Growth Opportunities, Business Plan, and Exit Strategy for SMEs

This report analyzes growth opportunities for Quality Solutions, a UK-based SME, focusing on strategies for expansion. It explores the application of the BCG matrix and Ansoff's growth matrix, providing insights into market analysis and product development. The report also examines various funding sources, including crowdfunding, peer-to-peer lending, and bank loans, along with their advantages and disadvantages. Furthermore, it details the development of a comprehensive business plan, incorporating financial information and strategic objectives. Finally, the report discusses different exit and succession options for small businesses, evaluating their benefits and drawbacks, providing a holistic view of SME growth and strategic planning.

GROWTH OPPORTUNITIES
FOR SMALL AND MEDIUM
SIZE ENTERPRISES &
DEVELOPING BUSINESS
PLAN AND EXIT STRATEGY
FOR BUSINESSES

Table of Contents
INTRODUCTION ..........................................................................................................................3
Part 1................................................................................................................................................3
P1: Analysis of growth opportunities .........................................................................................3
P2: Elaboration of Ansoff's Growth Matrix at Quality Solutions................................................5
P3: Sources of funding ................................................................................................................6
PART 2............................................................................................................................................9
P4: Business Plan.........................................................................................................................9
P5: Exit or succession options for small business along with benefits and drawbacks.............13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Small and medium size enterprises are independent organizations whose turn over and
employee base is not so large as compared to the big organisations (Shibia, 2017). In this report
Quality Solution which is a small and medium enterprises of UK, therefore headquarter of this
company has been situated in London. It serves various recruitment, management and technical
services. The various growth opportunity for the company has been explained in this report.
Apart from this Boston consultancy group matrix and ans-off matrix has been implemented to
know the growth of the company. Besides this, numerous sources has been described in this
report by which the company can collect the fund to run the business smoothly like crowd
funding, peer to peer, joint ventures etc. along with this the benefit and drawback of such sources
of funding has been discussed in this report. Business plan for the growth of the company has
been defined along with the financial information and strategic objectives has elaborated in this
report. Except this various various succession options along with their positive and negative
outcome has been discussed in this report. Besides this, difference between Boston consultancy
group matrix and ans off matrix has been defined in this report.
Part 1
P1: Analysis of growth opportunities
To analyse the growth of Quality solution, there are various matrix and methods available
through which the Quality Solution can help the company to grow further.
Boston consultancy group
With the help of BCG matrix, Quality Solution can make plans and policies for its long
term survival in the market (Mohajan, 2017). As the main work of this company is to render
services to other people and big companies, in the form of recruitment, technology and
information. This matrix has been segmented into four parts.
Dogs - it represents the product and services who have low growth and their market share is also
low as compared to other other companies. The services offered buy quality solution is quiet
common and many other companies are doing this nowadays even some big companies and large
groups don't need such services from different companies as they have formed different
department in their own company who manges the services of IT, and HR. so the market share of
quality solution is not that high but it can grow in near future, if they expand the range of their
services.

Question mark - as the name defines in the situation of question mark, company is not aware
with their business idea they always in a circumstance that do their business will get success or
not, do the people like their idea to start the business or not all (Madsen, 2017). To know this
often company spends ample of money in research but Quality solution is well versed with their
business idea and they don't fall under this category.
Star product – it shows the best product and services of any company which can make them a
market leader, Quality solution come under this category they have a good idea behind this
business many people are taking their services apart from this many big firms of UK are taking
services from Quality solution for the recruitment of work force.
Cash cow product - it refers the best product and services by which the company can generate
high revenue. In the case Quality solution, this company is providing best services to its clients
which the only key feature of this company and this lead to company to earn immense growth in
near future.
With the help of BCG matrix Quality solution can know its best services and on which point this
company is legging behind from others.
Merger
As it is a small company of UK, but for the sake of profit and business it can do mergers
with the big companies whom are operating in the same industry, by doing so Quality Solution
need not do invest more fund for expanding the business, simply it can get merged with big name
and fame consultancy of UK like KPMG, PwC etc., to grow further (Radzi, 2017). By getting
merged with these companies Quality Solution will get more clients and customers whom it can
provide services.
Social media
Quality solution can use the platform of social media to let know the people and big
companies about their various services. Nowadays social media has been a buzz among all age
group of people it will be helpful for the company as they don't have to spend lot of money in
marketing and promotional activities. Just they have to put regular update about their services on
their social media handle such as – Facebook, Instagram, twitter and their own website. By doing
so company can increase their reach in the market. It is a simple but an effective way to get
growth and to increase their market share as well.
These are growth opportunities which can lead this company on next level.

