Homeground Cafe: A Strategic Business Plan for Sustainable Growth

This report details a comprehensive growth plan for Homeground Cafe, a small coffee shop in Windermere, UK, focusing on strategies for market expansion and increased competitive advantage. It assesses growth opportunities using Ansoff's growth matrix, analyzes various funding options including crowdfunding, peer-to-peer lending, bank finance, and business angels, and proposes a business plan for scaling operations. The plan includes an executive summary, company history, product and service offerings, industry analysis, and considerations for political and economic factors. The report also explores potential exit options for the business owners, providing a thorough overview of the steps necessary for Homeground Cafe to achieve sustainable growth and success in the competitive food and beverage industry.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Considerations for the overall evaluation of growth opportunities which are available for the
business........................................................................................................................................3
Growth opportunities with the evaluation of Ansoff's growth matrix.........................................4
Analysing different growth options for business.........................................................................5
LO2..................................................................................................................................................5
Available funding options for organization to assess potential sources......................................5
Evaluation of Source of funding with justification of the choice................................................7
LO3..................................................................................................................................................8
Business plan development with communication on the scaling of business..............................8
LO4................................................................................................................................................14
Exit options for owners in the industry......................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning for growth is considered as an effective practice which is necessary for
organizations to develop strategic decisions which are essential for their businesses to grow and
sustain in the business environment. It is helpful for the companies to develop better plans and
procedures for maximising their overall quality of output in the industry (Benzaghta and et.al.,
2021). The current report is based on Homeground which is a small coffee shop in Windermere,
UK providing a premium experience of quality coffee and bakery products to the customers.
This report is explaining considerations for evaluation of growth of the business, various
methods which are necessary for seeking funding for better growth in the market. It further
includes a business plan which has a motive to increase the overall scale of the business and
certain exit options which are available to the business owners are also thoroughly discussed in
this report.
LO1
Considerations for the overall evaluation of growth opportunities which are available for the
business
Homeground is a small coffee shop in UK which is slowly and gradually developing
better advantage in the competitive market with the help of its unique taste and services for the
customers. These aspects have been beneficial for the company to grow and generate better
quality of output which has a positive impact on its overall sustainability in the food and
beverage industry of UK (Cornaggia Wolfe and Yoo, 2018). It is necessary for this business to
look for options for its expansion in the market which will provide the organization to gain better
market share and competitive advantage in the business environment.
SMEs are considered as the small and medium sized businesses which have lesser
employees in their organization on comparison with the large businesses. Their market share is
also less due to their lesser interest in increasing the overall expansion of their businesses in the
business environment. Competitive advantage is known as the factor which is helpful in
increasing the benefits of businesses in the market. This aspect is helpful for providing better
opportunities for Homeground to increase their popularity in comparison with their key
competitors and generate better advantage in the competitive business environment. Different
strategies can be adopted by the organization for increasing their competitive advantage in the

market by increasing their overall performance in the industry which plays a major role for the
achievement of the tasks and duties of the company. Porter's generic strategies are beneficial for
the business to develop better frameworks for expansion of their business in newer markets.
With the help of these strategies the organizations are able to grow and create better productivity
which holds a better advantage for the company in this considerate business environment. These
strategies are as follows:
Cost Leadership
This strategy explains that reduction in prices of products and services is beneficial for
increasing the attraction of customers towards the business.
Differentiation
This strategy supports that differentiation of products and services is helpful for creation
of unique products and services which can have a positive impact on the buying behaviour of
customers towards the company.
Cost Focus
The cost focus strategy focuses on a niche target market which is to be provided with
high quality products and services at aggressive price points.
Differentiation Focus
Likely, customers are provided with a variety of products and services in a niche market
that is helpful for the business to generate good response from customers (Gumel, 2019).
Differentiation is an effective strategy which can have a positive influence on the overall
productivity of the company to provide a unique experience to their customers. This strategy is
beneficial for increasing the satisfaction levels of the customers and developing a positive image
of the company in their mind.
Growth opportunities with the evaluation of Ansoff's growth matrix
Market Penetration
The market penetration growth strategy is beneficial for gaining better competitive
advantage in the business environment by providing products and services to customers at very
fewer prices. This is effective for generating better productivity in the industry and increasing the
interest of customers in the business.

