Business Report: Planning for Growth, Funding and Exit Strategies

This report provides a comprehensive analysis of business growth strategies, focusing on key considerations for evaluating growth opportunities, applying the Ansoff matrix, and identifying potential sources of funding. It examines the benefits and drawbacks of various funding options, including equity, loans, and crowdfunding, and then presents a detailed business plan for scaling up a business, incorporating financial information and strategic objectives. Furthermore, the report assesses exit or succession options for small businesses, outlining the advantages and disadvantages of each. The report uses the case study of Brooklands Hotel to illustrate the application of these concepts. The report covers market analysis, financial planning and strategic objectives for scaling up a business.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................1
P2 Opportunities for growth applying Ansoff’s growth vector matrix..................................3
TASK 2............................................................................................................................................5
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other........................................................................................................................................5
TASK 3............................................................................................................................................7
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business..............................................................................................................7
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other......................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning is an essential element which enable an organisation in its development. Growth
can ascertain by preparing an appropriate plan network under which every pro and con get
determine in an appropriate manner. This factor is supportive in nature in long term context
through which chances of operating business and gain success become easy. Planning for growth
is useful for every small business enterprise whom want to enhance consideration at global or a
wide level (Barbour and Deakin, 2012). This planning growth will directly support in making
business activities proper and efficient in nature as well. Brooklands Hotel are going to use
digital technology through which business can establish themselves at vast level. Hence, in such
consent analyse the key consent which enable in performing things in an appropriate manner.
Along with this, Ansoff Matrix enable in will usually use by an organisation in order to expand
the market. Moreover, firm have to determine all resources which support them in allocate
appropriate money as well. All these things are helpful in making the business expand to all over
the world.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context
Growth and development is a major concern towards every business association
which have to take in account by management. The expansion is an only thing which
enable an association to grow and expand business at vast level so that chances of
generating more and more revenue become easy (Beatley, 2014). Growth is a risk but it is
a duty of managers to prepare right strategy which enable stability towards a business.
There are various number of considerations are identifying which have to take in account
by every association and their management for gaining growth and development:
 Turnover: Business have to analyse their sales which are taking place within a
perfect time frame. This factor is helpful in measuring the growth of a business
through which chances of ascertaining goals become easy. Evaluation of growth
opportunity get done through maximising the turnover of a business within period
of time.
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 Market share: Another major consideration which enable a company in evaluating
their business growth is market share (Chen and et. al., 2014). Market share of an
association will only get rises with producing and delivering more quality based
products. Market share of a company reflect upon value of an organisation in
comparison with other competitors.
 Profitability: Every business has a major objective which support and help in
growth and development which is revenue. Every business association have to
produce high quality products when they are dealing at global level through which
more number of customers get attract towards them as well as their profitability
also get enhance.
 Staff: With expansion of a business, a major thing which require most is staff.
Management have to recruit some high knowledge professionals which directly
support in producing quality based products and services. It is essential for every
small or large concern to provide jobs to only such number of people whom have
capability to deal with every consent.
 Advanced technology: Every business association have to use new and advanced
technology so that appropriate and high standard products and services will get
manufacture. This enable them in making things corrective in nature and also
support in gaining competitive advantage to a business profile.
Brooklands hotel are the small hospitality service provider in UK whom want to expand
their business operations and for this relation, they have to conduct a market research and
identify the use of digital technology use in such business expansion (Eddleston and et. al.,
2013). They can use social media, and digital advertisement process which facilitate
growth through reaching wide range of customers around the world. Following is a basic
information about an organisation which have to take in account in an appropriate manner:
1. Mission: “To provide a superior service to clients through enthusiasm, empathy,
original character, involvement, commitment, creativity and elegance.”
2. Vision: “To continue to 'Make it Happen' through our Brooklands ethos, thereby
looking after our guests, team and investors.”
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3. Staff members: There are mainly 106 staff members are currently working over
there and staff turnover is about 32%. Their employees have good and appropriate
skills and knowledge to deal with every consent in an appropriate manner.
Brooklands hotel want to expand their business operations all around the United
Kingdom and thus their major aim is just to deliver quality based services to ultimate users
(Galland, 2012). their present turnover is about £17,000 a turnover. They want to enhance
their turnover with 20% increment through market expansion of shares as well. Along with
this, they also lead to increase staff members from 106 to 250 which is sufficient to deliver
and communicate with every consent users and fulfil interest as well. Along with this,
another major thing is using advanced technology in business which enable them in
reaching towards wide and vast range of customers for making and enhancing profitability
of business. All considerations are interrelated with each other which support in making
business activities appropriate in nature.
