Softwire: Growth Strategies, Funding, and Business Plan Report

This report provides a comprehensive growth plan for Softwire, a UK-based software solutions provider. It begins with an introduction highlighting the importance of growth planning and the role of digital technology. Task 1 evaluates growth opportunities, including cloud computing, mobile technology, and big data, and applies Ansoff's growth vector matrix to determine market penetration, market development, product development, and diversification strategies. Task 2 explores potential funding sources such as angel investors, government grants, and commercial finance, detailing their advantages and disadvantages. Task 3 develops a business plan for growth. Finally, Task 4 examines exit strategy options for small businesses, discussing their benefits and drawbacks. The report concludes with a summary of key findings and recommendations.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK-1............................................................................................................................................1
Key considerations for evaluating growth opportunities............................................................1
Applying Ansoff's growth vector matrix on opportunities for growth.......................................3
TASK-2............................................................................................................................................4
The potential sources of funding and its advantages and disadvantages....................................4
TASK-3 ...........................................................................................................................................7
A business plan for growth.........................................................................................................7
TASK-4............................................................................................................................................8
The benefits and drawbacks for exit strategy option available for small business.....................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Planning of growth is an important for any business today. As this will help the
companies to increase its ales and more customer-satisfaction will be created with opportunities
of growth. The Small organization can increase its market by planning for growth. When there is
a lack of sales, intense competition the companies often develop a growth plan. The growth of
small businesses can be supported by using digital technology in a business. Today every
organization make use of digital technology in order to make their business more efficient and
accurate (Albon,Iqbal and Pearson, 2016.). The use of cloud computing in an organization have
been beneficial as it has reduced the manual work that have to been done in storing and
maintaining the records of organization.
Softwire is a small organization in UK that provide software solution to other brands.
This report will examine the opportunities for growth for softwire organization. By applying
ansoff's growth matrix model the growth opportunities will be evaluated in this report. The
various resources of funding for this organization will be discussed and its advantages and
disadvantages will also be represented in this report. This report will also develop a business plan
for growth of business.
TASK-1
Key considerations for evaluating growth opportunities
The small business organization such as softwire need to consider opportunities in order
to expand their business and increase its share of market. Today the digital technology have
impact the businesses. It has changes the ways in which business are operating today. With use
of digital technology the company can create innovative products for their customers . The key
consideration of growth opportunities for softwire organization will be as follows-:
Use of cloud computing – This is an important opportunity for growth. Instead of storing data
manually the company can make use of cloud computing storage. The advantages of using cloud
as a storage are numerous (Eddleston and Crittenden, 2013.). . It will help the company to store
all records of company on one cloud. The manual record-keeping is difficult to maintain and can
also consume a lot of time as each record of employees and customers need be search in order to
do an up gradation in it. The update process in a manual system is difficult .But in c;loud the up
gradation is done automatic .The only need of cloud is internet access. With use of internet
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access it can be accessed anywhere and at anytime. The cloud-computing also provide a great
security to data is stored in it. So the company can use in order to store their records of
organization.
Use of mobile technology and social media – In many way's technology has change the business
in many ways. By using mobile technology and social media sites such as Facebook, twitter, e-
mails and blogs the communication in a business have become more effective. With use of
technology one can communicate with other employers who is in another country. Without
meeting face to face the individuals can communicate by using video-conferencing and carry on
business relationship. Softwire can use social media in order to connect with customers .A huge
information about preferences of customers can be known through social media sites
(Dibrell,Craig and Neubaum, 2014)..
Use of big data in business – This can be one of the growth opportunity for this small
organization a innovative and create product can be created due to use of big data. The large
number of data set can be managed with help of big data. When people interact with different
systems the concept of big data was used to understand trends, patterns and references in a huge
database. The organization of business can use analytics and discover the most valuable
customers for business. The new experiences, products and services can be created with use of
big data. In order to compete with rivals and innovate the companies use data driven strategies. A
lot of new growth opportunities can be created .The profile of customers can be checked and
analysed with help of big data. This will help organization to understand the preference of
customers and their desires. So, the relevant products as per preference of customers will be
made by company. The important changes and re-development in a product can be done with use
of big data as it provides ways of collecting data. The social media feeds and newspaper reports
can also be scanned and analysed by big data.
