Business Planning for Growth: The Furniture Practice Ltd. Report

This report, focusing on The Furniture Practice Ltd., a furniture acquisition company, comprehensively examines strategies for business growth. It begins with an analysis of key considerations for evaluating growth opportunities, using the BCG matrix to assess product positioning and market share. The report then evaluates growth opportunities through Ansoff's matrix, exploring market penetration, development, product development, and diversification strategies. Further, the report assesses potential funding sources, including SBA loans, angel investors, and family/friends, discussing the advantages and disadvantages of each. A business plan for growth is designed, incorporating financial information and strategic objectives for scaling the business. Finally, the report assesses exit or succession options for a small business, explaining the benefits and drawbacks of each, providing a holistic view of business growth and planning.

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix............5
Ansoff's growth vector matrix................................................................................................5
TASK 2............................................................................................................................................7
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................7
PART 2............................................................................................................................................9
TASK 3............................................................................................................................................9
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business........................................................................................9
TASK 4..........................................................................................................................................12
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................12
CONCLUSION .............................................................................................................................14
References .....................................................................................................................................15
Books and journal.................................................................................................................15

INTRODUCTION
Planning for growth is a serviceable portion of the business where management is
inclined to think some formulation to raise the growth off a organization. There are several key
that are portion of this enterprise scheme and it needed a deep investigation of many section that
create impact on the operative functions of the organization. In current report there is discussion
of The Furniture Practice Ltd. Company it is furniture acquisition company situated in 31 Pear
Tree St, London EC1V 3AG, United Kingdom. They want to create best and classy orders that
encourage the people towards the furnuiture. This report shows the aim of the company and
about the growth and opportunities of the organization. There is a analysis of the growth and
opportunities of the organization factors nad models. There is also discussion on the business
plan for the growth of the enterprise. According to this report there is discussion on the
recommendations of the business plan for gain ing more customer base and
opportunities(Lambert and Oatley, 2017).
PART 1
TASK 1
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
BCG Matrix (Boston Consulting Group)
BCG matrix is a strategic provision instrument or tool that is used to implement a growth
strategies for the organization. This matrix is established by the American company BCG
(Boston Consulting Group) to assist organisation. This matrix provide inferior for evaluating
goods and for the business means this matrix helps the business from the uncertainties and
upcoming belief of every unit. From the analysis a enterprise can determine the foremost way of
treating particular enterprise units to exploit their endeavour to the firm imagery. For the large
enterprise it is very easy to evaluate the revenues, cost, market shares and profit because they are
divide into strategic enterprise but on the others side it is very difficult for the small enterprise to
evaluate the revenues, cost, market share and more so for evaluating theses shares and product a
company use this matrix.

This matrix is used growth rates and market shares for appraise the products. BCG matrix
use for positions to appraise the products that is “ stars, dogs, cash cows and question mark”. For
more effective use of this matrix small and medium enterprise separate their firms on the basis of
revenues and then products and after that they analysis the market development and and market
share pace. For the more growth and opportunities of The Furniture Practice limited Company
they evaluating their products and shares by using these matrix (Kumar, 2016).
Four position of BCG matrix are mentioned below:
Dog: Dogs are preferable to as products and units of the company that have low market
growth as well as low market share. They are not much overwhelming the higher deals of
money. Dogs position are mostly examine as the money capture because a organization has
swamped with the money even though they are doing nothing and they are recommit any thing in
return. So according to this The Furniture Practice Limited Company if they have low market
share and low growth so their units are main and chief applicant for the sale means mannerism of
an possession through with marketing.
Stars: Stars are considerate as high market growth and best market share they create
more cash . If the company (The Furniture Practice Ltd.) is in star position their patents and open
market and products are termed as stars because they have more market share and and create
more money. In this position the result is of money is same as going and out. Stars enhance has
cash cows as they endure their success until a period when a broad development market
dragging down. If the organization( The Furniture Practice Ltd.) is in star Position then they have
great capabilities to grow up and they need more investment to gain their beliefs for the
organization.
Cash Cows: Cash cows is a market boss that generate more cash and consume less cash .
They have more cash growth and more market share but with low growth potentiality. They
provide cash to the question mark as they required to turn into market boss. If (The furniture
Practice Ltd.) company want to increase their ratio of production so they have to invest in cash
cows. For this position a organisation needs to connect with this position to gain more growth,
achievements and productivity.
Question mark: In this position the organisation have high growth potentiality but with
low market share. They take a huge amount of cash but convey little in return means in this
position there is loss of money. But if the organization are invested in this position means they

