Business Growth Strategies and Planning: A Comprehensive Report

This report delves into the critical aspects of planning for business growth, focusing on the considerations SMEs should address to gain a competitive advantage. It examines key factors for measuring growth opportunities, various growth options using analytical frameworks like the Ansoff matrix, and the evaluation of specific growth pathways. The report also explores potential funding sources, including bank loans, crowdfunding, and business angels, evaluating their pros and cons and justifying the adoption of suitable funding. Furthermore, it presents a business plan for growth, incorporating financial information and strategic objectives, and concludes by discussing exit or succession options for small businesses, weighing their advantages and disadvantages. The report offers recommendations for supporting implementation, providing a comprehensive overview of business development strategies.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Analysing key consideration for measuring growth opportunities .............................................3
Options for growth by using analytical frameworks....................................................................4
Evaluating specific options and pathways for growth for organization......................................5
LO2..................................................................................................................................................6
Potential sources for funding in business with pros and cons.....................................................6
Evaluation of potential funding sources and justifications for adoption of suitable funding......7
Critical evaluation of potential funding sources..........................................................................8
LO3..................................................................................................................................................8
Business plan for growth including financial information and strategic objectives....................8
LO4................................................................................................................................................12
Exit or succession options for small business with advantage and disadvantage......................12
Recommendation over supporting implementation...................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth enables organization to make effective planning and enable for them
to achieve better competitive advantage. In this report it would be discussing about consideration
which SMEs should consider while evaluating their growth aspects. In regard with same there
are some key considerations for measuring growth opportunities and options for growth. There
are some relevant analytical frameworks which will show better understanding of competitive
advantage in organization. In this way it would be covering several methods by which entity
access funding and their steps to utilize them effectively. Apart from this it will highlight
business plan and communication practices to show how setting up a business can be intended.
At the end of this report it would be discussing different ways in which small business owner can
exit business and implications of succession option. It would be showing advantages and
disadvantage for the same.
LO1
Analysing key consideration for measuring growth opportunities
While maintaining sustainable competitive advantage, company tend to operate
systematic and profitable aspects in their favour. Also, in order with the same if SMEs firm
profits are below or above standards it could be helpful for introducing better position for them
in respective industry. There are some elements for the same are as follows:
Competitive advantage -
It is most beneficial for organization to gain better advantage in industry, similarly
Prufrock Coffee could utilize various strategies. Whereas some of the following suitable
strategies are:
 To establish new product or service into marketplace organization align with sources of
innovation to easily manage these concerns in their favour.
 Increasing the amount of satisfaction among their customers might favour them to
enhance their capability and drive to gain better competitive advantage. Whereas it can be aligned with generic strategies for accomplishing performance level
according industry standards like cost leadership, differentiation, focus.
Cost leadership -
It is essential for firm to look for lower cost manufacturer in their industry, in which
sources of competitive edge is generally focused over information of industry. It is consist of

economies of scale, technology, and preferential access for raw materials and other aspects as
well. With the aid of sustaining cost leadership it would work and result in average performer in
industry.
Focus -
In this stage it covers all the aspect and major terms which should be focus in
organization. Whereas entity must choose adequate segment or it can be group of market
segment in specific industry and further strategies can be adapted to serve with better efficiency.
Although, there are two different variants in this stage such as:
 Differentiation focus – entity seeks differentiation.
 Cost focus – company look for cost advantage measures.
Options for growth by using analytical frameworks
The model was introduced by Igor Ansoff and suggested that there can be two
approaches for formulating growth strategy (Gumel, 2019). The Ansoff matrix is relevant
framework which is generally used for forming up marketing planning procedures. Business use
this strategy to determine overarching strategy and further communicate which tactics should be
favoured in conducting marketing activity. In this way organization adopt with two strategies for
reaching in different markets. There are several stages in this framework which shows the market
planning for growth.
Market penetration -
In this stage companies accomplish growth with suitable help of products which exist
into current market segments. This would be applicable into enhancement for entity market
shares. The most suitable example for this can be stated as food organizations in UK advantage
major business profit through implementing market penetration. They tend to introduce new
products which is generally available into exist places, as it reflect positive impact to gain more
customer.
Market development -
In this term it shows that organization can accomplish success criteria through targeting
existing marketplace segments. Some suitable countries adopted this approach as seeking
competitive advantage in respective marketplaces. Apart from this most of SME firms seems to
gain competitive advantage with effectively practising this strategy. Overall this process states
this concern for SME organization in similar context.

