Planning for Growth: A Business Development Report

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PLANNING FOR GROWTH

Table of Contents
INTRODUCTION..............................................................................................................3
LO 1................................................................................................................................. 4
KEY CONSIDERATION FOR GROWTH OPTIONS.....................................................4
LO2.................................................................................................................................. 7
Sources of Funds and their Implications to the Business.............................................7
LO3................................................................................................................................ 10
BUSINESS PLAN....................................................................................................... 10
LO4................................................................................................................................ 13
Exit Strategy............................................................................................................... 13
CONCLUSION............................................................................................................... 17
REFERENCES...............................................................................................................18

INTRODUCTION
Growth of organization depends on planning and implementation of that planning done
by organization. Planning should be done in such a way that it contributes to the growth
of the company. Example of Network-Critical Solution is selected for understanding the
planning required for the growth of the organization. It was founded in 1950. This
organization is a manufacturer of network access technology. The company serves in
the United States, Mexico and Asia. The organization is mainly based in Reading, UK.
Sources of funding are discussed in the following report. A business plan is required for
making strategies for the growth of the organization and the following report helps in
understanding all components of the business plan. Various exit plans or succession
options are also explained in this report with specific options.

LO 1
KEY CONSIDERATION FOR GROWTH OPTIONS
Growth options are those options or strategies which could be used for enhancing
performance and outputs of the company. Generally, small companies use these
options for their organization. Knowledge of these options is very important because
they impact positively for organizations (Todes, 2012). For example, in the case of
Network critical solution if growth options are used properly then it could increase
outputs achieved by the company and can also result in the expansion of the business.
Systematic planning and implementation are required for achieving the growth of the
organization. Various growth options that the organization could use for increasing
performance of the organization are –
1. Market Penetration Strategy – This strategy is used when the marketing of existing
products takes place in the same market. It could be achieved by increasing market
share. The market share could be done by lowering the price of particular products. For
example, if Network Critical Solution wants to increase service they provide then they
should lower their present rate of services. The main risk which can occur during the
implementation of this strategy is, if the strategy will not result positively then it could
impact on economic stability (Mitchelmore and Rowley, 2013). It is because if
companies lower the rate of product and outcome is not achieved then it will create a
loss for the organization. To overcome this risk proper planning of the strategy should
be done. The market analysis should be done and demand of customers should be
properly identified. It is because if the demand for customer is fulfilled then product will
give a high profit to the organization.
2. Market Expansion – In this growth options existing products are sold in new markets.
This can result in the expansion of the business. This strategy should be adopted when
the company is having knowledge and resources for introducing products in a new
market. In this strategy, results are obtained after a certain amount of time because it
takes some time for introducing products in a new market. The risk in this strategy is, a

large number of resources and money is required for introducing products in a new
market. If a positive result is not achieved then this money and resources will be
wasted. Hence a reasonable amount of money and resources should be used for
avoiding this risk. A budget should be prepared to contain all the required resources for
expansion in marketing.
3. Product Expansion Strategy – Product expansion strategy is prepared in order to
increase sales of the product in a particular market. For achieving this production and
supply of products should be increased. With the expansion of product quality of the
product should also be maintained. In Network Critical Solution if they increase their
service then the quality of service should also be maintained. This strategy is generally
adopted when service or product became old and innovation is required in it. The only
risk is if new services or products are not manufactured properly then it will impact the
image of the organization (Mahmoudi, et. al., 2013). To overcome this situation it is
important to make quality products or services so that the image of the organization
could be maintained. Quality in products or services leads to expansion of products and
also attracts more customers.
4. Diversification – Diversification is a practice in which new products are sold in new
markets. This option increases the services or product and leads to introduce services
in new markets. Options for organizations are increased on a large scale with the help
of diversification (Barbour and Deakin, 2012). In this strategy the risk is maximum. It is
because a large amount of money and time is required for implementing this strategy.
For example, if a network critical solution implements this strategy then a large amount
of money is required. If a company is not able to gain profit then it will impact negatively
on economic stability and performance of the organization. To minimize this risk
stepwise procedure should be used for implementing this strategy effectively.
5. Acquisition of Other Companies – It is a practice in which a company purchases other
company to increase its sell or productivity. This strategy is mainly adopted when an
organization wants to achieve more outcome or wants to increase the production of
their products. This strategy is risky but this less risky then diversification. The only thing
to be kept in mind while implementing this strategy is that the organization should be

