Business Growth Planning: A Case Study of Basingstoke Skip Hire

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PLANNING FOR GROWTH

Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1.............................................................................................................................4
Key considerations for the options of growth................................................................4
TASK 2.............................................................................................................................7
Funding sources and implications.................................................................................7
TASK 3.............................................................................................................................9
BUSINESS PLAN......................................................................................................... 9
LO 4............................................................................................................................... 13
EXIT STRATEGY........................................................................................................13
CONCLUSION............................................................................................................... 16
REFERENCE................................................................................................................. 17

INTRODUCTION
As the competition is increasing thus it is very important that organizations should
take various steps for their promotion and growth. This promotion and growth of an
organization depend on the planning of the firms. Different organizations take
different growth strategies or planning for their companies. For a better
understanding of concept case study of Basingstoke Skip Hire & Southern – Waste
Management Service is selected. This organization was established in 1982. This
organization is a supplier of waste management solutions. The particular SME
worked throughout the south portion only. This business is performed by family
members of the owner. For this purpose sources required for funding are explained
in the following report. A business plan is prepared for a better understanding of
planning for growth. All the components of a business plan will be discussed in the
report. Exit strategy and the types of exit strategy are also explained in the following
case.

TASK 1
Key considerations for the options of growth
Options of the growth are known to be such options or one can also call it as
strategies that are used by the company for the enhancement of the productivity
and the performance of the company. In general, the companies which are small in
size are tending to use these strategies or options to enhance their performance
and growth(Mitchelmore and Rowley, 2013). It is very important for organizations to
have proper knowledge of these strategies or options so that they can have positive
impacts on the organization. For example, the organization ‘Basingstoke Skip Hire &
Southern – Waste Management Service' which works in providing the services of
waste management can use these strategies or options for the proper growth and
expansion of their business as these options help in improving the outputs of the
company. The growth of business requires a lot of research, systematic and proper
planning, and most importantly right implementation process. The various options or
strategies for the growth which can be used by the organization (Basingstoke Skip
Hire & southern- waste management service) to improve their performances are as
follows.
The strategy of penetrating into the market
It is the strategy which helps a company in penetrating into a market which already
consists of the products or services the company is providing. This is done by
increasing the shares the company has in the market and it can be done by
decreasing the prices of the services and products provided by the company for a
limited period of time(Mahmoudi, et. al., 2013). The company Basingstoke Skip Hire
& southern- waste management service can use this strategy of lowering the price
of the services they provide (waste management services) to enhance their
business more.
Risk: the main risk which is connected to this strategy is that if implementing of this
strategy results in a failure or if it does not prove to gain the attention required can

impact the economic stability of the company which is not good for the company.
This is because lowering the prices of the services provided can create a great loss
to the company if not proved to be effective and create more attention.
Solution: For overcoming this risk which might arise the company is needed to make
proper planning for how the strategy should be implanted by analyzing all the
aspects of the market and also the identification of the demands of the customers
should be done in a proper way(MacLeod, 2013).
Diversification
This is another strategy that can help in gaining the growth which the company
wants to have and this can be defined as the process in which the new products or
services are identified and are sold in the market which is new. With the help of
diversification, the company can make the right choice of new services that can be
provided to the customers in the new market(Goodfellow, 2013).
Risk: this strategy or option involves much risk because for the implementation of
this strategy a lot of time and money is required and if not implemented correctly
and perfectly can cause a huge amount of loss to the company. the company
Basingstoke Skip Hire might also have to face these risks if they planned to
implement this strategy.
Solution: For minimizing the risk from this strategy or option the company
Basingstoke Skip Hire has to analyze it first and also must have to take proper
stepwise procedure while implementing this strategy.
The strategy of expanding the market
This strategy or options for the growth of the company involves the selling of the
products or services that already exist but into a new market. This strategy or option
can help the company Basingstoke Skip Hire to expand its business into a new
market. But before implementing this strategy or option it is important for the
company Basingstoke Skip Hire to have proper resources and proper knowledge
that help in introducing the company provided services into a new market.