P2: Elaboration of Ansoff's Growth Matrix at Quality Solutions.
Ansoff Matrix used in different businesses and its developed by mathematician or business
manger, H.Igor Ansoff. Its help the business to understand all the risk that involved in market
especially to marketer so that they prepare foe their plan goals and objectives and execute better
in growing their business. The following are the four strategies that include in the Ansoff
Materix:
Market Penetration
This help the Quality Solutions in understanding the demand of their products or services in
the market so that it focuses on increasing sales of their exiting services in the existing market. In
this method various techniques can be use by Quality Solutions that involves lowering down the
prices for their services in order to attract the new buyers in the company, increasing investment
in advertising or promotion efforts so that it display its accurate offers or acquiring a competitor
in exact marketplace (Dawes, 2018). For example, Quality Solutions may serve their services in
same market and develop a market penetration techniques with offering introductory cost and
increasing the distribution channel.
Product Development :
This method is used when a company wants to introduce its new products or services in
existing market. This tool is used by Quality Solutions in its organisation if they want to
introduce their new services, but its takes time in extensive research and development along with
the expansion of its range of services. The following techniques can be used by Quality Solutions
like doing investment in research or development in order to caster to new services in existing
market, obtaining a competitor's product or mixing method to develop new services as as result
of that it may better serve the needs of existing market. The company may need to build a
partnership with other similar organisation to be to access their distribution brands.
Market Development:
In Market Development,a company apply the method to enter into a new market with their
existing products or services. For example, if Quality Solutions wants to introduce its services
than it might consider the expansion into new geographic area or customer segments etc. This
method only become successful if Quality Solutions has own its technology that it can apply in
new market, if their targeted buyers has strong bargaining power. The following method can be
apply by Quality Solutions for example make the entry into new foreign market.

Diversification:
When a company is using this method, they focuses on entering a new market with
introducing its new products or services. This become a little risky for Quality Solutions because
it require both a new service or market development is required (Kamyabi, Hasan Nataj Kordi
and Ebrahimi, 2020). The related risk can be curbed with the help of diversification techniques
that may include the strongest potential for increased revenues, as it opens up completely new
market segment for quality Solutions. In this techniques there are two method that an company
can apply in its management. One is related diversification in which synergies to be occurred
between new services or existing business, while second one is unrelated diversification in
which the company is taking no synergies to be realized in the market.
P3: Sources of funding
For the growth and development of Quality solution the owner needs a lot of money for
the expansion of the company (Shibia, 2017). For that company needs fund, and there are few
methods through which the company can collect fund and increase their services.
Crowd funding
This is a source of collecting money from people, simply it is a procedure of raising small
fund from the large group of people. In the process of crowd funding the business owner sell its
idea to the public and if the people like this they invest their money in the business. It is a very
old process of gathering fund, the main investor are the high net worth individuals who have
surplus fund to invest. Quality solution can collect fund from this method to expand their
services.
Benefits of crowd funding
There are various benefits of crowd funding is available like quality solution can reach to
the thousands of people and investors, who can invest their money or they can share further this
fundraising campaign of the company. With the help of this funding procedure, Quality solution
can know that what people think about their business, they can know how the company can use
its strength to to eliminate the weakness. The biggest advantage of crowd funding is that
thousands of people got to know about the business by just giving an advertisement in the
newspaper.
Drawback of crowd funding

