Comprehensive Business Plan for Vectair Holdings: Growth and Funding

This report provides a detailed analysis of Vectair Holdings' business plan, focusing on strategies for growth and expansion. It begins with an introduction to the company, which offers hygiene products in numerous countries, and emphasizes the importance of planning and growth. The report then presents key considerations for evaluating growth opportunities, including sales marketing, financial viability, competitive advantages, and legal aspects. It uses Ansoff's Growth Vector Matrix to evaluate market penetration, product development, and market development strategies. The report also assesses potential sources of funding, such as own savings and investors, outlining their benefits and drawbacks. Furthermore, the report develops a business plan for Vectair Holdings, including financial information and strategic objectives. Finally, it discusses exit and succession options for small businesses, considering their pros and cons. The overall aim is to provide a comprehensive understanding of the business's potential for growth and the strategies required to achieve it.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Presenting key considerations for evaluating growth opportunities and justification within
organizational context.................................................................................................................3
P2. Evaluating the growth opportunities by using Ansoff's Growth vector matrix ..................5
P3. Presenting potential source of funding with its benefits and drawbacks..............................7
P4 Business plan for Vectair Holdings.......................................................................................9
P5. Exit and succession options for small business with its pros and cons..............................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning and growth are two necessary aspects to run a business in a positive way.
Planning is necessary to take a business in further level of success. The present report deals with
Vectair Company that offers many hygiene products in around 130 countries from last 30 years.
Company offers air care, air freshening, scent market and odour control which help to keep
environment as well as home clean and fresh. The report analyses key consideration for
evaluating growth opportunities. It also evaluates the opportunities for growth by applying
Ansoff's growth vector matrix. Report also assess the potential sources of funding available to
business with its advantages and disadvantages. The report develops a detailed and appropriate
plan for growth which includes financial information and strategic objectives for scaling up
business. It also presents various ways where small business owners can exit a company and the
implications of each option as well.
P1. Presenting key considerations for evaluating growth opportunities and justification within
organizational context
To run a business in a proper and positive direction, planning is necessary. Vectair is a
small scale firm that offers many hygienic products to customers at reasonable and affordable
price. Main aim of company is to provide best hygienic products at low cost. Company also
offers unique manufacturer’s service which help other companies to design their own style of
washroom products by using the latest technologies. Recently, company is looking forward to
expand its business in the future (Bridge and Dodds, 2018). But there are various factors that
affect the planning and growth of a business such as sales marketing, financial viability, market
coordination, merger and acquisition, etc. which are mentioned as below:
Sales marketing/ plan: A business will be successful in the future if it has good sales
marketing and plan. It is the most important factor that affects the growth and planning as well as
growth. Sales of Vectair Holding is quite effective and it always try to fulfill the needs of their
customers. Company offers their products to 130 countries and this proves that sales marketing
of a firm is good as compared to others. If the business has good sales channel and plan then it
will definitely attract a wide number of customers and for sales marketing, it is necessary to
choose right person because he is the only man who monitors whole sales team (Wu, 2018).

Budget: To expand the business, it is necessary to know the budget. Finance or financial
viability is another most important factor that affects the planning or growth of a company. It is
quite difficult to assess financial resources available for the future growth. But an individual can
analyze revenue generated in the last year and can easily identify whether the business will earn
profit or loss if it will exceed in near time.
Competitive Advantages: It is another most important key consideration that affects the
whole environment of a company. The Vectair Holdings offer variety of products to its
customers with low and affordable price as compared to its rivals. To identify target audience in
nearby areas will definitely help to determine whether the business will be successful in near
future or not. To increase the competitive advantages among companies, it is necessary to deliver
all the goods and services at low and affordable cost to the customers (Pugalis and et.al., 2015).
Legal Aspects: Legal aspects are linked with the rules and regulations which are
introduced by government. To expand a business, Vectair Holding must follow all the rules and
implement those in their business as soon as possible. This legal aspect will somehow damage
the image of a company if not followed by owner. For example, if government introduced new
rules related to tax, it is necessary for company to implement those new rules in business and it is
necessary for a businessman to know all rules or terms as well as conditions which somehow
relate to business.
Merger and Acquisition: These are two most important and complex areas that help to
occupy good position in the market place. Merger and acquisition are two ways to secure a good
space with specialized skills and talent that will surely help to expand the values or services
which are provided to the customers (Ying, Chaolin and Xiaojiang, 2014).
Market coordination: Maintaining a healthy relationship with market as well as
customers will help to reach at a wide number of customers in small time. Vectair Holding has a
good market coordination as well as promotional activities. Whenever new product is introduced
by a company, it displays those products using marketing activities such as advertising,
brochures, etc. This will help to enhance the market communication.

