Business Growth Plan for Café 99: Semester 1, 2024

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Planning for growth

Table of Contents
Introduction:................................................................................................................................................3
P1 Analyse 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.................................5
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational context..............................................6
D1 Critically evaluate specific options and pathways for growth, taking into account the risks of each
option and how they can be mitigated.....................................................................................................8
P3 Assess the potential sources of funding available to businesses and discuss the benefits and
drawbacks of each source........................................................................................................................9
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate source of
funding for a given organizational context..............................................................................................9
D2 Critically evaluate potential sources of funding with a justified argument for the adoption of a
particular source or combination of sources, based on organizational needs.........................................10
M3 Develop an appropriate and detailed business plan for growth and securing investment, setting out
strategic objectives, strategies and appropriate frameworks for achieving objectives............................13
D3 Present a coherent and detailed business plan that demonstrates knowledge and understanding of
how to formulate, apply and achieve business objectives successfully..................................................15
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks of each
option.....................................................................................................................................................16
M4 Evaluate exit or succession options for a small business comparing and contrasting the options and
making valid recommendations.............................................................................................................17
D4 Provide a critical evaluation of the exit or succession options for small business and decide an
appropriate course of action with justified recommendations to support implementation.....................17
Conclusion:...............................................................................................................................................18

Introduction:
This report will analyze various aspects of growth for the new business of coffee shop named
“cafe 99”. This report will describe how this new business of café 99 can get profit and make up
their market. the report will further recommend effective changes and financial aspects which
can be profitable for Café 99. Further, Ansoff's matrix model will be used to explain more about
planning for the rapid growth of the business. Using some frameworks, this report will describe
how these strategies and growth planning to improve business for Café 99. What all
opportunities which café 99 would have in future, annually for growth of their business both
productively and financially. A discussion would be there in this report about the potential
resources for financial stability. In the part 2, here in this report, An exit plan would be made for
the growth of business and how further improvements can be made with some alternative
assessments which can have an effective change on the business for café 99.A recommendation
would be given, in the further part how this new business can get advantage from the personal
networks.

P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
Growth in business is an aspect which every individual working at any level in Café 99, would
want. It does not mean the level of organization, whether it is a start-up or an established
organization, each and everyone would want to grow. There is certain consideration which
should be noted down and analyzed well for the healthy growth of the business.
Access to customers: If café 99, won’t have that much access to the customers, then in this
scenario, development for café 99 would be difficult. If café 99, have a good existing
relationship with the customers, then in this scenario Café 99 would have a good amount of
feedback and reviews about their products which will improve their product quality and
ultimately growth for their business. Yes, it is an issue for new business, because, in the starting
phase of their business, they won't have that access to individuals who can critic on their product
and services. Having a good relationship with customers and the public will provide good
reviews and feedback for their products and different coffee flavors (Maciejewski, 2019).
Passion: If they are passionate about their business of café 99, they would definitely grow. They
will introduce their products and services to more and more people, which will market their
products and services healthy. IF they will be passionate about their new business, and very
much looking forward to growing their business further, they will definitely improve. Interest is
the key for growth opportunities. They should have to take an interest in their business in order
to grow and improve, and ultimately this will definitely give growth opportunities.
Skills set: If employees hired in this early phase of business of café 99, are skilled enough in
such case growth opportunities definitely proper. For example: if the management of café 99 is
weak in distribution strategy and don't know much about sales and distribution in such case, the
strategies should focus more on improving quality of the product rather improving sales.
Relationship: Relationship with existing customers and investors which can provide good
feedback about their services and products in this early phase of business of Café 99 would
definitely improve their existing relationship. Business growth is interlinked with the kind of
relation the employees has with the outer world. A good friend would definitely recommend
good regarding investments and decisions which café 99 would be taking in their business, and