It is a time consuming process, Quality solution need to do research and a lot of work and
create a buzz among the people before going for crowd funding. It is difficult to get the target
fund from the public (Setiawan, 2019). Some times people don't trust the company if it is not
name and fame company, so it is a difficult way to finance the company.
Peer-to-peer lending
It is very popular method to raise fund from the public, the lending and borrowing of
money is done through an online platform. In P2P process borrowers directly get matched with
the investors, it is platform where many people invest their money in the expansion of businesses
instead of keeping at their homes. It can be convenient way for Quality Solution to raise fund
from the people.
Advantages
It is a quick and fast method of raising fund for the expansion of the company with the
help of P2P, Quality Solution can get all the required fund and they need not have to pay interest
to the lenders apart from this it is beneficial for Quality Solution as they don't have to put their
property in the form of collateral.
Disadvantage
There are some disadvantages of this process if the company is having poor rating and it
is not so popular in the market (Kassan, 2017). So the company has to pay higher rate of interest
to investor to attract them, which becomes expensive for the company, As Quality solution is a
small firm and not so popular among the people they may need to provide high rate of interest to
the savers. Apart from this Quality solution has to pay high fees and charges to the online
website from where it is going to raise fund.
Bank loan
To raise fund, Quality solution can simply approach any bank to get a loan. It is a simple
and easy process and quality solution can easily get the entire amount what they are looking for.
Even the owner of Quality solution can take a personnel loan or a business loan as well.
Benefits
The major advantage of taking a bank loan is that the company has to pay a fixed rate of
interest until the loan get repaid (Taghizadeh, 2019). It is an instant method of raising fund

another benefit of bank loan is that it is a temporary way, once the company repay the loan they
don't have any obligation on the company.
Drawback
The biggest loop-hall of getting a bank loan is that company must have a good credit
rating and past records otherwise bank don't give loan, another is Quality Solution have to keep
some asset as collateral, if the company fails to repay the loan, bank will dell their asset and
recover the loan amount.

PART 2
P4: Business Plan
Product & Service: Quality solution provide various services to the industry such as technical
consultancy service, training and recruitment services, ISO consultancy services. It also provides
various technology and compliance services to industry and retail market (Wuryandani,
Ismoyowati and Nugrahini 2018). Quality solution also provide professional care training
provider and it also provides quality solutions for various businesses.
Objectives:
 To provide quality solutions to the business
 Increase service performance for clients.
 Maintain customer or clients satisfaction and provide best services.
 Improve operational efficiency.
Strategies:
SWOT Analysis: It helps Quality solutions to identify their internal factors which affect their
business strategies such as strength, weakness, opportunities and threats. Strengths and
opportunity factors help company to overcome their threats and weakness.
Strength: Quality Solutions have various strength such as they provide various services. This is
the biggest strength of the company it gives higher control to the company and also diversified
expertness and less competition.
Weakness: Delay in service deliver is the weakness for Quality Solution. Competitors take
benefits from the weaknesses. Operational inefficiencies and high production costs are also
weakness of Quality Solution (Parola and et.al, 2018).
Opportunities: Technological advances is an opportunity for the company. They can use this
opportunity in services which they offer to attract more clients. Fewer competitors is also an
opportunity for Quality solution because in market if they don't have competitor they can expand
their business and attract more clients.
Threats: Growing competitions, increasing costs and global pandemics are threats for Quality
solution which affect their growth and market position and it also affects its overall profitability.
PEST Analysis: It is useful strategy to examine the external factor that affect the Quality
solution business. This strategy include product, economy, social and technological elements.

