INTERNATIONAL SCHOOL OF

MANAGEMENT & TECHNOLOGY

ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student ID Reg No.

Family Name Shrestha Given Name Hritik

Enrolment Year 2021 Section A

Semester 4TH Email hritikshrestha@ismt.edu.n

p

UNIT DETAILS

Unit Title – Unit 42: Planning for Unit Code J/508/0601

Growth

Assessor Name Issued Date 8/02/2022

Assignment Title Planning for Growth – Organisation Potential for Business

Growth

Assignment No Submission Date 8/04/2022

Qualification BTEC HND in Business Campus ISMT

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 STUDENT ASSESSMENT SUBMISSION AND
DECLARATION

When submitting evidence for assessment, each student must sign a declaration confirming
that the work is their own.

Student Name Hritik Shrestha Assessor Name

Issue Date Submission Date

8/02/2022 8/04/2022
Programme BTEC HND in Business

Unit Name Unit 42: Planning for Growth

Assignment Title Planning for Growth – Organisation Potential for Business

Growth

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Table of Contents
Introduction ..................................................................................................................................... 5

Company Overview ........................................................................................................................ 5

Task 1 .............................................................................................................................................. 5

a) Analyze key considerations for evaluating growth opportunities such as competitive

advantage, new products & services, innovation etc. and justify these considerations within an
organizational context (p1) ......................................................................................................... 6

b) Evaluate the opportunities for growth by applying Ansoff’s growth vector matrix (market
penetration, product/service development, market development, unrelated diversification) (p2)
..................................................................................................................................................... 6

Task 2 .............................................................................................................................................. 8

Assess the potential sources of funding available (i.e. bank loans, crowd funding, peer to peer
lending, angel and venture finance) to businesses and discuss benefits and drawbacks of each
source. (P3) ................................................................................................................................. 8

Task 3 .............................................................................................................................................. 9

Using the example of a small business of your choice; design a business plan for growth that
includes financial information and strategic objectives for scaling up a business (P4) ............ 11

Task 4 ............................................................................................................................................ 23

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 As a small business owner, assess exit (i.e. selling or floating the business, valuing the
company) or succession options for a small business explaining the benefits and drawbacks of
each option (P5) ........................................................................................................................ 23

References ..................................................................................................................................... 27

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Introduction

Small and medium-sized enterprises (SMEs) are defined by the European Commission (2017) as
businesses that are either starting up or are small and medium-sized. These companies typically
employ fewer than 250 people and generate annual revenues of around Npr.50 million. In a year,
the average balance sheet cannot expect to generate 43 million pounds. There are four key tasks
in this assignment. In the first assignment, various essential considerations are examined in order
to assess growth potential. In the second task, numerous funding sources are evaluated. The next
task is to create a business plan for expansion. The business mission, vision, goals, and
objectives, as well as marketing budgets, are designed in this part. After that, effective marketing
tactics for the prospective firm are devised. Several exit techniques and options are addressed in
the final section.

Company Overview

Yetiyap was chosen as the company for this project. Yetiyap is a well-known wholesale grocery
superstore in South East London that caters to small and medium-sized businesses. Yetiyap
produces high-quality African and Caribbean drinks and cuisines that are both affordable and
readily available to customers in the United Kingdom, London, and the European Union. It
expands its selection of high-quality products, such as foods and beverages, and sells them at
competitive prices to stay competitive in the marketplace (Yetiyap, 2018). Yetiyap sells a variety
of goods, including groceries, fruits and vegetables, chicken, fish, and ethnic meals, as well as
health and cosmetic products, baby products, and catering services. As Yetiyap (2018) points
out, the goal of this business is to produce high-quality foods and beverages that are both
affordable and accessible to London residents. However, this business is run by a dedicated staff
with extensive experience in the food industry and a solid reputation in the grocery sector.

