Report: Business Growth Strategies and Financial Planning - Unit 42

This report provides a comprehensive analysis of business growth strategies and financial planning for Homes for Good, a social enterprise in the real estate sector. It begins with an introduction outlining the challenges faced by small and medium enterprises in market competition and highlights the importance of a systematic business plan. The main body of the report includes an analysis of key considerations and growth opportunities within the organizational context, emphasizing the importance of resource allocation, revenue generation, and talent acquisition. The report applies Ansoff's vector matrix to evaluate growth opportunities, detailing strategies like market penetration, product development, diversification, and market development. It assesses potential sources of funding, including angel investors, bank loans, and public funding, outlining their benefits and drawbacks. Furthermore, the report includes the design of a business plan with financial information to scale up the business. Finally, it concludes with a discussion on the impact of various exit and succession options adopted by small businesses, providing valuable insights into strategic planning and financial management for sustainable growth.

Unit 42

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Task 1...............................................................................................................................................4
P1 Analysis of key considerations and growth opportunities within organisational context ....4
P2 Ansoff's vector matrix application for evaluating growth opportunities in given
organisation.................................................................................................................................4
Task 2...............................................................................................................................................4
P3 Assessment of potential sources for funding in organisation with its key benefit &
drawbacks....................................................................................................................................4
Task 3...............................................................................................................................................4
P4 Design of a business plan including financial information to sale up business.....................4
Task 4...............................................................................................................................................4
P5 Assessment on impact of various exit & succession options adopted by small businesses. .4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

Introduction
Small & medium enterprises today in market competition face many challenges related to
long term growth of organisation. In order to be successful a systematic formulation of tangible
plan is important to achieve ultimate goal set by entrepreneurs. Following report explains
different approach used by small or medium scale enterprise to reach up to potential customer's
expectation. In this assessment various ways of market expansion, succession or exit alternatives
utilized by small business owner are discussed. Lastly, systematic representation of business plan
design is created with financial details guiding chosen firm in optimum utilisation of resources
effectively.
MAIN BODY
Task 1
P1 Analysis of key considerations and growth opportunities within organisational context
Business plan consist of step-by-step procedural strategies for success of company
product or service. These steps are establishment of customer value preposition, identification of
ideal consumers, key indicators of productivity, revenue flows, talent acquisition and analysis of
competitive market. Homes for Good is a social enterprise established in Glasgow, United
Kingdom that deal in real estate businesses with motive of providing shelter to maximum
households. services of company are rented apartments, houses, offices etc. Identification of
efficient resources to start a new business or expand existing one require following factors
mentioned inn following:
Allocation of appropriate resources: When businesses decide to start new product or
service resources to start new venture is required (Widiatama, Hamid and Matrono, 2018). Also
start-up require good amount of investment. Hereby it is very important that appropriate
resources are allocated. In context of Homes for Good, useful resources for success in property
management functions are affordable land prices, raw material, fixed assets such as furniture,
plumbers etc.
Revenue funds: Financial sources are extracted through ways of venture capital, public
funding & supplier relationships. Chosen firm have been successfully taking financial assistance
form angel investors in market helping them develop company product or service.

Investing in talent: Management of human resources ensure effectiveness of functions in
select firm. In relevance with selected social enterprise, providing shelter to households can only
be done through establishing good relationship with potential families willing to invest in self
houses. Therefore, employees are given training on how to perform different activities in real
estate deals including rental functions.
BCG Matrix
The Boston Consulting group's portfolio matrix (BCG matrix) is a four quadrants matrix
and have two axis i.e. horizontal and vertical, denote relative market share in horizontal axis
whereas represent market growth rate in vertical axis. This matrix is represented by BCG, USA
also called as Share or growth matrix. According to the BCG matrix, firms use this in relation to
industry growth and classified as low or high. It means that it help organisation to plan strategies
for long term, it gives representation to assess different products in portfolio so they can decide
in which products they have to invest, in which product to invest and which product need to be
develop. In other words, this help them to focus on their capital and resources to reduce loss and
generate revenue. Homes for Good can use these quadrants such as Stars, cash cows, question
mark and dogs for their growth and in today's changing marketing strategies.
Stars:- The organisation is considered as stars when they have strong market share and
can generate cash. Those organisation who have monopoly in market and launch their product
first is often termed as star. In context to Homes for good, can use this quadrant as they give
homes or offices for rent because the money is rotating in the market. This cell can become cash
cows till the time they sustain in high market comes down.
Cash Cows:- It represent high share and low growth in market as they create more cash
than they invest in other business. These organisation mainly follow this quadrant for strategies
to be stable (Zhang and Liu, 2018). They require cash to turn into market leader, research and
development and shareholder dividend from quadrant of question mark. Homes for Good invest
money in cash cows to sustain in the current productivity to gain share in the market by renting
the classic range of houses and offices for rent.
Dogs:- This quadrant represent low growth rate and low share in market, they do not
require much cash neither generate cash. The reason for low market growth in organisation units
as they face disadvantages of cost whereas because of low market share company deal with poor
quality, marketing of products are ineffective and goods cost are high. Organisation generally

