Blackpenny Restaurant: Growth Planning, Funding, and Exit Strategies

This report provides a comprehensive analysis of growth strategies for Blackpenny Restaurant, a small to medium-sized enterprise (SME). It begins by exploring growth opportunities through the use of digital technology, including expansion, franchising, revenue growth, and diversification, alongside the importance of self-analysis, financial components, and market research. The report then applies the Ansoff matrix to evaluate market penetration, market development, product development, and diversification strategies. It proceeds to analyze potential funding sources, such as bank loans, and discusses their benefits and drawbacks. Furthermore, it outlines business plan strategies for organizational growth and concludes by examining exit or succession options for small businesses, detailing their advantages and disadvantages. The report aims to provide a strategic roadmap for sustainable business growth and development.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. Growth opportunities for SMEs by using digital technology...............................................1
P2 Ansoff matrix for growth opportunit.....................................................................................3
Task 2...............................................................................................................................................5
P3 Potential sources of funding and benefits and drawbacks of it..............................................5
Task 3...............................................................................................................................................7
P4 Business plan and strategies for growth of the organisation..................................................7
Task 4...............................................................................................................................................9
P5 Exit or succession options for small business and benefits and drawbacks..........................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and journals....................................................................................................................12

INTRODUCTION
When any person wants to start a new business at small scale then he needs to understand
how to open it and what is a strategy for continue growth of the business. According to
researchers, 99% of total businesses started in the year 2015. All the businesses started in this
year was private sector businesses in UK. From this report readers can find growth opportunities
for Blackpenny restaurant. It can be understanding by this report that digital technologies are
important for the growth of businesses. Readers can find growth opportunities of the organisation
by using digital technologies (Burns., 2010). From this report the firm can apply Ansoff's matrix
for evaluating growth opportunities. method of funding also mentioned hear from which the
organisation can use different type of funding techniques. After defining methods of funding
planning is important for business growth that will help the organisation to scaling up our
business. At the end of this report there are various ways for small business to exist from
businesses. Owners can use any technique for it.
Task 1
P1. Growth opportunities for SMEs by using digital technology
It needs a lot of research to survive in the market. Company can promote its business in
the market by magazines, TV, from books and by providing information to customers. Many
new businesses who wants to survive in the market they need to star and build a successful
business. They should take some steps that are beyond their current status. There are
opportunities for the growth of company if it uses digital technologies in its business than it will
help to develop businesses.
Open another location- For the growth of the business there is a need of expansion of its
work. This is the first step to survive in the market. There are so many successful entrepreneurs
who consider expansion for the growth of their business (Kumar., 2016). Growth of businesses
can be understanding by physical expansion. It can be considered as growth or expansion of
small and medium scale business in different areas. For expanding its business, it is required to
have a knowledge of maintaining it. The organisation should always start business in new areas
keeping in mind that what is the trend of product in that location. It reflects staying power of the
company by understanding consumer's behaviour. It should be a complete plan of business for
expanding it in a new location. Digital technologies like social media are helpful to promote its
Targeting other markets1

business. From this, Blackpenny can promote its restaurant in the new market. (Steiner., 2010). It
can choose the location according to business plan and condition of a market.
Offering business as a franchise- Franchising is a key of a successful business. From
this Blackpenny can explore its businesses with the help of experienced persons. There are many
mobile and internet technology available which is beneficial to transform operations of the
organisation. Digital technologies help small businesses to gain more profit than past year. By
using digital tools such as social media, e commerce, web presence, data analysis, online
scheduling and video conferencing etc. The organisation can explore its business by offering it
as a franchise.
Revenue growth- Digital technologies have become powerful techniques for the growth
of any organisation. Blackpenny can also use digital technologies for its growth. Researcher
have found that digital technologies are advanced techniques for increasing level of businesses.
From this strategy experienced candidates can apply in the company because it creates
jobs(Wynn., 2017). Managers can also understand needs and expectations of customers that is
helpful to gain a knowledge of demand of products in the market.
License of product- From digital technologies the company can get a license of products
and services From which no other competitors can copy its products and services in the market.
Digital technologies such as online scheduling plays an important role for providing license to
the organisation.
Diversify- Digital technologies helps to grow in the market by selling complementary
products and by providing services to the customers. Diversifying is a growth strategy because it
provides multiple streams of income. It can be done by accounting and taxation of the business.
Targeting other markets- For the growth of Blackpenny, it is required to use digital
technologies that will help to make money by targeting other markets. To expand the
organisation, it is required to target other market for business growth (Ward., 2016). It can be
easy by making foreign rights, software offerings, organising events and programs and producing
goods and services in multiple markets.
Self analysis: Company can conduct SWOT analysis in order to identify opportunities of
digital technology so that it become easy for them. Along with this firm can focus on providing
Financial components: For expanding the business it is important to have enough
resources so that no issued faced by the firm while opening business.
Targeting other markets2