Introducing new products or services in the new market is a lot of time-consuming
processes so the results from this strategy also take time(Unkelbach, et. al., 2014).
Risk: for implementing this strategy or option needs a lot of energy, time, resources,
and money so that the services can be introduced in a proper manner and if the
strategy or option fails to prove its worthiness can cause a huge loss to the
company Basingstoke Skip Hire.
Solution: this strategy has been proved to be very successful as observed from
others company so the company Basingstoke Skip Hire needs to raise their funds
that are the amount of money and also the resources so that the risk can be
avoided. Also, a budget plan should also be prepared by the company which will
contain all the resources that are required for the expansion of the business in the
new market(Li, et. al., 2015).
Strategy for expanding the product of services
This strategy or option for growth is prepared by the company when it plans to
increase the sales of the product or services provided by that company in a
particular market. For perfectly implementing this strategy or option the company is
needed to increase the supply and production of the services or products provided
by them. Basingstoke Skip Hire can also use this strategy to move a little faster
towards the growth of success.
Risk: the products or services provided by the company Basingstoke Skip Hire if not
manufactured in a proper manner then it can cause damage to the reputation of the
company.
Solution: the company should check all the products or services’ quality provided by
the company before sending it to the market for sale. This will also help the
company in attracting god customers to the company(Grover, et. al., 2014).

TASK 2
Funding sources and implications
It is obvious for each and every company to have a good source of funding so that
the company can run its business operations and can function in an effective
manner. Finding the best funding sources is a difficult task because it involves
analyzing all the pros and cons of the funding before proceeding forward. The
company Basingstoke Skip Hire that provides services of waste management also
needed the sources of funding to run their business in an effective manner and
below is few sources of funding that has been undertaken by the company
Basingstoke Skip Hire.
Loans from bank
Taking the loan from the banks for starting up a business is one of the most popular
and commonly used sources of funding. This source of funding is found to be
adopted by almost every start-ups and business because it is the safest kind of
startup. But this source of funding involves a lot of paper works and one has to
qualify all the terms that are required by the bank in order to get a loan. One should
also be aware of all the options that the person can have from different banks and
also should keep in mind the rate of interest the bank applies on the loan. The
processes of the banks for the loan are simple, feasible, and less time consuming if
the person will qualify all the terms and conditions which are required by the bank to
approve the loan.
Loans for small business management
In today's generation, the government is tending to play a vital and main role in
providing the sources of funding to those people who are willing to run small
businesses and also the government assists the person in getting the success in the
market too. This management helps that person who wants to start a small business

in order to generate the funds and capital that will be helpful for running of those
businesses.
Capital venture
Capital ventures refers to those business partner or can be called as the investors who
willingly tend to invest their amount for the person’s business and in return they just
want to acquire the equity in the business which will be started by that person. They can
retain their amount of money invested when they feel that their shares are on public or
also when the other company who are at good position purchases them. The investors
in this source of funding invest only on the business which for them seems to have
future growth so that they can have full benefit from the company in which they are
investing because the only motive the investors have is to make money as much as
they can.
Funds from the friends and family
This is the types of source of funding in which the business person tend to ask to have
the funds for business from their friends and family. This source of funding seems to be
the best source of funding because the family and friends give their funds because of
the trust in the person rather than having concern about making money from the
business. This source of funding is also called to be one of the safest, easiest, and
fastest sources of funding.
Funding from the personal savings
This is perhaps found to be the safest and easiest source of funding because it does not
involves any third person. In this type of source of funding one tends to put money on
the business which has been saved by the person and also the person have all the
control into the business which will be introduced i.e. the person is the boss himself.
The main and primary benefit of having this type of source of funding is that the person
will not owe anything to anyone and will do what the person wants.
Funding from angel investors
In this type of source of funding, the person tends to have funds from angel investors;
the people who in exchange of the funds they have raised deal to take some parts of
the business equity. Often, these angel investors try to work in groups so that they can
raise the funds to more than one company but these investors only deal after analyzing
all the feasible factors for the success of the business. The angel investors are
beneficial for the person who is new in the business market because these investors are
tend to have high experience in the market and they also provide all the valuable
advices the person can have in the market.