economically stable. If the financial condition of the organization is good then only this
strategy should be implemented. Proper planning and budget should be decided for
implementing this strategy in a particular organization.
While implementing these strategies it is important to identify risks because if the
strategy is not proved beneficial then it results in a loss for the particular organization.
Proper research should be done so that these risks could be minimized. This research
is important because it reduces risks as well as makes the implementation of strategy
more effective. It is said so because research helps in making a clear vision of the
strategy and makes provides a proper procedure for the functioning of the organization.

LO2
Sources of Funds and their Implications to the Business
Every business in its initial stage requires funding to run its operations and find best
sources of funding by considering their pros and cons to proceed further and it is said
finding best source of funding is tough task in regulating business operations. There are
few sources of funding which are taken into consideration by network critical solutions
are explained below:
 Personal Savings: The best way to start your business by putting your savings
in it and you have full control over your company. The main benefit of this source
is you don’t owe anyone and using your own amount to fund your business. The
consequences here is if your business flops all your savings will go into trash and
you didn’t have a mentor to guide you in business operations.
 Funds from family & friends:In this type of funding you can ask for funds from
family and friends which shows the more value of relations rather than
concerning about the business plan. This is the fastest and easy mode of funding
and acts as a road to initiate the business.
 Crowd funding:In this funding takes place in smaller number with larger number
of people approaching them via internet and this is only possible when you have
a large amount of public relations via social media through which it’s easy to
spread the word in public through different platforms of social media with a
mindset of attracting investors but it consumes a lot time and dedication to have
powerful results. It has major benefit you can attract number of investor who can
help in raising funds.
 Angel Investors:There working style is barter system in exchange of funds they
take a share of equity in the business. They work in groups and deals together in
providing funds to the business or start-ups. Angel investor have feasible
business terms and they offer valuable advice and guidance through their years
of expertise in the business. At some point of time they may ask for control in the

business. Angel investor are economically and financially way secured they can
help individuals out there.
 Venture Capital: Venture capitalist refers to those investor who invest their
money in return they acquire equity in the business and they retain money when
these shares go public or any other company purchase them. Their only motive
is to make money and they only invest in those business which have the strong
results in near future. They provide funding but as well as they acts as mentor in
development of business through their years of experience in that field and they
are open for making network with investors and partner who have huge
knowledge and funding sources.
 Small business Management loans: The government plays an important role in
providing funding to small business and assisting them to get the success and
these management help small business to generate capital and some amount of
deals which can be helpful for small business. It increases the chances of
attainment of bank loan if you have paid the SBA loan in proper manner
previously and develops the connection between lenders and borrowers but they
have rules and regulations regarding the sanction of loan amount.
 Bank Loans:There are popular source of funds which are adopted by every
business and start-ups but to apply for a loan you should qualify all the required
terms and you should be well aware about the options available and the rate of
interest that comes with every option of loan. In bank loans you don’t have to
lose control over the business and the process of loan is feasible and fast if you
qualify all the terms which are written in the process. The main consequences in
this business is you have to pay back the amount in the form of EMI, no matter
business succeeds or fails which results in winding up or liquidation of assets to
pay off the liabilities else bank put the assets of company in auction to retain the
loanable amount.
There are various options of funding but Network critical solution uses the option of
venture capitalist to raise the funds for running their operations. Venture Capitalist
provide funds to start-up’s and entrepreneurs in return they take the equity from them

and they put their only on those ventures launch of new and innovative ideas which
requires a huge amount of funding and expertise to operate the same. In this venture
capitalist plays an important role in providing expertise through their experience in past
years which contributes in regular growth that investors are always looking forward for
to double their business and generate maximum amount of profit. The financing
provided through venture capitalist are higher in number and it crosses the amount in
millions which is huge amount of capital to initiate business activities when you know
after the launch of products and services it provides a huge return on investment.

