Cleaning Kitchen: Business Growth Planning and Funding Report

This report provides a comprehensive analysis of Cleaning Kitchen, a company offering home and kitchen services, focusing on its growth strategies and funding options. The report begins by examining key considerations for evaluating growth opportunities, such as sales, turnover, profitability, target market, and competitive advantage. It then applies Ansoff's growth vector matrix to identify opportunities for market penetration, market development, product development, and diversification. Furthermore, the report explores potential sources of funding available to businesses, including bank loans, peer-to-peer lending, crowdfunding, angel investors, and venture finance, discussing the benefits and drawbacks of each. The analysis highlights the importance of strategic planning and financial management for achieving sustainable growth and competitive advantage in the market. The report emphasizes the need for Cleaning Kitchen to produce quality products, understand customer preferences, and develop effective plans to capture a larger market share and enhance profitability.

Planning for Growth

Table of Contents

INTRODUCTION
It is important for every business organization to plan every activities so that they can
easily attain desired goals and objectives in an appropriate way. Mainly, it help in setting clear
vision, target, goals and objectives. By this, company can attain set goals in fixed time frame. In
addition of this, it can be done by firm because it provides support and direction. With the help
of this company easily attain desirable results (Planning for Growth, 2018). For attaining the
same, company develop as well as formulate various strategies and policies which support in
fulfilling customers needs and wants as per their needs. This will directly contribute in attaining
future growth and at the same time also compete their competitors. In this report, we have to
discussed about Cleaning Kitchen which provide home and kitchen services to consumers.
Along with, company take context for Kitchen Ductwork Cleaning . For this, company bid is 20k
and they also borrowed from various financial institution. Current report focus on key
consideration of growth opportunities. Various source of funding is also mentioned in this
project. In addition of this, business plan for growth is also includes which help in attaining
strategic objectives.
TASK 1
P1 Key considerations for evaluating growth opportunities and justify these considerations
within an organisational context
It is important for business organization to attain competitive advantage because it helps
in grabbing attention of large number of customers. By this firm easily accomplishing set goals
and objectives in adequate time frame. According to current scenario, each and every business
organization wants to attain growth in market in which they evaluate new and innovative
services to grab customer’s attention. It may contribute in increasing the chances of attaining set
goals and objectives. In context of this, Cleaning Kitchen offer various equipments to clean
home and kitchen. Along with company take contract for Kitchen Ductwork Cleaning with the
purpose of providing satisfaction of customers. Thus, they use various innovative tools and
techniques for producing as well as developing quality products and services through which
company enhance their productivity level at market place (Wu, 2015). For this proper planning is
vital in which firm use various key consideration which may contribute in attaining future
growth at market place. These can be understood by following points:
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Sales: It is crucial factor for business because overall success of the firm highly depend
on its sales volume. For increasing this, Cleaning Kitchen needs to produce quality products and
services by considering their taste and preferences. This will increase the chances of attaining
profitability level at market place (Westoff, 2015). For attaining the same, Cleaning Kitchen to
understand customers taste and preferences before producing quality products for making
customers Kitchen clean. It contributes in capturing larger market share form its rivals.
Turnover: It is one of the important aspect for business organization as it helps in
attaining desirable growth at market place. Turnover of Cleaning Kitchen defines actual position
of the firm at market . Thus, firm needs to evaluate their annual turnover by formulating effective
plans and procedures in order to increase overall turnover. With the help of this company ensure
their future growth opportunities in which they established their competitive productivity level at
market.
Profitability: It is important factor which aid in evaluating profitability level at market
place. As profit ratio of the company may determine the actual performance which may helps in
creating positive brand image. For attaining same Cleaning Kitchen, firm needs to develop
appropriate plans to accomplishing their goals and objectives and at the same time also tries to
capture larger market share form its rivals. As it directly contribute in enhancing the profitability
and productivity as well. If Cleaning Kitchen having appropriate profit ratio then they easily
attain competitive advantage at market.
Target market: For grabbing customers attention, Cleaning Kitchen needs to decide
target market where they wants to offer their products and services by understanding their needs
and wants. Cleaning Kitchen focus on those market where they easily offer their services to
provide cleanliness to customers. It directly contribute in attaining set goals and objectives in an
appropriate time frame. By deciding target market, company may enhance the chances of
attaining success at market place (Viitanen and Kingston, 2014). With the help of this, Cleaning
Kitchen attain competitive advantage from its rivals.
Competitive advantage: It is also an important factor in which company should make and
prepare an effective plan to accomplishing positive results. Along with this, company also
implement new and innovative ways to invite largernumber number of customers in front of
company products. This will helps in attaining success at market place. For this, manager needs
to interact with their customers by understanding their taste and preferences towards company
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products and services. Cleaning Kitchen provide kitchen equipments and furniture to large
number of customers as per their needs and wants. It directly contribute in attaining competitive
advantage form its rivals (Van den Berg, 2016).
Therefore, all these are major key consideration which provide ways to business
organization to attain future growth at market place. Cleaning Kitchen implement all these
factors within their activities in order to attain set goals and objectives which may contribute in
attaining competitive advantage from its rivals.
