Growth and Exit Strategies for Bayleaf Takeaway: A Business Report

This report provides a comprehensive analysis of growth and exit strategies for Bayleaf Takeaway, a small SME. It begins by assessing potential funding sources, including internal and external options like retained earnings, bank loans, overdrafts, and angel investors, evaluating their benefits and drawbacks, and justifying the selection of a bank loan. The report then designs a business plan for growth, incorporating financial information and strategic objectives. Finally, it evaluates exit or succession options for the business, outlining their advantages and disadvantages. The report is structured to provide a clear understanding of the strategic planning involved in business growth and eventual exit or succession, with the intent to guide Bayleaf Takeaway toward sustainable expansion and success. The report also discusses the growth opportunities and factors that affect it.

GROWTH AND EXIT
REPORT

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 2.......................................................................................................................................................3
P3 Assess potential sources of funds available to business organisation with benefits and drawbacks of
each source..............................................................................................................................................3
Critically evaluates potential sources of funding and justifies the adopted source for Bayleaf Takeaway
.................................................................................................................................................................7
TASK 3.......................................................................................................................................................7
P4 Design business plan for growth including financial information and strategic objectives.................7
TASK 4.....................................................................................................................................................12
P5 Assess exit or succession options for small business with benefits and drawbacks..........................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Planning for growth is a strategic plan that is adopted by every business organisation so
that they will sustain for a longer period of time. In this basic two strategy are involves that are
growth and exit strategy so that business can choose the one as per their profits. This report is
based on the small SME that is Bayleaf Takeaway who wants to focus on growing their business
and for this they can analyse the various sources of funding so that best source for arranging
funds can be chosen. Further it develops the business plan that can include the strategic
objectives and financial information so that extra expenses can be removed in planning for the
growth. At last it elucidates the exit or succession option for a small business so that best one can
be adopted and firm will gain success. All these terms can be discussed within in project(Pisoni
and Onetti, 2018).
TASK 2
P3 Assess potential sources of funds available to business organisation with benefits and
drawbacks of each source
Sources of funding defines as an act of offering the resources related to finance for need,
projector program so that success can be captured by the business enterprise without facing the
shortage of funds. In context of Bayleaf Takeaway there are several sources of funds that can be
includes so that manager can adopts the best one. It is based on basically two types that are
internal sources of funds or external sources of funds that can be shown below:
Internal sources of funds – It refers to that source of funds in which company can collect the
monetary resources within the firm itself for generating the higher growth and development. It
includes the several sources that are retained earning, owner’s capital, equity share, bank loan,
hire purchase etc(Cotei and Farhat, 2018) .
External sources of funds – This term defines as those in which organisation can arrange the
funds from outside the business organisation for growing the business and gaining the
competitive advantage within marketplace. it includes the several types that are business angles,
bank loan, hire purchase , trade credit etc.

In case of Bayleaf Takeaway several sources of funds can be numerated below:
 Retained earnings- It is one of type of internal source of funds for an organisation. It
simply means those profits i.e. left after paying all the dividends to the company
shareholders and expenses to the owner capital. It involves some advantage and
disadvantage in case of Bayleaf Takeaway that can be shown below:
o Advantage – The main advantage of this source of funds is that it is available
easily because of this enterprise cannot seek for help from the shareholders in
urgency of the funds. It also helps in reducing the cost of issuing the external
equity.
o Disadvantage- The major disadvantage of retained earning is that the amount
raised from this type of source is limited and also tends to highly variable. In this
firm opportunity cost is high because it will reflect the amount of earning which is
foregone by equity shareholders. This shows the outcomes of over capitalization.
 Bank loan – It refers to the amount of money that a company can borrowed from the
bank for a certain period of time by agreed upon the repayment with interest. In this
company can pay the interest on the amount borrowed not on the share in the business. In
this interest rate is to be fixed(Coad and Kato, 2020). In case of Bayleaf Takeaway
adopting this source includes the benefits and drawbacks can be show below:
o Advantage - The main advantage of this source of fund for the business is that
the bank charged the fixed rate of interest on the amount borrowed that also
deicide at the time of taking loan. This is very useful for the company as taking
this loan not pressurize the business owners due to this they can effectively focus
on their business growth. Another benefit is that it is much secured loan due to
this enterprise cannot face any issue related to payment and any other factor.
o Disadvantage – The prominent drawback of this source of finance is that it is not
flexible in nature as in this businesses can pay the high interest they cannot use
that interest for their personal use. In this bank grant the loan against some type of
securities and if the business venture is to fail in repaying the amount then the
bank will seize their security and assets.

