Planning for Growth: Business Strategy Report for Smoke and Salt

This report provides a comprehensive analysis of a small, London-based restaurant, Smoke and Salt, and develops a detailed business plan to guide its growth. It begins with an overview of key considerations for evaluating growth opportunities, including competitive advantages, new product development, risk mitigation, and the use of technology and digital platforms. The report employs the McKinsey matrix to identify areas for product portfolio expansion, emphasizing the potential of vegan options and sandwiches. It also explores various funding sources such as bank loans, crowdfunding, peer-to-peer lending, angel finance, and venture finance, recommending angel finance as the most suitable option. Furthermore, the report examines exit and succession strategies for small businesses, including selling, liquidation, and IPOs. The second part of the report presents a detailed business plan for Smoke and Salt, including its mission, vision, marketing plan (SWOT, PESTLE, STP, marketing mix), budget, competitor analysis, and strategies for monitoring and controlling. The plan focuses on market penetration, product development, and strategic collaborations to enhance brand visibility and customer engagement.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Key considerations for evaluating growth opportunities.............................................................3
Ansoff's growth vector matrix.....................................................................................................5
Potential sources of funding.........................................................................................................5
Exit or succession options for a small business...........................................................................8
Part 2................................................................................................................................................9
Business plan ..................................................................................................................................9
Overview of business ..................................................................................................................9
Mission.......................................................................................................................................10
Vision ........................................................................................................................................10
Marketing plan ..........................................................................................................................10
Swot analysis ............................................................................................................................10
Pestle analysis............................................................................................................................11
STP analysis...............................................................................................................................12
Marketing mix ...........................................................................................................................12
Budget for the company ............................................................................................................13
Competitors analysis .................................................................................................................13
Monitoring and controlling........................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
The report of planning for growth will comprehensively analyse the business and put
forward a business plan which will be effectively showing the direction of growth for the small
business selected. Various models and analyses will be used to effectively analyse the current
business position of the enterprise. McKinsey matrix will be used to understand the portfolio
strategies. Use of technological advancement to expand the business networks and different
mediums of collaborations like merger and acquisition for the expansion of the enterprise will be
elaborated. Further the funding sources and different exit & succession points with drawbacks
will be highlighted. In the next segment, a detailed business plan will be elaborated with the
objectives, strategies and plan for growth. The enterprise selected here is Smoke and Salt, which
is a London based dine in restaurant serves the vegetarian and non vegetarian food options. It is a
small business which is looking for the opportunity to grow further.
MAIN BODY
PART 1
Key considerations for evaluating growth opportunities.
Basis of competitive advantage as a foundation of growth: The smoke and salt opened in
2017 and has been well-received by the critics and public. It has variety of the food for the
offering for both day and evening time. Restaurant was doing really nice until Covid hit the.
Covid-19 hit the business of smoke and salt very badly that it had to shut it for some time, yet
they made a come back (Dawes, 2018). The core competencies of the enterprise is the strong
personalities like Aaron Webster and Remi Williams working behind it. Next is the specific food
menu and quality serving which is forte of the restaurant. Customers liking is also a great feature.
They do not have enough resources as of now as they recently went ahead with the crowd
funding which gave them the ability to buy their own restaurant. Yet this small enterprise is very
well capable of achieving greater goals.
New product and services: let's use McKinsey matrix to identify the area where company must
invest for the product addition to the portfolio.
Market attractiveness: restaurant market or food business is really growing at a fast pace, smoke
and salt seems to have a wast scope in the market. There is profit potential as market size is big.
Business/ competitive strength: there is high competition in the food business as a wide variety
of restaurants having wide range of offerings are there in the market. Yet the business strength of