P2 Opportunities for growth applying Ansoff’s growth vector matrix
There are variety of techniques will be used by every business firm in order to make their
business operations appropriate and effective in nature. This consent is helpful in making the
things corrective in nature which is helpful for growth and further development. Growth is a kind
of risk which can only get control by preparing appropriate action plan and using suitable
strategy to deal with that as well (Levy, 2012). Opportunities in wider market context refer to
generating more and more revenue for business as well as enhance number of staff members also
for delivering quality based services to every client and users.
There is different market entry scheme can be used and apply by business management
through which they become able to deal with every uncertainty and risk and gain growth
opportunities as well. There is different sort of planning tools can be used by an organisation in
order to enter into new market world and make their feasible in nature as well.
 SWOT analysis
 PESTEL analysis
 Ansoff Matrix
 BCG matrix
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Out of them, one of the most appropriate technique in order to deal with such consent is
Ansoff matrix which is helpful in ascertaining all goals and targets in an appropriate and
effective manner.
Ansoff matrix: This is a process which is helpful in taking the decision by senior
management personnel in order to prepare strategies for gaining future growth and maintain
stability in business operations as well (MacLeod, 2013). This factor is helpful in long term
context through which chances of ascertaining all opportunities properly get enhance as well.
Ansoff Matrix includes four major stages which support in analysing the market structure and its
nature as well. Market penetration: According to this context, many business organisations will lead to
grow their existing offerings in current market scenario through which their market share
get enhance as well. A major objective is to identify new customers by increase number
of offerings and their quality as well. Market development: According to this perspective, business mainly tries and focus to
increase their market by introducing business services and offerings into new world. This
process is completely related with business globalisation concept. A major opportunity by
applying this segment is that new range of customers get enhance which support in
increase profitability as well. Product development: Sometimes, an organisation tries to increase more number of
products and services in existing market world. For this, management have to solely
focus and increase investment in research and development department whom are
capable in finding out taste and preferences of new users in existing market.
 Diversification: Most of the times, business grow their activities in new market world by
introducing new offerings as well (Moseley, 2013). It is the hardest and difficult task for
business concern to grow product and services in new market world with new range of
goods and services as well. Thus, business can use another strategy to deal with this
relation by merging business with existing firm so that they become able to handle every
situation in existing segments.
Brooklands Hotel can apply this strategy when they are going to handle a new market world. For
this relation, two major portion will enable them in do so which are market development and
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diversification. Both segments are more and more profit generating for business through which
chances of ascertaining goals and targets effectively will become possible.
Hence, when management will be going to apply diversification concept, then they have
to analyse the most profit generating association of new market and try to collaborate business
with them in order to make their presence in market (Schetke, Haase and Kötter, 2012). When
business completely get establish then Brooklands have an opportunity to break the deal and
conduct activities according to their own manner.
TASK 2
P3 Potential sources of funding available to businesses with benefits and drawbacks of each
other
Every business growth and expansion is must and enable them in enhance their market share
and provide long term benefits as well. This factor is essential for business which have to
take in account by management of every business firm. Thus, expansion and growth could
ascertain once by using and analysing potential sources of fund. There are various potential
sources of funding are identifying which have to take in account by every business
association so that better and effective investment in their project could be managed. But
every source of fund has several benefits and drawbacks are identifying which have to take
in account by an association in an appropriate and effective manner.
 Equity: Sometimes, many big organisations issue their shares in market with a hope
to arrange several amount of money (Todes, 2014). This process is helpful for them
in arranging money as chances of risk are relatively low. Business association can
utilise such option when they really need fund. One of a benefit of this process is that
organisation become able to arrange more and more fund and maintain adequate
capital as well. But a major limitation of this consent is lack of control because
shares are easily transferable in nature.
 Loan: Another major source of finance is loan which get arrange through banks and
other financial institutes. They usually charge interest on behalf of money and fund.
This section can arrange fund on the basis of financial information of a company. An
advantage of loan is that it is easy to arrange but whenever debt is taking place at
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such moment chances of loss are high. hence, it become hard to gain proper share
and payback get difficult to perform.
 Family and friends: A easiest source of arranging fund is family and friends from
which small business owners can arrange fund. But this segment has lack of
availability at such moment when business will be going to operate at vast level. This
is a major drawback of this option but benefit is that it easily gets arrange to such
personalities whom are trustworthy in nature.
 Crowd funding: It is a type of fund raising technique in which business usually
appeal to large people to raise fun and they all provide relatively small amount for
such consent. This process typically get done through internet and other sources
where more and more number of people get reach easily. This funding process avail
benefits that sufficient capital and money get arranged but a drawback about this
factor is that if project get failed then it will create negative image of a company
which affect their working in future consent.
 Capital Venture: This method of funding get done for such business corporations
whom want to grow in future and require appropriate investors for this perspective.
Hence, such capital which arrange through investors are termed as venture capital
and such investors are stated as venture capitalist. A major disadvantage about this
sort of financing is loss in control by a business managers and they are not able to
take any decision without taking permission from investors. An advantage by
adopting this technique is that more and more fund get arranged by a business in an
appropriate manner.