Product development -
In this process of product development it is helpful for organization to introduce new
products that is generally targeted for existing business environment to further achieve adequte
growth aspects.
Diversification -
For SME firms it is favourable for company to enhance growth by diversification towards
various business with formulating new products into new markets.
Evaluating specific options and pathways for growth for organization
Selection of product marketing strategy
In this way market penetration is less risky which leverages exist resource as well as
capability of firm. In developing markets SMEs companies can enhance their market share which
leads to immerse growth in marketplace. Also in the similar concern company can enhance it
aids in providing opportunities for growth in market share aligning with rivals market
capabilities.
Market development
There are several methods such as marketing sections and geographical areas. It is an
lucrative approach where development of new markets for specific product in the circumstances
when competitive firms can align with manufactured product more than specific market segment.
Product developing approach -
This approach is most appropriate for boosting up company performance and increase
customer satisfaction. In this way it aids to enhance strength of business and its operation to cater
better and improved quality service (Papageorgiou and et.al., 2019). Also, with increase in
market share it comprise with some risk factors that would be risky in this approach.
Diversification -
This strategy includes risk into higher extent in which it requires both approach such as
product and market development. Whereas diversification could be rationale alternative in case
when risk is compensated with increase in amount of return. Similarly, several benefits of
diversifications consisted with possibilities forb uplifting control within industry as well as
decreasing several risk factors in business practices.

LO2
Potential sources for funding in business with pros and cons
There are various sources for funding which can be stated as finance, and they are
categorized under equity and debt financial sources. Equity describes offering of a part in
ownership interest within company against finance. On the other hand debt finance depicts loan
in which entity owe money and pay interest in the same (Moro Visconti, Montesi and Papiro,
2018). Whereas looking from investor point of view it is suggested that business fail at high rate
than big business, and risk measures are also in higher extent. In this way small business have
few accesses towards credit as compared to huge companies due to lending of small business is
much riskier and expensive.
Apart from this internal and external source of finance are key measures available for
business growth. There are some sources available for funding for SMEs which are stated below:
Bank loan – There are many types of loans which can be provided by bank such as term loan,
capital loan, loan against property etc. Business can choose loan as per their specific concern.
While there are some pros and cons for this as well.
Merit -
 The arrangement fee is to be paid at beginning for single time rather than throughout life. Loans are provided easily for lifetime against any other asset.
Demerit -
 Cash flow issues can occur because of monthly repayments if audience do not pay
promptly. If repayments not done in systematic way it would be riskier for assesst as such they are
secured against for the same.
Crowd funding – it is method by which funds can be raised through borrowing minimum
amount of money with vast group of people.
 There is no need for any sort of upfront payment as well as it the rapid term for raising
fund. There is advantage in this process by getting effective feedbacks for further
improvement.
Business angles -
Merits -