smoke and salt is the customer preference and loyalty (Kurniawan, Iswahyudin, and Suciati,
2020).
Measurement and plotting: here products which are in the current growth range and those
products which have future growth expansion range will be seen. For the smoke and salt vegan
options and sandwiches seems to be a good product range.
Future direction: smoke and salt must go in the future direction of the products which can give
the maximum returns like sandwiches and began food options. And any innovation which can
block the resources should be avoided (Khajezadeh, and et.al., 2019).
These are important factors which were derived from the McKinsey matrix.
Identifying and mitigating risk: as enterprise is small and it has already witnessed the losses in
Covid 19 it must take measures to identify the risk in the business. Risk identified for smoke and
salt is the high competition and cost management. In order to deal with such risk, enterprise must
take measures like keeping the raw material cost low which can drive the end product price low.
Also, keeping the quality and taste so high that high cost does not bother the customers. Such
risk can not be avoided rather mitigating is the best way (Bessière, Stéphany and Wirtz, 2020).
Other business risk is the rising of Covid-19 like situations again which needs business to go
online by selling the product and food option online delivery mode. As the risk like Covid can
not be avoided and needs to be strategically dealt with.
Technology and digital platforms to expand the networks: smoke and salt is already using
various social media platforms like Instagram and Facebook to connect with the customers yet an
effective campaign must be created on various social media platforms like Instagram, Facebook,
LinkedIn, food blogs etc. which can improve the visibility of the restaurant. Use of technology to
make the business process faster. Technology can be used to start the online delivery and
takeaways. Using the best of technology to keep the customers updated about the offers, happy
hours, new menu, discounts can be an advantage over the other business in the market (Khalid
and et.al., 2019).
Growth options for the enterprises: there are various modes of growth option for the small
businesses like merger, acquisition, joint venture, alliances etc. yet the collaboration remains the
best option for smoke and salt as being a small enterprise other modes of growth may end up
diluting the brand image of its own, yet the collaboration can enhance the brand image and
increase the customer footfall in the restaurant. As collaborating with well-known chefs and

eateries on occasions can bring more people to the restaurant (Feyzullaev and et.al., 2021).
Collaborating with the social media influencers who can endorse or be a partner in the business
can be a good option for the business.
Ansoff's growth vector matrix
This matrix helps identify the business expansion plans available for a business. Smoke
and salt needs an expansion plan regarding the direction it should grow into. Let's understand
four quadrants of Ansoff matrix for the enterprise.
Market penetration: with this method, sales of the existing product must be increased in the
existing market. This is the least risky method which will need the least resources as well. Smoke
and salt can increase the sales of the existing menu in the existing market. Yet this may not be
the best way of expansion as existing customers already are the customers of the business (Hahn
and Hossain, 2021),
Market development: this method follows the concept of selling the existing products in to the
new markets. There are many other areas which are not served by the smoke and salt, and
enterprise can easily expand its service to the new market areas. The risk factor is really low in
this type of expansion method. Market development will require resources to establish the
restaurants in the new areas to expand their services.
Product development: here new product is developed to serve in the existing market. This can
be one of the best methods of expansions for the smoke and salt. As it can come up with a very
inclusive menu for breakfast, lunch and dinner. Launching new products such as sandwiches and
adding different variations to it like, chocolate sandwich, vegetable Sandwich, vegan sandwich
etc. can be very affective and profitable for the business.
Diversification: the concept of developing new products and launching into the new markets
altogether. This method is the most risky and consumes large amount of resources. Smoke and
salt does not have large monetary resources to develop the new menu and serving the new
markets. As the failure can totally wreck the business of smoke and salt (Larard, 2022).
Therefore, the best method of business expansion seems to both product development
which will be moderately risky and will require moderate amount of resources and has high
probability of being successful.
Potential sources of funding
Let's discuss the ways in which money can be raised for the business of smoke and salt.

BANK LOANS: In this method of raising the funds, money is taken from bank against the
interest rates which needs to paid every time on the fixed duration. It is considered to be a very
traditional method of fund-raising (HAMBALI, 2022).
Benefits:
 Keeps good control of the company.
 Temporary source.
 Tax deductions available.
drawbacks:
 Very tedious paper work and procedure.
 High rate of interest.
 Creates huge liability.
CROWDFUNDING: it is the collection of money in small amounts from each individual from
numerous people. The amount contributed by an individual may be very less but the collective
amount from group of people make a huge amount. Here people donate money for supporting the
business. Smoke and salt has already raised funds through crowd funding and it was not as great
as it was supposed to be.
Benefits:
 No liability on business part.
 Validation for business idea
 Flexibility and promotion
drawbacks:
 High cost initially.
 High indirect pressure.
 False positives.
PEER TO PEER LENDING: it is a debt financing method which is novel investment method.
Here businesses are directly getting connected to the investors via an online platform, credit
worthy SMEs easily get money through this method. It is a great way where lender and
borrowers both easily can have access (Montalvo, 2020).
Benefits:
 Easy to use.
 Diversification.

