Comprehensive Growth Plan: Funding, Objectives and Business Scaling

This report provides a comprehensive analysis of growth planning for SMEs, focusing on Nesbitt Consultancy's role in assisting startups. It covers key considerations for evaluating growth opportunities using PESTLE analysis and Ansoff's growth vector matrix. It examines various funding sources, detailing their benefits and drawbacks, and presents a business plan that considers financial and strategic objectives for scaling up. The report also explores exit and succession options for small business owners. Analytical frameworks such as Porter’s generic strategies are used to evaluate growth options and analyze associated risks. The product development strategy is chosen as the most suitable for Nesbitt Consultancy in the current environment. This report is intended to serve as a guide for understanding and implementing effective growth strategies for SMEs.

Planning for Growth

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities........................................................1
P2 Opportunities for growth applying Ansoff's growth vector matrix........................................3
M1 The options for growth using range of analytical frameworks.............................................5
D1 Critically evaluate options and pathway to analysing risk....................................................6
TASK 2............................................................................................................................................6
P3 Potential sources of funding available to business and its benefits and drawbacks...............6
M2 Evaluation of potential source of funding.............................................................................8
D2 Critically evaluation of potential sources..............................................................................8
TASK 3............................................................................................................................................8
P4 Business plan for growth that consider financial and strategic objectives for scaling up
business........................................................................................................................................8
M3 Appropriate and detailed business plan...............................................................................11
D3 Coherent and in-depth business plan...................................................................................12
TASK 4..........................................................................................................................................12
P5 Exit and succession option...................................................................................................12
M4 Exit and succession option..................................................................................................13
D4 Critical evaluation of exit and succession option................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning is defined as strategic business activity that uses by business concerns
to plan and track organic growth in their revenues. Planning is the important factor which is
introduced by an individual for the purpose of developing the business activities and attaining the
higher performance (Syssner and Meijer., 2020.). Growth plan clearly stating the objectives and
bring the change in their performance for the purpose of achieving the goals and objectives
(Ward, 2016). This is important for each organization to understand the requirement of their
customers and introduce the products accordingly that can help to grow the business and
attaining higher productivity. Nesbitt Consultancy is the consultancy firm that specialise in
growing start-ups and SMEs within local community that can help to grow the business
continuously. As a trainee consultant, different functions and responsibilities are performing for
the purpose of developing the business performance. The report covers key consideration SMEs
that considered when evaluating growth opportunities, different methods through which
organization access fund, a business plan and various ways that use by small business owner or
can exit the business.
TASK 1
P1 Key considerations for evaluating growth opportunities
For each business organization growth matters a lot as it understands the requirement of
their customers and provide them opportunities to grow the business. Nesbitt Consultancy is the
medium size organization that provides the consultancy services to its customers and assure them
all working and activities will be done effectively by arranging the resources and capital. Growth
is the first stage of maturity which is decided on the basis of size, market share and profit margin.
The aim of organization to satisfy their customers by offering the better quality of services. To
analysis the growth opportunities a PESTLE Analysis has been conducted that is defined below:
PESTLE Analysis – This is a strategic tool that uses by organization for analysing the
external environment and know which factor might be affects their business. this is important for
each organization to conduct an analysis of environment and make right business decision that
supports to grow the business (Kazmi and et. al., 2021). The PESTLE Analysis in context to
Nesbitt Consultancy is defined as:
1