adopt retrenchment strategies because they increase market share from expense of competitor
business.
Question Marks:- It means business units have low share and high growth rate in market.
They want more cash to invest to gain market but return is very low, have to maintain business
units work successfully. In this quadrant there is no particular strategy to adopt, only they adopt
expansion strategy when they have monopoly in the market. In reference to Homes for Good
apply question mark for their organisation when they launching new houses or schemes in
market for their betterment in commercial market.
P2 Ansoff's vector matrix application for evaluating growth opportunities in given organisation
Ansoff's growth vector matrix focus on planning strategic marketing to analyse the
growth opportunities by introducing new goods and services in the market. To increase sales
now companies by using alternative market segment in different location for new or existing
products they offer four strategies such as market penetration, product development,
diversification and market development. With these strategy they also analyse each with risk
involved in them. This matrix is represented by H. Igor Ansoff to help management and market
for growth and risk associated. In context to selected organisation, by using this matrix they can
determine which strategy is best for increasing sales in existing or new products. The four
strategies for growth are described below:-
Market penetration:- It means selling existing products to existing customers, this way
they increase share in market. In context of Homes for good, they can use strategy by decreasing
prices for rental or promoting new offers. To do this company can attract customer and their
values. The main objective of strategy is to protect dominance in market, existing customer use
products, increase share in current products.
Product development:- This strategy means introducing new product in exchange of
existing product. For launching goods they have to research and development whereas they
know about current market situation or needs to innovate product. This strategy is applicable in
organisation where goods or services need to be competitive in market. To implement successful
strategy they have to identify need and demand of customer and being first to launch product.
Diversification:- This strategy means enter into new segment of market with different
new products. It is risky because development of new product and new market as they do not
have much experience .

This way the organisation earn revenue and can open the stream for business. In context to
Homes for Good, as they give homes for rent and now they are diversifying by renting building
for office purpose. There are two types of diversification such as related and unrelated. Related
diversification refers to the relation between new and existing product whereas unrelated
diversification refers that there is no relation between existing product and new product.
Market Development:- This strategy for growth of business where they sell in new
market with existing product. There are many ways to implement market development such as
new product dimensions, producing goods or services in new geographical area, distributing
product from new channels and set different prices in various segments to attract different type
of customers. This strategy is risky than market penetration. In reference to selected company,
they set different prices for their houses for customers and in different area.
From the above paragraph it is concluded that organisation should use Ansoff matrix because
they can determine if there is need to improve in products or in business units or introduce a new
goods or services in market.
Task 2
P3 Assessment of potential sources for funding in organisation with its key benefit & drawbacks
Basic need of small scale business generally is financial funds that company require to
grow their business (van Hoepen and Coetzee,2020). Firms having low capital sometimes are not
able to complete large scale organisation in reference with resources, quality of product or
extraordinary benefits to customers. Therefore, it is important for social enterprises to develop
their strategies of getting investments through various sources discussed below:
Angel investor funds: These are business individuals or groups that have good mutual
relationship with chosen firm to give financial help in form of venture capital for short or longer
span of time. In context of selected real estate firm, many investors have common interest in
property management willing to invest in company goals & objectives.
Benefits- This help organisation build strong relationship with other companies in
market. The supplier firms too in context of selected firm provide support to companies in form
of resource funds proving to be suitable option.
Drawback- Many times, investors providing financial assistance interfere in business
decisions taken by owners in authority leading to contradictions & conflicting situations.