P2 Opportunities for growth applying Ansoff’s growth vector matrix
In marketplace, various opportunities are there which help business organization to attain
success. In this Ansoff matrix consider as an important tool which help manager at the time of
implementing as well as developing strategies for attaining growth at market place. it
contributes in determining the opportunities through which manager easily grab future
opportunities to attain success. As it includes various segments are as follows:
Market penetration: Under this stage, companocus on offering their existing products
and services in existing market place. As it helps in increasing market share for the company by
attaining competitive advantage. In addition of this, firm promote their products for grabbing
customers attention towards its services.
Market development: Under this, firm sell their existing products in new market areas
with the aim of attaining success. In this company have opportunities to enhance their brand
image at market place. For attaining the same, company use this stage at the time of operating
their business in new and different areas. By this Cleaning Kitchen increase their customers base
towards existing services and at the same time also enhance the chances of attaining success.
One of the main advantage of using this stage is that it contribute in increasing profitability level.
Product development: Company makes and produce new products with high quality to
sell it in existing market in order to attaining the growth level. This strategy is helpful when firm
having strong customers base. With th of this, Cleaning Kitchen easily grab customers attention
which leads in attaining success at market place. For this, company use new and innovative ways
and technologies to make their product quality effective (Sarver, 2015). This will contribute in
building positive relation with the customers. As company easily capture market share from its
competitors.
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Diversification: This type of strategy is little bit risky because in which company
introduce new products and services in new market. As both are required development so that
company needs to set their clear goals and objectives before offering products (Olesen, 2014). In
addition of this, company should have proper knowledge about market trends and competitors
services. Therefore, it support Cleaning Kitchen to enhance their market share and attain success
in new market.
TASK 2
P3 Potential sources of funding available to businesses and discuss benefits and drawbacks of
each source
Every business organisation needs funds to execute their activities effectively. Without
this company fails in improving their image and also not exist in market. This it is vital for firm
to keep proper and adequate funds. In this, government of UK also develop various policies and
strategies operate firm activities. With the help of this, company easily attain long term benefits
and also survive in market place. In addition of this, it is also important for an entrepreneur who
wants to start their business find ways and sources of funding with the purpose of operating
business activities in systematic manner (Adams, 2016). As a small company, Cleaning Kitchen
needs to borrow funds for completing contract because they have on £20,000 to invest. In this
there are some key sources through which they easily make as well as keep adequate funds to
complete the contract of Kitchen Ductwork Cleaning. All these are as follows:
Bank loans: This is an important source which used by each and every company because it is
very common method which helps in getting funds. Along with this, UK government also define
various bank rules and regulations which follow by the individual who going to start a new
business at small scale. In this they take loan at minimum rate of interest as they easily execute
as well as operate entire task in appropriate manner (Mehmet, 2014). This is not only refer to a
single bank but also different finance institution which provide loan for start-ups and small firms.
It helps in improving the chances of existing in market form longer period of time. Advantages: One of the best advantage of bank loan is that it is a legal activities in which
companies pay a fixed amount of interest. Along with this, it is also for a certain time of
period.
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 Disadvantages: Banks provide fixed rate of return so that company have to pay it
whether they attain profit or losses as well. In addition of this, due to various loans,
companies are fails in taking appropriate decision.
Peer to peer lending: It is also an effective method which refer to debt financing as a business
organisation borrow money without implementing as well as using any kind of official institution
(Kemp, 2018). It reduce the involvement of middle person but at the same time also includes
risk, more time. Advantages: The main benefit of using this is that it is more easy and fast process
because it deals by online application process. Along with this, it also includes low
interest rates as compare to traditional institution. It defines fix rate of interest and
monthly pay is also helps in reducing the chances of creating any kind of obstacles.
 Disadvantages: It give less finance as compare to another banks and financial institution.
As it is no more valuable than credits which increase the interest rates.
Crowdfunding: This is also an effective source of funding is company having strong network.
In addition of this, crowdfunding helps in raising the capital and finance of firm by implementing
social media. It directly contribute in increasing finance within the company. It is refer to in
exchanging for good, equity and many more. Advantages: As crowdfunding consider as an important way to increasing the financial
funds in which investors easily evaluate the performance. With the help of this, company
increase their brand image at market place. In addition of this, it also helps in increasing
number of customers.
 Disadvantages: One of the major drawback of this is that it does not protect companies
ideas. In addition of this, they also get wrong returns to business organization.
Angel: It is an effective method which investing with the purpose of launching as well as
establishing new and innovative business. In addition of this, investors are involve in business as
they can be director and mentor as well (Janssen and et. al., 2014). Thus, they take quick
decision of investment which may helps in increasing the capital of firm. Advantages: One of the main advantage of this is that it increase the growth opportunities
of business.
 Disadvantages: It is very typical to determine angel investor.
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Venture finance: It is also an effective way of funding as investor provide funds fro new and
small companies who are tries to attain long term growth at market place (Foglesong, 2014). It
refer to private equity capital through which small business organization operate their business
effectively. It is known by risk capital which helps firm to enhance their revenue. Advantages: One of the main advantage of this is that it help business organization at the
time of expanding activities. In addition of this, venture capitalists are highly connected
with business by providing them various benefits.
