Gurumurthy., 2018). It has
concluded services which FTI consulting firm provide to the customers and their advertisement
strategies. Most impotently this report has analysed their funding sources and in the end
appendix.
Company Overview
FTI consulting company is public company and their headquarter is in US. They are
worlds largest financial consulting firm. They provide their services to the companies who want

to start their business and looking for the potential market. They come in the top consulting firms
in the world. Brexit,FTI consulting company is expert in the economic consultancy, corporate
finance, forensic and litigation consulting, restructuring, technology and strategic
communication.
Organization and management structure
Company deal with the other business and provide proper consultancy to them, it can be
about finance and market opportunities. They also provide consultancy about Brexit and how this
can affect or provide benefits to the new business. They are providing services to the all over the
world and more than 4700 employees are working in this company. People can reach them
through their online side which is available on internet ( fticonsulting.com).
Services and product
They provide services to every kind of business, and they charge with their consultancy.
People apply for the consultancy online and their expert reach to those people and talk about
their problem and experts provide strategies and suggestion for their business (Kim., 2019).
Their experts will provide consultancy and there are many options which are available on their
services like economic consultancy, corporate finance, forensic and litigation consulting,
restructuring, technology and strategic communication. Company charge with the services
according to time taken by the clients on call or Message.
Marketing and sales
FTI consulting is marketing their company on the different different websites, so they can
reach to the people who are facing problem related to the business, or they need help to expand
their business on national scale. They are also advertising their company on social media
platforms, so they can reach to the new clients. Mainly FTI consulting company is focusing on
the SME companies of UK, and they are targeting customers in UK because after the Brexit most
of the SME companies are afraid to expand their business, so they are getting good response
from the UK companies.
Financial projection
FTI consulting company is public company and their main source of funding is public, so
they are getting most of the funds from public (Kumar., 2016). Their company is listed on stock
market so people can invest in this company. Other main source of this company is bank, they
take loans and fund from the banks on low interest charges and invest in their company. FTI

consulting is multinational service providers, so they get loan from the banks easily. They use
this fund the make their financial sources better and strong to expand their business more. They
also have partnership with other funds so this is also an option for this company to get funding.
This company have established collaboration with the other service provider companies and
service related companies. They are also a member of world economic forum.
M3- develop business plan to secure investment
It is important for FRI consulting to have proper business plans and marketing strategies
to expand their business more. Finance management plays important role in the company, so
they should have skilful finance manger who will control companies management related to the
finance in the company's resource. If they will use companies financial resources properly then
company can make profit, and they can provide return to the investor. This is the best way secure
companies investors (Olesen and Carter., 2018). It will also FRI consulting company to achieve
their business objectives. Company also have to show their Financial report in the end of the year
so investors can see the revenue generated by the company.
D3- Business plan to demonstrate understanding and knowledge
It is important for each and every firm to have their own business plan, so they can
achieve their business goals, and they can successful in their business. This will provide a
mission and vision of their business how what strategies they will use to achieve their business
objectives to gain success and gain future opportunities. Before starting a business companies
should have proper knowledge and understanding of their business and potential market where
they are investing.
LO4
P5) Assess exit strategies or succession option for small business
Exit strategies are strategies for small business to leave the current situation and try to
improve the current business situation or exit the market in the effective way without fulfilling
the objectives. These strategies will include the strategy to deliver the objective and one is failed
to face the present situation and expand the business.
Mergers and acquisitions
In the mergers and acquisitions, company can plan to merge with the other company. In
acquisition big businesses are merging with the other companies, and they can plan to acquire
business of these companies. Here are some advantages and disadvantages of mergers and

acquisitions. Advantages of mergers will include the economies on the large scale and firms are
more efficient to work in the effective way (Scott., 2019). More profits will be enabled and
research and development will be done on the basis of mergers and acquisition. Market research
is to be done for evaluating the current situation of market. There are various drawbacks of
mergers and acquisitions which will have effect on company. It can rise the prices high and in
this monopoly is created. Due to monopoly there are fewer choices for customers and fewer
alternatives for customers. It can lead to fall in economy and in these two different firms face the
problems in merging with each other.
Initial public offerings
In the initial public offerings companies are raising funds form public by the way of
shares. There are many benefits of IPO like the company can raise funds and use the money to
expand business and or fulfil the loans. These funds can be used by company in any work but the
company has to provide the dividend to public at the end of the financial year. Exit opportunities
for companies because there are many stake holders which have contributed amount and time in
the company, but they are not provided anything. So stake holders can receive huge amount of
money in the capital Market. In the public companies all shares in market and share holders will
receive the liquidity amount after the process of liquidation. It can reduce the overall cost of
capital. There some drawbacks for the IPO like the there are additional regulatory measures for
IPO and market pressure is another different thing which is affecting the company.
Liquidation
Liquidation is also the exit strategy for the companies because company can liquidate
according to the current situation (Snider, and Davies., 2018). Here are some benefits and
drawbacks of liquidation. The benefits will include that outstanding debts are written off and
legals action is not taken by any of the share holders. Staff can demand the redundancy pay form
the company and leases can be cancelled as well. In the voluntary liquidation occur process is
avoided and it can occur low cost of liquidation. There are some draw backs of the liquidation
process which will include that company has been levied with the wrong accusation and image is
spoil in the market. There are some personal liabilities of board for the company debts. In these
process all the business assets will be sold in the market and money will be paid to the share
holders.
Sell it to friend

All the strategies above are strategies which need to be done and it will be done in the
case of public companies. So the company is firm and it is the small business which can be sold
individually so it can be sold to the Friends without the permission of anyone. In these also there
are some benefits like the friends will buy the business without the market research. In these one
can convey more information and create more impact on the friends. It will lead the friends to the
limited reach any type of problems in business will affect the friendship and also the friends will
reach to them at the short notice (Sultana., 2018). As the friend are buying the business,
individual can sell the business at the high cost because friends will not be aware about the
market price of the business. The commission and bonus cost is eliminated but than too it can be
to expensive for the friends.
M4) Evaluate the exit and succession options
There are many exit option for company and all these are the initial public offerings,
liquidation, mergers and acquisitions and selling business to friends. These all are can be used by
company for exiting the market but liquidation process is the best way for the company to exit
the market. In all the other process thee are many of the severe disadvantage and in IPO there are
certain rule and regulation for companies which need to be followed while in the merger also
there are certain rules and laws specified by the government.
D4) Provide critical evaluation of exit or succession options
The company can use the exit strategies as the liquidation process because company will
sell all the properties for company in the market and raise the funds and use that fund to provide
the money to the share holders and clear the debts as well (Wei And et.al, 2018). So the company
can use these funds to pay to share holders about the dividend which are being investing in
company form the large time. These strategies can be implemented by company for performing
the work in the effective way.
CONCLUSION
From the above assignment it has been summarized that there are various kinds of growth
opportunities or considerations that can help a SME to create pathways for their growth.
However, each of the growth opportunities have their own risk associated with it. It has been
analysed that there are various sources of funding that can be used by organizations to expand or
grow their business. Each source of funding has its own advantages and disadvantages. So, it is
important for organizations to evaluate source of funding completely, its benefits, drawbacks and

then use that source of funding that can fulfil their organizational needs. It is important for an
organization to design a business plan using appropriate framework that includes that financial
information, strategic objectives for the growth of the business. It has also been analysed that
there are various kinds of options or ways through which small business owners can exit a
business and each of these ways has their own benefits as well as drawbacks. Small business
owners should compare and contrast h option, should check implications of each option and on
the basis of those implications appropriate options should be chosen by business owners for
exiting the business.

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