Market research: Through conducting market research it will become easy do firm to
understand all those factors that are impacting the business such as political factors, social
factors, technological factors etc.
Risk assessment: Through conducting risk assessment it will made easier to understand
all types of risk which company can faced while implementing new technologies.
Support: Financial support is required to implement new technologies within the firm.
Along with this, highly skilled employees are required who can easily handle new technologies.
Competitive advantage- porter’s generic strategies:
Product life cycle: In product life cycle there are different stages such as demand of the
new product in the market and then launch the new product, at the growth stage sales are
enhancing at their faster rate. Maturity is the stage in which sales are near to their highest. At last
stage sales lead to decline.
Understand customer needs: Before making new product, it become easy to understand
demand of the product in the market. Company should make product according to the demand of
customers.
Change related to market strategy: At the time of implementing new product it is
important to make changes in the market strategy so that sales can be enhanced.
P2 Ansoff matrix for growth opportunity
Ansoff growth matrix was founded in the year 1957. it was written by Igor Ansoff and he
proposed that for the growth or an organisation there are four growth areas market penetration,
product development, market development and diversification. All these four area create Ansoff
growth matrix. Blackpenny can use these areas for the growth and expansion of its business. It is
a communication tool that will help to see the possible growth by using strategies for the
organisation. There are techniques of applying Ansoff Matrix in the business.
Market penetration- It is a first quadrant of Ansoff matrix. It can be adopted by the
organisation as a strategy of promoting existing products in existing market. It is method of
business growth by which the organisation can produce products and promote them in the
existing. From this strategy will help the organisation to promote old products in the old market.
From which the owner will feel safe to take risk of producing new product. Some times firms do
Targeting other markets3

not have the knowledge of needs and expectation of customers. They can not analysis the
demand and requirements of customers. So that this strategy plays an important role for the
growth of businesses without taking any risk(Kumar., 2016).
Market development- it is a second method or strategy of Ansoff matrix for market
growth. In this strategy organisations can follow the method of advertising or promoting our
product in new market. This technique takes risk because the organisation can produce our
existing product and promotes it in new market or new area. Some times cultures of new market
are different from exiting market. The organisation will needs to understand about new market. It
is also required to know about the demand of customers in new market(Ward., 2016). After
analysing all these factors the organisation should apply these strategy for growth of its business.
There are several example of companies that have used this method for growth such as footwear
firm nike, adidas, reebok etc which have entered into internation market for the growth and
expansion of our businesses.
Product development- these is another method of ansoff matrix that refers to producing
new products in existing market. This technique can be apply by that company who have a good
market share in the existing market. From which owner of that company can introduce new
products and services in existing market for expansion. These method also takes risk because
some times organisations do not have the knowledge of demand of products so that they can not
assume to produce new product without any research. Blackpenny can apply these technique into
business after assuring that they have good customer base in the market so that new products and
services can exist for longer time. It can be say that these method is better than market
penetration because the organisation can not apply market penetration strategy for longer time.
Diversification- This is the last strategy of Ansoff Matrix that refers to a technique of
producing completely new products and services and introducing it into new market. This
method takes more risks than other strategies. In this method owners promotes new products in
the new market. So that it takes more risks because there must be have a knowledge of
customer's needs and expectation as well as new market(Steiner., 2010). Diversification can be
understand be the Samsung company. It started our business as a trading company and than
expand it into retail company. It was completely new good and services that was introduced in
internation market. Nowadays it is known for electronics division. Blackpenny also use this
Targeting other markets4

