Planning for Growth: Funding Sources & Business Plan for Third Way

This report provides a comprehensive analysis of growth planning for "Third Way" Group, a small business specializing in interior decoration services. It evaluates growth opportunities using Ansoff's matrix, explores potential funding sources, and presents a detailed business plan for scaling up the business. The report considers competitive advancements using Porter's Generic Model and environmental factors through PESTEL analysis. It discusses market penetration, product development, market development, and diversification strategies. Furthermore, it examines personal investment, bank loans, investors, and partnerships as funding options, outlining their benefits and drawbacks. The report also touches upon succession and exit strategies for the organization. Desklib offers a variety of solved assignments and past papers for students.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Key opportunities for the purpose to evaluate the growth opportunities ..............................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
M1 Options for growth using range of analytical frameworks for the purpose to understand
the competitive advantage. ........................................................................................................6
D1 Evaluation of the pathways and options for growth taking into account the risks of each
option ..........................................................................................................................................7
P3 Potential sources of funding, their drawbacks and benefits...................................................7
M2 Potential sources of funding and justification for the adoption of an appropriate source of
funding. ......................................................................................................................................8
D2 Evaluation of the potential sources of funding with justified argument for adoption of
various sources based on the needs of the organization..............................................................9
P4 Business Plan ........................................................................................................................9
M3 Development of detailed and appropriate business plan for securing investment and
growth for achievement of objectives. .....................................................................................13
D3 In-depth business plan which helps in demonstrating the understanding and knowledge of
how to achieve, apply and formulate the objectives of the business in a successful manner. . 13
P5 Options for succession and exit for the organization, their drawbacks and benefits...........13
M4 Evaluate the succession and exit options for the small business and making valid
recommendations. ....................................................................................................................14
D4 Critical evaluation of the succession and exit options for the small business and deciding
an appropriate course of action with justified recommendations. ............................................15

CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and Journals...................................................................................................................17
INTRODUCTION
Planning for growth is basically defined as the business activity which allows the owners
of the organization and business to plan as well as seek growth in the revenues and total profits.
In reference to the company, the organizations are able to allocate their resources for the purpose
to adopt different changes in the company. When it comes to organization, planning is
considered to be one of the most important factor. In this report, the organization chosen for this
report “Third Way” Group which is a small business involved in offering different services in
relation to the interior decoration for the purpose to evaluate the different growth opportunities
through using Ansoff's matrix model. In addition to that, it basically involves the various
potential sources in relation to the funding along with a business plan which comprises of the
financial information for the purpose to scale up a business.
MAIN BODY
LO1
P1 Key opportunities for the purpose to evaluate the growth opportunities
Business come across various opportunities for the expansion and growth but it is
considered to be a very tough task when it comes to deciding which company is worth grabbing.
In context to small business such as Third Way, it is basically a small organization which offers
different services in relation to the workspace and designing consultancy. Moreover, there are
various factors which need to be taken into consideration for the purpose to evaluate the different
growth opportunities. In reference to the factors, it involves the following factors:
Competitive Advancements: In context to competitive advancement, it basically involves the
consumers of a company who basically prefers the purchasing of the commodities against the
competitors. In reference to Third Way, the organization makes use of the Porter's Generic

Model for the purpose to analyse the opportunities for growth (Shala, Kutllovci and Troni,
2018).
Porter' Generic Strategy Model
In reference to this model, it basically comprises of the various strategies that a
organization chooses for the purpose to gain a competitive advantage in the market. This could
be done either through differentiating the products or lowering the costs for the purpose to fulfil
their needs and attract more customers.
Cost Leadership: In case of organization, the main objective of the company is to sell their
products at low costs for the purpose to stand out in the market. In case of the Thirdway, the
organization offers its services for the purpose to decorate the interiors of the company at cheap
and reasonable prices as compared to its competitors (Chatterjee, Chaudhuri, Vrontis and Basile,
2021).
Differentiation: In context to this strategy, the organization focuses on differentiating the
products in small number of markets in various regions. In context to the organization, the
company can make changes and improvements in the products and could offer the same in
different markets.
Focus: In context to this strategy, the company selects a particular segment and also makes
changes in its strategies and could seek differentiation in the segment. In context to the
organization, the company could decide its services and products at as minimum rates as possible
(Islam and Abd Wahab, 2021).
PESTEL Analysis
 Political Factors: In context to the various factors, it basically involves the political
stability of the organization and policies such as Tax policy etc. In context to the
politically stable environment of the United Kingdom, it could help the organization in
operating its business in a more effective manner.