 No ownership of anyone.
drawbacks:
 Interest rates.
 Regulations abidance.
 Time bound
ANGEL FINANCE: these are the investors who invest in a business which they feel has the
potential of being profitable. But prior to approaching these investors smoke and salt must
prepare a strong business plan.
Benefits of this type of funding are:
 No interest rates.
 Support of intelligent people.
 Suitable for small business.
Drawbacks of angel finance are:
 Control over business affairs.
 Less transparent.
 Creates liability in long term
VENTURE FINANCE: venture capital are the firms who support the business in the initial
stages by providing the necessary funding which is important to get the business started. Yet they
are seeking large investments and higher control over the business. This type of funding is great
for a new business (Palas and Moreira, 2022).
Benefits:
 Easy funding.
 No interest burdens.
 Continues mentoring for sustainable business.
Drawbacks
 Excessive controlling.
 Large share in business.
 Share in equity.
 Acquisition in business.
Considering all the sources of funding available for the business it can be said that the
angel finance seems to be the best way out to raise the finance for the smoke and salt. As the

thorough guidance will be available and there will not be any interest burden on the business as
well.
Exit or succession options for a small business
There are some options available for the small businesses in case they want exit from the
business. In the worst scenarios business needs a strong exit strategy. Various strategies available
are transferring business to family members, merger or being acquired by another business,
making the business public by launching initial public offer, liquidation etc. (West, 2022).
Selling the business: it is the process of putting the business for sale in an open market by an
individual or group of owners of the business. This method is usually used by those businesses
who need an immediate money and want to exit immediately.
Pros:
 Immediate money collection.
 Best in times of emergency exit.
Cons:
 Selling at low price due to immediate selling.
 Creates controversies and allegations for urgent actions.
Liquidation: this considered to be as final business exit where you are closing the business and
selling all the assets to pay the liabilities and stakeholders. When a business unit is not profitable
any more and there is no potential of growth people liquidate the business.
Pros:
 Do not have to worry ever again about business.
 Simple and easy method of exit.
cons:
 Will not offer the biggest return on investments.
 Relationship with clients, employees gets spoiled.
IPO: it is considered to be a great measure to take an exit and raise the money at the same time.
The ownership of the business gets immediately transferred to public who will be the shareholder
in the company and the money raised can be used for various business expenses or expansion.
Pros:
 The best strategy for the business.
 Leads to funding as well.

 Profitable.
cons:
 Involves many procedures.
 Costly method of exit.
Transferring to family members: it is where you transfer the business to heir or relatives who
can be groomed over the years for the business. This is a great way to keep the business in the
family. Yet it has many negative factors to it as well (Saan, Enu-Kwesi and Nyewie, 2018).
Pros:
 You can groom according to your liking.
 You tend to play a very crucial role in the business.
Cons:
 Creates conflicts in family.
 Emotional, financial stress is really high.
Merger and acquisition: in this strategy either business is getting merged in another business or
the other business is acquiring the business. This is very prevalent in the market. Here
negotiation can be really favourable and valuation may leads to profit.
Pros:
 Gives a clean break from the business.
 High negotiation power.
Cons:
 High cost and time-consuming.
 Cessation of the business.
Part 2
Business plan
Overview of business
salt and smoke is the small restaurant mainly operating in UK with serving wide range of
food products to the guest arriving at the restaurant. The company is mainly serving seasonal
food and local ingredients inspired from diverse cultural backgrounds. The company serving
online and offline dishes to the guest with satisfying all their needs. Salt and smoke want to grow
and scale up its business and the operation by launching as to serve the new products and dishes
to attract the large consumers market. With scaling up all the business activities helps in

supporting and growing the business and its operations which results in attracting wide range of
guest to taste the new dishes.
Mission
The mission is mainly defined as the short term gaols for the salt and smoke restaurant, as
to provide the best dishes with best services to satisfy the needs and wants of the consumers.
Also, being the best restaurant in the south London (Polinkevych and Kamiński, 2018). This
statement helps in ensuring to provide the good food to the consumers on the continuous basis
for attract more consumers.
Vision
The vision of the company is to serve the consumers with satisfying the need and wants.
Also, to earn the good range of profits and attract the consumers with serving the special and best
dishes in the restaurants. With serving the customised coffee and special dishes helps in serving
and attracting wide range of consumer and results in earning good range of profits with increased
revenues.
Marketing plan
With designing the marketing plan mainly help the company to determine its target
consumer for Selling the products and services. This plan mainly helps launching the new
products to the target consumers and promoting to attract the consumers to purchase the product
while arriving at the restaurant (Ye and et.al., 2021). As the company is launching the chocolate
sandwiches and their special dishes in the restaurant helps in attracting and targetting the youth
age and children market in the restaurant.
Swot analysis
strengths
 With adopting good marketing and
promotion channels helps the company
to attract the target consumers and
achieve more profits.
 Also being established at the good
location helps in attracting and serving
the large consumers UK market.
 With launching the new products helps
Weaknesses
 With limited serving the services and
products hinders in attracting consumer
market.
 The flow of consumers is no predicted
in nature which hinders in serving the
products.
 Seasonal served products hinders the
demand and satisfaction of the