LO3
BUSINESS PLAN
MISSION STATEMENT
Growth of SMEs is the main focus of this business plan. Network critical solution is
organization selected for this purpose. All components required for preparing a proper
business plan is discussed in the following report.
COMPANY BACKGROUND
Network Critical Solution is a successful and famous manufacturer of network access
technology in the UK. This organization was founded in 1997. It is situated in Readings
UK. They provide the best and fastest network to their customer. This organization is
famous because they provide the best networks at a reasonable cost. Network critical
solution gives service in the UK, Mexico, South America, and Asia. Network solution
has focused on its staff on a large scale. Thus, its employees were successful in giving
the best quality networks to their customers.
DESCRIPTION OF PRODUCT
The organization selected in the following case mainly provides a network to its
customers. Presently the demand of network is very high (MacLeod, 2013). It is due to
the reason availability of net increases the efficiency of work and also less time is
consumed with the help of networks. The particular SME is having products and
resources such that they are successful in providing the best and fastest network.
Networks provided by Network Critical solution reasonable in cost and fast in speed.
Due to this reason this company is successful in attracting a number of customers.
Modern technique is the main reason that the organization is providing best quality
networks to their customers (Gherhes, et. al., 2016).
MARKETING PLAN

A marketing plan is prepared for determining and achieving goals and targets for the
organization. This plan is prepared to keep targets of two to three months in mind that is
future perspective is kept in mind while preparing a marketing plan. A marketing plan is
an important part of the business plan because strategies and goals to be achieved
depend majorly on planning and implementing of the marketing plan. Network critical
solution provides a network to people. Many organizations are already present in this
business (Goodfellow, 2013.). Thus it is important to have a sufficient marketing plan so
that the organization can perform and achieve better outputs than other organizations.
The marketing plan should be prepared by the following steps -
 Setting Goals –Goals should be decided by the organization. Functioning and
performance of an organization are affected by this step because vision is set
after setting goals. Targets should be set regarding present customers and
expected an increase in customers, outputs achieved, and increasing quality of
services to the customers (Schetke, et. al., 2012).
 Target Customers – Customers should be identified which demands a particular
product. For example, in this case, the network is the main service provided by
the organization. Hence the organization should identify should also be focused
because they provide long term benefits to the organization.
 Identify Competitors –As Network critical solutions provide networks to the
people hence their main competitors will be other network service providers.
These competitors should be identified and performance should be enhanced
such that greater outputs can be achieved.
 Implementing strategies – After determining all of the above points, the next step
is to implement these strategies properly. Network critical solutions should
implement strategy such that profit could be gained and performance is
enhanced (Li, et. al., 2015).
SWOT ANALYSIS
SWOT analysis is a practice achieved by an organization in order to determine
the strengths and weakness of the organization. Strengths, weakness, opportunities
and threats are determined with the help of SWOT analysis. Strength of selected firm is

they provide best service networks to people. The only weakness they are having is
sometimes due to weather conditions network could not be provided properly which
impacts negatively for the organization. Main opportunity network critical solution is
having is an expansion of the business. As the organization is providing a network to
people and demand for this service is very high thus the company have a chance to
expand the business and provide service to more people. Main threat network solutions
are having is competition (MacLeod, 2013). In this particular service, competition is very
high which is the main threat to the particular organization.
OPERATIONS
Outputs achieved by organization depend on the functioning of the organization. For
example in Network critical solution main operation performed in the organization is
providing networks to customers. For achieving outcomes in this case it is important that
operation must be carried out properly. As in this case, the network provided should be
fast and all staff members should work properly and contribute to achieving this target
for the organization (Barbour and Deakin, 2012).
FINANCIAL PLANNING
Financial planning is an important component of the business plan as it impacts on
economic stability. Suitable outcomes can be achieved by the organization if proper
and stepwise financial planning takes place–
 The business environment should be identified. Network critical solution should
identify available and required resources.
 Network critical solution should set a vision and must form according to that
vision.
 The company should identify the required resources for achieving a particular
task.
 Quantitative determination of resources should be done. For example the
number of staff members, equipment etc (Cheng, et. al., 2013).
 After determining all requirements a budget should be prepared which contains
the budget of all the required and available resources.