Planning for Growth: Analysing SME Growth Opportunities Report

This report provides a comprehensive analysis of growth strategies for Small and Medium Enterprises (SMEs). It begins by defining SMEs and emphasizing the importance of identifying growth opportunities in a dynamic business environment. The report highlights key considerations for SMEs before implementing growth strategies, such as cash flow and time factors. It then outlines several growth strategies, including adding new locations, product line expansion, online sales, targeted marketing, and key partnerships. The report further analyzes these strategies using the Ansoff growth matrix, categorizing them into market penetration, product development, market development, and diversification. It also addresses financial considerations for SMEs, discussing sources of funding like personal capital, loans from friends and family, and bank finance. The report concludes by aligning specific growth strategies with the Ansoff matrix and emphasizing the importance of financial planning for sustainable business growth.

PLANNING FOR GROWTH
Analysing growth opportunities for SME
The SME that is Small and Medium Sized business are a type of business
who trades at either a small or a medium scale. These are the companies which
generally have initiated the business and not much have good amount of finance to
increase the level of the business. Thus, as the scale of the business is small so
there is a need for the company to grow and develop its business so that the
company can earn a good amount of profit. Also, this profit can be used again in
the business and continue with the business activities and make strategies for the
growth of the business.
Thus, in this case it is essential that SME search for the various
opportunities in the business environment for the growth of the business. This is
essential because of the reason that if the company will not grow and develop then
they will remain at the same place only and will not earn a good amount of profits.
Thus, for this it is essential for the SMEs to research within the business
environment so that they can find the various options and strategies for the growth
of the company. This is due to the fact that the SMEs operate in the business
environment which is dynamic and ever- changing and there are many changes in
the taste and preferences of the consumer, working styles of the company and all
these can provide an option for opportunity for the companies.
Thus, proper analysis of the business environment will help the SMEs in
growing their business. Also, these growth opportunities are very important for the
SMEs as this will help the companies in expanding the level of the business and
increase the working efficiency of the SME. Also, this is important for the
companies as this will assist the company in increasing the level of the business
and this will increase the profits for the company. As the profit of the company will
increase then the company can reinvest that in the business to grow more.
Also, in addition to this there are many
different considerations which the SMEs
must take into consideration before using
any of the growth strategies are as follows-
The major thing that the SME
must consider before expanding is the cash
flow that is how much the cash flow will be
provided by if the company goes for the
growth option. This is majorly because of
the reason that if the option will not be
providing good amount of profit then the
company will not be able to grow. Thus,
this is the main consideration before
selecting any of the growth opportunity.
Another major consideration is the
time factor that is in how much time the
company will be able to grow if they go for
any of the growth opportunity. This is
essential because of the fact that when the
time taken is very high for the growth
opportunity then this will not be useful
option for the company.
Growth strategies
These are the strategies which assist the companies in growing and developing their business in direction of getting success. Some of the successful
strategies which the company Nisa can use are as follows-
 Adding new location- under this strategy Nisa can go or expand its business in a new location so that their area of business will increase.
 Product line expansion- this is another major strategy which the company can bring in new product in which they earlier the company was not
dealing.
 Selling product online- in addition to this another major strategy is of selling the goods online with the help of internet and collaboration with
other shopping websites.
 Targeted marketing campaign- it is another major strategy which can be used by Nisa in order to grow the business. Under this method the
company will target some of the consumer group and will market the product and services for them only.
 Key partnership- this is another major crucial strategy which will assist Nisa in growing and developing its business. This is particularly because
of the reason that when the company will partner with other similar company then the product range and other resources of company will
increase.

Analysis of growth strategy with help of Ansoff matrix
The Ansoff growth matrix is planning tool which assist the
company in deciding for the strategies which will assist the
company in growing and developing the business. The various
growth strategies in accordance with the matrix and the
categorisation of the above 5 strategies is as follows-
Market penetration- this is a technique under which the company
uses their product and services in order to penetrate in the same
market. This is a good strategy for the company as this will help
the company to grow in the existing market only with the same
product and this strategy is very less risky for the company to
grow.
Product development- under this strategy of Ansoff matrix
company aims at developing a new product line as this will help
the company to provide some modified product to the existing
market only.
Market development- this is another strategy coming under the
Ansoff matrix model which will help Nisa in developing the
business to grow with totally new market. This will assist the
company in developing the new market so that the company can
enter into a new market with use of existing product only.
Diversification- this is another important strategy which can be
used by Nisa in order to manage the development of the company.
This is a strategy which mainly focuses on the entering in new
product line that is not related to the existing product line.
With the analysis of the above strategies and the strategies under the Ansoff
matrix it is clear that the strategy of targeted marketing campaign comes under
the strategy of market penetration. This is particularly because of the reason
that when the company will market the product then the existing market will
like the product and services. In the similar manner the growth strategy of
product line expansion falls under the category of product development as this
will increase a variety of product. For the strategy of adding new location and
selling online product comes under the category of market development. This
is particularly because of the reason that this will assist Nisa in developing a
new market for their product and services. In the end the strategy of partnering
with other company will assist the company in entering in totally new market
and with new product.
For the running of the business the most essential thing is the
finance or money and if the finance will not be provided at good
rates then the company will not be able to work in effective
manner. Also, another reason for having good finance availability
is that already the companies are of small and medium scale so
the companies are having low or small quantity of finance. Thus,
there are a wide variety of different sources from where SMEs
can borrow funds and can continue with their working and
business activities.
Personal capital- the most common source of finance for an
SME is the personal capital or the personal finance. This is the
most easily available source of finance as it is brought by the
owner of the company only. The major advantage is the owner
can get money without any efforts and easily. Another is no
interest is to be paid on the amount brought in by the person. The
major drawback is that if the business fails then all the money is
wasted and the person is left with no money.
loan from friends and family- under this source of finance the
person arranges for finance with help of the loan taken from the
friends and other family members. This is also a source from
where the SME owner can bring finance in the business. The
major benefit is that there is no written of formal agreement
between the loan taker and giver. Another is the loan provider
will have interference in the profit earned by the company. The
major drawback is that if the loan is not re- payed on time then it
might be possible that company may not get loan next time.
Bank finance- this is also another important source of finance
which can be used by the SME company in order to manage the
business of the company. Under this source the company takes
loan or borrows money from the bank and financial institution on
a specified rate of interest. The major advantage of this is that the
in the bank loan the interest rates are same whether the person
takes loan from any bank. Also, the interest paid on loan is tax-
deductible which is beneficial for the company. The major
drawback is that the company has to put something as security as
against of the loan taken.
Mell, I., 2018. Financing the future of green
infrastructure planning: alternatives and
opportunities in the UK. Landscape Research. 43(6).
pp.751-768.
Colomb, C. and Tomaney, J., 2016. Territorial
politics, devolution and spatial planning in the UK:
Results, prospects, lessons. Planning Practice &
Research. 31(1). pp.1-22.