in ever-increasing revenues with
attracting the new target consumers
market the youth and the children age
groups (Indra and et.al., 2022).
consumers needs and wants.
 No online delivery of the food products
hinders in attaining the competitiveness
while serving in the dynamic market.
opportunities
 While entering and growing the market,
as entering into the emerging markets
helps in attracting the new target
consumers.
 Starting the delivery of online food
products with providing online orders
helps in earning more revenues and
profit.
Threats
 Highly competitive market hinders and
impact profit earning.
 Increase in the cost of raw materials
impact the company and its operations
for producing the special dishes to the
target consumers.
Pestle analysis
Political factors
As smoke and salt is a small business
enterprise there is less government intervention
and therefore political factors does not affect
the business. Yet the rules and regulations
must be followed.
Economic factors
These are the factors which dictates the
inflation rate, employment rate that affects the
business of the enterprises. As the low
purchasing power of the people affect the
business.
Social factors
The change in customers lifestyle, tastes,
preference and habits needs to be observed and
business needs to be made accordingly. As the
incorporation is really important for the
effective business.
Technological factors
Smoke and salt needs to take the technological
advancement in the business to make it really
efficient, this could maximize the profitability
(Larimo and et.al., 2022).
Legal factors
Various changes in the laws and policies must
be adapted by the smoke and salt which can
Environmental factors
Business of the enterprise must take care of the
environment, practices like zero carbon

benefit the image of the small business. As this
could benefit in several ways.
emissions and plastic use makes good impact
on brand image of the business.
STP analysis
STP stand for segmentation, targeting and positioning. Segmentation must be done based
on the age and demography for the food business of the smoke and salt. As goal is to target the
customers from every age group who can consume the food options of the restaurant. Targeting
must be done in such a way that product targets every customer in the basis of segmentation
(Model, 2020).
Both children and adults must be able to feel relatable with the restaurant. Positioning is
how you make consumer perceive your food items and restaurant. Product details and new
option of sandwich with chocolate base and toppings must be elaborated nicely to the audience.
Marketing mix
The marketing mix in the company mainly aims in defining about the 4 P's for promoting
and launching the new product and services in the restaurant.
 In the products, with launching the new chocolate sandwich by the company helps in
attracting the youth and the children for purchasing the product from the restaurants.
 In the pricing element the company is mainly adopting and serving the new products by
establishing the affordable pricing this helps in attracting range consumers to purchase
the products from the restaurant. With adopting the affordable providing help in
attracting the
 In the placing elements the company is mainly established and serving the large
consumers market in the UK, with Selling the new products in the target market by using
online and offline channels helps in attracting large consumer market. With adopting the
online mean results in attaining and ever-increasing more profits for the salt and smoke
restaurant.
 For promoting, the company is mainly adopting the online means as by using the social
media, and using online advertisement for promoting the product in order to attract and
serve the large consumer market. With launching and introducing new products the salt
and smoke can use advertises by making the pamphlets of the chocolate sandwiches in

variety ranges(). Also providing samples of the new launching dish to the consumers
while arriving at the restaurant, this helps in tasting and trying the new products to attract
the consumers market.
Budget for the company
Sales cost £1500
Production costing £800
Inventory £400
Wages/ salary £400
total £3100
Competitors analysis
The competitor analysis mainly aims in defining about the level of competition in market
which is impacting the company and its operations. The main competitors of the company is
walnut grill, Bar K. the competitors mainly impact the business with it pricing and the Market
share with attracting the target market (Gumel, 2019). For this the company in adopting and
innovating the new products by introducing the chocolate sandwiches to attract the youth age and
the children age group for targetting and serving the large target market.
Monitoring and controlling
The monitoring and controlling mainly aims in specifying about the performance of the
company. This helps in reviewing the growth being attained and ensuring the company
competitiveness while operating in the dynamic environment. With adopting and using the KPI
helps in motoring and reviewing the business performance, with the actually attained and
comparing with the planned (Nuseir and Aljumah, 2020). This helps in reviewing the expanding
the product ranges, and the introduction of new product is ab to survive and attain growth or not
when being serves to the target consumer.
Thus, with designing the business plan for the salt and smoke as for expanding its product
range helps in attracting and using wide range of promoting and making budget for establishing
and expanding the products for serving in the dynamic market.

CONCLUSION
The report of growth plan has elaborated the key considerations for a business growth
highlighting the Ansoff matrix, core competencies, capabilities of the business. Also, the risk and
mitigation has been mentioned. Use of technology and digital platforms which can enhance the
business further has been mentioned. The small business focused in the report is smoke and salt
which is a UK based restaurant. Various exit options a business has have been mentioned.
Sources of funding which are effective for the business growth has been mentioned. At last
detailed business plan for the smoke and salt has been elaborated.

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