P2. Evaluating the growth opportunities by using Ansoff's Growth vector matrix
Market penetration: It is the first quadrant of Ansoff growth matrix and lowest risk
strategy. This strategy is mostly used by company to sell its existing products into existing
market using marketing channels. This is mostly possible if the market is still growing and
Vectair offers all the products in online mode and uses different promotional activities to
penetrate the market. This strategy helps to increase its customer base and improve its
promotional activity (Gallagher and et.al., 2018). Company wants to introduce online business
for the convenience of customers so that it will reach to a large number of customers. In the
present scenario, company offers a variety of products to their customers at the best and
affordable price as compared to its competitors. Using this strategy, Vectair offers many new
products using coupons and discount offers to their present customers in existing market so that
it will help to increase its sale.
Product development: It is the second quadrant of Ansoff's matrix growth vector. This
strategy helps to develop a new product for the present customers using product development
strategy (Corrado, 2018). This method helps to increase the sales and maximizes profit during a
particular period. Vectair Holding wants to introduce online store for their existing customers
because through research, company analyzes that almost more than half of the population depend
Illustration 1: Ansoff's Matrix
Source: Ansoff's Growth Vector
Matrix

on social sites and internet. So, it feels that it is necessary to introduce new online store for their
customers in order to attract more number of customers.
Market development: This strategy focuses on introducing existing products to new
market. This strategy is risky as compared to market penetration because it can be difficult to
understand the complexity of new market. Market development strategy helps to attract new user
from their existing products as Vectair Holdings want to introduce new online store in order to
reach new customers (Tomczak, Reinecke and Kuss, 2018). This Ansoff's strategy help to
expand the business at a large level and recently the company target audience so that it will help
to reach large number of people through their existing products. Vectair Holdings is a small
operating store that offers hygienic products and wants to increase its sales and profits. So, it is
necessary to target those geographic regions which help to attract more number of customers
using own ability and innovation skills.
Diversification: It is the final stage of Ansoff's growth matrix which is mostly used by
companies where a firm can develop new products and explore them into completely new
market. This is the most risky strategy among all because through this, an organization is moving
in totally unfamiliar market and it never knows whether the product will help in their income or
not. In context of Vectair Holdings, it wants to introduce its new products through online mode.
So, it is necessary to maintain a healthy relationship with existing as well as new customers
because they will help to maximize the profit (Leick and Lang, 2018).
As above discuss, Ansoff's growth vector matrix it is to be evaluated that Vectair
Holdings uses market penetration strategy. This strategy help to attract customer in their existing
market with available products only. As this strategy also focus on to maintain good and long
term relationship with their customers, which is done by the company. As it offers so many
hygienic products to their customers with low and affordable price which no other company
provide and now the company want to introduce online store for the convenient of their existing
as well as new customers.
M1
To expand the business, planning is necessary. Vectair Holdings want to introduce online
store for the convenience of their customers but there are various factors that affect the growth
and create hindrance for the growth of company such as financial viability, market coordination,
sales channel, legal aspect etc. The most important factor is competitive advantage which affect