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Task 1

a) Analyze key considerations for evaluating growth opportunities (P1)

Competitive Advantages

The word "competitive advantage" refers to a situation that puts a company in a better financial
position. If a small business owner can build a competitive advantage, he or she will be able to
trade products and services profitably and easily (Tutor2u, 2018). A strong competitive
advantage, on the other hand, indicates that the company is likely to prosper and expand. The
importance of competitive advantage for small business entrepreneurs cannot be overstated. A
small firm has various characteristics, and any of these characteristics might be used to gain a
competitive edge. The product, the company, the competitors, and the customers are all
examples of these features. Small firms confront a number of opportunities and obstacles when it
comes to adopting new and digital technology (Tutor2u, 2018). Small firms, on the other hand,
have an opportunity to counter their competitors by being more adaptable in implementing
innovative solutions.

Porter's Generic Strategies are a set of generic strategies developed by Porter.

Porter's Five Forces model incorporates buyer negotiating power, supplier bargaining power,
threat of new entrants, competitive rivalry, and substitution threat.

Supplier bargaining power refers to how much power is exchanged for a product's pricing
(Hanlon, 2016). Suppliers have created negotiating power when tiny or start-up businesses (like
Yetiyap) make items using uncommon components and sell them to other businesses. Walmart's
vendors, for example, have little bargaining power when it comes to top chefs' suppliers who
want rare products.

The bargaining power of the buyer is very comparable to the bargaining power of the suppliers.
It is, nevertheless, applied to the customers. Similar products are difficult to come by in areas
where purchasers have less bargaining power. Yetiyap also has buyer negotiating power
(Hanlon, 2016). The threat of new entrants refers to the barriers to entrance in the business
industry. A fresh or start-up business (such as Yetiyap) could be inundated by new competitors.

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Threats of alternative items indicate that the customer's ability to apply several products is being
jeopardized (Hanlon, 2016). It signifies that customers have decided that purchasing any things
is not necessary. The threat of alternative items is commonly overlooked by new entrepreneurs
who enter the market and claim to have the most up-to-date product with no competition.

Finally, competitive rivalry is the final step. This phase is self-explanatory, and it refers to the
other businesses in the marketplace with which the startup competes.

Portfolio management strategies (BCG Matrix)

Stars, cash cows, hounds, and question marks are all part of the BCG matrix paradigm.

STARS are items that are now making a lot of money for the company but are still managing
their market position (NetMBA, 2017). If a company can maintain a high market share, the stars
can become cash cows.

CASH COWS are the former stars, and they continue to earn a lot of money for their company
long after market growth has slowed and competition pressure has been removed.

A handful of cash cows will eventually become DOGS, providing a boost to cash-strapped
businesses. Dogs must be identified before they deplete vital supplies (NetMBA, 2017).

QUESTION MARKS are products that are currently profitable but have the potential to grow in
the future.

b) Evaluate the opportunities for growth by applying Ansoff’s growth matrix (P2)

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Market penetration, product development, market development, and diversification are all part of
the Ansoff growth vector model. This is a process that assists organizations in selecting
appropriate products and market expansion strategies (QuickMBA, 2016).

Market penetration is a less risky strategy that focuses on selling current items in existing
markets in order to increase market profitability. This can be achieved by using new approaches
to enhance the brand image and marketing campaigns, as well as many loyalty programs.

Product development can be classified as a strategy with a moderate level of risk. It comprises
the introduction of new items into established markets (QuickMBA, 2016). In addition, start-ups
and new businesses strive to expand their product lines and develop their products in the
marketplace.

Market Development is the strategy via which a company introduces current items to new
markets. A company's attention is constantly on the client segments. The introduction of new
items in new markets, on the other hand, boosts the company' prosperity (QuickMBA, 2016).

Between all of the stages, the diversification stage takes the biggest risk. To diversify with
considerably more restriction, a company must assess the assessment. Several companies, such
as Virgin, have done an excellent job of diversifying.