Loan from bank- This is a simple and ethical way of borrowing money with fixed
amount of interest rate charges by bank officials. Selected social enterprise can use this option of
funding for providing their customers with home loan facilities.
Benefits- Funds from bank can easily be applied within limited time and no
complication.Since loan is granted for a specific period, company need not face any obligation
until due date can freely use amount into business operations without any tension of returning
back money.
Drawback- Small business sometimes do not get profits initially have scarcity of
monetary funds & resources. This situation may lead company face financial burden of paying
off bank loan with high rate of interest.
General public- In this modern era of internet, different strategies are adopted by online
businesses to get interest of general public (Siewert and Louderback, 2019). Therefore, Homes
for good have successfully created various marketing campaigns & initiatives in open market for
generation of funds. Social media and website formation are frequently adopted mediums to
connect with interested people in crowds willing to invest in business start-ups or expansion
projects.
Benefits- This form of funding help chosen firm create brand awareness among general
public, get funds in large amount within less time with no interest rate charges etc.
Drawback- Convincing people to actively participate in business affairs is not easy and
may take lot of time for newly established business firms.
Recommendation- The above options given are different ways by which firms can get
funding. One of suitable options for selected organisation is venture capital investment. This is a
good way of sourcing funds as there is no fixed time period to payback money borrowed by
mutual investors. This help companies smoothly carry on functions without any financial burden
in future.
Task 3
P4 Design of a business plan including financial information to sale up business
Good planning decision for starting up new venture or expand existing business require
an appropriate business plan with detailed analysis of financials, resources and human capital
management in organisation. Business design therefore is a written form of plan documents

containing financial details, marketing strategies, operational planning, executive summary and
structure of respective company. Given below are different components of business plan in
context of chosen real estate organisation with critical data analysis:
Components of business plan design
Executive summary: This is a brief description of business plan containing major
highlighting points about purpose of planning, organizing & communication of company goal
objective (Model, 2020). Homes for good summarizes its services with providing affordable
housing to low income people for improving their life standards. The report with use of above
BCG matrix & Ansoff's growth matrix derives different strategies amongst which chosen firm
can chosen suitable one fro their business growth and development.
Purpose/ vision: The main purpose of Selected organisation is becoming a leading public
housing company by expanding rental homes business as well as enhancing living standards of
people in UK.
Mission: Company mission is providing maximum households to families, migrants,
children & students with self-sufficient houses & affordable shelter homes to low income
earners.
Strategic objectives: In relevance with selected organisation, in order to achieve company
set mission, objective strategies are formulated (Katz and Green, 2018). These are building a
strong in house group of leaders responsible for handling of maintenance of homes, investments,
finance loans , rent, dealings, contracts with tenants etc.
Company details: Homes for good is a property dealing agency that performs real estate
business such as providing rented houses to families, in-built offices to business professionals,
rental apartments to migrant business families & students etc. This public housing firm is a
private corporation completing its social responsibility by availing housing shelter to poor
families or children. The in-house team of chosen firm consist of tenancy officers, landlords,
market joiners, plumbers, décor designers, carpenters, architects, managers etc.
Market analysis: This component consist of qualitative & quantitative research analysis
of industry market. Researchers appointed by homes for good study business environment based
on various factors. These factors include size of business, buying patterns of consumers, market
competition, volume and value of product or service etc. The main objective of this research is to

find relationship between demand & supply in concerned industry economy. In context with
chosen firm, have used STP approach analysis to examine its potential customer base:
STP model approach
Segmentation- Market segments are created in this process based on different type of
customers classified under four dimensions that are geography, psycho-graphics, demography &
behaviour (Kaciak and et. al., 2020). People have different preferences towards a particular
product or service which company has to deal with on consistent basis.
Therefore, in order to handle a large customer base, people with similar preferences put
under one particular market segment. In context with Homes for Good, market segments mainly
focuses on multiple category of status, age group, income level, attitude, location , home status
etc.
Targeting- This is second step of this model in which target groups are identified to
focus upon. After segmenting customers into similar categories , it is important for chosen firm
to determine which market segment has maximum potential for company growth & profitability.
In relevance with Homes for good, the target segments are office employees migrating
from abroad looking for homes, domestic households willing to settle at their own places. Also
some target groups are families looking for better living standards, young students looking for
good property apartments, entrepreneurs for in-built office space etc.
Positioning- The main aim of this third step of STP analysis is company position in
market. Increase in profitability of chosen firm can be achieved only If consumers find
organisation trustworthy & reputed in specific industry (Julien, 2018). Small organisations main
agenda is good will of firm that can be maintained through completing social responsibility,
respecting society ethics, value preposition, customer satisfaction etc.
In relevance with Homes for good, managers have adopted different ways to create good
reputation of firm that includes quality of homes and their location status. Factors based on
which customers decide weather they should buy house for a particular firm or not are hygienic
environment, locality, culture around, security, safety, furnished rooms, nearby faculties of
market etc.
Value preposition- Customer satisfaction is important for every organisation and
therefore Homes for Good familiarize its investing parties as well as customers with different

services company provide. This help them decide why they should get rental home services form
chosen firm.
Business strategy- The company has functional organisational structure that help in
implementing single use plans for particular time period projects (Huvaj, 2020)(Julien, 2018).
An operational plan is created with various strategies such as email marketing, notification to
customers, CRM system for tracking potential data of household families etc. to establish
company objectives efficiently.
Financial projection- Finance is basic need for every business to grow its activities.
Systematic budgets are made by chosen firm through financial statement analysis of cash flows,
ledgers, general, portfolio, profit & loss statements etc. shown below:

Task 4
P5 Assessment on impact of various exit & succession options adopted by small businesses
Small scale businesses generally have a specific objective to achieve in a particular span
of time. After completion of that short term objective or goals, company need to decide from
various exit and succession options for winding up or growth expansion. There are various
reasons why organisation hose to exit or succeed their business discussed in following points:
Succession strategies: This planning process take place when business owners want to
replace current authority or responsibility of firm to another potential leader. Succession
planning means change in position of leaders due to current losses or low productivity are now
responsible for taking care of overall performances in business (Daniele and et. al., 2019). In
context of chosen firm, such a strategy is adopted when company has to expand business at large
level by delegating work to business professionals at different locations. Opening of tenancy
offices across different regions may require transfer of authority to landlords. This implies that if
one outlet shuts down it will not impact others in real estate industry.
Exit strategies: Analysis of risk factor is necessary for every sole-entrepreneur running a
business corporation. Therefore, owner of chosen firm determine all exit options in advance in
case of future winding up or liquidation.
There are different alternatives to exit a firm explained below:
Direct liquidation: This is a situation when company gets bankrupt and is willing to sell
off its assets to another organisation in market. At this time of winding up of business, company
owners find interested vendors who are ready to buy assets of closing firm. In context of Homes
for good, this option can be beneficial when company have potential resources such as computer
software, property land etc. that will help add value to other corporations.
Joint venture or acquisitions: When two different organisations are willing to merge
together forming a joint venture with new name is called merger. in such a transaction previous
entities before merger are dissolved in order to form a brand new entity. In case of an acquisition
on other hand, a large scale company acquire the small business to cut off growing competition
in industry (Chang, Lee and Wu, 2019). Inn context with Homes for Good, Suitable option to
adopt is joint venture where property agency can partner with other social enterprises in real
estate business to expand globally across multiple domains of market.

Open market sett off: During this process of liquidation, company need not take burden
of finding its buyers from other companies rather present assets in open market to general public.
This option of exit firm is suitable to get true price of companies assets before shut down.
Voluntary disclosure: Agreement of all parties involved in chosen firm business on
disclosure of firm can be termed as voluntary liquidation. In context of Homes for Good, this
option is appropriate for those who run a partnership firm or company with enough board of
directors who give appropriate suggestions or take effective decisions on how & why to wind up
organisation
Advantages of exit or succession planning options adopted by small business
• Direct liquidation is easy to go flexible option fro businesses to set off their assets during
winding up of business. Assets with high demand sometimes give good monetary value
according to their original prices helping chosen company recover losses if any.
• High competition do not allow small business to grow in long run (Andriani and et.
al.,2018).
• Merger is therefore a beneficial option selected entity can adopt for entering into large
scale consumer market.
• Voluntary liquidation through support of all team members is suitable option. Instead of
drowning into huge losses, entrepreneur has better option to start afresh with exploring
new opportunities in future.
Disadvantages to small enterprise after exit or succession of business
• Merger of two firms sometimes result in duplication in decisions of different business
owners. This may lead to arise of conflict, misunderstanding and distraction of actual
goals & objectives.
• Setting off assets in open market can be sold at low prices which may lead business
owner may a huge amount for losses in the end. Direct liquidation therefore may not be a
better option to wind up business with highly priced fixed assets.
• Shutting down of business with consent of other directors in board at times may not be a
current option . The opportunity cost of what future growth opportunities business may
get can result in huge disappointment after complete dissolution.

CONCLUSION
The following report conclude different strategies adopted by small and medium
enterprise for growth of business. BCG matrix approach is used by managers of chosen firm to
make smart investment decisions according to high or low market share of company. To
determine growth opportunities for small businesses, Ansoff's growth vector matrix is also
explained based on four factors that are market penetration, product expansion, development and
diversification. Ensuring smooth running of corporate functions, entrepreneurs require potential
fund resources. Following report statement also explains different ways in which firm can exit or
succeed their business.

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