Market Development
The market development strategy focuses on expansion of the business by introducing
their existing products and services into new markets successfully. This is beneficial for
increasing the market share of the company and promotion of existing brand into newer markets
which plays a significant role for the success of the business in the industry.
Product Development
Under this strategy, new goods and services are produced by the business organizations
which are helpful for targeting the customers effectively in the market. This is useful for the
development of the products and services and circulating them in the markets effectively.
Diversification
The diversification strategy is considered to be a risky approach which may have a
significant impact on the overall development of the company. New productivity and services are
introduced in new markets as per this strategy.
Analysing different growth options for business
Development of market
Homeground can enhance their performance in the market by developing better practices
and increasing the overall performance of the business which are necessary for the companies to
grow and develop in the industry. This can be effective for the company to gain competitive
advantage and enhance their options for growth in the market.
Selecting strategy of product marketing
The market development strategy is considered to be feasible for the company to enhance
their business in the competitive environment and expand successfully in the industry. With the
help of this strategy, the business is able to grow and achieve better quality of output which is
essential for the businesses to grow and sustain their business environment (Hans, 2018).
Homeground will be able to enhance their performance with the help of this strategy which is
necessary for the comp-any to grow.
LO2
Available funding options for organization to assess potential sources
Different options are available for the business to seek funding for expanding their
business in the market which includes:

Crowd funding-
This funding method is suitable which are looking for an expansion as they have already
crossed the point of being an early business. The capital is collected by the public directly in this
method which is beneficial for increasing the overall success of the business to conduct their
business operations.
Advantages
This is an effective funding source for the business to save their upfront fees and different
charges which can be fruitful for them to grow and generate better profitability. With the help of
this funding source the organization can collect large amount of money an increase their
popularity in the industry.
Disadvantages
It is a complex procedure in comparison with the other funding sources which may have
a significant impact on the overall success of the business. Appropriate research is necessary by
the business for choosing the right source.
Peer to peer lending-
The monetary support which is gained from friends and family in the form of debt or
equity is considered as peer to peer lending.
Advantages
It is beneficial for the business for reducing their issues as the lenders are known to them
which helps in developing better relationship between the two parties significantly (Jensen, and
Creinin, 2020). The rate of interest is also low in this funding source which is beneficial for the
businesses to grow in the business environment.
Disadvantages
Government may not support such informational investment option at times when any
conflict or inappropriate practice takes place between the two parties. There can be a challenge
of protection of capital in this form of funding.
Bank Finance-
Banks and financial institutions are the prominent money lending bodies which provide
appropriate capital for the business to fulfil their needs and grow and the business environment.

Advantages
The equity of Homeground is not compromised in bank finance that has a positive impact
on the overall success of the business in the industry. The company does not have a liability to
pay the profit margins to bank as the money is lended on loan. They are liable to pay only
interest to the financial institutions which are fixed.
Disadvantages
Problems in cash of the business may lead towards creating inconvenience for the
businesses to manage their payment timely. The personal assets of a business are generally at a
higher risk in this form of funding.
Business angles
The financially stable and wealthy businessmen provide funding to the businesses in
order to get a higher return and equity in the company. These are high profile businessmen which
provide appropriate capital and guidance for the business to grow.
Advantages
Funding from investors is beneficial for enhancing the overall decision-making process
of the business as there are better opportunities which are available by these companies. There is
no need of any type of security deposits in this funding source which acts as one of the most
important benefit for the business to grow.
Disadvantages
It is not feasible when lesser investment is required by the business due to loss of equity
by the owner. Finding a suitable investor for the organization is a difficult task for the company.
Evaluation of Source of funding with justification of the choice
Homeground may adopt multiple funding options for improving the balance of equity and
debt in the financial composition of the company. Business angels can be chosen for seeking
funding as they will not only provide appropriate capital to the business but also their experience.
This can be essential for the company to expand their services successfully and gain better
advantage in the business environment (Morison, 2020). This funding source can be effective in
order to provide stability to the company to achieve better growth in the industry. Bank finance
can be another effective source which can provide balance for the business as it is a source of

debt. The business will have a control over their equity in this form of funding which may have
significant impact on the development of the business.
LO3
Business plan development with communication on the scaling of business
Executive Summary
The primary aim of this business plan is to demonstrate different activities which are
necessary for Homeground Cafe to expand their business in new markets and increase the overall
competitive advantage of the company in the business environment. The operational plan,
financial plan and market projection of the organization is also analysed briefly.
Company History
Homeground Cafe is situated in Windermere, UK by a bunch of people which had a
major interest in improving the overall interest of the business in the industry (Olmos and et.al.,
2020). Effective results are achieved by the business with the help of their consistent
performance in the business environment.
Product and Services
This organization offers a wonderful experience of coffee and bakery products to their
customers with a unique ambience which is provided for increasing the satisfaction levels of the
customers.
Business Concept
The business concept of Homeground is to provide maximum satisfaction to the
customers by consistently performing well in the market and develop a USP. This concept is
beneficial for the company in order to target their customers appropriately and gaining their trust
towards the business.
Industry Analysis
Political

