Business Growth Strategies: A Plan for Small Stuff UK Expansion

This report assesses the growth opportunities for Small Stuff UK, a children's clothing retailer in the UK, in a competitive market impacted by recent events. It employs the Ansoff growth vector matrix to suggest optimal strategies, evaluates potential funding sources for new ventures, and outlines various exit and succession options. The report includes a detailed business plan with objectives, an executive summary, company overview, product details, and a SWOT analysis. Product development is identified as the most suitable growth strategy, focusing on introducing new products to the existing customer base. Funding options such as bank loans, angel investors, debentures, and personal savings are compared, with their respective advantages and disadvantages. Exit strategies, including liquidation, mergers and acquisitions, and selling to a third party, are also discussed. The business plan aims to improve growth by 50% over five years, increase sales by 15% within the next quarter, and enhance market share by 10% within three years.

Unit 42- Assessment

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
1. Growth opportunities for a company.................................................................................3
2. Ansoff growth vector matrix..............................................................................................4
3. Presenting sources of funding............................................................................................6
4. Presenting different exit and succession options...............................................................7
5. Business plan......................................................................................................................8
CONCLUSION........................................................................................................................12
REFERENCES.........................................................................................................................13

INTRODUCTION
In this competitive era, most of the company develop new growth opportunities
because pandemic hit the business growth in negative manner. Thus, the present study is
based upon Small Stuff UK that offer children clothing in UK. The study will determine
growth opportunities of UK and provide Ansoff growth vector matrix by suggesting the best
part for quoted firm. Also, it determine the best funding source so that owner can start new
business within a limited tenure. Further, it provides business plan in which all the criteria
considered that helps to determine the business growth opportunities.
1. Growth opportunities for a company
In order to expand the business into new market, it is necessary to consider the below
mentioned points:
Target audience: In this, company should determine the demographic information of
the customers because without analyzing the target audience it will not be possible to expand
internationally (Kovalenko, Kovalenko and Yakovleva, 2021). With the help of this,
organization is able to determine whether it is feasible to expand in this sector. On the other
note, choosing the audience from range of public will affect the business performance and
decline the image globally.
Competitor analysis: During expansion, it is necessary to ascertain the rivalries
because it helps to set pricing and promotional tool. The advantage of consider this factor is
to ascertain the competitor’s strength and weakness to determine the gap in market (Sidik,
Hidayati and Nurmala, 2020). On contrary note, if competitors strategy did not be identified
then company is not able to identify the business strategy.
External environment: Through this company ascertain different external factor to
develop strategy which includes political, social and environmental. That is why, the benefit
of determining this factor is such that it will help to make decision accordingly like if there is
a fluctuation in economy of a country then it affect the business performance. However,
without considering this might leads towards a wrong decision and create adverse impact
over performance
Suppliers: If the country have enough suppliers then it will be easy for the business to
reach range audience and that is why, it is considered under growth opportunities. The

biggest advantage of using this factor is such that it will help SME to attract range of
customers and satisfy their need (Sudarma and Sari, 2020). Whereas, if the company do not
have such suppliers at international level, the performance will be ruin due to not offering the
effective products to the company.
2. Ansoff growth vector matrix
The model is used by the companies in order to analyse as well as plan the strategies
for growth such that it determine how the firm can grow by analysing the risk pertaining to
each strategy. There are four different growth strategy which are as mentioned below:
Market penetration: It is all about focuses on increasing sales by offering existing
products to an existing market. In the context of chosen SME, it can be stated that company
can enhance the sales by adopting different discount strategy that helps to improve the
business performance and raise sales (Jintana, Sopadang and Ramingwong, 2021).
Advantage:
 It is simple to execute
 This strategy is cost effective
Disadvantage:
 The strategy do not provide immediate results.
 Rewards are not factored into the tool (Krupina, 2021).
Product Development: Under this strategy, company introduce new products into an
existing market. This in turn assist to create a positive impression over the customer and in
the context of Small Stuff UK it can add new service like AI or robotics that helps to
improve the business operations and create a better outcome for the welfare of a company.
Advantage:
 Attract new customer and contribute to raise customer base
 Simple to implement that assist to gain extra.
Disadvantage:
 Costly method and that is why, SME do not implement the same.

 The chances of implement new product and service might not get success and fall in
its financial performance.
Market development: It is all about enter into new market with its existing products
by expanding into new market with new geographic regions. It assist to gain new customer
base by entering into new market. Small Stuff UK can use the same by offering the products
online into new market i.e. outside UK so that effective outcome can be generated.
Advantage:
 Catering into different customer segments that helps to improve business performance
 Raise business performance by expanding business unit.
Disadvantage:
 Considered risky than product development as it required capital and labour.
Diversification: Last strategy in which company expand its unit with new product
that helps to grow its unit. In the Context of quoted business, it may enter with women wear
in Chinese market.
Advantage:
 It open up new revenue stream for a company.
 Helps to improve customer base and establish new unit in business.
Disadvantage:
 One of the riskiest strategy because chances of new products offering in a country will
be low.
Among all, Small Stuff UK will opt product development that helps to offer new products in
its existing market because it already have a settled customer base so that effective outcome
can be generated. That is why, it can be stated that through this method, company share
strong base and attract new customers towards it.
3. Presenting sources of funding
Funding refers to the money required for a company to start and run a business.
Through this company is able to meet the new criteria that helps to grow more. There are
different sources of funding which are as mentioned below:

Bank loans: One of the common source of funding which is used by SME as well as
large business because it assists to offer loans which need to repay at their set tenure in order
to create a better outcome. Generally, it is used by start-up firms so that they can grow their
business easily.
Angel Investors: They are considered wealthy individuals or sometimes retired
executives who can direct invest in other company (LIJUN, 2022). Through this, they can
contribute their experience and share network so that owner can easily implement their new
business and run them successfully as well.
Debentures: This source of funding is recognized as a long term of finance because it
is a form of bond or a long term loan that is issued by a company and carries fixed rate of
interest over a course of a loan. Moreover, it is a government raising fund that helps the
company to sustain or grow their business at further level.
Personal Savings: It is one of the simple source of funding where SME can collect
cash from themselves in order to invest upon their assets (Idris, 2021). This in turn
considered one of the long term commitment for a project and individual is ready to take risk
as well.
Particulars Advantages Disadvantages
Bank loans One of the most cost effective method
and profit retention strategy used by
SME (Greer and et.al., 2021).
It require high credit score
requirement that have high
maximum APR’s with slow
approval. It is not possible to
repay the amount in set tenure
that increase rate of interest.
Angel
investors
Low paperwork and monthly payment
is not required. Can be accessible by al
type of industries.
Have to share the profit to angel
investor. There is no options for
investors to convert the debt to
equity (Wilson, 2021.
Debentures It is promise a fixed interest rate on
due date and also provide good sales
and earning for stability.
Payment of interest and principal
is considered as a burden for the
company, only if the business do

not earn profit.
Personal
savings
Assist to provide 100% profit and
there is no need to repay the amount in
the form of interest (Brand, 2021).
If business fails, then the amount
of money put in a business may
lose.
Owner has to develop their own
relationship in order to generate a
customer base.
4. Presenting different exit and succession options
Succession planning is all about transfer the leadership or management to another
person or team whereas exit planning is all about determine and execute transfer the strategy
of a company to other team or person, as there is no relationship within the company. In order
to take an exit from the business, different exit options can be used by the Small Stuff UK
which are as mentioned below:
Liquidation:
In this, a businessman can easily shut down the business doors and all the assets can
be liquidate easily so that company owner can leave the business (Finch, Carson and
McIntyre, 2022). Through this, company can be shut down and owner can proceed towards
further.
Advantages:
 No more debts after liquidation
 One of the legal action that is easily implemented
Disadvantages:
 Owner is no longer able to trade.
 Employees might losses their jobs
Merger and Acquisition: It is simply refers to the merging with similar company so that they
can sell the products and services accordingly. This is considered as win-win situation where
company can use the resources for their own use in order to generate a better revenue and

creating a new product (Jon Augelli and CSCA, 2021). This is mainly used by the companies
to sustain the brand image at global level.
Advantages:
 Owner can sell business at high value
 If company faces financial issue, the it is consider good option
Disadvantages:
 Might lead to cut jobs due to new management takes a business.
 Sometimes not able to meet the company’s culture.
Sell the business to third party: With the help of this method, company owner can sell the
business either to their children, friend or another management team (Hohen and Schweizer,
2021). It is simply about transfer the ownership to other so that another party can take care of
their company. It is also considered as a succession options.
Advantages:
 Assist to financial security
 Time bound and time margin help to improve the business performance
Disadvantages:
 If owner do not receive entire purchase price in cash, then the chances may decreases
to get back entire money.
5. Business plan
Definition of business plan
It is the written document that describe how a business start up and determine how it
can attain the goals by formulating different steps so that effective outcome can be generated
(Kusuma, Syah and Indradewa, 2021).
Objectives:
 To improve the business growth by the next 5 years up to 50%
 To raise the sales by 15% of a company within next quarter by using innovative tools.

 To enhance the market share by 10% within next 3 years.
Executive summary
The current business plan is based upon the Small Stuff UK who wants to attract the
new customers by offering the existing products. For that, different steps need to be complied
that helps to improve the business performance and as per its financial planning, company is
growing and meet the defined objectives.
Company Summary
The chosen firm is Small Stuff UK deal in retail industry. It has its single unit in UK
and that is why, to attain the smart objectives, there is a need to focused upon business plan.
Further, company strategy is to meet the demand of customers by offering products at
effective rates.
Products
It deals with the eco-consious children’s clothing with a wide range at reasonable
rates.
Market Analysis Summary
SWOT analysis
Strength Weakness
 Offering good quality of children’s
clothing at reasonable rate
 It has a good image in UK because
company focus upon quality
 Due to lack of financial resource,
company is not able to implement its
new unit.
 Lack of human resources due to
financial instability
Opportunities Threats
 By adopting new technology at
workplace, company is able to
sustain brand image at global level.
 Political and economic instability
 Fear of competition

 Dealing in different industry is
considered as an opportunity
STP
Segmentation: Small Stuff UK comply with demographic segmentation in which it uses age
and gender so that only parents whose children fall under the category of 1 to 12 may buy the
product accordingly.
Targeting: The target strategy used by the company is mass targeting so that group can be
targeted effectively.
Positioning: Focusing upon the quality of products will be beneficial for the business to gain
the attention.
Marketing mix
 Product: Company offer only children’s clothing to the local people of UK.
 Place: It is situated in Sheffield in UK only.
 Price: It adopted skimming pricing strategy to keep the customers attracted towards a
business.
 Promotion: Company only uses social media marketing in which it post about
discount strategy on Facebook and Twitter.
Strategy and Implementation
To meet the defined aim of the business, there is a need to implement strategy which
in turn assist to generate a better outcome. That is why, focusing upon digital marketing will
be helpful for the company to grab attention of many customers towards it. Along with this,
there is a need to comply with the process of implementation so that plans can turn into an
action by reach towards a desired outcome.
Management Summary
It will hire 5 new members in a team so that effective outcome can be generated such
that technical expertise can be hired who provide effective outcome to promote the business
product. Also, 2 assistants will be hired in order to manage the work and perform stock

inventory so that effective outcome can be derived. Further, 2 team members perform billing
and assist customers so that all of them work as a team in order to meet the defined aim as
well as objectives.
Financial Plan
Particular
s
Jan
uar
y
Feb
rua
ry
Ma
rch
Ap
ril
Ma
y
Jun
e
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Cash
inflows
Opening
cash
inflow
400
0
275
0
29
22.
5
314
1.8
5
340
7.3
23
371
8.1
11
407
3.3
2
447
1.9
68
4912
.975
539
5.1
66
5917
.257
647
7.85
8
Sales
revenue
750
0
765
0
78
03
795
9
811
8
828
1
844
6.2
18
861
5.1
43 8787
896
3 9142
932
5
Other
income
150
0
150
0
15
00
150
0
150
0
150
0
150
0
150
0 1500
150
0 1500
150
0
Total cash
inflows
130
00
119
00
12
22
5.5
126
00.
91
130
25.
56
134
98.
72
140
19.
54
145
87.
11
1520
0.42
158
58.
36
1655
9.72
173
03.1
7
Cash
outflows
Material
250
0
114
7.5
11
70.
45
119
3.8
59
121
7.7
36
124
2.0
91
126
6.9
33
129
2.2
71
1318
.117
134
4.4
79
1371
.369
139
8.79
6
Labour
175
0
175
0
17
50
175
0
175
0
175
0
175
0
175
0 1750
175
0 1750
175
0
Other
expenses
200
0
208
0
21
63
225
0
234
0
243
3
253
0.6
38
263
2 2737
284
7 2960
307
9
Administra
tion
expenses
400
0
400
0
40
00
400
0
400
0
400
0
400
0
400
0 4000
400
0 4000
400
0
Total cash
outflows
102
50
897
7.5
90
83.
65
919
3.5
87
930
7.4
53
942
5.3
97
954
7.5
71
967
4.1
35
9805
.255
994
1.1
03
1008
1.86
102
27.7
Cash
deficit /
surplus or
closing
275
0
292
2.5
31
42
340
7
371
8
407
3
447
1.9
68
491
3
5395 591
7
6478 707
5

cash
balance
CONCLUSION
By summing up above it has been concluded that company should considered
different growth opportunities which includes competitor analysis, target audience etc.
Further, it opt Product development strategy under Ansoff growth matrix that helps to
improve the current customer base. Also, to invest into new business, bank loan and personal
saving are considered as a best source of funding. Also, opting liquidation and sell a business
to third party is considered the best exit option for the company to close a business.
Moreover, with the help of business plan, it has been reflected that company need to develop
its marketing tool that helps to improve the business performance and gain range of new
customers towards it.