Use of internet of things – With use of internet of things in a business the company can develop
smarter products for their customers. The expense of business will be lowered with use of
internet of things and the entire business will operate more productivity need to hire security
guards will be circumvented .
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Applying Ansoff's growth vector matrix on opportunities for growth
In order to find out a growth strategy for business the ansoff matrix is a grate strategy
tool .It is also known as the product market grid matrix. In this the four options are shown. The
four starters for growth are as follows-:
Market penetration – In this the same products are sold to existing customers. In order to
increase loyalty of customers and grow lifetime values the business need to discover new ways.
The process of order might be improved .This will make it easier for customers .
Market development - To an existing product the new customers are attracted with this
approach. By geographic location such as country a new customer can be defined. For an
instance for company software in order to sell its services to new customers a campaign can be
used to target new customers (Dibrell,Craig and Neubaum, 2014)..
Product development – In order to sell to current customers the variation in a products and its
services is done. The company's can make its product more innovate and creative to sell it to
customer.
Diversification – It is used when product is new and is being introduced in market for first time.
Existing products New products
Existing market Market penetration
 Selling more in
existing market.
 Target more software
companies such as
Tatvasoft .
Product development
 Sell new products to
existing products.
 Innovation at software
 Make use of new
technology such as
social media site in a
business.
New market Market development
 Increase in market
share for soft wire in
UK and around the
world.
Diversification
 In other countries of
world provides
services.
 Using big data to
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capture the preference
of customers in other
countries.
In this the anisoff's model is applied to opportunities for growth.
Market penetration
Currently the company is providing its services to market in UK .The current products
that are provided by company is related with software and manual process is used by company in
maintaining records of customers and employees that are working in a company .
New product
The new product that will be launched by company in existing market will be innovative
and creative software services and in order to make communication effective with employees the
mobile technology and social media site such Facebook, twitter and blogs will be used.
Market development
In market development the company will provide its services outside UK in other
countries and will target more school and universities.
Diversification
The big data will be used to analyse the customers that are in other countries or are new
for company. The customers' taste and preference will be known with use of big data.
TASK-2
The potential sources of funding and its advantages and disadvantages
There are various sources that can be sued by business for funding. They can be banks,
government grants own funds, angel investors, government- guaranteed lending scheme and
many others.
Angel investors
This investor of business will have a background in a business and in business they can
invest funds. In return of their investment they take a share in the business. Due to this reason
they are more interested in operation of a business.
Venture capitalists
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Within three years of start-up ,in the initial stage of development they chose to invest in
fields of internet ,digital media and clean technology. The development of new products and
technologies is funded by their investment. They also make sure that project succeeds.
Government and European grants
The grants from UK government are not repayable. As with financial deal there are
advantages and disadvantages of UK grants. Some of its advantages are that over the business
there is no control is taken. There is not need to pay back the grant. In return for the grant no part
of business is taken. The grants that are made available are of different types and the right one as
per requirement of company need to be discovered. For the grants a lot of competition is there.
The process of application can consume a lot of time (Financial funding for a business, 2017). In
to help start-up companies and help them companies in expanding their existing ventures several
loans and grant programs are provided. Free money are provided with grants. A government
guarantee loan is a loan that need to be payed and interest rates are there on these loans.
Government-guaranteed lending schemes
In conjunction with banks of UK this scheme runs in conjunction. The 75% of the loan is
guaranteed with this scheme. Some advantages of using this scheme are that the amount of loan
can both bigger and smaller in numbers. The intensest rates can be both variable or fix that is
preferred by company. With a maximum of ten years and minimum term of 3 years. As per the
needs of businesses the loan or overdraft can be selected (Wolf and Floyd, 2017).
Commercial finance
In this repayment have to be done in long years and is an effective way of purchasing a
business. Some sort of security is generally needed in this.
