Analyzing Growth Opportunities for Small Businesses in the UK

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Planning for Growth

Table of Contents
Introduction...................................................................................................................................................3
Part-1............................................................................................................................................................4
P1 Analyze key considerations for evaluating growth opportunities and justify these considerations
within an organizational context...............................................................................................................4
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..................................7
P3 Assess the potential sources of funding available to businesses and discuss benefits and drawbacks of
each source................................................................................................................................................9
P4 Design a business plan for growth that includes financial information and strategic objectives for
scaling up a business...............................................................................................................................12
Part-2..........................................................................................................................................................15
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks of each
option......................................................................................................................................................15
Conclusion:.................................................................................................................................................20
References:.................................................................................................................................................21
List of Figures
Figure 1: Phase to evaluate strategic planning and growth.........................................................................6
Figure 2: Ansoff’s Matrix to expend SBE's................................................................................................7
Figure 3: Business Plan for Krisco Services Pvt. Ltd.................................................................................13

Introduction
In current business scenario, small and medium enterprises leading the UK’s economy over the
international markets. The small and medium enterprises are the local community or businesses
that are innovative startups and approved by local and state government. Small businesses are
mainly private organizations or partnership corporations which provides profitable revenue to the
organization. These are non subsidiary independent firms that with less number of employees
produce higher revenue to the organization. Proper planning for an organization includes the
necessary steps that are to be undertaken to reach out at their successive goals. These strategies
are measured in operational and financial goals. The growth of an organization is mainly
developed at customer satisfaction and effective decision making in applying strategies to the
organization that develops the innovative opportunities in market.

Part-1
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
To integrate strategies in organizational structure or infrastructure, it is necessary to strengthen
leadership practice and employability skills in order to sustain a developed structure of a business.
Krisco Services adopt the strategies that expend the business in global market. Growth by sub-
segmenting customers implies on the core business growth that invite the business opportunities
in an organization. Building organizational capabilities records the performance management and
provides higher revenue to the business assets.
For evaluating the growth opportunities of small and medium business the following key
consideration are to be identified in an organization-
1. Business Structure
It is very important to choose a business structure to evaluate the opportunities for successful
growth of business. Business structure defines the step by step process that has o be
considered according to the business need. For the growth of a business changes and
strategies are needed to be implemented to make sole trader structure that includes
Companies, Partnerships, and Trust (Wolff et. al., 2015).
Justification- For Krisco Services UK, it was very necessary to develop a business structure
to compete in the market with their brand. This forecourt service provider changed the
business structure according to their goals. Business structure protected the liability with
business assets.
2. Expending Business’ Physical Location
To achieve growth opportunities in small and medium business, strategies are required to
expend the business in several markets. To run a successful business in competitive market
environment, the organization should have various premises to physical locations (Volery, et.
al., 2015).

Justification- Krisco Services, a forecourt service provider in UK has started to expend the
business in various locations. Organization has started with one coffee shop and again
expended their business to various stores of patrol, fuel, food and drinks shops in UK.
3. Building an Online Presence
For the growth of a business it is very important to develop a marketing plan at online
platform. It becomes easy to design and describe the functionality and productivity of a
business. The following documents ensure the privacy to the business (Ward., 2016).
 Website terms
 Terms and conditions of business/sales
 Privacy policy
Justification- Krisco Services designed and developed a website at online platform to
increase the productivity and sales of their products and services that ensures the reliability of
the business. Krisco Services started in dealing with food and drinks stores with outdoor
facilities at online platform.
The analytical framework is used in terms of planning and development of an organisation to
understand the competitive advantage. The below figure is used which explains the phases of
strategic planning in competitive analysis of organisations and its environment. In this
competitive world, where technology is advancing day by day, it becomes important to cope with
the fast paced environment. Taking about Krisco Services, it is known to serve public sectors and
industry. It is recognized world-wide in the field of development of front to end engineering
designs, complete process of procurement to construction. It also handles different revamp
projects. There are various instances which lead to downfall in some areas but because of
strategic analytical framework Krisco handled that entire downfall very effectively. Business plan
of Krisco Services clearly explains the complete strategic objectives. It tries to present the vivid
analysis of methods explaining the methods of secured investment.
To increase the growth of Krisco Services in the positive direction, they can hire team of experts
under Search Engine Optimisation (SEO). These SEO’s will be responsible for maintaining the

rank of website. This will make sure that if anyone searches key words related to the field of
Krisco Services, than that website will be ranking in at least top 10 results of the searches. This
will enable Krisco Services to attract more and more investors because of the huge popularity of
website.
They should also be aware of the tools and the technologies used by the other industries of the
same field. This will enable them in a quick examination. Based on that, they can review the
services and see to it if they are lacking in any area. This can even help them in setting up the
prizes for the different services that are being offered.
Figure 1: Phase to evaluate strategic planning and growth