 Economic Factors: In context to the various economic factors, it basically comprises of
the inflation, economic growth, exchange rate etc and it is very important to take into
consideration by the respective organization through developing its products. In case of
the economic condition of the UK is strong which could be highly beneficial for the
company.
 Social Factors: In context to the socio-cultural factors, it basically comprises of the
beliefs and attitudes of the individuals in the region and it is very important to consider
while development of the various products(Giampaoli, Sgrò and Ciambotti, 2019).
 Technological Factors: In context to the technological factors, it basically comprises of
the various trends and it is very important for the company to keep itself well updated in
relation to the various trends and also attracting the various consumers.
 Environmental Factors: In context to the company, it is very important to consider the
different laws and also conducting various CSR activities for the purpose to address the
various environmental issues.
 Legal Factors: In context to the Thirdway, it is very important for the organization to
follow the various legal factors for the purpose to carry out the company's operations in a
legal and ethical way.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
In context to the analysis of the growth opportunities, it is very necessary for all the
companies to grow and expand themselves in a highly competitive business environment. It is
very important for the organization to opt for the different methods such as Ansoff's matrix
which help the company in developing and planning the various strategies for the expansion and
growth. In context to the Ansoff's growth vector matrix, it is basically a strategic tool which
helps the organization to grow as well as analyze the different risks which are related to the
various strategies in an effective manner (Teerasoponpong and Sopadang, 2021).
 Market Penetration: In context to the organization, the company focuses on
enhancement as well as the increase in the selling of the current products in the current
market. In context to the organization, the company can choose various techniques for the
purpose to increase its market share in the current market. In context to the company, the
organization could increase its promotional activities.

 Product Development – This strategy involves developing a new product to cater the
needs and wants of cust9omers in existing markets. This strategy is opted by firms when
they have a clear understanding of what customers expects from them, their needs and
wants, the current markets they are operating in etc. and are thus able to offer solutions
that are not only innovative but unique as well in order to exploit the needs of existing
market (Contreras-Choccata, Sotelo-Raffo, Raymundo-Ibañez and Rivera, 2020). Third
Way can acquire a product of its competitors and can also merge resources in order to
create a new product that has innovative features and helps in attracting customers.
 Market Development: In context to this strategy, the company enters into a new market
with the support of the existing product range. In reference to this strategy, it is
considered to be very successful if the new markets prove to be highly profitable for the
organization. In reference to the organization, it can basically cater to the different
customer segment.
 Diversification: In reference to this strategy, it basically comprises of the firms entering
into a different market with a new product. In reference to the organization, it can
implement two types of diversification including the unrelated and related diversification.
In context to the organization, the company can launch a set of new services in a new
market which could allow the organization to retain its current customers as well as could
attract the new customers.
M1 Options for growth using range of analytical frameworks for the purpose to understand the
competitive advantage.
In context to organization, for the purpose to understand the competitive advantage, there
are various frameworks taken into consideration such as Porter's Five forces analysis, SWOT
Analysis and PESTLE analysis which allows the organization to assess their competition and to
have a deep understanding about their position in the market in different methods (Hourani and
Hamdan, 2022).

D1 Evaluation of the pathways and options for growth taking into account the risks of each
option
In context to the pathways to growth, it helps the non-profits to achieve the high impact
growth and also focusing on the generation of income through non profit management
consulting, grant writing, coaching, leadership development and training.
L02
P3 Potential sources of funding, their drawbacks and benefits
In context to all the organizations, it basically requires sufficient funds for the purpose to
carry out the operations of the company in a effective manner. In reference to the organizations,
the company can choose various sources of funding depending upon the needs and sizes.
Personal Investment: In context to the business owners, the organization can use their own
finances for the purpose to fund their business. It basically comprises of the bank accounts, cash
and personal savings. In addition to that, there is no schedule of meeting strangers and repayment
for the purpose to convince them to invest in the business.
Benefits: In context to the company, it can use their own savings and cash. In addition to that
there is no schedule of repayment and also meeting up strangers for the purpose to convince
them for the purpose to invest in the business (Inkon, 2019).
Drawbacks: In context to the company, the major drawback is putting up one personal finances
and money through putting them at a risk. There is high chance of losing the savings in a
complete manner.
Bank Loans : In reference to bank loans, it is considered to be one of the most commonly used
source of financing used by the business owners. In reference to banks, it offers loans for a fixed
duration of time like 3 years etc.
Benefits: In context to source of financing, it is highly flexible in nature and could be acquired
without any kind of liquidation.

