Planning for Growth

This report discusses the importance of planning for growth in organizations and explores different sources of funding and business strategies. It also examines exit and succession options for small businesses.

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in Brochure...............................................................................................................3
TASK 2............................................................................................................................................3
P3 Different source of funding with their advantage and disadvantage.................................3
P5 Exit and succession option for small business with its benefits and drawbacks...............5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term planning is explained as a formulation of an effective plan for performing
various operations that leads an organisation to accomplish decided goal and objectives. On the
other side, planning for growth is utilise for preparing plans to accomplish desired position and
success in the future. According to present market conditions most of the SME’s perform and
manage their business with small number of individuals that provide support for the economic
growth of organisation (Alsos, Carter and Ljunggren, 2011). This report is composed from point
view of Rowlinson Knitwear it is a small UK based company that perform its business in
clothing industry. Now after Brexit organisation is focused to enter into new market for
expansion of business. Moreover, this report highlights on the analysis of key consideration to
evaluate growth opportunities and its evaluation with implement of Ansoff’s growth matrix.
Various sources of funding to expand the business and the business plan with pre-determine
financial strategies will also include in this report.
TASK 1
Covered in Brochure
TASK 2
P3 Different source of funding with their advantage and disadvantage
Financing is the way toward social occasion the important finances which are required by
the organizations for doing their different tasks and exercises for the ideal development and for
accomplishing the objectives adequately. Rowlinson Knitwear a venture of £20,000 yet it needs
£30,000 for extending its activities in the UK showcase (Blackburn, Hart and Wainwright,
2013). There are different inner and outer wellsprings of financing which can be utilized by the
firm for gathering their outstanding assets of £280,000. These sources are talked about
underneath:
Internal source- These are the inward sources inside the association for producing the
fundamental subsidizes, for example, selling of benefits, decreasing working capital and so forth.
External source- These sources are the different choices which are available outside of
association for producing the assets, for example, bank credits, financing, crowd funding and so
on.

Following outer sources can be utilized by Joy nourishments for the necessary assets as given
underneath:
Bank loan- It is the least difficult, normal and most effortless route for meeting the
essential subsidizes required for playing out the different exercises of the associations. The sum
given by bank is for a particular timeframe and furthermore the bank charges a specific pace of
enthusiasm on the credit gave to the organizations (Dixit and Kumar Pandey, 2011). For the
Rowlinson Knitwear, this alternative is reasonable for get-together the rest of the assets for the
accepted agreement as this choice is increasingly dependable and productive for the
organizations for satisfying their cash prerequisites. The financing cost charged by the bank is
likewise not exceptionally tremendous and can be given to bank in the predefined timeframe.
Advantage- Preferred position of bank advances is that organization knows the sum
which should be paid on the time alongside the premium.
Drawback- Burden is that organization needs to give guarantee or resources as security
for taking the credit from bank.
Crowd funding- This source is for the most part utilized by new pursuits and firms for the
assortment of assets. In this, the organizations gathers or assembles the necessary assets by
taking limited quantity of cash from an enormous number of individuals as opposed to get-
together gigantic measure of cash from little gathering of people. This is done for the most part
through online entryways, for example, internet based life stages, sites and so on. Rowlinson
Knitwear likewise utilise this outside hotspot for gathering their residual assets for the agreement
of organisation (Lewis, 2013). Through this strategy, individuals can give little assets as opposed
to giving enormous measure of cash and furthermore they does not have to stress much if there
should be an occurrence of dangers included.
Advantage- It is useful for expanding the brand picture and furthermore to pick up
consideration of media and individuals.
Disadvantage- Its significant burden is that it is a mind boggling process because of
association of numerous lawful conventions and furthermore the odds of taking of thoughts is
much is the organization doesn't have patent or copyrights.
SWOT Analysis of Bank loan and crowd funding
Strength
 The fore strength that relates with bank
Weakness
 The major weak point which is faced