Political Factor: This factor explains legalization impact in the company. It includes political
trends, tax policy, types of government etc. (Perera, 2017). Quality solution maintain its
standard laws with government.
Economic Factor: Quality solution restructure their sales and marketing campaigns because of
economic downturn. Economic conditions has the highest influence in business and company. It
also affects companies all-over profitability.
Social Factor: This factor greatly effect on the company. Age distribution, population growth
rate, education, diversity etc. social factor affect companies growth. In quality solution
population growth and education factor affect their sales growth in market.
Technological Factors: New age in technology completely changed business promotion and it
affects the business and company. Quality solution use different technologies and digital
platform to promote their service and to attract and reach more clients.
Ans-off Matrix: Quality solution use different marketing tools and strategies to grow the
business in market. Ans-off matrix help them to promote and analysis the market position and
how the can expand their business in market and new areas to attract more clients and customers.
In Ans-off matrix they have four methods such as above explained Market penetration, product
development, market development and diversification (Thabit,and Raewf, 2018).
It is justified that Quality solutions should use Market development to grow their
business or to attract new customers. Market development help Quality solution in expansion. It
also helps company to promote their existing services in new market. By the help of this method
Quality solution can explore in new market and target new customers with existing services.
Porter's Generic Strategies: This method include different strategies such as cost leadership,
cost focus, differentiation and differentiation focus. These strategies help company or business to
expand their scope widely in broad and narrow areas.
It justified that If Quality Solutions use cost leadership strategy than it will be more
beneficial for both company and clients. By this strategies Quality solution can increase profits
by reducing its service costs. It can also set price according to industry requirement. Quality
solution can also increase market shares by charging low prices and also make low profit.
Basically this strategy help company to increase their sales by reducing price and it also attract

new customers. In this Quality solution decrease their service price to attract and reach more
customers.
Competitions: Quality Solution have less competition but it has threats from growing
competitors. To overcome this threat and to maintain their position in market they can use above
explained strategies such as Market development, cost leadership method, diversification etc. By
using these strategies Quality solution can decrease their threats of competition, and they can
also expand their business in new areas (Amiri, and et.al, 2018). With the combination of cost
leadership and diversification method they can minimize their competition in market.
Marketing Strategies:
Marketing Mix: This strategy is used to describe and differentiate the services and product
provided by organization (Aven, 2019). This consists 4Ps such as product or service, place,
price and promotion. Quality Solutions used 4Ps to identify some key factors for business which
include clients needs, their service is fulfilled their needs or not, how service is proving to the
clients, how their employees interact with clients or customers and how they use their recourse to
take competitive advantages.
Product or Service: Quality solution provide services to clients and industry for their better
performance in which they provide technical consultancy services, different service which
related to technology etc. In this factor company also try to increase their sale by updating the
existing services to achieve its objective. To successful in their business Quality solutions needs
to understand their service and its life cycle. Type of the service can also explain business
growth and market place so company try to improve their service quality to attract more clients.
Price: Service price is important factor for company. By this client or customer decide they need
their service or not (Leiber and et.al, 2018). Quality solution must link their price with their
services. They can also provide seasonal, discounts, different offers to reach more clients and
customers. They can also set price according to their competitors for competitive advantages.
Quality solution market mangers also need to determine and give appropriate discount to their
clients. They can also set high price for premium services.
Place: It is important factor for the company because it decides growth of the company. Place
includes clients and market. In this Quality solutions comp[any determine place for marketing

and to reach new customers. This factor also help company to provide a service or promote a
service in specific market where clients have requirement of their services (De, and et.al, 2018).
Promotion: It includes advertisement, public related, direct sale, and different promotion
strategies. In this factor Quality solution market mangers need to use innovative promotion ideas
to reach new customers and to expand their businesses.
STP: This strategy help Quality solution to find target market. This strategy use in Morden
marketing. In Quality solution it is most common strategy to applied for target market. It helps
company to create marketing communication plan and help marketing mangers to prioritize their
development and promotion ideas. It also helps in service or product differentiation.
Budget's Plan:
Base AMOUNT ($)
Service cost 700
Marketing cost 200
Labour cost 2000
Technology cost 1500
Total $2400
Risk Analysis:
According to risk analysis Quality solution have some internal and some external risks
which affect its business and its market positions. In internal risks company have financial and
marketing risk and in external risks they include global pandemic and changing economy risks.
To overcome this risks company make sure first identify the risk and after identifying
they need to make risk documentation after documentation company mangers need to appoint
monitors who try to solve these risks and after appointment they should try to determine and
control the risk for that they need to review risk assessment periodically so that the risk not affect
their business and not create any barrier in their growth (Barrow, Barrow and Brown, 2018).
Evaluation: