Unit 42: Planning for Growth: Growth Opportunities, Funding, and Exit

This report delves into the critical aspects of planning for growth within small and medium-sized enterprises (SMEs), with a specific focus on a case study of 'Home for Good,' a property maintenance business. It begins by examining key considerations for evaluating growth opportunities, including financial and professional growth, and the importance of market research and product portfolio analysis. The report then utilizes frameworks such as the BCG matrix and GE/McKinsey matrix to assess product lines and business units, providing recommendations for resource allocation. Furthermore, the report explores the Ansoff's growth vector matrix, evaluating market penetration, product development, market development, and diversification strategies. It also analyzes various sources of funding, including venture capital, bank loans, crowdfunding, and government start-up loans, discussing the advantages and disadvantages of each. The report culminates in the design of a business plan, incorporating financial information and strategic objectives for scaling up business growth, and explores different strategies for succeeding or exiting a small business, including the benefits and drawbacks associated with each approach.

Unit 42 Planning for growth

Table of Contents
INTRODUCTION...............................................................................................................................3
Examine the key consideration for evaluating the growth opportunities......................................3
Critically examine the opportunities for growth with the help of Ansoff's growth vector matrix..6
Examine and evaluate various sourcing of funding through which enterprises generate capital. .8
Design of a business plan with financial information to scale up business growth and its strategic
objectives......................................................................................................................................10
Various ways to succeed or exit a small business with its implications.......................................13
Benefits to succession or exit of a small business enterprise:......................................................14
Drawbacks after succession or exit of a small business firm:......................................................15
CONCLUSION..................................................................................................................................15
REFERENCES..................................................................................................................................17

INTRODUCTION
Planning for growth in business organisation is the crucial part of the company
management system which focus on the implementation and development of growth strategy
(Hollander 2017). This is the kind of strategic business function or activity which helps the
organisation director and manager to track their revenue, growth along with the development of
future growth plan. It involves the multiple functions and analytical activities to analyses and
allocate the resources in the part of improvement and development with the aid of different
analytical models and frameworks. The another importance of planing for growth is that, this to
sustain in the competitive market with best value and revenue. This report is considering the SME
(Small and medium-sized enterprises) and the planing strategy's for their growth. Home for Good is
the small business established in Glasgow and Scotland, this provides the home maintenance
support to upkeep the properties. For the effective analysis and evaluation of growth planing in
context of the selected organisation, analysis of the key consideration in order to evaluate growth
opportunities. For the brief evaluation of the growth opportunities it is involving the Ansoff's
growth and vector matrix. Potential sources of funding is assess along with the discussion of its
benefits and drawbacks. This report also involves the designing of business plan along with the
financial information and objectives of the scale up, for growth. Succession options for the small
scale company along with the study of its benefits and drawbacks.
Examine the key consideration for evaluating the growth opportunities.
Growth opportunity is the existing and future development options which can aid the
organisation to get success in their target market, this can be divided in to different groups such as
the Financial growth opportunity and professional growth opportunity. So finance is the crucial
assets of company which can be opportunity for organisation at its higher level. Such as the product
market-shares, along with the market value helps to deicide the growth options for the company.
There are various factors which should be consider to evaluate the growth opportunities
such as the research of customer and competitors, market study, analysis of the environmental
factors exploration of the growth related opportunity (Caldera, Desha, Dawes 2019). Product and
services is another important factor which should consider in order to analyse the growth
opportunities, for this it need to view and asses the product portfolio. There are some models and

framework which helps in the analysis of product portfolio and opportunities related to that such as
the BCG matrix and GE/Mckinsey matrix explain below in context of Homes for good.
BCG matrix
This is a product portfolio matrix which is use for the consideration key growth factors by
the evaluating the product line and portfolio (Auma and Waithaka 2020). In order to select the
right area of investment, develop, discount and harvest.
This involves the two major factors in the matrix that is relative market-share and market
growth rate. Both involve low and high level classification. So this is the four box matrix which
consider as stars, question mark, cash cows and dogs. In stars category it involves the product line
which is having the higher market share and higher growth rate, and this unit company can invest
more as opportunity. Question mark involves the product which is having higher growth rate and
low market-share so this is the area where company should conduct selective investment
(Selviaridis 2020). Sash cows include product which are having low growth rate and high market-
share, in situation company can focus on extracting the benefit without removal, for dog it is stated
that it should be removed from the product portfolio.

GE/Mckinsey matrix
This is the nine box matrix which aid to analyse the growth opportunities and improvement
area of the business. So that company can allocate their concern and resource in balance form.
These nine box matrix is build on two big factors that is industry attractiveness and business
competitive strength. In the matrix chart boxes are divided into two group with three different
factor in each that is strong, medium, low for strength evaluation which involves market share, cost
structure, cash flow and competence (Gardiner and Scott 2018) . Then high, medium, low in
prospect of company attractiveness. Which involves the market size, market growth share,
competitive rivalry and demand variability.
The first box involves the strong strength and higher growth the products and services which comes
in this unit should be continually grow by the company with investment. In the second box it
involves the product, services and strategy which is high in attractiveness and medium in strength,
so it requires continues investment ans growth. Third box of the matrix involves the organisation
unit which posses the low strength and high attractiveness so their should be selective investment
on this area (Islam, Fremeth and Marcus 2018). Fourth box involves the company unit and

product which posses the strong strength and medium attractiveness, so company should make the
investment on this unit for further growth. Fifth box involve the unit of company which is having
medium attractiveness and medium strength so there should be a selective investment. 7 box is
involving the organisation factors which is having low attractiveness and strong strength so this
area should be consider for selective investment. 6,8,9 box of the matrix includes the organisation
units which posses low and medium low strength and attractiveness so this unit of the company
should be remove and harvest in order to prevent future loss.
Different between BCG matrix and GE/Mckinsey matrix
BCG matrix GE/Mckinsey matrix
This is use to asses the requirement of different
units and to apply the balanced resources
manga various business units.
This model is use to analyse and prioritize
investment between different units of company.
It use single measurer This involves multiple measures
This comprise of four cells This consist of nine cells
This focus on the bigness units such as market
share and industry growth rate
It focus on business strength and company
attractiveness
Their is the classification of factors is done on
the basis of High and low.
Classification done three categorise that is high,
medium, low/ strong, average and weak.
It has many limitations at various terms It helps to overcome the BGC limitations and
improve that.
Recommendation
In context of Homes for good, GE matrix more beneficial because it is more clear then
BGC, this helps to invest the insufficient resources in right place. It involves the consideration of
various factors of market in order to grab the various growth opportunities. Such as for the selected
organisation it helps in the development of attractive business structure and interactive services.
Homes for good can involve the more influencing interior design which is having higer value in
market.

Critically examine the opportunities for growth with the help of Ansoff's growth vector matrix
Ansoff's growth vector matrix
This is also known as the product and market expansion grid, this helps the business
organisation to analyse and develop the strategies for growth (Andersen and Skrede 2017). This
framework involve four strategics which aid to grow the business and analyse the risk of those
strategics.
This is one of the most effective strategic growth model implemented by the business
organisation in order to evaluate the effective strategy related to the product and market growth of
organisation along with the analysis of competitive precancel. This frameworks guide in the
development of influencing market and product growth planing. There is the brief explanation of
model in context to the Homes for Good is given below.

Market penetration- This is the strategy of growth which includes the planing for the
existing product relaunching in order to create the awareness of services at existing market. This
can helps the 'Homes for Good 'small-scale organisation for the strong growth plan with low risk.
Product expansion- This the strategy which involves the development of existing product
line with in the existing market (Friedmann, 2020). For business organisation this the plan of
medium risk, because there not any risk of customer dissatisfaction as it is related to the previous
product line which is accepted by the customer's. Homes for Good can use this strategy as this is
the medium risk taking process and they can develop their existing services line in present market
such as they cane develop some more renovation styles and new interior design.
Market development- This include strategical planing to develop new market for the
existing product. That process is having medium risk for the company so they can chose it for
higher profit.
Diversification- That is the strategy planing which includes the development of new
product line for the new target market of the business. This is the higher risk strategy but it can
beneficial if get success. Homes for Good can use this strategical planing for growth of their
business in different market. Such as they can chose the different geographic factor or they cane
select the develop their services for hotels in order to get higher profit from different area.
Examine and evaluate various sourcing of funding through which enterprises generate capital
Funding is the process of gathering financial sources and support for the business growth,
where it includes the task of contributing resources into the finance program project
(Hansmann, 2018). This process is can be short and long term it depends on the type of
sources.

Venture capitals/angel investors- This is provided to the the business organisation on the basis of
their attractiveness and growth options of the company. This is provided by the angel investors and
ventures.
Advantage- This can be gather by the mutual understanding and relational-ship status of the
company with investors. Innovative business plan with the strong strategy of revenue is can be
helpful to get depending.
Disadvantages- There is lack of specialisation and guidance for the decision making. This can be
problematic and cause conflict in relation to business decision and achievements.
Bank loans- This is one of the best source of funding, which can be gather from the ban with
some documentation activities, in this bank analyse the organisation stability and then offer them
fund with some interest charge plan.
Advantage- This is one of the easy and fast process for funding with mutual agreement of both
bank and organisation.

This is the legal process of funding with lower risk conflict, with clear concept time and
interest.
Disadvantage- Bank interest rate is one of the biggest disadvantage of bank loan as it is very high.
Bank loan is also taking lots of time along with the registration and other document formalities.
This can lead organisation into the difficulties if the EMI not paid at the time.
Crowdfunding- This is the funding project which is run by the charities which collect small
amount of money from huge numbers of peoples. This process is can be done by internet
crowding.
Advantage- This can be easy and helpful for the marketing, this can be a fastest way of funding.
This can lead to achieve higher rate of funding by the contribution of supporters.
Disadvantage- There is the risk of organisation value and reputation damage. Crowdfunding is
can be bad for the organisation in terms of values and preparation in the market.
Government Start Up Loan- This is one of the best funding source provided by the government
for the growth and development of new business projects. Company can easy get this support after
some long procedure of documentation, With lower rate of interest (Friedmann, 2020).
Advantage- This best as it provide funding at low interest rate, this is legal and conflict free.
Disadvantage- Time consuming process, government loan funding process is there take huge time
and need lots of the documentation and formalities.
Recommendation- Homes for good can chose the Government Loan for their funding as it support
the start-up business with low interest rate.
For homes for good the best source of funding is can be Angel investor and government small loan,
because by taking the fund from these two sources organisation can reduces the chances of higher
interest rate and get enough time to pay them back. And from the Government loan Angel investor
is can be more efficient because it’s just meet communication and presentation between the Angel
investors an organisation related to their new plan.
Design of a business plan with financial information to scale up business growth and its strategic
objectives
A business plan is defined as a written document of action that gives an overview about a
start-up, vision behind starting a business and a detailed description on how financials and
marketing management of the product or service offered can be carried on to meet up goals &
objectives. One such small enterprises in UK is Homes for good which is a social enterprise

providing property based services (Andersen and Skrede, 2017). The vision, mission and objective
of business plan adopted by chosen organisation with critical data analysis discussed below:
Components of Business plan design
Executive summary: The summary denotes the main points including the mission and
vision of the company to fulfil the goals and objectives of respective business.
Main purpose or vision of business plan: There are many small business start-ups with
different agenda and objectives but in order to become a successful social enterprise, the purpose of
business should be defined in a long-run. In context of Homes for Good, the main purpose to
accomplish is providing shelter to maximum people passionate about having their own house for
better living.
Mission or strategic objective: Running of a successful property management agency for
achieving the purpose objective may require a set of experienced in-house talented team. Homes
for good for fulfilment of their goal purpose focus mainly on systematic handling of investments
done to landlords and security to customers in locality.
Business details: The chosen organisation deals with management of real estate on both
contractual and fee basis. The company type is private limited without any share capital. Homes for
good(Scotland) manages social responsibility by providing homes to people all over Glasgow and
shelter to children & family through through charity based social services. The team of chosen
organisation include tenancy officers, home designers, plumbers, landlords and joiners.
Industry and market analysis: To evaluate and examine various trend in market &
industry, Good for Homes has adopted the STP approach analysis. The main reason behind using
this approach is identification of potential customers in a wide market with variety competition as
well as substitutes.
Segmentation: This step is classifying consumers under a certain category of market
segment for understanding similar wants. Market segments can be divided into divisions based on
behaviour, geographical regions, demographies and psycho-graphics etc. Good for homes have
adopted this process by focusing mainly on category of property investors, people attitude towards
tenancy, status of people, tenants and home allocators etc.
Targeting: This step after segmentation , focuses on the potential acquiring of customers by
identifying them. The chosen enterprise agency, has looked over business professionals migrating
to nearby place to their offices, family willing to have their own homes, branch officials looking

for expansion in specific areas of Glasgow etc. Targeting of particular group of customers who are
willing to take chosen firm services leads to an increase in company's sales and profit margins.
Positioning:Creating a business position in market requires, a proper formulation of
strategies and their appropriate use (Ingley, Khlif and Karoui, 2017). The strategies if properly
implemented help creating value among the targeted customers. It has been observed that aspirants
of having own homes seek for certain factors such as well-furnished rooms, hygienic environment
of house, and security of people with respect to time, location and culture around.
Customer and value preposition: The term help customers get answer to “why” they
should be engaging with a particular organization. In relevance to Good for Homes, tenants are
explained the value of quality homes they are provided without any legal issues having full
security. Consumers have multiple choices to switch on to similar services offered by other small
social enterprises. It is important for chosen entity to build strong relationships by providing them
good customer experiences and offers for retaining them in future.
Marketing strategy: The marketing strategies for effective real estate business is online
presence of your business in today's era of internet and automation. Good for homes have also
created an online website that shares all information of their services and detail of the business to
its customers. Automated CRM system and email marketing to consumers keep them educated
about business offerings. Also images posted over social media portals and audio visuals attract
maximum people want furnished homes in future as potential leads.
Operating plan: This plan is a single use detailed plan of how activities are carried on in a
business according to constructive schedule and timing. In context of Good for Homes, creation of
strategic plan at beginning is at key priority (Kumar, 2016). After the plan is created rules are
made to focus on essential goal of chosen company that is, shelter to people looking for rented
homes or homes for family.
The third step towards positive result of plan are the correct kPI's . The indicators in
relevance to chosen entity are payback period, return of investments, tenant turnover,operating
expense ratio, average rent price per home allotted, equity to value ratio, mortgage ratio and loan
value ratios etc.
Management team and company structure: A good team of managers are the individual
leaders who direct other employees of company and handle day-to-day responsibilities of business.
Company structures can be classified into functional, divisional , flat or matrix forms (Thorpe,