having a healthy and good relationship with the outer world would definitely improve their
business.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
This matrix of Ansoff is also called a product grid matrix. There are total of 4 options, which
symbolize a matrix mixing up opportunities in the existing market with the new market. Such
matrix is used and important part for understanding the issues which may arise in the future
businesses of café 99. Ansoff matrix is defined as a matrix which mixes marketing strategies
with a general direction upon which the business of café 99 is going on. This approach mainly
shows 4 growth strategies for business development of café 99 such as market penetration,
market development, diversification and product development (Maciejewski, 2019).
Market penetration: In market penetration, it is somewhat selling the same old products with
some improvisation to the existing customers. But to do that, café 99 have to develop customer
loyalty to a new level. Café 99 have to develop confidence in their customers on their products
and services, the kind of coffee they will be serving should be better in quality and quantity to
develop loyalty in their business. Services should be improved, payment methods can be more
time saving and easy, or the order process can be more effective and faster in comparison with
the old process (Hwang, 2016).
Market development: Attracting new customers for new and existing [products is a very good
strategy to grow. New customers may be available if café 99 start their new outlets in other
countries also. Globalization always supports and encourage market development. For example
café 99 can expand their business among the developing countries, but it would be important to
analyze whether there is that much demand for café restaurants or not.
Product development: This strategy explains the importance of new products and services,
which café 99 can add to their product line, to get an extra edge in this initial phase of their
business. In café 99, there are new flavors in coffee serving can be implemented which can give
a good experience to the customers. implementing new kind of coffee types will develop the
versatility of the products in café 99, which also will promote product development (Suhud,
2018).
Diversification: This strategy for the growth of a new business is quite risky. This strategy is
used, where new products been sold in the new market which is also new. This strategy for the

growth of a business is not much used when the business is new. This strategy is helpful when
the foundation of the business is quite established already. To use this strategy for the growth of
a business, café 99 has to have some good product chain and supply chain to achieve profit from
this strategy.
From the above four Ansoff strategies for growth of a business, café 99 has to focus on market
and product development because these two strategies will help café 99 to grab the market with
their new products only.
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organizational context.
The profitability of an organization such as café 99 which is a coffee shop, is dependent upon the
average profit which this whole sector is getting. The competitive advantage over other café
shops in this sector is totally affecting the profitability of cafe 99 business. The two types of
advantage from the growing competition in the business can be gained such as low cost and
differentiation. This competitive advantage for which café 99 is working and growing their
business, generic strategies arises such as Cost leadership, differentiation, and focus.

Cost leadership: In this strategy, café 99 has to improvise their business in a low-cost producer
and has to produce a low-cost product. The advantage of the production unit is completely
dependent on the structure of the industry. This cost advantage may include economic factors,
access to the raw materials, proprietary, etc. it is important for a low-cost producer to exploit all
the factors which may provide them a competitive advantage over the other.
Differentiation: It is important in the differentiation strategy to produce unique products in the
industry, and those products should be in demand. Consumers who are liable for the services
should be valued by buyers. Such strategy includes different offers and discounts on the services
on special occasions, comes under this strategy (Purnomo, 2019).
Focus: focus strategy is generic in nature, and this strategy can be used by café 99 only when the
scope of the competition is very small and congested. Focus strategy is used in two criteria were
in the cost focus strategy, cafe 99 has to focus on to improving the cost of the product. While in
the second aspect, the target segment should have some unique needs which only cafe 99 can

fulfill, or they should provide services way better than what other segments of industries are
serving.

D1 Critically evaluate specific options and pathways for growth, taking into account the
risks of each option and how they can be mitigated.
Growing of business not only include quality improvement, service improvements, but employee
development and increase in the number of employees working also comes undergrowth of
business for coffee 99. With the growth of a number of employees, internal structure and
employee management changes which sometimes ignored by many SME's. growth and increase
in the business by an increase in the number of employees create issues of mismanagement.
Big and existed businesses can easily manage employees but for new and small SME’s like
coffee 99, it is difficult to manage Human resources. Training programs across the different
department of career 99 should be improved like thumb impression entry and exit can be used for
better management of employees. such implementations will be helpful for the enhancement of
Human resource management.
Expansion and connection with the external world are very important for growth because it will
provide a stable relationship regarding the feedbacks and reviews which outer world can provide
and criticize. The existing companies in the restaurant's sector have a better connection with the
outer world, which creates less space for a new business to expanding. Connection and better
relationship with the public and consumers are important for the growth of a business.
The issue in this pathway where big and existed companies not providing more space for a
better relationship can be stabilized and solved with new collaboration and offers of the products
at an earlier stage of business (Purnomo, 2019).