Task 2

Assess the potential sources of funding available to businesses and discuss benefits
and drawbacks of each source (P3)

Sources of finance

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Bank loans

The most prevalent source of capital for small and medium-sized businesses is a bank loan.
Businesses can apply for either a short-term or long-term loan. The amount of money a company
can borrow from a lender is determined by the company's performance. As a result, enterprises
must present all needed business performance documents, such as a balance sheet, income
statement, cash-flow statement, and future business plan. Bank loans have both perks and
downsides. The following are the main benefits: a) it is appropriate for medium and long-term
solutions; b) arrangement fees and interest are tax deductible; c) timely loan repayments can
improve a company's credit score; d) bank loans are the most cost-effective option when
compared to overdrafts and credit cards in terms of interest rate and other factors. (2018, Green).

As Green (2018) points out, the main disadvantages of a bank loan are: a) it is not flexible for
short-term borrowing needs; b) if the borrower cannot repay the loan in full on time, the financial
situation of the business will be considered; c) bank loan gives loan to the borrower in different
ways, for example, startups and existing businesses with no assets are not given loan; d) if the
loan is available to pay and the business does not repay, the bank will take legal action against

Crowdfunding is a method of raising money from a large

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The term 'crowd funding,' according to Reffell (2018), refers to a funding procedure in which a
little amount of money is collected from a big number of people via the internet or online. Crowd
financing, on the other hand, is a type of crowdsourcing. Crown funding has numerous
advantages. First and foremost, it is the quickest and most cost-effective way to raise funds.
Second, it is an excellent way for assessing public reaction and opinions. Finally, investors can
follow the success of the company they invested in. Fourth, through this funding procedure,
investors can become devoted consumers (In Business Info, 2017). Finally, compared to bank
loans and traditional funding, it is a very simple finance alternative that does not require any
effort. Crowd fundraising, on the other hand, has significant drawbacks. To begin with, not every
business or project is eligible to use the crowd funding approach. The investors will then take
their money back if the target amount is not met, and the business would be left empty-handed
(Premier Business Care, 2018). Following that, it will be tough for a company with a restricted
network, social media presence, or fewer items to participate in crowd fundraising.

peer-to-peer financing

According to Investopedia (2017), peer-to-peer (P2P) lending is a type of debt financing that
allows individuals to lend and borrow money without the involvement of a traditional financial
institution. Then there's crowd lending and social lending, which are both terms for peer-to-peer
financing. Peer to peer (P2P) lending is a method of borrowing money that does not require the
involvement of a credit union or a regular bank. Peer-to-peer lending has a number of
advantages. To begin with, the online application process is quick and simple. Second, in
comparison to traditional financial institutions, it has low interest rates. Finally, in the peer to
peer loan procedure, there is no prepayment penalty (Rind, 2016). Fourth, the lender stays
anonymous to the borrower, and the lender is unable to contact the borrower directly. Peer to
peer lending, on the other hand, has a number of downsides. For starters, a high interest rate is
used in this procedure. Then there's the issue of peer-to-peer lending's lack of liquidity.
Following that, interest rates in the peer-to-peer lending procedure are not tax-free (Bondmason,
2017).

Angel investment

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A business angel investment can provide first-time equity moneymakers with critical funds as
well as guidance from experienced entrepreneurs. Angel finance is particularly important if
someone or a company is looking for financial support and guidance from experienced investors
(Business Lincolnshire, 2017). Angel financing has numerous benefits and drawbacks. The
benefits include: angel investors are a better source of start-up cash than venture capital firms,
angel finance does not require debt financing, and angel funding does not require monthly
interest payments, among other things. The following are the main disadvantages: a) angel
investors may provide considerable advise; a number of them may place demands on corporate
control; b) angel investors are more difficult to contact and study than venture capital firms
(Brachmann, 2017).