Equity finance
The different demands on the business can be place with use of equity finance. It ism ore
appropriate in comparison with bank loans. Some advantages of equity finance are as follows-:
To the business and the initiated project the funding is committed. If the business is going well
then investors will realize their investment. With the cost of serving bank loans or deny finance
one will not have to keep up with costs.
Thus, for activities of business the capital can be used. The business is expected to
deliver value .With this the ideas if growth can be explored and executed. The valuable skills,
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contacts and experience can be brought by some business angels and venture capitalists to the
business. The assistance in making decisions and strategies can be provided with that. As the
business grows the follow-up funding is provided by investors. In the success of business the
investors have interest .Some disadvantages of equity finance can be that a lot of time can be
consumed in raising equity fine. The focus from the activities of business activities can be taken
away from management.
The comprehensive information about the company can be seek by potential investors. In
order to make management decisions the certain amount of power can be lost. The time need to
be managed in order to give regular information for investor to monitor. When raising finance
there can be legal and regulatory issues (Seyed-Javadin and Safari, 2014).
Personal savings and assets
A great of source of capital can be made from personal savings and other assets. There
are minimum acquisition cost are minimum in personal savings and assets. The interest on bank
loans or returns with investors wont need to be payed. The disadvantages can be that if personal
savings which are used in business venture then the there are chances that all the savings can be
lose.
Investors
The business can be expanded and raise by taking help from a group of investors. In the
business these investors can be active partners. The drawback of using investors in s business is
that control over the company need to be given to these investors. The investors need to be kept
happy .
Bank loans
A good source of funding can be private bank loans. One can secure a personal loan for
small ventures. The money can be kept in hand to use as operating capital .This is one of the
advantage of suing of bank loans. During the time of downfall this money can help for the
company in its survival. By declaring bankruptcy one can secure the most essential personal
assets in case business goes wrong. The drawback of this is that the rate of interests need to be
payed on the loan. Regardless the business is good or bad the payment will be due.
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TASK-3
A business plan for growth
In order to plan the growth of business company will implement cloud-computing at its
organization. The main objective of the company will be to provide a secure and faster access of
data to its clients and employees. The financial funding for implementing cloud is also not so
high (Phillips and Moutinho, 2014.).So, the company can get funds from investors and after
certain period they can return them back. The objective of company is to process the customers
and employers with secure storage, file sharing and easy access to their storage. The use cloud-
storage will also help the business in their growth .The company is recently using manual
process to maintain records of its customers and employs. The separate records for reach
customers and employees is maintained by this company.
Due to this a lot of time is consumed in maintaining those records and also that record-
keeping system is also not secured as in case of fire or theft this records can be destroyed which
is not good for reputation of company. So the company is planning cloud computing as it also
provide opportunities of growth for a business. The large expenditure on hardware and upgrades
can be avoided with use of cloud-computing. There are many benefits can be offered by cloud-
computing (Okagaki and Dean, 2016). The cost of energy-consumption can be reduced with sue
cloud-computing as all records of company will be stored on one cloud. The authentic uses can
access cloud form anywhere and at any time. The only requirement for cloud is internet
connection. The best security is provided by cloud as data is on cloud and only authenticate users
can access the cloud. The same fields can be accessed by employees and third parties when
working on a project on different location. Cost flexibility is also offered by cloud computing.
The significant up-front cost of buying the applications of hardware and software systems can be
avoided with implementation of cloud-computing.
When using cloud-computing operations of business are more flexible. For an instance
software can use cloud-based data storage for its operations of data-backup .In order to get touch
with field offices managers can use mobile technologies. In remote sires areas the employees can
login forms their homes and interact with colleagues. The capabilities of storage that are offered
by cloud are unlimited. The mots innovate technology available the cloud services give a
competitive advantage to companies.
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In order to make its communication effective with employees and target large number of
customers company will make use of mobile technology and social media site such as Facebook,
twitter and blogs and e-mails (Kardong-Edgren and Leighton, 2016). With this the company can
conduct business with people from different location by doing video calling. In order to get in
touch with clients the technology such as smartphones, laptops, mobile application and GPRS
devices can be used. The connection between employees and business can be kept with use of
cell phones.