Brooklands hotel can arrange and identify one of the option for arranging fund. Out of them
equity is a best option to arrange fund and for this organisation can use social media as a
platform to arrange money. Hence, they can provide application and allotment to such
personalities whom want to take shares of a company. This sort of use of digital technology
enable them in making expansion of business and they are going to ascertain growth in an
appropriate manner as well.
Managers of hotel also have to analyse all limitations in an appropriate manner and then
take suitable actions to overcome from them. This factor will support them in performing
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things in an appropriate manner. sustainability and stability is a major concern of business
and this get ascertain only by fulfil options of fund raising properly.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
In order to get maximum profitability and market position every organisation needs to get
a proper plan. As, it has been identify that planning is an important function of an organisation
through which difficult issues can be solved easily (Planning for growth, 2017). Each
profitability business operations can assess its business plan to determine that they can meet out
their basic requirements. This need to be very crucial aspect in analysing current performance on
a regular basis (Valler, Phelps and Wood, 2012). The strategies are more dominant so that
chance of getting better results can possible in quick time. It has been seen that a business plan is
known as formal report of company's aims and objectives, reason for their attainable growth and
plan for reaching to that particular targets. It may also define background information of business
or team those are related with conducting their new venture.
Business plans are always require inherent strategies. Don't forget to know that business
ideas must be long, formal document that present overall summary of company future growth
and existence. This is sensible to determine existing growth and performance of company so that
maximum possibility of getting positive results. One Bookland hotel are analysing its
performance and identify the major growth areas which is they want to target at first (Ziari and
et. al., 2012). This the time when company is need to revise their business strategies from a fixed
document into wide nature that would help firms to survive for very long period of time.
In the way to design business planning, a project manager need to considered so many aspects.
Some of them are:
Project aims and objectives: Before making any strategies, company would required to
set a definite aims and objectives that will help them to attain long term growth and
sustainability. Certain marketing planning can also be done that covers the upcoming sales
projection and to determine its potential customers (van Assche and Beunen, 2013). As, it will
help them to gain more competitive advantages after a year ends.
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Profit maximisation: The first aim of the any business concern is to maximise the profit
for the company. Because on this basis, future of the company is decided. It is considered as
short and long term process through which estimation of price and outcomes that they are
expecting must be higher.
Increase productivity: Another important objectives of an business is to keep their
records maximising productivity of an organisation.
Growth: Any business plan is made on the basis of attending maximum chance of
growth in near future. It is can be the base of business plan.
Operational details: In this process, certain information that covers specific information
regarding company functions, supplier name and necessary requirement and equipments which
are needed at the time of project planning.
Financial information: For any business operation, management need to have sufficient
amount of capital. There are various sources by which a company can collect maximum funds.
Basically, two types of sources are available with the company. Such as internal sources that are
part of owners capital and retain earning etc. while, external sources are those from which funds
are managed through outside parties in the form of bank loan etc.
A complete summary of business plan is based on necessary objectives, targets and
project completion dates.
If company wants to present there plan in front of public they required to have various
information such as bank or investors, then there is an perfect requirement which is need to be
covered under their project are:
The business plan must be made by focusing aims and objectives of individual business
concern. They are mostly related with attaining maximum opportunities in coming time.
Background of the company must be cover financial information of last three years. It
will help them to identify their performances and according to that necessary adjustments can be
made. Ability and knowledge regarding their own interest in taking maximum risk are need to be
evaluated in proper manner.
Detail information about product and services those are best suited to them at different
situations.
From the above information regarding all those factors that are affecting company's
performance is need to be determine before making any planning (Ward, 2016). It has been
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found that maximum time performance of the company can be affected but because of these
factors they can use to manage their business operations in more effective manner. After
analysing with the use of proper planning tools a business plan should be passed for further
processes. Only in those situations investors are interest in making valuable contribution in there
company when they are getting sufficient among of return. There are various effective business
strategies that can be helpful in making innovative plan. But in this project only acquisition of
new growth planning is considered. Diversification in market can be right option for the
company as it will help them to gain maximum profit with their available resources. In this
planning, higher authorities trying to find out various competitors those are their in same
business can be affect their plan. Any sorts of copied information can make imbalance in their
sustainability.
Statistical data according to the plan for getting maximum profit in respected years.
Year sales Estimated profit
0 to 1 16816 70020
1 to 2 16122 61700
2 to 5 17058 66750
5 to 10 18250 76200
0 to 1 1 to 2 2 to 5 5 to 10
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
16816 16122 17058 18250
70020
61700 66750
76200
Trend Line chart
Estimated profit for the coming years
sales
Estimated profit
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From the above charts, it has been concluded that every data taken is based on
assumption by keeping future target of the company. Planning is need to made according to the
chart framed. In 0 to 1 the target of the company is incur sale of 16816 and get a profit of 70020
and so on. The expectation of sales and profit is more in 5 to 10 year as they are getting
maximum profit of 76200 with the sale of 18250.