Financing for Startups

Venture capital is a type of finance in which investors provide financial support to startups and
small businesses with the potential for long-term growth (Investopedia, 2016). Venture money,
on the other hand, is typically provided by wealthy individuals, financial organizations, or banks.
There are numerous benefits and drawbacks to venture capital. The primary advantages,
according to The Hartford (2017), are: a) venture capital financing can provide financial support
to start-up and small enterprises while also providing valuable counsel and direction; b) venture
capitalists are typically well-connected in the business sector. The following are the major
drawbacks: a) loss of control; b) minority ownership status; and so forth.

Task 3

Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business (P4)

Mission

Mission

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Yetiyap is a South East London-based Afro-Caribbean wholesale and retail Cash and Carry.
Yetiyap's objective is to continue to expand their product lines, such as high-quality drinks and
snacks provided at competitive costs, in order to capture a larger market.

Yetiyap's vision is to grow its small and medium-sized firm into a global business by offering
high-quality items.

Yetiyap's mission is to offer high-quality African and Caribbean drinks and cuisines that are both
inexpensive and accessible to customers in the United Kingdom, London, and the European
Union.

Objectives

Yetiyap has a number of objectives, which are listed below:

1. Increase the profit margin by 10% from Npr.12,217,517 in 2017 to Npr.13,439,268 in June
2019.

2. To meet and exceed consumer expectations by providing high-quality drinks and snacks.

3. To offer a diverse selection of products and flavors across African and Caribbean cuisines.

4. By June 2019, increase client base, customer retention, and customer loyalty by at least 10%.

5. Establish a strong reputation among caterers, merchants, restaurants, and wholesalers as the
"one-stop-shop" for African and Caribbean foods and beverages.

Marketing Budget
Estimate marketing budget for the proposed business- 2018/2019

Sales forecast for Yetiyap-2018/2019

Products Sales Forecast

Foods Npr.5,579,756
Drinks Npr.4,460,312
Others Npr.3,399,200
Total Sales Forecast Npr.13,439,268

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 Yetiyap Total Sales Forecast for 2018/2019
6,000,000 5,658,632
5,076,741
5,000,000 4,539,345

4,000,000

3,000,000 Ades Total Sales Forecast for

2,250,550 2018/2019
2,000,000

1,000,000

0
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

Graph: Yetiyap Total Sales Forcast 2018/2019

Estimated budget for Yetiyap-2018/2019

Marketing Areas Estimated amount

Research Npr.60,563
Communication Npr.55,654
Total estimated marketing budget Npr.116,217
Total sales forecast Npr.13,439,268
Parentage of estimated budget against sales 2.21%
forecast
Table: Estimated Budget for Yetiyap-2018/2019

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 Estimated Budget against Sales
Forecast
116,217

Sales Forecast
Estimated Budget

13,439,268

Chart: Estimated Budget against Sales Forecast

Marketing Budget for Yetiyap-2018/2019

Research 2018/2019
areas 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
New products Npr.3,777 Npr.2,560 Npr.4,369 Npr.4,404 Npr.15,110
Market Npr.2,744 Npr.3,395 Npr.3,568 Npr.3948 Npr.13,655
Customers Npr.1,642 Npr.2,155 Npr.3,460 Npr.4,498 Npr.11,755
Sales Npr.2,244 Npr.2,599 Npr.2,963 Npr.3,149 Npr.10,955
Others Npr.1,266 Npr.1,629 Npr.2,177 Npr.3,976 Npr.9,048
Total Npr.60,563
research

Communication 2018/2019
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
Online Npr.2,095 Npr.2,269 Npr.2,937 Npr.3,576 Npr.8,782
promotions
Radio Ads Npr.1,365 Npr.1,712 Npr.1,801 Npr.1,088 Npr.5,966