P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
To expend the business operations, Krisco Services should have to plan and prepare a strategic
management with four dimensional matrixes that will reflect into business growth and expansion.
The expansion of small enterprise into large scale over international market will be defined by
Ansoff’s Matrix figured below-
Figure 2: Ansoff’s Matrix to expend SBE's
The presentation is as follows-
Market Penetration: Market penetration allows an organization to maximize the productivity
and sales. The owner of restaurant and coffee shop can implements new and innovative ways to
advertise their product and service to defeat the competitors by providing better facilities at low
cost. It will attract customers towards the 24*7 services with strategic brand partners with Londis,
Costa Coffee and further growth.
Market Development: The planning strategies will turn the business into increasing the annual
turnover. For small scale enterprises it is not possible to create a huge expansion into business but

with the organizational efforts and customer support market development can possible for the
organization in privately owned forecourt operators.
Product Development: Product development refers to modifying the products according to level
of interest of members and customers that specifies the various opportunities for business. For
‘Krisco Services’ it is necessary to improve their plan and operations according to the
environment and seasons that will affect the customer interest in food and drink materials.
Modification in plan, product and strategies will includes extra cost but in the end it will improve
the organizational development and increases the profit margins in growth and expansion.
Diversification: In a business or an enterprise, profit and loss are two coordinating terms that
changes their position according to the environment. In off seasons the tourists doesn’t shows
their interest to move out for exploring destinations, it will reflects in downfall of the business
whereas in on seasons tourist plans for their vacations for several destinations and it increases the
reflection in market.
The whole and sole aim of all these four points to enhance the growth of Krisco Services in a
positive direction. This would comprise branding the product in the right way, understanding the
need and requirement of consumers and modifying the product whenever required. It also
includes understanding the current market trend and understanding the usage of latest tools and
technologies in the way of handling their projects. This will ensure that Krisco Services is not
being operated in outdated platforms. They should also proper backend team which keeps a check
on the server and the service request from the people.

P3 Assess the potential sources of funding available to businesses and discuss benefits
and drawbacks of each source.
For Krisco Services, UK has a bold mission to seek new ideas to operate further operations and to
enhance the quality of services that gives satisfaction to the customers. When it comes to expend
their business, it requires funding to grow and thrive.
To continuing a business successfully in market, an organization needs funding from various
sources that are described below-
1. Friends and Family
To move a small business closest connections are required to setup crucial investment to
overcome financial problems. This investment happened by family relations builds on faith.
There is no terms and noted for the repayment of loan. According to the Evans “No one wants
to approve the product first” so it requires validation of saying unique in own terms.
Benefits
 Easy to support
 Immediate approval for financial problem
 Flexible investment terms and numerous methods for payback
Drawback
 Immense pressure to succeed strain personal relation
 Friends and family advice their ability that tends the business direction
2. Small Business Administration (SBA) Loans
This business administration provides financial support to small businesses by analyzing the
capabilities of an organization. It helps the small businesses to obtain capital and act as a
guarantor to take loans. This association organizes Entrepreneurial Development programs to
enhance the entrepreneurship through training.

Benefits
 Improves relationship in between lenders and borrowers
 SBA support increase chance for loan approval from banks
Drawbacks
 Strict actions are taken not to follow guidelines
 Necessary to maintain good past records of 2-3 years
3. Angel Investors
Angel investors are an individual firm that provides financing for entrepreneurs in exchange
for equity shares in company. These investors deals and invest with local franchises and
organized groups. This is the serious step taken at financial problem for an organization.
Benefits
 Angel investors offer helpful guidelines to business network
 Less rigid then VC firms and comfortable in business agreement
Drawback
 Degree of control is divided to investors
 High risk in follow on the investments
4. Venture Capital (VC) Funding
Venture capital is the investments that put large investment in an organization in exchange
with equity shares in the organizations. For a big investment, Venture Capitals put large sum
of money and provides 6 times return for their investment.
Benefits
 Can invest large amount of money at a time
 Instant creditability
 Provides opportunities to include partnership and investors

Drawback
 VCs take heavy returns on their investments
 Steer business in another direction without contract
5. Bank Financing
Bank loans are the most probable and suitable options for funding for any business. Banks
provides loan amount for further identifications and documentations along with the interest
rates. The loan amount has to be repaid with some interest in a given time.
Benefits
 Banks offers crates various conditions to take and repay loan amount
 There is no need to share equity in business against bank loans
Drawback
 Due to change in criteria, it is difficult to access loan
 Large qualification and documentation required
 Repaying of loan amount does not depends on company’s revenue

P4 Design a business plan for growth that includes financial information and
strategic objectives for scaling up a business.
The business plan for Krisco services-
Executive Summary
Krisco Services is a leading brand in UK that deals with the privately-owned variety of forecourt
operators at different outlets. Krisco group has brand partnership with famous brand outlets like
BP, Texaco, Costa Coffee and Pay point. This Krisco group provides coffee stores, fuel stations,
grocery stores to the public in the entire estate. The business plan for Krisco Services includes
financial as well as strategic objectives for the growth and scaling up the business. Business Plan
for Krisco Services and Krisco group consists of mission, vision, strategies, organisation structure
and exit plans for the growth and development of organization.
Krisco Group is currently operating grocery stores and Costa Coffee machine around the estate.
Krisco provides the modern convince stores that supports the local economy and customer values
and provides the services and supports 24*7 through the year. Krisco Group is mainly deals in
fuel retailers and petrol stations that provides economic fuel filling services to the customers.
The business plan provides the cohesive vision to run a business that includes the marketing,
sales, financial, customer support, designing and other strategic plans that improve the chance to
lead the market with success.