loan as it is easy for organisation to
take credit from bank (Love and Roper,
2015).
 Less complexity in regulation and
transparency in rules of credit is
another strength of organisation.
by management relates with challenges
of bank loan is including high
formalities.
 Another weak point relates with bank
loan is high rate of interest.
Opportunities
 New Banks provide loan at low interest
rate. So it work as a positive point for
organisation to complete work
properly.
Threat
 According to threat that is used for
making loan relates with challenges to
repay the loan.
SWOT analysis crowd funding
Strength
 Management is able to control
company decision.
 The collected capital is easily
accessible.
Weakness
 The administrative organisation loss
their model as more number of
individuals are included to gather fund.
 Due to low investor protection
probability for fraud is high.
Opportunities
 The opportunity for organisation in
crowd funding relates with promotion
of technique.
Threat
 Due to the risky nature top authorities
face complexity to work with
organisation.
P5 Exit and succession option for small business with its benefits and drawbacks
Merger: It is a procedure that is been integration that takes place between one
organization and other in order to enhance capacity and productivity. It takes place between two
organizations and has to be carry business upon product and services for identical or non
identical business lines (Vargo and Seville, 2011). By this Rawlinson knitwear has to seek over
following advantages and disadvantages.
Advantages: It is going to encourage cost saving and increases profit rate. This is going
to lead towards better economic scale of an organization like Rawlinson knitwear.

This helps in acquiring of local and intentional market which is going to enlarge growth
and generates good will in market for an organization.
Disadvantages: Merger is set of ultimate customers with negative manner and if merger
organization is over various backgrounds.
Also this shall be leading over job reduction in Rawlinson knitwear and at some time
skilled employees are to be relived.
Merger can lead towards forming of monopoly in the market. As share of market
increases when merger is done in an organization.
Liquidation: in finance and economics is the process of bringing a business to an end
and distributing its assets to claimants. There are both advantages and disadvantages of
liquidation upon an organization like Rawlinson knitwear and they are:
Advantage: legal actions are halted against an organization when into liquidation because
organization is not able to take personal liability to take action against (Ward, 2016). It is going
to make organization like Rawlinson knitwear to generate time for paying debt that has been
taken by it.
Disadvantages: All business assets are going to be sold in order to recovery the debt. This is
going to lead towards making an organization less reliable over attracting investor for investment
and none is going to invest in organization like Rawlinson knitwear.
Rawlinson knitwear should adopt Liquidation because they want to sell business in open market
which means that company is suffering from financial stress (Wynn, 2017).
SWOT Analysis
STRENGTH
Merger is going to help Rawlinson knitwear to
enhance its productivity by giving support of
another organization.
Merger is going to help in coming out from
any kind of financial stress that can impact
existence of organization within a market.
WEAKNESSES
Liquidation is going to make loss of goodwill
and trust in the market which is going to
weaken the position of an organization like
Rawlinson Knitwear within the market.
Liquidation is going to make an organization
negatively affected by making it loose its
assets also.
OPPURTUNITIES THREATS

Merger is going to be helpful increasing of
profit in an organization which makes an
organization gain back its positing within the
market.
Is helpful in generating of goodwill that is
going to help in forming of trust with investors.
The company becomes insolvent in nature
which makes the closure of the organization
and gets its market value to zero (Xheneti and
Bartlett, 2012).
All assets are being lost by the organization
that is going to make the organization less
reliable over inviting investors.
CONCLUSION
In the last, with the above information it is concluded that planning is an essential
element for each business as it is used for accomplish of desired goals and objectives. Along
with this it is also identified that there are various external factors impact on business that leads
to complete all work with right operations. With different sources of funds it is also analysed that
each aspect is used for selection of right technique with their advantage and dis-advantage. In the
last, by formulating an effective business plan management is able to work with selection of right
method to expand or exit from organisation.

REFERENCES
Books and Journals
Alsos, G.A., Carter, S. and Ljunggren, E. eds., 2011. The handbook of research on
entrepreneurship in agriculture and rural development. Edward Elgar Publishing.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Dixit, A. and Kumar Pandey, A., 2011. SMEs and Economic Growth in India: Cointegration
Analysis. IUP Journal of Financial Economics. 9(2).
Lewis, W.A., 2013. Theory of economic growth. Routledge.
Love, J.H. and Roper, S., 2015. SME innovation, exporting and growth: A review of existing
evidence. International small business journal. 33(1). pp.28-48.
Mahmoudi, P., and et. al., 2013. Space matters: the importance of amenity in planning
metropolitan growth. Australian Journal of Agricultural and Resource Economics.
57(1). pp.38-59.
Vargo, J. and Seville, E., 2011. Crisis strategic planning for SMEs: finding the silver lining.
International Journal of Production Research. 49(18). pp.5619-5635.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Wynn, M., 2017. Routledge Revivals: Planning and Urban Growth in Southern Europe (1984).
Routledge.
Xheneti, M. and Bartlett, W., 2012. Institutional constraints and SME growth in post-communist
Albania. Journal of Small Business and Enterprise Development. 19(4). pp.607-626.