have high potentiality to achieve growth because from this position business growing quickly
because they have more power and aggression to achieve stars in high growth community. If the
(The Furniture Practice Ltd.) want high growth market share and they want more growth so they
are advised to invest in this position (Holman, Mossa and Pani, 2018).
The Furniture Practice Ltd evaluate their products and market share in cash cows position they
have good quality of products and they generate more cash and consume less Now they want to
be in star position so they strategize the matrix accordingly: they increase their investment to
increase more market share and productivity but if they do not want to be invest in star position
and they want to be stay cash cows so they have to reduce their investment and try to make
maximum money from the products and goods so, it will be more beneficial for the organisation
and they can make more profitability. But in some organization they do not have products in
each area so they follow product life cycle so that they can evaluate their condition and values
accordingly. But for following BCG matrix a company need goods in each area to support
flourishing cash flow.
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff's growth vector matrix
Ansoff matrix is used to analysis the strategic implementation for the growth of the
organization. This matrix help the organization to evaluate best opportunities and growth for
them. The organization is used this strategies to gain more sales and to recover the uncertainties.
Sometimes this matrix is also known as “ product marketing mix” . This matrix is one of the
most use matrix for the growth and for making marketing strategies. In current premise, there are
few strategies that are portion of this matrix that is market Penetration strategy is used to analyse
that how to trade their current and existing products and services with more efficiency to existing
consumer. Market Development this strategy is used to know about that how to come in new
market. Product and Development in this strategy a company know about the products and
service that how they can develop their goods and services. Diversification this strategy is about
fresh start means how to enter in fresh market with fresh products and services to gain mpre
profits and sales. These strategies have to be appreciated in order by The furniture practice Ltd.
To create upcoming growth strategies:

Market Development:It is a scheme that could be accept by a organisation where fresh
markets are being marked. In this planning there is reference and target of fresh market that are
put according to existing products and by using them. In this planning and strategy The furniture
Practice Ltd will be surrounding their mark and attack market in London is entirely fresh place
that will be completely assorted from their present markets (Carey and et. al., 2016) . In the
attack and target stores there will be fresh planning and strategies that will approached separate
from this present market.
Market penetration: This is a scheme in which the retailer and the goods they both are
subsist. In this strategy the company can change their timings for the opening and closing of the
organization means they have to set their opening hours accordingly and set their product
delivery time according to the customer and market they have to reduce their processing timings
for the best results. Organization can also give some offers to the customer just like some fresh
and interesting offers and schemes that can be initiate and influence in order to raise their income
in existing markets. This strategy is very beneficial for them because they want more customer
base so market penetration is very good opportunities and strategies for them.
Product development: In this scheme there is product development for the existing
market means they have to create cheap products with good quality and better assistance. This
strategy is very beneficial for the organization (The Furniture Practice Ltd.)because they want
more customer base and they also want to provide better qualities to the customer so this a very
good opportunity and strategy for the organization to crate more consumer with high sales. This
will lead to better customer base with good feedback of the customer.
Diversification: In this scheme there is a utilization of both ( products and market) that
are entirely fresh. In this strategy and planning there are no utilization of the existing products
and existing market . In case of The Furniture Practice Ltd. Company as they are part of
professional furniture business so they have to create more new production with new market for
create more customer base and to increase more sales and growth but they have to maintain their
services and qualities accordingly.
From the above mentioned points this is cleared that this strategy can be very beneficial for the
organization to create more sales and more customer base. This strategies will going to help them
to expand their business and to gain more profitability.

TASK 2
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
There are many ways and sources available for the funding of The Furniture Practice Ltd.
company. These funds help the organisation to take loans for the organization and for the
development and for the growth of the organization.
Small Business Administration (SBA) Loans: This loans help the small organisation to
acquire capital for the business.
Advantages :Enterprising improvement through training, education etc.
 Small business administration will raise the chances of getting bank loans. This will help them to amend relationships between general lenders and general rustler.
Drawbacks : The SBA check all the data of the organization from the past 2-3 years and this is
very worst for the small business if those years are not good and profitable for them so it become
least chance for small and young company to acquire the loan(Pettit and et. al., 2018) .
Angel Investor:Angel investors are rich respective they give business financing in the
exchange of share of equity in the company.
Advantages: They are more experience in the industrial line so they give better and helpful
advise and guidance to their clients. They have Negotiable business agreements because they are less strict than VC firms.
Drawbacks : They create follow-on outlay because of much uncertainties existence of investing.
Friends and Family : As a businessman they can take a investment and loan from the
friends and family because of their personnel relationship.
Advantages : In this source it very easy to get quickly because of family and personnel
relationship. The investment method is more flexible in this source because there are so many ways to
pay back the amount.
Drawbacks: huge force to win can burdens the relationship.