the planning more strongly. The company has many rivals but Vectair Holding offer variety of
products at such a low and affordable price that no other store offers. That is why it is having
such a high competition (Olesen and Carter, 2018).
D1
There are many factors that affect the growth and some how create hindrance in the
planning which are budget, competitive analysis, marketing channel, sales plan, merger and
acquisition etc. To expand the business it is necessary to assess all the factors and try to mitigate
those. Recently Vectair Holding company want to introduce new online store in order to increase
its sales as well as profit by providing best quality product at low cost. For growth and planning
it is necessary to determine the exact budget and planning because it is the only factor that affect
the whole environment of a company internally as well as externally.
P3. Presenting potential source of funding with its benefits and drawbacks
To expand the business it necessary to know funding sources available for a business. In
the context of Vectair Holdings, it also want to introduce online mode of business and want
funds to expand it. There are various sources of fund which are mention below:
Own Savings: it is the best source of funding, because there is no interest to be paid to
others and whatever the profit gain its all relate to owners only. Using fund from own saving is
best method as Vectair Holdings uses some amount of own saving in order to expand its business
(Advantages and disadvatnges of sources of funding,2018).
Benefits:
 own saving help to give more control as compared to other source of funding.
 Using own money in a business will help to avoid extra spending during expanding.
 It is the most simple and best method which every small as well as large company uses.
Drawbacks:
 if an individual uses whole saving to its business then there will be no surety whether the
amount will be return in the form of profit or not.
 Using own money will create minor differences between family members.
Investors: this is the another method of source of funding which Vectair Holdings can
used. Investors are those who help needy and provide funds for the expansion of business but in
return they take some amount in the form of share of business (Bridge and Dodds, 2018). They
are the active person who silently provide capital and wait for the output.

Benefits:
 give advise to the owners to run a business in better way.
 Generally investors have wide range of network channel which help to create big channel
and increases the sales area.
 Have good management skills which help to take fast decisions for the business.
Drawbacks:
 normally, takes too much time to find suitable investor for a business.
 If the investor help to take risk, then it necessary to provide some amount of share to
them (Renne and Tolford, 2018).
Banks loans: Private banks is the another option for source of funding. For small
companies taking loans from bank is the best method. Bank gave loans to only small industry
because they are the person who take and return back on time.
Benefits:
 taking loan from bank will help to keep the cash on hand while doing operating work.
 In case if business goes bad, then person can use their own saving in order to fulfill the
interest of bank.
 Time of funding is quite fairly quick (Rudolf, Kienast and Hersperger, 2018).
Drawbacks:
 it is very difficult to take loans from bank because their criteria changes very soon.
 Large amount of documentation is required at the time of taking loans.
 Sometime it create confusion regarding financing options if the person have lack of
knowledge.
Venture capital funding: it is the another method of sources of fund. Venture capital are those
investors who put their money in exchange for the equity in a company.
Benefits:
 Venture capital invest their money only at once.
 They help to grow business in very well conditions (Wu, 2018).
 Provide expertise and help to create vast network for their partners.
Drawbacks:
 whole process done by investors are related to money and even they take necessary steps
to see the output.

 The investors will somehow take the business in other direction but at that time owner
cannot do anything because investors are quite experienced and they know what they are
doing.
M2
To expand a business, it is necessary to arrange sources of funds. There are various
method of funding, as Vectair Holdings want to introduce new online store and presently it doing
offline business of hygienic product (Wynn, 2017). Own funding, through investors and bank
loans are different sources of funding but among all the company uses own saving and bank
loans only, because it is the most simple and affordable method among all. Another options are
also safe to use but the company wants to increase its sales as well as profit and do not want to
share its business with others that is why it uses basically two sources of funding.
D2
The basic need of Vectair Holdings is to increase its customer base as well as attract more
number of customers, for this it wants to introduce online mode of business for the convenience
of their customers (Pugalis and et.al., 2015). To expand the business it is necessary to arrange
capital for the company and Vectair Holdings chooses own saving and take loans from bank.
Investing money from own saving is the most simple and best method because there will be no
extra expenses during expansion. Another method is take loan from bank, private banks mostly
provide money at low interest to small industry only that is why company chooses this method .
P4 Business plan for Vectair Holdings
Overview: Recently, Vectair Holdings provide so many hygienic products such as air
fresher, wash room cleaner, scent marketing and odour control to 130 countries. The company's
main aim is to increase customer base as well as maintain long term relationship with customers.
The company always introduce new products by using new technologies in order to maximizes
its sales. The company offer so many products at such a low and affordable price as compared to
their rivals.
Goals/ objectives:
 To enhance customer base.
 To explore the business into wider level of success.
 To maintain long term and healthy relationship with customers.
 To create brand image in market.