Instability in the UK politics is a major factor which has a negative impact on the overall
performance of the business in the industry. Changes in different policies and procedures by the
giovernment may impose pressure on Homeground Cafe to manage their decision-making.
Economic
Changes in the rates of fiscal and monetary policies on a regular basis creates a negative
influence on the economic development of the company. Factors like inflation and
unemployment may create pressure on the business.
Social
Popularity of the cafe culture in the new generation through various social media
platforms is beneficial for Homeground to increase their overall reach in the market and expand
their services successfully for achieving better growth and sustainability.
Technological
Adaptation of advanced technological tools and software is beneficial for the
organization to enhance their customer experience. This can provide better assistance for the
business to manage their operations easily.
Vision
Vision of Homeground Cafe is to expand into new markets and increase their overall
reach in the food and beverage industry by satisfying more and more customers.
Mission
The mission of Homeground cafe is to provide quality coffee and snacks experience to
each and every customer with the help of their unique services which are developed by the
company for the customers (Phadermrod, Crowder and Wills, 2019).
Objectives of business plan
 To increase the market share of the business.
 To improve the competitive advantage of the cafe in competitive industry.
 To provide better customer satisfaction than the key rivals in the market.
Analysis of Market

Strengths
Homeground is having good reviews from customers on their official website which has
a positive impact on the overall market image of the company among the customers.
Weakness
Less accessibility of resources and capital is a major weakness for the company which
restricts it to expand their business in the competitive business environment.
Opportunities
Homeground can expand into newer markets which will be beneficial for the company to
increase their market share and gain better competitive advantage in the industry.
Threats
The popularity of key competitors of the business may act as a potential threat on the
business and reduce the overall revenue of the comopany in the industry.
Porter's five forces
Bargaining power of customers
The power of this force is high for the business as there are different options available
with the customers which reduces the dominance of Homeground cafe in the market. These
varied options may attract the customers towards their business which may have a significant
influence on the profitability of the company (Piao, 2018).
Supplier bargaining power
The power of this force is less than there are many suppliers available with the
organization to procure their raw material and other resources which has a positive influence on
the company to get their products at desired prices. `
Threat of the new entrant
This force has high power as it is easier for new entrants to capture the market in food
and beverage industry which may have a negative impact on the overall competitive advantage
of the company.
Competitive rivalry
The power of competitive rivalry is higher as the competitors, Q Cafe, DRIPP, Cafe
Kubal etc. have achieved a better market share in the industry. These organizations have

established their businesses which may have a significant influence on the overall productivity of
the company.
Substitute product threat
Different substitutes are available for the company such as smoothies, tea, milkshakes
which are liked by the customers that increases the power of the substitute goods having a
significant impact on the business.
Business Economies
The major focus of Homeground Cafe is to enhance the overall reach of the business in
the market by targeting and acquiring more and more customers in the industry. It is essential for
the business to develop an effective image among the customers and gain their trust towards the
products and services which are provided to them by the business.
Marketing Plan
A marketing plan is designed for the business to undertake their promotional practices
effectively by increasing the interest of the population in their coffee and bakery products. This
plan provides a structured approach to the business for increasing their overall competitive
advantage in the industry successfully. The elements of this plan are as follows:
7 P's of Marketing mix
Product
Homeground Cafe provides tasty coffee and bakery products to the customers which are
liked by the customers which is beneficial for the company in the industry. A variety of product
range has been developed by the company which is beneficial in enhancing the overall customer
experience of UK population.
Price
Products and services are provided by the business at affordable prices to the customers
which is beneficial for attracting maximum people towards the company.
Place
The location of coffee shops is selected near most popular places like airports, parks and
malls etc. which is essential for the company to grow in the industry.

Promotion
Advertisement activities will be done by the business with the help of different social
media platforms such as Facebook, Instagram, etc. which effective for increasing the awareness
of products and services in the industry.
People
The business has a team of highly qualified chefs and support staff which provides a
hostile experience to the customers with the help of their proficiency in the field.
Process
A specific process is followed by the organization by using machines which are useful in
providing better experience of coffee for the organization in order to generate better competitive
advantage in the business environment.
Physical evidence
The outer presentation and design of the coffee shop is attractive which is beneficial for
increasing the overall performance of the business in the competitive industry successfully. This
is useful for generating a positive image of the company among their customers.
Operational Plan
The operational plan is an effective tool which is beneficial for the company for the
overall management of their resources and employees. This plan provides better assistance for
the company to enhance their productivity and achieve better results in completing the daily
tasks and duties.
Securing Investments of Business
The funding and capital needs of the Homeground will be effectively planned in order to
generate better quality of output and enhance the business processes which are successful for the
company to grow. The rights of USP of the cafe will be taken in order to secure its individual
identity in the business environment successfully.
Resource Plan
The resources of Homeground will be gathered through established suppliers in the
market at affordable rates in order to maintain the quality and profitability of the business. The