 Easy to formulate quick investment decisions It does not demand any kind of security deposit.
Demerit -
 Longer duration is consumed in this process for finding appropriate angle investor. It excludes business shares while getting in touch with such loans.
Peer to peer lending -
Merit -
 Lower interest rates More access is provided in this process as source of funding
Demerit -
 Aligning with norms of investments some legal power do not provide access for such
service providers.
 Banking loans could be favoured by recipient so in that case such loans are consist with
high set of risk.
Evaluation of potential funding sources and justifications for adoption of suitable funding
For small business major suitable funding sources are business angles and crowd funding.
While elaborating them briefly business angles are the sources for rapid and free investment
decisions (Linnik and et.al., 2020). It does not demand any kind of investment for financial
planning. Although it is easily accessible for investor segment knowledge and other contacts.
Similarly, it do not require repayments and interest. Crowd funding is the rapid way of funding
which does not want any cost for upfront fee. Movement of business practices in online platform
can be valuable in marketing terms, and so on effective results gained in media concern. In such
effective methodology business can improve their further improvements with the help of
valuable feedback. Individuals who are ready to invest in this are considered as signs in which
ideas will work more appropriately. In the similar context investor can measure the progress and
promote their brand extremely well on the basis of networks. Hence, such these aspects can be
fruitful for business to run their business practices more fluently and formulated rapid decisions
for their overall working process.
Critical evaluation of potential funding sources Business angles – the investment decisions can be made at minimum or zero cost in this
concern. Moreover, safety deposits are not essential in such type of funding, usually it is

easily accessible for investor knowledge and contacts in which repayments do not include
in this process. Crowd funding - by getting effective internet connectivity organization could be able to
manage little amount for project, whereas with mail order payment suitable type of ideas
can be executed. Crowd funding in modern way is highly dependent over internet
sources, and project having failed consequences would increase the chances of risk
affecting to business reputation (Moro Visconti, 2020). Hence, if patent copyright is not
secured business innovation so it will allow others to steal idea from crowd funding sites.
 Bank finance – interest is essential which should be paid whereby owner do not pay for
profit percentages to lenders, it only requires arrangement fee which is to be paid in
beginning.
LO3
Business plan for growth including financial information and strategic objectives
Executive Summary
In the context of Prufrock Coffee business plan was formulated. It is performed on the
basis of analysing market and industry concepts of business. It would reflect over financial plan
and market projection with suitable operational plan.
Description of Business
Organization aims to serve and support local producers as well as small scale growers,
they serve coffee from Square Mile consist of vast menu such as Koppi coffee, Tim Wendelboe,
Coffee Collective, Drop Coffee and a lot more. The menu keeps on changing in preferences with
espresso as well as filter ones. The product and services are effectively carried for individuals
which covers various categories rather than coffee. Prufrock kitchen also serves delicious range
of home cooked and quality food in terms of breakfast and lunch.
Company History
Prufrock coffee was introduced in core of London whereby it was introduced by three
coffee admirers who seemed to be team of talented professionals in this field. After ten years of
hard work Prufrock remains constant place for locals and other guest to gather and spend their
quality time (Prawira and Budisetyorini, 2021).
Business Concept

The concept of the Prufrock coffee is to accomplish its mission to continuous evolvement
with the help of new experiments and technologies.
Business aim
Prufrock drives the purpose to become most suggested coffee shop in the markets of UK
and cater valuable portion in their sales outcome becoming competitive in industry.
Business objectives
The role of food and beverage industry is to serve better quality service in terms of
provision of foods, and further enhance customer satisfaction.
Market Analysis
Porter's five forces Bargaining power of customer- In this stage bargaining power of the customer within
industry is in high extent due to change in needs of customer taste and preferences. Bargaining power of supplier- The bargaining power of supplier is in lower extent
industry, whereby business tend to manage and form orders for raw materials from the
other supplier. Threat of new entrant in market- In this stage risk covers into higher extent due to
several other competitive forces as well as high market share. Competitive rivalry- In food and beverage industry among UK there is intense
competition that negatively impact over small business practices pointing out the pressure
and price of high capital.
 Threat of Substitute product – In this stage threat of substitute product is relevantly low
as such customers favourable with existing product. In this way company can make
benefit of this process to gain competitive advantage as well.
SWOT Analysis Strengths- Coffee is small item which can be made easily at home, but most of the
people like to hangout and have coffee at outdoor places. In such aspect business access
to continuous sales. Weakness- Less knowledge about marketplaces direct towards several difficulties
through which business unable to provide effective services. Opportunities- Prufrock Coffee can make direct contact and relation with its customers
as it would be great opportunity for business form better quality dealings as well