All application that are needed to operate a business are offered by laptops as they have
become a powerful computing device. The plan of business is to interact with other customers in
other countries and expand its business. With use of mobile technology the services and plans to
other. To analyse the preferences of customers in other countries the company can use big data
as every day operations of business can be done. The large volume of data can be collected with
use of big data. From various sources such as social sites, e-commerce site etc the data can be
collected. Across the company then entire data landscape can be mapped with use of tools of big
data. All kinds of internal threats in the organization can be analysed (Grünig and Morschett,
2017).
The sensitive information can be kept safe with this. In order to make sure
safety and protection of data mots companies today are using big data. The insight information
about market and consumers can be provided by big data. In the organization it can do wonders
for a business. The business will become more productive and efficient with proper management
of big data. The new products and services will be offered to customers by analysing the needs of
customers .The effective decisions will be made in company as immediate information will be
available.
TASK-4
The benefits and drawbacks for exit strategy option available for small business
The strategies of exit are a part of business plan. The owners of business can leave, retire
with help of exit strategies. For investors and lenders the exit strategies are important as they
want to know whether their money is secured. In a business there are a different type of exit
strategies (Eddleston and Crittenden, 2013.). On the type of structure and size of business the
strategies of business depends.
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Merger
This takes place when two business are joint in one business. The value of business is
increased due to mergers. One need to be a part of business to go through with merger as an exit
strategy. The employment to employees will be given by new merged business. When both
business belong to similar industry it is known as horizontal merger.
Acquisition
When a company purchase other business then it is termed as acquisition .The ownership
is given to other people who purchase the business. This is the exit strategy for acquisition. A
non complete agreement with an acquisition need to be signed.
Sell to someone
In this the business is sold to someone as an exit strategy. To members of families like
sister, brother or other relatives the business can be sold. The business can also be sold to friends
as they are interested in purchasing the business. It is difficult to develop a family succession
plan. The skills in the members of family is not there (Dibrell,Craig and Neubaum, 2014).
Initial public offering(IPO)
To public an IPO is the first sale of stock of business. It can also be referred as going
places. Both private and public business are there. There are many owners in a private business.
In public business the ownership is sold to public and they are large business. For small business
the going public will be complex as the amount of money that is charged is more. The
advantages of this is that to profitable for the company to take it in a public. The drawback of
this exit strategy is that it not a cost-effective process for small companies. The compliance and
reporting standards of public companies are much higher(Exit strategies , 2017) .
Liquidation
The liquidations are also an exit strategy for small businesses. The company is liquidated
when it is not bale to pay debts. This exit strategy is a clear-cut strategy as no negotiation is need
to be done in a business. The reputation and customers will be lost if the business is liquidated.
In this business is closed up and all assets are sold as an exit strategy. The advantages of this is
that it is simple. The drawback of this exit strategy is that return on investment is the lowest to
the owner.
In the open market sell the business
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For small business this is the most well-known option that is available. At a certain
process the business can be put in slow when the person is ready to retire at a certain point of
time. Some advantages of this is that to the buyers a profitable business can attract them and they
can purchase it more rapidly (Albon,Iqbal and Pearson, 2016.). When valuing business for sale
the assets and goodwill can be incorporated. The disadvantages of this can be that the expected
value to business is not given and the cost of selling the business is much lower.
In order to select the best exit strategy for business the planning need to be done form
before as the decisions need to be correct and the owner should be able to get maximum benefits
from that exit strategy.
CONCLUSION
Thus summing up the above report it can be concluded that the use of if cloud-
computing, big data, mobile technology are growth opportunities for small size company. This
will help the company to target more number of customers across globe. The sources of funding
for a company can be bank loans, grants and government banks. In grants there is no interest
rates and there is no need to return the money. The business plan that is made will implement
cloud storage and big data in organization to expand its business. The financial fund from
investor will be taken for this plan.
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