Strength:
 Create chance of increase business productivity and generated customer values.
 Estimation of exact sales done by the company can be easily evaluated.
Weakness:
 Only internal internal aspects are taken into consideration rest of them are having very
less contribution.
 Difficult to reached at the target with less of the information or old techniques.
Opportunities:
 Great chance of getting maximum support from team so that growth and profit can be
increased.
 Option to expand a franchise into a new city will increase the business at international
level.
Threat:
 All those risk which are associated with the business are need to be controlled before
making any business plan. As there are so many competitors are available into the market
which are already dealing in attractive products.
 A contingency plan should be always be with the company to implement whenever it is
required.
TASK 4
P5 Assess exit or succession options for a small business with benefits and drawbacks of each
other
Their is always a positive and negative aspects during project formulation. The exist planning is
one of that aspects. But in practical situation it is not true. Different owners are need to target on
growth and success that they do not even thing on leaving that. It can be more profitable and
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effective. It mostly operated in that conditions in which firm is operating or regulating their
businesses (Wu, 2015). It has been found that various strategies is mainly required for operating
there business in effective manner. Some of them are:
Offer merger and acquisition strategies with large firms or to its competitors.
Sell it to the private equity and other relative investors.
Transfer this to a family members or sell your right to one single individual for operating their
business.
In spite of this there are so many other tools and techniques which is used in exist strategies.
Some of them are as follows:
Close down: There are so many small scale businesses which is closing their operations
because there are able to cover up their business losses. The company owners had a bankruptcy,
or just got retired or they are not able to perform according to their set standards. It has been seen
that in every year many of the business are shutting down (Wynn, 2017). Mostly they use to sell
out their assets and firm name to other company as they are not handled it in pleasant manner.
It has been seen that the reputation of company is maintained if they are running their operation
for the very long period of time.
Benefits:
 It will help to manage their outstanding debts.
 To protect them from incurring heavy losses.
Drawbacks:
 Changes of future profit can be low down as it was in past.
 It will take maximum time to recover.
Drain it: According to this particular system it is required to take maximum range of
cash so that one can easily came out from the businesses. This kind of plan can sense where the
company is manufacturing large amount of funds and required less hand holding by the business
owners. Moreover, this particular strategies does not make wide profit and return in strategic
formulation. The team and organisation is need to take less attention which is more beneficial for
them.
Benefits:
It is one of the useful aspect to determine which units is more effective or profitable for
the company.
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Drawbacks:
Such kind of option has very moderate chance of getting huge profits.
Sold out business : It refers to be the effective option available with the company. In this
particular portion, there is always a chance of getting one question that is how much of profit a
company can get from its total sales. The primary objectives in this particular section is to
determine best buyer who wants to invest large amount of cash in their business units.
Benefits:
In order to increase sale for the company such action can be taken by the owner. It is one
of the more effective ways to control operations.
Drawbacks:
It is more time taking activity and probabilistic.
Friendly buyout: It is an important strategies in which a firm owners shared its entire
shake to its family members, employees and friends. This is said to be appropriate sale which is
made with their own interest. The deal of transaction can be different for every other parties. The
fact of matter is that the purchasers are closer the business people which makes the firm less
demanding and complex to occur (ZHANG, ZHAOand CHEN, 2013). This influences simple as
firm administration to have much information about the customers; this winds up will be much
harder in light of the fact that owner has a tendency to be the less concern about customers and
all are most likely to give your assist a chance to decline in arrangement and planning. It assure
to determine as a professional skills that are required to increase sale of company in order to gain
maximum advantages.
Benefits:
Under this, business continues by their family member. It is more effective option as
profit can be me determine by their family member itself.
Drawbacks:
There is chance of conflict in profit sharing or stake option in the business.
CONCLUSION
From the above project report, it has been concluded that planning need are always their
for any company which are tying for expansion. It is important to using correct strategies and
tools that can help them to manage their valuable resources. This project summarised various
information about different opportunities for growth that are analyse through using Ansoff
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matrix. Several tools and techniques are explain in this in order to assess it viability in the
projects. Exist strategies and business plan is discussed under this project.
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van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
place branding. In International Place Branding Yearbook 2012 (pp. 69-77). Palgrave
Macmillan UK.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
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Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
Wynn, M.G., 2017. Planning and urban growth in Southern Europe. Routledge.
ZHANG, J., ZHAO, D. and CHEN, H., 2013. TERMINATION OF GROWTH
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Online
Planning for growth. 2017.[online]. Available through:
<http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth/>.
[Accessed on 14h november 2017]
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