P3 Assess the potential sources of funding available to businesses and discuss the benefits
and drawbacks of each source.
Financial support for new business like Cafee 99 is very important. Their pros and cons should
be in mind while funding for the business. In the dept financial world, there are various ways
through which financial support can be taken.
Small business administration loans (SBA): small business administration does not provide
fund for the new business, but SBA is sometimes working as guarantor for the primary source
for new business. Small business administration loan develops 23% of all SME available in a
nation, hence all SME's cannot take a loan from Small business administration.
If Cafe 99, treating for Small business administration loan, then in such case it will definitely
increase the chances for the approval of the bank loan. The Small business administration usually
helps for the improvement in the relationship between local lenders and borrowers.
The guidelines are quite stick and hence new and young business cannot take SBA loans that
easily (Maciejewski, 2019).
Angel investors: these are wealthy bodies, which are able to give financial support in the
exchange of the equity shares of that company. The size of the investment ranges but a
maximum of around 1 million dollars can be liable for this source. In many cases, these investors
work in groups and invest only in limited companies.
Angel investors are big giant economists and they definitely have a good amount of knowledge
regarding the industry in which the company is working, hence they also provide good guidance
regarding their strategies and support. Another advantage of such sources is that they are not
much rigid like other VC firms, hence they provide flexible agreements.
M2 Evaluate potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organizational context.
Evaluating the potential sources discussed earlier, friends and families are good flexible
investors but they won’t be able to guide further, or they might not be able to invest more
potentially what angel and bank loans can provide. Hence Here in the context of career 99, it is
very important to invest from angel investors because cafee99 is new in this business. Angel
investors have some advantages over the other primary sources.

Angel investors are usually those giant investors and economists who have a good amount of
knowledge regarding the sector of business where cafee 99 is working. Hence it is important for
career 99 to get this advantage because as an SME, guidance, and consultancy with the
investment would be good to have.
Angel investors usually provide investment for SME's so that they can get a good start for their
business and production. Angel investors usually invest in those new businesses which have a
good exit strategy, hence such investment would also help cafes 99, to improve the block holes
in their exit strategies.
The internal rate of return for angel investors towards new businesses is around 20 to 30 %
which is good for new business because banks and another primary source of funding do not
provide such rate for return.
D2 Critically evaluate potential sources of funding with a justified argument for the
adoption of a particular source or combination of sources, based on organizational needs.
Friends and families: Friends and families usually invest more than what other investors can
invest in cafes 99, because of their personal dealing and relationship. Friends and families can
also provide support from small investments which can make coffee 99 liable for big investments
from angels and VC’s.
Funding from such investors are available immediately and The investment deals are usually
more flexible in such type of sources, but if we talk about the cons, friends, and family if they are
not from finance background, they won't be able to provide more information and support other
than their investments which angel investors usually can provide.

P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
Objectives
Café 99 would be intended to provide different types of coffee flavors with discounted prices.
The new outlet of café 99 can serve coffee to almost 150 consumers at a time. Along with the
variety of coffee flavors, cafe 99 would also be going to provide some cuisine breakfast, lunch,
and dinner. Cafe 99 will provide Italian, Spanish, Indian and Caribbean food along with the
coffee flavors.
The revenue of cafee 99 will be obtained from these following availabilities:
Breakfast for consumers along with a sweet variety of coffee flavors along with hot and cold
coffee.
Cafe 99 would also be getting their revenue from lunch provided by them to the consumers,
according to their origin such as Spanish, Italian and Indian food.
Dinner would be much more cuisine and stylish where stylish food with innovative services
would be given to the consumers. And some special coffee types such as capuchin and latte
would be reserved to be served only during dinner (Shin, 2015).
Shop summary
The team and décor of cafee 99 would be totally reflecting coffee and coffee enthusiasts would
be having a great time here.
Plans and permits: $2500
Legal: $ 1100
Furniture: $ 1125
Menu design: $ 500
Loan cost: $ 5000
Grand opening expenses: $ 5500
Startup inventory: $ 7500
Market analysis
The coffee shop is a big market sector in the food and beverage industry. The market has been
analyzed which explains the fact that in the developing countries the coffee market is in
demand and a small shop of coffee which is new will get a good amount of revenue. The main