(Georgiev, 2021). By providing them with offers and discounts serves business to
formulate better experience.
 Threats- Lower prices being provided by competitors would increase chances of threat
for business. Also, relying on costly suppliers can cost negative impact over business
practices.
Marketing plan
Marketing mix
Product
There are broad range of products available at Prufrock coffee through which they can
drive to successful concern by catering effective quality services and forming increased customer
retention.
Price
Price is the key factor which forms people to be attentive towards such products and
services, company can make effective pricing strategy to interact with customer as compared to
other competitors.
Place
Business can serve their services in lucrative ways by setting up business at different
areas. It is significant to consider customer base and their preferences before implementing
business practices.
Promotion
Promotional activities for company can be made through appropriate advertising strategy
in which Prufrock can make their advertisement by utilizing social media and other online
platforms.
Business economics -
Prufrock coffee shop is engaged in management with condition of economies for
formulating related facilities. Customers who are making use of services from cafe and more
collaboration tend to increase business growth. Overall continuous process of working activities
in business result to improved status into economies.
Operational Plan -
In this stage all the major activities of organization are covered for accomplishing its aim
and objectives. Whereas management for lucrative strategy and innovative measures would be

aligned with suitable operational plan. Although integrity of operational activities are involved in
operational planning.
Securing Investments of Business -
Investments in business are generally based over major decisions and it is essential to
have management team to carry out funding aspects. By identifying to such business selling
propositions they can make their strategies more convenient and reliable. As such it can be stated
that intellectual property rights are crucial for uplifting business growth.
Capital funding -
Small industries usually requires capital funding with adequate management of resources.
There are various sources of finance through which business can access through are crowd
funding, business angle, self, banks etc. Business can rapidly hike funds by pre selling of
product, selling assets, and credit cards (Rajnoha and et.al., 2019). While with aid from crowd
funding sources business can issue up to $40,000 from personal loans on the other hand by small
business finance it can acquire up to $500,000. In the case of business angles it would favour
business to raise funds without any investments and it is free and fastest forms of investments.
Resource plan -
For making resource planning more lucrative managers should adapt to strategic
approach as making sure it suitably help organization to accomplish maximum efficiency and
better optimization. Such resources can be optimized without any over or under assessment.
Stakeholders
Stakeholders within food industry are extensive, in similar context employees, suppliers,
customers, environment, community members etc. are key stakeholders in food and beverage
industry.
LO4
Exit or succession options for small business with advantage and disadvantage
In this concern it can be stated that most of small business, succession plan and exit
strategy is crucial in which investors are involved in this fact. Exit approach enables to answer
general queries which investor has pointing towards organization and their present position in
market. There are some ways in which succession planning would be helpful for identifying,
transferring management of company to other individual or group of people. Exit planning states
determining and execution for transfer strategy of organization as well as their ownership to

other person, company or team. Although it provides positive impact on future business, there
are some exit strategies which can be utilized by small business.
Liquidation -
In this approach owner of business sell their assets, it is beneficial for those who rely over
performance as it supplies better options by entity to recover as well as sell market depths. The
advantage for this could be it is very simple and easy approach which can be wind up in short
durations (Kepczynski and et.al., 2019). On the other hand negative aspect for this concludes
there are returns are very low in this concept.
Keeping business in family -
In this strategy, owner of business seek to keep business operations in family concerns
that will be helpful for management of legacy of business as well as family.
Benefit -
 It forms transition procedures fluent and integrated. Owner can be in touch with business.
Drawback -
 Due to complex structure it may lead to conflict issues in family on the basis of emotional
attachments.
 Inadequate skills in family members can make services improper.
Initial public offerings -
This term is feasible exit strategy for most of the small businesses, in this process shares
of organization are set for public contribution to company investors.
Benefit - It is a profitable concept
drawback - It is cost as well as time-consuming (McKee, 2021). There is higher compliance rate
with more improved reportive standards.
Business selling into open markets -
This is one of the most significant exit strategy for all small businesses, while there are
circumstances in which owner require to set business practices for sale at effective pricing.
Owner claims amount in opened marketplaces and further move with money which was expected
from marketing of business standards.