Planning for Growth

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
1.1 Critically evaluating potential sources of fun ding that can be accessed by Soul Heaven
................................................................................................................................................3
1.2 Assessing funding options which Soul Heaven’s should undertake along with
justification.............................................................................................................................6
TASK 2......................................................................................................................................7
Preparing a coherent plan for enticing investors that how strategies will contribute in the
attainment Soul Heaven ‘s goals and objectives....................................................................7
TASK 3....................................................................................................................................10
3.1 Assessing exit or succession options that available for a small business......................10
3.2 Critically evaluating and identifying suitable option for Soul Heaven in relation to exit
or succession........................................................................................................................13
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................15

INTRODUCTION
In the competitive business arena, al the organizations are placing high level of
emphasis on capitalizing opportunities that available for growth at marketplace. In this
regard, manager plays a vital role in assessing options that can be undertaken for the
company’s growth and success. Moreover, in the dynamic business area, desired level of
outcome can be attained only when firms make focus on the adoption of innovative business
practices. This report is based on Soul Heaven Saloon which offers retail products or services
at suitable prices. It will provide deeper insight about strategic options which Soul Heaven
Saloon should undertake for getting competitive edge through the applicability of Ansoff
matrix. Further, report will develop understanding about sources that helps Soul Heaven in
fulfilling monetary requirement. Report also presents coherent business plan that need to be
followed by Soul Heaven for the execution of panning pertaining to growth. Along with this,
it also highlights varied succession and exit options that can be used by business unit.
TASK 1
1.1 Critically evaluating potential sources of fun ding that can be accessed by Soul Heaven
For increasing customer base and thereby both sales as well as profitability, Soul
Heaven has developed strategy in relation to diversifying & exploring business operations.
For this purpose, business entity requires enough funds so that plan can be implemented
effectually. There are several sources of finance which can be undertaken by an entrepreneur
for raising funds for business expansion such as:
Personal savings
With the motive to capitalize opportunities and for converting dreams into reality
every entrepreneur focuses on saving money from earnings (Murzacheva and Levie, 2020).
Accordingly, for expansion and diversification owner of Soul Heaven can use personal
savings.
Bank loan

It is one of the most effectual sources which entrepreneurs prefer to undertake for
enhancing funds. Usually, banks also place emphasis on providing loans to the businesses
which are highly growing. Moreover, interest is recognized as the main source of income for
bank (Lynn and Rosati, 2020). Due to this, financial institution is highly interested in giving
both secured and unsecured loan to the business entities. Hence, by applying to the financial
institutions owner of Soul Heaven can generate funds.
Angel investors
They are known as private investors who provide small businesses with financial
backups or assistance. Now, there are several angel investors who support entrepreneur or
small businesses in monetary terms. In against to convertible debt or equity angel investors
invest their money in the innovative business operations.
Government grants
In order to encourage small sized businesses government has also taken initiative by
offering financial assistance at concessional rate. UK government encourages banks to
sanction most of the loan that applied by small businesses. On the basis of this, by presenting
innovative business idea and coherent plan to the concerned authorities business entity can
get desired level of funds.
Viability of funding sources can also be evaluated through the means of investment
appraisal techniques. It mainly includes payback period, net present value, average and
internal rate of return which helps in assessing the extent to which potential investment will
prove to be beneficial for the firm. Moreover, payback period clearly presents time within
which initial investment will be recouped. In this way, it highlights period after which
business unit will start to earn profit. On the other side, NPV furnishes return, in monetary
terms that firm will get after specific time frame. NPV method has greater importance in the
current times as it presents solution by taking into account time value of money concept.
Thus, by using capital budgeting tools business entity can appraise investments in the best
possible way.
Personal savings
Benefits
 This source of finance is free from obligation pertaining to excessive paperwork.