The company Basingstoke Skip Hire can use all the above sources of funding
mentioned in order to increase their business into the new market also. The above
mentioned sources of funding are tended to have good results in raising the funds for
starting or expanding the business and the company Basingstoke Skip Hire will be able
to expand their business if these mentioned sources of funding are used by the
company in an effective manner. But as per the most success rate of the sources of
funding the company Basingstoke Skip Hire must use the venture capitalist because
this source of funding involves many of the experienced investors which can also help
the company in providing beneficial advices for the growth in the performances and the
business (Marioara, 2013).

TASK 3
BUSINESS PLAN
MISSION STATEMENT
A business plan is prepared in order to achieve growth for the organization.Basingstoke
Skip Hire & Southern is the organization which is selected for the purpose. Components
required for sufficient business plan are present in the following business plan.
COMPANY BACKGROUND
Basingstoke Skip Hire and southern is the organization selected in this study. It was
established in 1982. The company provides management of waste collected from the
southern side. This company is providing best and efficient services at a reasonable
price. This is the main reason behind their success. People are attracted to this firm due
to this particular reason. In waste management, the particular entity is providing
recycling of products also. Vehicles they use are generally white and green in colour.
The main members of the company or the head of the company are generally from the
family of the owner of Basingstoke.
DESCRIPTION OF SERVICE
The company selected for this purpose mainly performs the management of waste. Any
product is not served by the organization. Basingstoke generally provides service and
not products. This makes the firm different from other companies. Regarding nature and
climate, proper management of waste materials is required. This company is providing
this particular service only. Efficient service is provided by the company at a reasonable
price. There, this quality became very beneficial for achieving output and thus, a large
number of people are attracted towards their organization. Recycling of products is also
performed by the organization. Recycling is a very important practice as it makes the
products reused if possible. This service is also provided by the organization.
MARKETING PLAN

For achieving targets and goals for the organization it is very important that the
marketing of services and products should be done in an efficient way. For achieving
this marketing plan is required which specifies procedures and steps to be taken for
achieving better marketing of an organization. A marketing plan is prepared in order to
achieve long term goals for the organization. This plan includes various strategies and
procedures for achieving targets of the organization. A marketing plan is prepared in
order to achieve targets for two to three months for a firm so that working and
functioning of employees is not changed frequently. As Basingstoke is the organization
which manages waste and provides recycling of products thus it is important that
strategy should be done so that these tasks could be achieved easily.
• Setting Goals –The tasks should be decided by firms. It makes a clear vision and
decides targets to be achieved by the company. These goals should be based on
improving present facilities and tasks for the companies. As in this case given
organization should focus on improving management for the waste they collect.
• Target Customers – Customers should be identified which demands a particular
product. In the given example, customers should be targeted who are searching for
management of waste in particular localities or society. For achieving this purpose
proper research should be done.
• Identify Competitors – Competitors plays a major role in determining the
performance and functioning of the organization. As in the case of this case, the
competitors will be other companies which are performing the same task. After
identifying these competitors selected company should perform in such a way that the
operations and performance of the company could be increased.
• Implementing strategies – After identifying these points the last step is to
implement these strategies by the organization. Implementation should be done such
that all the points should be covered for better marketing.
SWOT ANALYSIS

For identifying internal and external strengths of the organization SWOT analysis is a
very important practice. Components it covers are strength, weakness, opportunity and
threat.
STRENGTH – Proper management of the waste and their efficient recycling process
are the main strength of Basingstoke stick wire.
WEAKNESS – Main weakness of firm is they provide services in the South only.
OPPORTUNITY – The service they provide is the best opportunity for the organization.
Due to their services they can make their business introduced in other areas only.
THREAT – Sometimes it is not possible that management is done properly. It is due to
the type of waste. This is the main threat of the organization that it fails sometimes to
achieve its targets.
OPERATIONS
The activities performed in the organization are known as its operations. The functioning
and performance of the company depend on operations performed by the organization.
The operation performed in the selected organization is the management of waste
collection and recycling of waste. For achieving outcomes company should perform
their operations properly and sufficiently. This makes a positive impact of a particular
entity in the market.
FINANCIAL PLANNING
This planning plays a major role in determining the financial conditions of the
organization. This planning is complex in nature and involves different steps and
procedures for the organization. All the available and required resources are mentioned
in this financial planning.
• The condition of business should be assessed and changes required should be
mentioned. These changes should be decided on the performance of the organization.