 Expand the business at international level. To increase sales as well as maximizes the profit.
SWOT Analysis:
Strength:
 Vectair Holdings offer best quality of hygienic products to their customers at such a
cheap rate while others do not.
 It has good customers base which help to maximizes more profit (Grover, Bokalo and
Greenway, 2014).
 The company has good sales of distribution as it offers it product over 130 countries in all
over world.
 Always uses new technologies and implement those into their existing products.
 Offer innovative products with best design to their customers.
 High focus on research and development aspect which help to adapt all the necessary
changes in the environment.
Weaknesses:
 The biggest weakness of Vectair Holdings is that it still not having any online store.
Illustration 2: SWOT Analysis
Source: SWOT analysis,2018

 Sometime customers are quite confused because it sell brand as well as non brand
products.
 The company did not take proper feedback from their customers (Ying, Chaolin and
Xiaojiang, 2014).
Opportunities:
 There is vast need and great demand of these product which Vectair Holdings offered.
 There is growing need of complete population regarding hygiene.
 Customers may change their mind to purchase the products if other companies may offer
products at more low cost.
Threats:
 Vectair Holdings have great threat regarding threat of substitution.
 The company faces so many competitors is the another threat (Gallagher and et.al.,
2018).
 Sudden decrease in the demand of customers will also affect the sales of a company. Negative information in social sites will somehow damage the image of company in
market.
PESTLE Analysis
Illustration 3: PESTLE Analysis
Sources: PESTLE Analysis.2018

Political Factors Economic Factors
 Sudden change in laws and rules of
government policies will affect the
profit of company.
 As government support for innovation
and the company it self produces new
innovative products.
 Due to some political issue the
company will not expand its business at
international level.
 Due to recession, the income of a
company directly affected.
 As the decrease in economic growth it
directly impact on the profit of a
company.
 If the government made laws or rules &
regulations regarding the supplier chain
then the profit of Vectair Holdings will
definitely affected.
Social Factors Technological Factors
 Different lifestyle had adopted by the
company that create sudden change in
the buying power of a customers.
 Social factors such as ages, caste,
growth in population will directly
impact on the environment of a
company.
 It is the most important factor for
Vectair Holdings whole income
depends.
 As the company uses all new
technologies and start implementing
those into a business.
 Still the company not offer online mode
of business for their convenience of
customers.
Legal Factors Environmental Factors
 There are many rules and regulations
comes under legal factors which
somehow create negative impact on the
business.
 New taxes are also introduced by the
government which must be follow by
the company.
 Vectair Holdings is affected by the
sustainability factors such as packaging
, waste etc.
 as the company offer so many hygienic
products which help to keep
environment safe and clean.

Marketing mix:
Product: Recently, the company offer so many hygienic products but now wants to expand its
business and want to introduce new online mode of business for the more convenience of their
customers. Vectair Holdings wants to increase its customer base as well as maximizes its profit.
Place: to choose right place for expanding the business is the most difficult task ever. As Vectair
Holdings wants to introduce new online mode of business using internet and social sites
(Corrado, 2018).
Price: it is the 3rd P's of marketing mix and the company offer low product price as compared to
its rivals. The company offer variety of product with discount offers to their regular customers as
well as new ones.
promotional activities: the company uses both traditional as well as modern method for
promotional activities. This activity includes advertising, social sites, newspaper and magazines.
Competitive Analysis:
Illustration 4: Marketing Mix
Source: 4P's of Marketing Mix.2018