The payback period of bank loan is dependent on the time in between first payment as
maturity of a loan.
 Overdraft – This defines as a source of finance in which a agreement is to done between
the two parties that is a client and financial institutions. This reflects that in which a
customers can cross their bank amount limit and withdraw the cash by using some exceed
percentage for their use. In context of Bayleaf Takeaway , if manger could adopt this
source of funds than they can analyse the their merits and demerits that can be shown
below:
o Advantage- The main benefit of the overdraft source of fund is that it is most
common type and also flexible in nature for fulfilling the financial requirements
of a person or an organisastion. In this a client can withdraw the extra monetary
source beyond their bank balance to fulfill their needs at a frequent time(Brown
and et. al., 2018).
o Disadvantage- For Bayleaf Takeaway it contain some disadvantage that by
exceed the amount of bank balance financial institution can charged some fees
over that is very costly for the small business organisation(Yayla and et. al.,
2018).
The payback period of overdraft is dependent on adequate assess that is used to determine limit
of overdraft. It relates to efficiency and average days that are based on payable outstanding.
Friends and family: It is basically a biggest source of funding that is used by Bayleaf
Takeaway as with this family members and friends provide adequate fund as in form of debt as
to them payment is paid back and in terms of equity suitable share is offered to company and it
also be considerate hybrid as well at where royalty is paid back in terms of sale and profit.
o Advantage: In this amount is collected as per lower interest and there is no
pressure to pay back with stipulated period of instance by which rate of risk also
get decreases.
o Disadvantage: It also strained the relationship in which sometime business also
felt obligated by which un-comfort and imbalance situation is developed.

The payback period of friends and family is dependent on the verified range under which
time is not defined adequately it is changes as per gaining of profit that return is offered
adequately.
Angle investors: In this funds is either collected from family, friends and others as well
and these are those who has better interest towards the working standards of business. For this
Bayleaf Takeaway collects funds as per the basis of suitable interest by which ability to gain
sustained success and development is induced with perfection.
o Advantage: The biggest benefit is that funds are collected with less amount of
risk as compared to debt financing. In this paid back is not resultant into the
failure of business by which adequate support is offered in relation to sustained
growth and success.
o Disadvantage: It also is known as equity financing in which sometime supplier
get an equity place as with interchange of business position. In this sufficient loss
is there is no accuracy of continuous flow of cash.
The payback period of angle investor is dependent on the investment and annual flow of
cash through which formalized balance is attained as with this appropriate loss and profit is
shared equally.
By above scrutiny it is reflected that for Bayleaf Takeaway can adopts the bank loan
as a source of funds for arranging the finance to the growth and longer survival. It is a
much secured type of loan because in this at the time of taking loan some security is to be
pledged so that it is safe in the future. This is very helpful for the company to expand and
growth the business so that large number of customers get attracted towards it. In bank
loan interest rate is also low due to this organisation cannot face any pressure to repay
this. Hence, it is justified that it is best source of funds for expanding and increasing
profits and revenues.
Evaluate potential sources of funding with justification in context of Bayleaf takeaway
From the above analysis it is to be evaluated that there are several sources of fund which
is helpful in generating the funds. These are bank loan, overdraft, retained earning etc. in this