technique carefully that will help to expand its business in new market with new products and
services.
Therefore, Ansoff's Matrix is a key of a successful businesses and from this strategies
Blackpenny can understand that what technique is best for its business and how it can be apply
for the growth and expansion of its business(Wynn., 2017).
Task 2
P3 Potential sources of funding and benefits and drawbacks of it
Funding is the activity of providing financial services in the form of money by
government or other organisations. Usually funding helps to satisfy needs and expectation of
businesses. From this techniques Blackpenny can collect funds for its business growth. The term
is used by the organisation when it acquires more capital from external sources. It includes
credit, donations, venture capitalist, grants, subsidies and savings. Some have no requirement for
return on investments that are also known as soft funding.
Bank fund- Bank is known as a institution of finance. It is a intermediary of finance that
accepts deposits directly or by capital market into lending activities. Bank connects the
customers to surpluses (Burns., 2010). It is a most important source of funding for businesses
because its main aim is to earn profit. To achieve this objectives banks provides services of loan
to their customers. Owner of Blackpenny can deposit our capital in the bank and collects interest
or take loan for growing our business. But there are some drawbacks of this source that it is very
difficult to Targeting other markets obtain loans from bank. Business needs to have some track
record to show in the bank. The interest rates for loans can be high and business conditions of
the organisation often not sufficient to fulfil their needs.
Advantage is that company can take loan for longer or shorter period of time. On the other side,
disadvantage is that interest need to be paid monthly.
Government guaranteed lending scheme- This scheme is adopted by UK government
banks. It provides the guarantee of 75 per cent on loans that have taken by owners of
organisations. There are many benefits of this source such as businessman can take loan with the
amount of 1000 pound to 1000000 pound(Kumar., 2016). They can choose any kind of interest
method fixed interest rate or variable interest rates whichever suits them. Loan can be provided
for minimum three month to maximum ten years.
Targeting other markets5

There are many advantages. of this source such as businessman can take loan with the amount of
1000 pound to 1000000 pounds. Disadvantage is that interest need to be paid monthly.
Venture capitalists- This is another source of funding that can be understand by the
technique of investing our income into equity shares. That will help to earn more profits by
providing interest at good rate. Advantage is is a most innovative business source for funding
and can by understand by buying equity share in return of some interest. It includes clean
technology, digital media, internet and life sciences. But the most problem or disadvantage of
this source is that there is no security of a successful funding. The amount that have invested in
shares there is no guarantee of earning more interest from venture capitalist source.
Angel investors- It the business have some fund to invest in other businesses than it can
use this source. From this method the organisation can take some shares from other companies
and in return of its investment it can take more interest for its business. Advantage is that
company can easily take loan. It is useful technique of funding but there is also a disadvantage of
this source that business angel investment involved in more than one venture so the organisation
can not find the way to go in this process of investment (Kumar., 2016).
Equity finance- It is a process of raising capital by selling of shares. Equity finance can
be more appropriate than another financial source. It is very easy technique of funding if the
business is going in well direction. From this the advantage of organisation will not have to take
bank loans on high interest rates. But there are some drawbacks of this equity finance too that
can be consider as it is very costly and time consuming. In this management department have to
focus on business activities. There can be regulatory or legal issues arises when the organisation
wants to promotes investments.
Commercial finance- It is also a source of funding that helps to raise finance of
businesses. Form this source Blackpenny can take a commercial loan for the growth and
expansion of its business. Loan amount of this source is minimum 1000 pound that can be extend
to 25000 pounds. Duration of this loan is 12 months to 10 years. Interest rate of this loan is fixed
for the life of loans. The firm can repayment this loan over 12 months to 10 years whichever is
suitable for it. Disadvantage of this source is that it bank provides this type of loan for fixed rate
of interest for the whole life of loan(Steiner., 2010).
Targeting other markets6

Therefore, all this sources of funding will help to execute business plans and to achieve
business goals. From this sources the company can take money for implementation of
strategies.
Task 3
P4 Business plan and strategies for growth of the organisation
Executive summary
Business plan is important for success of the business. Every company have its own
identity and wants to be different from others. So that they must understand about their strengths
and weaknesses. Financial Strategy includes the financial growth of the businesses. In this it can
be determined that how can an organisation can improve its financial position in the market. It is
a process of estimating the requirement of capital.
Business concept: Business plan can be deriving as a growth strategy of businesses. It refers that
organisations have plan to prove our business from which products can bring to new customers
and new markets. The purpose of making plan is development of production or manufacturing
department and create a budget development to achieve business goals.
Market analysis: internal and external analysis can be conducted for identifying market
features. It help in developing understanding related to the factors that can affect the business.
Every company have its own identity and wants to be different from others. So that they must
understand about their strengths and weaknesses. By focusing on the goals of the organisation
they can make a difference
Management team
Human resource is a management department that have major responsibilities including
recruitment and hiring the best candidates for development of businesses(Kumar., 2016). They
are also responsible providing compensation, training, development programs and other benefits.
So they need to make some plans for recruitment and training programs. The strategy must be
according to the business goals and objectives
Marekting plan
Targeting other markets7