 Friends and family normally take nothing much like as agreements and the papers
as investors and the bank take for the security purpose.
Bank Financing : Bank loans are very quickly way after financing it can be very easy to take
because it can be engage at closest lending bank .
Advantages : Bank provide good scope of financing and provide different way to pay back. If somebody choose the financing way they do not need to give equity of the company.
Drawbacks: organization need to pay the interest on the loan(Rauhut and Humer , 2020).
 It is very difficult to acquire the loan because there are several criteria for the loan.

PART 2
TASK 3
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business
Business Plan:
Business plan can be defined as a formal plan formulated by an organisation in order to
define their short term and long term goals and objectives. It is a brief assessment of the plans
developed by a business enterprise and the strategies that can assist the organisation in
implementing the same. In order to fulfil the goals and objectives of the business organisation
productively and effectively, it is very essential that the organisation develop a relevant and
feasible business plan. Business plan helps a company to analyse its target market and identify
the opportunities prevailing in the market in order to capitalise on the same which in turn will
help the organisation to utilise it in further operations of the business. It helps the organisation to
examine the future market condition and formulate contingency plans for the same.
An insight on the business plan of The Furniture Practice is mentioned below :-
Vision : The vision of the Furniture Practice is to become a leading brand in the market.
Mission : The mission of the Furniture Practice is to provide the premium quality
furniture to its target consumers and to acquire a good market share in its respective industry.
Goals : The goal of the furniture practice is to increase its customer reach and enhance its
current customer retention.
Objectives : The objective of the Furniture Practice is to carry out its expansion strategies
effectively and efficiently (Li, Liu and Su, 2019).
STP Analysis: It is an approach adopted by numerous organisation in order to effectively market
their products and services in the target market. STP approach is considered as one of the most
essential elements of the business plan in order to identify and elaborate the target consumers
that the company is catering to. It facilitates the business organisation to ease the complex
process of marketing. The furniture practice also utilise this strategy in order to scatter its
products and services strategically in the marketplace. The STP analysis of the Furniture Practice
is listed below :-

Segmentation: The segmentation basically refers to splitting the market into numerous
segments in order to focus on the specific target groups. This process facilitates in making the
marketing process easy for the organisation as it helps the organisation to cater to different
groups which exhibit similar characteristics which in turn helps the business organisation to save
its time, effort and money. Market Segmented according to four elements listed below :-
Demographic : It involves splitting or division of market according to the gender, income, age.
Location etc. of the target consumers.
Psycho-graphic : It involves splitting and division of market according to the interests,values.
beliefs ,attitudes, lifestyle etc. of the target consumers.
Geographic : It refers to segmentation of market according to the respective countries, cities ,
areas of the target consumers (Starbird, Norton and Marcus, 2016).
Behavioural : It involves the segmentation of market according to the purchasing habit and
spending habit of target consumers.
The Furniture practice is a company that usually opts for demographic segmentation and caters
to the individuals from age groups between 25 – 55. The company is catering to all the genders
as well. The company has adopted the correct segmentation strategy for itself in the market place
and is capitalising on the same.
Targeting: It involves focusing and targeting on the market segments formulated by the
company in order to increase their interest and enhance their attention towards the offerings of
the business organisation. In case of the Furniture Practice, The company is currently targeting to
the people ageing from 25 years to 55 years. This section is targeted by the company as these are
the individuals that are considered working. Hence, they are the ones interested in purchasing
furnitures and infrastructure for their homes and offices.
Positioning: This element is very essential is considered as one of the prominent elements of
this approach as it helps the organisation to reach its target consumers more effectively and
efficiently. The furniture practice is currently positioning and placing its furniture products and
services all across United Kingdom. The company is trying to reach and attract more and more
consumers for its offering in the marketplace in order acquire a good position in the market and
give tough competition to the rival business organisations.

Marketing Mix : It can be termed as a tool or technique utilised by business organisations in
order to influence and attract more and more consumers towards the products and services
offered by the organisation. It is an important component of Business Plan as it helps the
company to analyse the current market conditions and create effective strategies to gain
competitive advantages in the same (Knaap, Avin and Fang, 2017) .
Product : The furniture material offered by the Furniture Practice can be termed as the products
of the organisation. The business organisation believes in innovating its current product line in
order to satisfy the needs and wants of the target market.
Place : The company sells its offering through its personal stores and outlets in the cities across
London and other few place as well.
Price : The price of the offering provided by the organisation is affordable by the consumers. The
company charges the right price for its products and deliver best quality products for the same.
Promotion : The company capitalises on digital marketing tools and other promotional tactics in
order to promote their products and offerings in the marketplace.
Financial Projections of the business enterprise : In order to carry out smooth functioning of its
operations, the company needs to ensure that it has adequate financial resources. The company
needs to analyse its financial inflows and outflows in order to depict the yearly profit and loss
generated in the business organisation.
The furniture practice effectively maintains the record of its financial incomes and outcomes and
has adequate funding available in order to maintain financial stability of the business operations
of the organisation.
Monitoring and Controlling:It is very important for an business enterprise to monitor and
control its organisational behaviour and environment as it facilitates in achievement of
organisational goals and aspirations. These functions also helps a business organisation to
examine the performance of the employees working in organisation and taking corrective actions
or measure in case of any deviation.