BayLeaf Takeaway can use the bank loan because it is safe and secured as compared to other
type of lean in this Retaining earning is only useful for large organisation because they have lots
of reserved funds as compare to small organisation. Due to this company can follow the bank
loan as it will helps in maximizing the profits and brand image into the marketplace. Bayleaf
Takeaway is using bank loan as with this they are able to pay back to bank along with interest by
which market credibility also get managed.
Critically evaluates potential sources of funding and justifies the adopted source for Bayleaf
Takeaway
By above research it is critical evaluate that the company can examined the several
potential source of funds that are retained earning which is easy to generate but not effective for
the company. another one is overdraft which helps in generating the money at any time without
any paperwork but the financial institution can demand the overdraft money back at money time
without prior notice due to this it is not effective for the organisation. At last bank loan is the
very secured because ion this loan can be repaid on fixed time period due to which business
owner cannot feel pressure to ray it. Hence it is effective and efficient for business growth.
TASK 3
P4 Design business plan for growth including financial information and strategic objectives
Business plan refers to an outline plan which a company an make involving strategies and
policies so that objectives can be accomplished in appropriate manner for a specific period of
time. It will helps in attaining the activities of the business enterprise. Preparing the business
plan includes the several types of information so that growth and success can be attained on time.
It includes vision, mission, objectives, financial projects, stakeholder’s matrix and last
recommendation so that results can be attained. In terms of Bayleaf Takeaway that is a small
organisation want to expand their business in the UK with some new products and services so
that large number of customers get attracted and retained with the firm for a longer period of
time(Öktem and Akkoyunlu, 2018). This business plan in context of Bayleaf takeaway can be
shown below:
Overview of business - Bayleaf takeaway of one of the prominent in the local street of
the London UK that can offers the foods and other drinks to their customers that are fresh and

healthy. They cannot use the any color in food which is healthy and also they can delivered their
products in a clear plastic Satco cans so that customers are retain and enjoy the food for a longer
period of time. Now the manager of the Bayleaf Takeaway is focusing on enhancing their growth
and market share for this they can develop the business plan so that targets can be attained in
effective and efficient manner(Chamarthi and et. al., 2020).
Vision- The major vision of Bayleaf Takeaway is to offer the quality and hygienic food
to their customers and becoming a best and prominent within the business industry. Bayleaf
Takeaway is having many awards that accolade with relation to delivery services and its
management. In this business work with the vision to offer proud and favored dining under
which balanced experience is processed that they have been waiting for a longer time.
Mission- The mission of Bayleaf Takeaway is to enhance their market share by attracting
the large number of customers with their quality foods that can reflect the extra peace of mind in
the people. This will helps in generating maximum profits and revenues.
 For customers: Bayleaf Takeaway offer finest dining to its customers as with this
they get directly in relation with marketplace and long term sustainability is
maintained with easiness.
 For suppliers: Bayleaf Takeaway ensures that strong relation is processed with
supplier so that continuous flow of services is processed in effective manner.
 For the community: Bayleaf Takeaway has a mission to provide stunning
ambience by which attentive and friendly services are offered as with support of
traditional techniques of cooking.
Market analysis for defining the Bayleaf Takeaway strength
For this the report includes the SWOT analysis that can show below in case of Bayleaf
Takeaway so that profits can be attained by reducing the weaknesses and threats:
Strength Weaknesses
 The major strength of the Bayleaf
Takeaway is there food and services
that is qualitative and hygienic in nature
 The weakness of the Bayleaf Takeaway
is there place which is quite small
where customers cannot feel satisfied

and helpful in attracting the customers.
 Bayleaf Takeaway has offered
incredible and delicious foods as by
making continuous creative and
innovative menu that is changes as per
offered experiences or seasons.
and also feel suffocated as there is
small place for customers sitting. It will
affect brand in marketplace.
Opportunities Threats
 The opportunity that a manager of the
Bayleaf Takeaway can adopted is the
use of online promotion so that large
numbers of customers are attracted
towards it. It will save the time and cost
of the company also.
 The threat that a company can face
within marketplace is the large number
of competitors which will impact profit
and sustainability of enterprise.
Business objectives - The major strategic objectives of the Bayleaf Takeaway is to
expand their business enterprise within the street of London, UK. It will gain and maximize the
profits by attracting more and more customers. To reach the target manager of the business
enterprise can focus on developing the SMART objectives that is measurable, practical, and
attainable in a set time period. In this Bayleaf Takeaway can focus on launching the new product
that is vegan flavor drinks which is very healthy and effective for the health conscious people. In
this firm will highly targets the health conscious people and adults who are focus on health and
taste. This will generate the high profits and share within marketplace and it also gains the huge
customers attention to the longer period of time(Strese and et. al., 2018).
SMART Objectives of Bayleaf Takeaway:
Specific: To offer an adequate and outstanding experience that assist to establish and gain
loyal customer base.
Measurable: Bayleaf Takeaway offer diverse range of cuisine and menu through which
individual of different culture get attracted. In this diverse range is added that makes food
processing is easiest and productive manner.

Attainable: Bayleaf Takeaway worked to create and develop brand and for that perform
suitable marketing with support of own portfolio under which clear communication is processed
within aggressive marketplace.
Relevant: Bayleaf Takeaway offer consistent and relevant goal and objectives as it is
relatable to attain specific end in sustained mode.
Time bound: The Bayleaf Takeaway gain effective revenue by which customer
satisfaction is raise by which goal setting is projected as by hitting to milestone. In this
standardized outcome is attained as for this both short and long term goals are attained with
perfection.
Financial projections
For new introducing the drinks into the marketplace manager of Bayleaf Takeaway can
focus on developing the financial budget so that resources can be utilized in effective and
efficient way. This budget is prepared for enhancing the profits and attracting the customers
within limited amount of cost so that large profit margin can be enjoyed by company. In this
they can focus on forecasting the budget that can be shown below:
Total budget forecasting:
Particular 30/12/18 ($) 30/12/19($) 30/12/20($)
Making cost 5000 - -
Sponsorship cost 3000 500 400
Advertisements
charge
2000 1000 700
Technology fee 200 1500 1500
Catalogues 100 100 140
Total 10300 3100 2740

Cash flow statement
After developing the budget company can focus o cost and expenses that they can invest
in the investment for this Bayleaf Takeaway can preparing the cash flow statement that can
shown below:
Particular 30/06/20 (£) 30/06/21 (£) 30/06/22 (£)
Sales 90000 100000 11000
Buy -40000 -50000 -50000
Expenses -14000 -15000 -12000
Salary and pay -15000 -16000 -10000
Cash Surplus 21000 19000 38000
Stakeholder analysis
It is very essential to analyze the stakeholders of the company who can directly or
indirectly impact the firm operations and profits(Pai, 2019). In case of Bay leaf the stakeholder’s
matrix can be shown below:
 High power, High interest- These type of stakeholders are very essential for the
company that is Bayleaf Takeaway. In this firm will prioritizing them for smooth
functioning of the activities. For example – Business owner, shareholders etc.
 High Power, Low interest- This type of stakeholders is influencing the working of the
business enterprise that will reflect the high interest in the project or activities within
Bayleaf Takeaway(Furr and Kapoor, 2018). For example- Employees, managers etc.
 Low Power, High interest- These aspect of stakeholders are required to be informed
related to organisation so that activities of Bayleaf Takeaway cannot face any issue.
These stakeholders are customers, communities etc.

 Low Power, Low Interest- These types of stakeholders are not effective and active for
the business and also cannot hold much power in the working such as Government.
Recommendation for business
After analyzing the above business plan it is recommended that for Bayleaf Takeaway
can hire and recruit a experienced person who can effectively examine the market so that firm
can face high growth in effective way. In this the manager can analyse the customer preference
and taste so that they can deliver the same for attracting large base of customers(Davies and
Kerr, 2018).
TASK 4
P5 Assess exit or succession options for small business with benefits and drawbacks
Operating the business is very complex and tough as it includes lots of risk but the same
time it also gains high profits and status within society. To do the business in a successful way
firm will highly focus on business environment so that customers demand can be fulfilled to gain
revenues. For small business enterprise that is Bayleaf Takeaway manager can decide the exit
from the business industry. Exit options are the things that small business enterprise mainly
looks for. Some of exit options for the business can be elaborated below with their drawbacks
and advantage:
 Liquidation- It includes the selling of assets at the time of binding up of business. In this
business can sell their assets and properties to the claimants. For Instance- Bayleaf
Takeaway activities and performance is dependent upon the performance of a single
owner at this time liquidation is best option(Tian, 2018). it includes some pros and cons
that can shown below:
o Advantage – This is very simple and common in exit option where Bayleaf
Takeaway cannot feel pressurize to gain the image of the enterprise again and
preserve legacy.
o Disadvantage - The major disadvantage is that it cannot give more financial
resources during wind up. Because in this revenues are to be generate from