Basis of difference Vectair Holdings D & B Hoovers AAC Holdings
Product/ Services Provide many hygienic
products such as air
freshers, scent used in
toilets, wash room
cleaner, odour control
equipment
Provide many hygiene
products in online
mode such as dish
washer, toilet cleaner,
scent.
It provide hygienic
product but mostly
used chemicals in their
products.
Promotional
Activities
Used both traditional
as well as modern
method such as
websites, social sites,
advertising, brochures
etc.
Mostly use modern
form of promotional
activities.
Uses modern
promotional activities.
Price Price is quite low and
affordable as
compared to others.
Prices are quite high as
compared to Vectair
Holdings.
Offer high range of
products.
People Its product are used by
all type of people so it
target all age of
people.
It target all age group
of people.
Mainly target middle
age people to increase
the sales power.

Financial Viability:
profit and loss account is to be prepared in order to determine the exact status of a
company. The present income expenditure chart help to determine the net income earn during
whole year and it also help to identify the exact expenses incurred at the time of expanding the
business.
P5. Exit and succession options for small business with its pros and cons
Exit and succession options comes when the business is not growing well, at that time
company owner chooses to take exit from the company or transfer the ownership to others. There
are various options available for the owner to take exit and succession from the company which
are mention below:
 To shut the business is the first option available for the company. In this situation, owner
of a company cannot restart the business and not even their family members.

 Second option to take an exit from the company is to transfer the ownership to others and
they may be family members or someone else. This is the good option because it will
help to make business profitable and while transferring ownership to others make sure all
the responsibility should be completed by hiring lawyers (Succession planning for a
business, 2018).
 Third option is to hire management team which help to take business into further level of
success.
 Another option is to buy or sell agreement. This agreement gives an outline that what will
happen after the death of an owner and this agreement also help to identify about the
owner of a business.
 If the owner of Vectair Holdings wants succession option then owner hire successor
which may be family members, business partners or others.
Benefits Drawbacks
 Using exit or successor options, owner
protect the image from being spoil.
 Using succession, a new person will
show their talent by taking the business
into further level of success.
 It is the best option available for the
growth and planning of new business.
 The employees who work in the
company are not become a successor.
 If the successor is wrong person then he
may be damage the future of a
company.
 Shut down the business will never ever
able to restart the business again.
M4
if the business is not earn proper and desired profit then it is necessary to take option to
take an exit from a business. There are many options available which help to shut the company
or keep whole business for the family members (Leick and Lang, 2018). Vectair Holdings
chooses to shut a company or hire some talented management team in order to increase the sales
of business. The company may also chooses liquidation which means that the company will be
close for life long and no one can restart the business even not their family members.
D4
To take exit from the company, Vectair holdings chooses to shut the company though
there are various options available for a firm but to protect it from spoilage of image, it may also

hire some talented management team so that they will take the business and run it as per their
own (Tomczak, Reinecke and Kuss, 2018). Another option available for the company is to leave
the company for their family members or sell the business but it chooses to shut the company
and transfer the ownership by completing all the terms & condition or rules & regulations.
CONCLUSION
From the above report it is concluded that planning is the necessary aspect for growth of
business. To run a business in better and positive direction, planning is must. This two
parameters also help to increase the sales as well as maximizes profit. The above report present
the scenario of Vectair Holdings who want to introduce online market for the convenience of
their customers. The report help to identify various key points for small industries that should be
consider when evaluating growth opportunities such as budget, sales channel, competitive
advantages. The report also assess the various methods through which Vectair Holdings access
funding and when to use those different types of funding. It also present business plan that
includes financials that help for the growth and securing investments with its desired objectives
and aim. The report also assess various ways that help small business owner to take exit from the
business .

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Online
Advantages and disadvatnges of sources of funding. 2018. [Online] Available through:
<http://smallbusiness.chron.com/sources-finance-advantages-disadvantages-14407.html>
Succession planning for a business. 2018. [Online] Available through:
<http://smallbusiness.chron.com/sources-finance-advantages-disadvantages-14407.html>