TASK 4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
There numerous strategies that can be adopted by the small scale business enterprises in order to
exit. Some of them are listed below :
Passing the current business to the successor : This strategy lays concern over passing the
business to any individual or peer who can do justice in effectively managing the same in the
future. It involves transferral of the responsibility to other individual so that despite the exit of
the current owner, the business still continues to operate in the market environment in the near
future(Gallent and Tewdwr-Jones, 2018) .
Advantage of this strategy :
 The biggest advantage of this strategy is that the business operations of the organisation
continues to flourish even without the existence of the owner.
 Despite the exit of the owner from the business, the individual can make engagement in
the business operations and also has the ability to influence the business operations of the
business.
Disadvantage of this strategy :
 It is sometimes challenging to find a deserving alternative for the business and the search
for the same can be a tedious task.
 Difference of opinions may arise within both the parties which may lead to conflicts
within both the parties which in turn may have adverse effects on the functioning of the
business operations.
Transferral of possession through employee buyout : This is strategy through which the
existing employees of the organisation can take the responsibility of acquiring the organisation in
case the owner of the same decides to take an exit from the organisation. It can be termed as one
of the most reliable source of exiting the business as the employees are the most trusted and the
reliable source in case of transferral of succession to other party (Cowell, 2017).
Advantage of this strategy :

 In this strategy, the appraisal and bonus system can be utilised by the business
organisation in order to influence and generate support from the existing employees of
the company.
 It acts a security for independence of the business and also helps in maintaining the
legacy of the same.
Disadvantage of this strategy :
 Sometimes, the employees may not be enough efficient and productive to
maintain and operate the existing business and this may lead to underutilization of
the resources available with the organisation.
 The employees may also reject to acquire the business and this may arise various
problems for the existing owner of the business.
 The company has to identify the right kind of skilled and effective employees
that the owner can handover the business to.
Selling business to their clients : A company can also consider selling their current existing
business to their clients or parties. Some of the options available to the business owner are as
follows ;-
Private equity : This option involves issuing the shares of the current company to other investors
from finance background(Wolf, and Floyd, 2017).
Initial Public Offering : This option involves transferring the shares of the company to the
general public in order to promote the sale of the business organisation.
Sale to other business : A company has an option to sale its current business operations to an
other company prevailing within the same industry with a willing to buy the business
organisation. This option is one of the most relevant one as it helps the organisation to transfer
or issue the shares of the existing company to others.
Liquidation : It is a method adopted by the organisation which wants to end its business
operations in the marketplace. This strategy is opted by only those organisations which have no
the option of running the business operation of the organisation expect liquidising it. This step is
taken by the business owner when the business is not generating any profit and does not exhibit
and project any potential growth in the future.

 The advantage of this strategy is that it very convenient and flexible for the owner as the
owner can sell the assets of the enterprise in the market in order to realise its recovery for
the same.
 The major disadvantage of this strategy is that the employees working under the
organisation has to bear the adverse effects of liquidation as they no longer have a role to
play in the organisation (AL-Mohannadi and Furlan, 2018).
CONCLUSION
Overall, it can be concluded that the furniture practice is capitalising on various effective and
efficient strategies in order to carry out the business operations effectively in the organisation.
The company is using Boston consultancy matrix in order to examine the current position of the
business organisation and to identify the possibilities of growth in the same in the target market.
The company is also capitalising on ans-off in order to identify examine and analyse the
strategies that can be used by the organisation in order to implement the strategies and exploit
the to the full potential of the organisation in the market environment. It can also be said that the
company is acquiring its funding from various sources of financial resources such as angel
investors, banks, family and friends etc. The company is enjoying financial stability in its
financial operations and does not not face the issue of inadequate finance in the organisation. The
business plan of the furniture practice is also very effective ad prominent and it has helped the
company to grow and develop faster that its competitors in the market place. The marketing mix
of the company is also excellent and it shows that the company will excel in the its market. The
company is growing at a good pace and will be able expand its current operations in the future
run.

References
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