Political factor – This factor showing the relation with tax rates, government stability,
fiscal policy, trade regulation and others that have impacted on organizational performance. The
government of UK is stable and it formulate the regulation of trading the business and supports
the all businesses which affects the Nesbitt Consultancy positively. As whole world is facing the
pandemic (Covid-19) where government has changed the regulation to operate their business and
activities regularly. Due to this, Nesbitt Consultancy and its activities has been affected
negatively (Kiambati, Mbugua and Mwenja., 2020).
Economical factor – This factor is related to economy that involves employment rates,
GDP, inflation, and employment rates, needs to follow while running a business. In relation to
Nesbitt Consultancy, inflation rates of UK are low that become an opportunity for organization
to run their business by providing better quality of consultancy services. On the other side,
increasing in inflation and GDP rates it become difficult for organization to fill the customer
demand as all products and services become costly that could be affected Nesbitt Consultancy
negatively.
Social factor –This factor is showing the relation with society where number of people
lives and belongs to different culture. This involves income level, education level, changing in
needs and demand, lifestyle and others that can be affected the business. Due to Covid-19 all
businesses are being stopped that impacted on Nesbitt Consultancy negatively as its activities are
not going to run continuously. Considering this factor, chosen organization introduce the changes
in their services and planning which can help to run the business and managing the all functions
and activities positively.
Technological factor – This factor is related to advance technology, changing behaviour,
innovation and attraction that should be use by organization for the purpose of continuing their
business activities. In Covid situation, Nesbitt Consultancy has adopted the new technology to
providing the consultancy services about running their business that can help to grow the
business effectively. On the other side, in adopting technological services and new activities cost
of chosen organization increases that reduce organizational profitability. Hence: it affects the
business in changing environment (Prezioso,., 2020).
Legal factor – While running any business and performing responsibility laws and
regulations are important to follow that supports to run and grow the business in changing
environment. Nesbitt Consultancy has followed the employment and business regulations that
2

can help to develop the organizational performance and productivity positively. On the other
side, changes in employment and trade regulation can be create the difficulties for operating
business and getting the work done from consultancy trainee. Thus, it might be affected the
business negatively (Boserup, 2017).
Environmental factor – To run and managing the business environmental protection,
and climate change is require to consider in this factor as it helps to develop the business
productivity. In relation to Nesbitt Consultancy, management has followed the all environment
standard and followed the regulations that impacts positively on business. On the other side,
changes in climate and covid-19 situation created the challenges for running business and
affected the productivity.
From the above it can be explained that in business environment there are various factors
that needs to consider in running business that can be affect the business positively and
negatively. The management should focus on each factor and analysis the all functions which
can help to develop the business productivity (Harrison,s Galland. and Tewdwr-Jones., 2021).
P2 Opportunities for growth applying Ansoff's growth vector matrix
There are different trait of growths on which organisation development refers in terms of
their product and services due to sales which specific business increase continously. To mapping
challenges and opportunities for market and product of particular company for analyse
sustainable development. In following the model of Ansoff Matrix suggests to introduce better
new product and development effectively. There are different strategies, Nesbitt Consultancy is
following one of them which is suitable and relevant that strategies are as follows:
3

(Source: Ansoff Matrix, 2019)
Market penetration – According to this strategy it depicts about selling of existing
product into existing market at the time of business which grow at the minimum risk. If Nesbitt
Consultancy adopt this strategy then it has to distribute its existing services at lower cost. It helps
to save the cost of promotion and other advertisement because people are already aware from
such organization (Schetke, Haase and Kötter, 2012).
Market development – This strategy is explain about business growth where it highlight
on existing product sells to new market for mapping new trends and approach new traits of
customer for product and services. Usually, companies are approach this process is to analyse for
setting new benchmark and attain competitive edge to attain competitive advantages. If Nesbitt
Consultancy wants growth of organization, then it has to expand business by distributing
products in other location within UK that will help to attracts customer and increase profitability.
Product development - In this strategy business organization need to bring new products
and services in existing area for the purpose of growth. This strategy helps to grow company fast
because business concern has already market knowledge and customer's perception, so they
produce products accordingly which can attract customers. If Nesbitt Consultancy implement
such strategy, then it has to introduce new services in relation to consultancy that helps to attracts
customers and emphasis them to purchase. Therefore, such strategy is also helpful for continuous
4
Illustration 1: Ansoff Matrix