Multiple location growth strategy- this strategy explains that if the Blackpenny wants to open
addition shops than what should be the best geographic strategy(Ward., 2016). It includes the
strategy of expanding business in other locations from which it will be beneficial for growing
business.
Marketing strategies- It focuses on the necessary actions of the businesses to achieve objectives.
Marketing plan is an overall plan of the businesses. It is an effective strategy for promoting
goods and services of the business. It is a interactive process that follows business objectives for
development and growth(Wynn., 2017). Blackpenny can also make marketing strategy that will
help to increase productivity by promoting products and services into market. The plan should be
clear and realistic. It includes marketing budget for advertising and promotional plan.
Financial Plan- this Strategy includes the financial growth of the businesses. In this it
can be determined that how can an organisation can improve its financial position in the market.
It is a process of estimating the requirement of capital. It is a planning strategy that helps to
determine competitions in the market. In includes policies, investment and administration.
Through this strategy it can be analysis that how can the organisation ensures adequate funds. It
also ensures suppliers of fund that are investing in its company. It also reduces uncertainty. To
make financial strategy the organisation has to create policies for investing money.
Operational plan and management plan- It is a planning of manufacturing modules.
That focuses on utilisation of resources. To make production plan it is required to allocate
responsibilities or other activities to employees. It also focuses on raw materials and capacity of
production. This planning includes controlling of production process with resources utilisation. It
facilitates product mix and satisfaction of customer's needs. To match the requirement level of
customers they focuses on existing resources. This planning also helps to maintain delivering of
goods and services.
.
Task 4
P5 Exit or succession options for small business and benefits and drawbacks
At some stage organisations decides to leave business by selling, retiring and by doing
something else. Blackpenny is doing well in the market but there is no chances for continued
growth of its business. So it is required to understand about succession plan for leaving business
Targeting other markets8

and what is the best way to apply it into its business(Burns., 2010). For that succession or exit
plan will help the organisation to transition out from business smoothly. Having a plan of
succession can be useful when there is an unexpected event like death or illness. Planning also
helps to maximising value of businesses. So there are some succession planing that will help the
business. It is require evaluating developing plan before making exit strategies such as Buy and
sell agreement, establishing business worth, determining insurance and evaluating effectiveness
The step of succession planning is to evaluate effectiveness of the business. It includes the
process of ensuring areas and position of succession(Steiner., 2010). It is important to
understand about the efficiency of employees that have provided growth to the company.
Blackpenny can also evaluate its effectiveness for succession planning.
Choose successor- the first step of making successor plan is to examining employees and
their skills. It is require to understand that employees, family member and other party have
leadership skill or not.
Development of training program- To make a plan of succession it is important to
identify functions of the company such as executive duties. Before going to leave organisation it
is important to understand depth of the organisation.
Execute the succession plan- If the organisation have made proper plans relating to succession.
For the smooth exit for business it is important to execute all the succession plan effectively.
Ward, J., 2016.
This are the planning that is important to create before exit from business. Here are some
options for exit from which an owner of organisation can leave from business.
Liquidations- It is a easiest option for exit for business. It can be understand by closing
the business and everything comes to the end. In this option there is no involvement of
negotiations(Wynn., 2017). In this there is no transformation of control. But there are also
drawbacks of this option such as it is a waste because from this action market value and
reputation of the business reduces that is valuable. This option of exit destroys relationships and
value of business without providing any opportunity to recover.
Acquisition- This is another option for leaving businesses. In this option the owners can
pass the business to second generation. It is a most common way of exit. In this strategy the
Targeting other markets9

owner can negotiate price. It will help to understand about the right acquire that can buy and own
business for expanding into new market. But acquisition has its dark side too. Acquirer must
have good relationship with acquiree if it is not than their combination will destruct functioning
of organisation. It is a very messy option because some times systems and cultures next party are
different.
Passing the business to family members- This is a strategy of succession planning in
which family members can take over businesses. Blackpenny can also use this technique for
making succession plan. It can pass its business to family member. For this kind of planning it
needs to select a best leadership and management department(Steiner., 2010). Proving training
will help them to grow. It is also important to understand about selling procedure of the business.
Selling to partners- If the company wants to sell its business than it can use the option of
selling to partner. Two partner have owned a business than due to some reason if one partner
wants to sell his share to other partner than it will be the best option(Kumar., 2016). Before
selling to partner it is very importWynn, M. G., 2017ant to communicate all the programs.
CONCLUSION
From the above repost readers can analysis the growth opportunities for organisation.
From which they can analysis the factor that is helpful for the growth of their business. Growth
opportunities can be apply into businesses so that in this report Ansoff's growth Matrix have
described. From which it can be consider that by using Ansoff matrix growth strategy the
business can achieve objectives. In this report there are methods of funding that are different
from each funding source. For the growth it is require to create plans and strategies to achieve a
specific goal and it needs money. Financial sources can help to reach at the goal. So this report
describing that there are some funding sources available in the market which will help for
functioning of strategies. This report also define the exit option and succession plan for the
organisation. From which it can be understand that what option are available for leaving
businesses.
Targeting other markets10