 Disadvantages: The main drawback of this is that it is loss of control. It also increase the
cost and legal requirements.
TASK 3
P4 A business plan for growth that includes financial information and strategic objectives for
scaling up a business
For attaining future growth, it is important for business to make an effective plan which
helps in attaining set goals and objectives in appropriate manner. It includes various activities
towards business such as company mission, vision products, goals and many more. All these
may attain better results (Fagence, 2014). In this, the business plan of Cleaning Kitchen for
attaining growth at market place.
Company overview: Cleaning Kitchen is small business as they take contract for
providing services to cleanliness of kitchen. Along with this they also have to invest £20,000
within their business to complete the contract with the purpose of attaining success.
Mission: The main mission of this company is to provide kitchen equipments and
furniture for cleanliness. They wants to make their process more effective and attain better
results by delivering quality services.
Vision: To be leading company in electric industry by offering valuable services by
considering customers needs and wants.
Products: Cleaning Kitchen operate their business at small scale as they offer various
kitchen equipments and furniture for satisfying market needs. This will helps in increasing
profitability level of the firm (Ellman, 2014).
Target market: Cleaning Kitchen wants to make their process appropriate as they focus
on electric market where they products cleanliness services by delivering kitchen equipments and
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furniture. Along with this, they also tries to understand customers needs and wants to provide
them better satisfaction level (Coale and Hoover, 2015).
Financial information: It is vital for business organization to evaluate their current
position at market place. In context of this there are financial budget of Cleaning Kitchen are as
follows:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 250
Stock 20 30
Debtors 50 50
Bank 10 20
Total 210 300
Creditors 100 150
Bank overdraft 90 70
Total 200 220
Working capital 10 80
Strategic objectives: It is important for business organization to establish objectives
which refer to long term goals and objectives. As the main objectives of company is “ to cater
customers needs and wants by converting mission statement into attaining success at market
place.
TASK 4
P5 Exit or succession options for a small business explaining the benefits and drawbacks of each
option
In today's market, exit and succession are vital for every business organization which is
highly relate with organizational performance and position as well. Both options are important
for company. For example, if company is not above to perform well in market and also face high
losses. As they can close their business activities. For this, it is important for manager to evaluate
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as well as analyse the market trends and company performance. Along with this, they also
formulate strategies and policies accordingly. If company wants to attain success and continue in
market then they tries to make their brand image more popular by delivering quality products
and services in market place (Brinckmann, Grichnik and Kapsa, 2010). On the other side, if
company does not wants to continue then they dissolve. As there are some appropriate ways and
options which used by Cleaning Kitchen are as follows:
Liquidation: It is an effective method through which company end their business
operations. For example, when company is end stage and can not be continue in market then they
close their business. In addition of this, company insolvent voluntarily as the decision take by
director. If assets of company has been soled then the business is totally shut down.
Advantages:
 Company debt written off
 No more restructuring costs
Disadvantages:
 No more retained of business assets.
Sell to workers and its manager: Under this way, manager of company show their
interest to buy the company so that firm can sell to those employees who willing to buy.
Advantages: It increase innovation within the company.
Disadvantages: This may reduce the market share of the company.
Sell company in open market: It is also an effective way in which company wants to sell
their assets. By implementing this method,, company can easily exist from the market. For
example, if company manager evaluated that company is no more valuable then they sell their
business in open market as per certain cost.
Advantages: This way help in increasing the chances of exceeding good returns in short period
of time.
Disadvantages: It consume more time.
Sell business to another company: This strategy is refers to acquisition in which
company sell their business to another firm which is more effective as compare to them. this will
help company to evaluate new ways to expand their business in another areas (Barbour and
Deakin, 2012). It directly contribute in attaining competitive advantage from its rivals.
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Advantages: One of the main advantage of this is to provide opportunity to maintain involvement
in another business.
Disadvantages: It takes time to find best buyer.
In addition of this, there are some reasons for company failure in market place. As it is
important for company to identify in order to evaluate the reason are as follows:
Less uniqueness within the business: If company has less creativity and ways to produce
quality products and services then they fails in attaining customers satisfaction. Therefore, they
also fails in attaining success.
Ineffectiveness of leadership: It is main reason of failure of business if the leaders are
not capable and talented than they fails in motivating and encouraging workers to attain growth
(Byrne, Sipe and Dodson, 2014). If they are not able to take decision towards the business and its
vision as well then it reduce the chances of attaining success.
CONCLUSION
From the above mentioned report, planning is one of the important procedures for every
business organization for attaining success at market place. It is conduct before implementing
business activities. It defines various ways and aspects through which firm execute activities
with the purpose of establishing positive image. In addition of this, planning for growth is also an
appropriate opportunity through which company take competitive advantage from its rivals.
Along with this, various sources are also there which helps in raising funds within business
organization. Crowdfunding, venture capital, angel and many more are the main source which
helps in attaining long term goals and objectives. With the assistance of this, manager of
company makes an appropriate plan for enhancing the growth level.
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REFERENCES
Books and journals
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