growth of organization by introducing new products and services (Pothukuchi, 2015)(Todes,
2012).
Diversification - Such strategy is also related with growth of organization by producing
new products in new area or market. By introducing new products and services in new market
influences customers and encourages them to buy new products. It can be adopted by Nesbitt
Consultancy by launching new products and services in new market. It is not possible for all
organization to adopt this plan because it need high investment and skilled employees which is
difficult for organization (Haughton, Allmendinger and Oosterlynck, 2013).
Evaluation – From the above, product development strategy is adopted by consultant
that can help to introduce the new services in changing environment and manage the all
activities. This is suitable for organization as in Covid situation all businesses are stopped and
requirement digital services that provides by Nesbitt consultancy which can help to develop the
organizational performance and productivity effectively. This also helps to managing the all
functions and activities accurately and maintain higher performance.
M1 The options for growth using range of analytical frameworks
Porter’s generic strategy: This is a model which is used by business organization to
evaluate their growth opportunities and attaining the higher productivity. This is given by
Michael Porters that states how an organization gain competitive advantages. In relation to
Nesbitt Consultancy strategy is defined below:
Cost leadership: This relates to cost where organization needs to provide its products
and services at lowest cost. Nesbitt Consultancy can use this strategy by providing its services at
lower cost than others which can help to attracts customers and develop productivity.
Differentiation: This strategy is related to different types of products and services which
are not available in market. Nesbitt Consultancy can be used this strategy by introducing new
services in current market that can help to attracts the large customers and increase sales
effectively.
Focus – This strategy is the combination of differentiation and cost where organization
should provide the products and services at lower cost with unique feature. This can help to
increase the organizational sales and profitability by managing all functions and activities
effectively (Boserup, 2017).
5

Nesbitt Consultancy has adopted the focus strategy in which it offers new service of
preparing pitch and using new technology to reach the target customers at lower cost. This can
help to increase the organizational productivity and profitability in changing environment and
provide the competitive advantages.
D1 Critically evaluate options and pathway to analysing risk
From the above explanation it has evaluated that Nesbitt Consultancy focused on PESTLE
analysis, Ansoff’s growth and porter generic strategy that can help to select the best option for
attaining business goals and maintaining higher performance in the changing environment.
TASK 2
P3 Potential sources of funding available to business and its benefits and drawbacks
Fund and capital are the important aspects for each business organization as it is used to
make available raw material, management, human resources, and technology that can help to
develop the business productivity and profitability. Without arranging funds and resources it will
be difficult to know that how the business activities are going on and how it will be managed. To
start a business and growing it continuously there is need to have proper understanding about
market and sources of funding which can help to develop the business performance. In the
business environment there are many sources of funding which are as explained:
Crowdfunding - This means organization can start up or expand business by getting
finance from such sources that helps to collect money from diverse number of individuals.
Organization can raise funds by collecting amounts from various resources that helps in growth
of business industry (Kerzner and Kerzner 2017).
Benefits - This is easiest and fastest way for raising funds with less fees and charges that
helps to expand business. There is no need to face any legal compliances while taking funds
from crowdfunding (Moseley, 2013).
Drawbacks - It may be difficult for organization to raise funds because there is need to
have good market image and also need to build up interest of investors for expanding business. If
organization fails to create interest it cannot arrange funds for business.
Peer to peer lending - This is another source of lend money to growth of business by
expanding business activities. This is a good resource of arranging funds that helps to maintain
the relation between borrowers (Schetke, Haase and Kötter, 2012).
6

Benefits - This contains online application which is fast and convenient all organization
to get money any time. In this option borrowers can often access loans with low interest rates
that helps to grow business.
Drawbacks - Peer to peer loans requires high credit risk which is not easy for companies
to maintain credit score. There is not any insurance and government protection that bounds
lender to face debt in case of borrower's default (Gleeson, Dodson and Spiller, 2012).
Angel Investors – This means an individual and group of people that provides a capital
for start-up a business by exchanging debts or ownership equity. This is also known as seed
investor and private investor that provides finance back for startups and small businesses. In
relation to Nesbitt Consultancy, management can arrange the funds by using one time investment
for the purpose of developing the business (Haughton, Allmendinger and Oosterlynck, 2013).
Benefits – This type of funding source are free to make investment decision quickly as
there is no need for collateral securities. This helps to maintain better discipline due to outside
scrutiny. This can help to arrange the funds in small or medium amount that used to run and
grow the small business.
Drawbacks – There is loss of control the business activities and functions which are
important to perform. Angel investors use the hand on approach for their business that create the
cost and difficulties for running business.
Bank loan – This is another sources of funding which is used by an individual after getting
loan and managing the higher performance. This offers money to consumers and business
concern for a certain period in which they perform their activities and function. This also can be
use by Nesbitt Consultancy for raising money in their business and attaining the higher
performance.
Benefits – The bank loan provides fund as it have cheapest interest rates that can help to
collect the money. This main the flexibility by spending money on different task and project.
This also helps to maintain the control over all functions and activities by introducing changes
and completing the project (Pred, 2017).
Drawbacks – There is higher risk that create the difficulties for running business. This
requires profitability to manage the project. This needs collateral security that can help to
evaluate the credit score of business.
7