Drawbacks: In context to the bank loans, it basically comes along with a burden of extra cost
associated with interest rate. In addition to that, there is a strict schedule of repayment of the
money (Yadav and et.al, 2019).
Investors: In reference to investors, it is basically referred to as organization and individual who
could invest and put money into different financial schemes for the purpose to achieve its profits.
Benefits: In context to organization, the company can choose for investors as a source of
funding.
Drawbacks: The process of finding investors and convincing them to invest in the money in the
business requires a lot of efforts and is highly time consuming.
Partnership: In context to another source of funding, it basically requires owners of the
company who could invest money along with the partnership with another person.
Benefits: With the help of partnership, rather than a single person investing money, there are
more two or more individuals and also it becomes easy to set with less costs.
Drawbacks: There is a risk of disagreements and conflicts among the partners. Also when it
comes to liability of debts, it is unlimited(Thompson Agyapong, Mmieh and Mordi, 2018).
M2 Potential sources of funding and justification for the adoption of an appropriate source of
funding.
In context to the major sources of funding, it basically comprises of the equity capital,
retained earnings and debt capital. In relation to the organizations, the company uses earnings
from the business operations for the purpose to distribute and expand dividend to their
shareholders. In case of business, they raises funds through borrowing debt privately from a bank
or through issuing debt securities.

D2 Evaluation of the potential sources of funding with justified argument for adoption of various
sources based on the needs of the organization.
In context to organization, the potential source of funding involves equity capital,
retained earnings and debt capital. In addition to that, the organization uses retained earnings
from the organizations for the purpose to distribute and expand its dividends to their
shareholders. Moreover, the organization raise funds through borrowing debt privately from a
bank or through issuing debt securities.
L03
P4 Business Plan
In context to the business plan, it can be defined as the written document which helps in
describing the different strategies for marketing and sales, financial background and mission and
vision.
Stage 1- Concept of Business
Executive Summary In context to the organization, the company is a
design, furniture and office development
organization. The present plan basically helps
in explaining the company's USP which could
be achieved with the help of objectives and
goals (Aloke, 2022).
Products and Services In context to the organization, the company is
highly known for the purpose of offering
various services to the construction, design and
furniture.
Mission and Vision In reference to the company, the organization
is focusing on designing the work places
within a budget. In context to the company's
vision is to become one of the popular

organizations in the field of the interior design
industry
Strategic Objective In context to the organization, the company's
main objective is to grow and expand its
business and also focusing on increasing an
overall profit by 30%.
Operational Strategy In context to the organization, the main
operational strategy of the company is to offer
services and products of superior quality.
Unique Selling Proposition In context to the company, the main USP is its
designs which are inspired by the current
trends in the market with the use of technology
and techniques.
Stage 2 – Market/Industry Analysis
In context to management of the organization, it is very important for the company to
conduct an analysis of the market and the strategic tool which will help and support the
organization in identification of the weakness and strengths. In context to the organization, the
SWOT analysis is mentioned below:
 Strengths: In context to the organization, the company has a very strong supply chain.
The company has a very skilled workforce who has possessed various skills
(Ramachandran and Suresh, 2021).
 Weakness: In reference to the organization, the company provides similar offers with no
flexibility in the services or products. In addition to that, the company has high costs
included in the transportation process.
 Opportunities: In context to the organization, the company could think of expansion in
various parts of the world with the help of offline stores and also through being active on
the various platforms.
 Threats: In context to the organization, the trends in the design industry changes in a
frequent manner which could result in becoming a threat for the company.

Stage 3 – Financial Plan
Pre-launch cash budget (In £)
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 10000
Credit sales 3000 4000 5000 4500 1500 3500 4200
Total inflows 13000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100

200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250
21100 22400 24600 24750 26250 19