Nesbitt Consultancy is the consultancy based organization that should be use Crowd
funding as it provides the funs in less time period with smooth manner. This can help to develop
the organizational performance and productivity in the changing environment and maintain
higher performance. This can help to grow the business activities in changing environment and
develop the business performance by managing all functions and activities.
M2 Evaluation of potential source of funding
In above explanation it has been evaluated that there are various sources of funding which
can be used by Nesbitt Consultancy for the purpose of running its business and growing it
continuously by arranging the fund properly. The chosen organization has adopted
Crowdfunding which is effective and suitable for their business as it make available fund faster
than others. There is not legal formalities require to raise the capital (Moseley, 2013).
D2 Critically evaluation of potential sources
By selecting the best source of funding Nesbitt Consultancy is operating its business
regularly by managing all functions and activities in changing environment. The management
understand the business requirement and make the right decision by evaluating all resources.
This can help to managing the higher performance and productivity at the workplace.
TASK 3
P4 Business plan for growth that consider financial and strategic objectives for scaling up
business
A business plan is the formal and written document that contain goals of business and
managing the all functions. This is important for business organization to understand the
requirement and formulate the business plan which can be used to grow the business and
maintain the higher productivity in changing environment. As Covid-19 occurred in whole world
that has impacted on all businesses and health sectors where it became important for business
concern to introduce new products and services by using technological advancement that can
help to grow the business and attain the higher productivity.
Business plan - Nesbitt Consultancy is planning to launch new services such as finding
right pitch and reaching to investors by using digital technology. This will help to attracts
number of customers and develop the organizational productivity. To meet with organizational
goals and expanding business a business plan is explained below:
8

Executive summary: Nesbitt Consultancy is the service proving company that is facing the
problem of lower sales and productivity due to Covid-19. The management is has decided to
launch new services of finding right pitch and reaching to investors by using digital technology
that will satisfy the customers and increase the organizational performance by expanding
business.
Vision and mission: To provide better quality of consultancy and pitching services by
using new technology for expanding business in environment.
Strategic objectives:
 To introduce the consultancy and pitching services to its clients for reaching right
customers within 2024.
 To use new technology and innovation process in their business within 2023.
 To increase the sales and profitability by 40% by creating awareness and attraction
between people.
 To evaluate the business performance and attain the competitive advantages.
STP analysis: This can be explained as STP framework which is used to consider
segmentation, targeting, and positioning for the purpose of targeting people and managing the
higher performance. To expand the business there is need to adopt new technology and services
that can drive the business regularly. The STP analysis for Nesbitt Consultancy is explained
below:
Segmentation: This is the process of dividing the market place in to parts and segments
that can help to develop the organizational productivity and performance. This involves
behaviour, geographical, and demographical aspects which are used to managing the business. In
relation to Nesbitt Consultancy, demographical segment has been selected in which it focus on
age, taste and needs of customers then provides services.
Targeting: This is marketing term which is used by business organization to target the
people and getting the work done. The consultant organization is targeting the those people who
wants to start their small business and wants advise (Gleeson, (Dodson and Spiller, 2012).
Positioning: This states the position of business in changing environment by utilising the
product development strategy. The Nesbitt Consultancy will get higher position in consultancy
business.
9

Budget / Financial information – To entire a business successfully and arranging the all
activities there is need to have proper financial information as it can help to make the right
business decision. Nesbitt consultancy is planning to launch new service so that a budget has
been prepared by cost account that is defined below:
Particulars Amount (£)
Research and development £ 5000
Marketing £ 2000
New technology £ 3000
Selling activities £ 3000
Total £ 13000
10