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TV Ads Npr.1,456 Npr.1,864 Npr.1,975 Npr.1,638 Npr.6,933
Newspaper Ads Npr.1,347 Npr.1,625 Npr.1,937 Npr.1,683 Npr.6,592
Leaflet Npr.1,578 Npr.1,738 Npr.2,066 Npr.2,486 Npr.7,868
distribution
Magazine Npr.1,349 Npr.1,572 Npr.1,599 Npr.2,079 Npr.6,599
published
Others Npr.3,199 Npr.3,357 Npr.3,421 Npr.2,937 Npr.12,914
Total Npr.55,654
communication

Estimated Balance Sheets

As December 2018 As December 2019 As December 2020

(Npr.) (Npr.) (Npr.)
Net worth Npr.1,000,000 Npr.1,500,000 Npr.1,800,000
Working Capital Npr.800,000 Npr.850,000 Npr.880,000
Other assets Npr.200,000 Npr.250,000 Npr.270,000

Total Assets Npr.2,000,000 Npr.2,600,000 Npr.2,950,000

Trade creditor Npr.850,000 Npr.753,000 Npr.655,000
Long-term liabilities Npr.300,000 Npr.285,000 Npr.265,000
Short-term liabilities Npr.310,000 Npr.278,000 Npr.255,000
Total liabilities Npr.1,460,000.00 Npr.1,316,000 Npr.1,175,000

Exploring successful entrepreneurial strategies (e.g. addressing niche markets)

The major issue for business owners is to gain competitive advantages and stay in the market. As
a result, in order to succeed, they must employ successful or innovative marketing methods. For
both start-up and new entrepreneurship enterprises, many and single marketing methods can be

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effective (Marketing School, 2014). The following are some probable Yetiyap marketing
strategies:

Segments for the intended business for the year-2018

According to The Economic Times (2017), segmentation is a marketing approach that divides
target customers into groups based on their expectations or needs.

Market segmentation/targeting

By recognizing their individual need or wants, mentions can be targeted to specific client
segments. The three forms of targeting strategies are customized strategy, differentiated strategy,
and undifferentiated strategy (Quora, 2018).

Diagram: Targeting strategies Source: Palmer (2015)

Targeting for the proposed business -2018

Yetiyap is the projected company, which will employ multi-segment and distinctive marketing
techniques. Yetiyap mostly targets males and women. As a result, Yetiyap's line is suitable for

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 both men and women. Yetiyap, on the other hand, will focus on youngsters.

Diagram: Targeting strategy for Yetiyap-2018

Positioning

According to Kotler et al. (2015), the term'market positioning' refers to a strategy for establishing
a company's position in a competitive market. Along with the items, prices, services, and
promotion, this strategy is formed.

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 High customer satisfaction High ranges of services

December 2018 (Yetiyap) (July, 2018)

Fresh Food
Importer

Jesada Panich

More attractive price

Low product prices
with promotions

Yetiyap February
2018 Low customers service
Low service ranges

Diagram: Positioning map for Yetiyap

Justification: Yetiyap, the projected start-up company, will commence operations in February
2018. By July 2018, Yetiyap will expand its product lines. However, by December 2018, it will
improve its customer service by implementing a robust training and development program.

Growth strategies for proposed strategy

Ansoff model is broadly recognized growth strategic model. The Ansoff model would be used
for Yetiyap which is given in the table as follows:

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 Markets (target groups )
Products Present New
Yetiyap will use the market Yetiyap will apply the market
Present penetration for achieving the new development with several target
customers segment as well as the groups including new segments
competition with competitors. and new users.
Yetiyap will improve its existing Yetiyap will expand nearby
products by providing innovations. products by managing the value
New chain as well as both downwards
and upwards lateral.
Table: Product-Market Combination Matrix Source: Kotler et al. (2015)

Scott and Bruce’ model used in the proposed business plan

According to Morris et al. (2014) notes, start-up or new business must follow the five stages to
carry on its business growth that are given in the diagram as follows:

Diagram: Scott and Bruce Growth model source: Morris et al. (2014)

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Yetiyap will apply the Scott and Bruce's growth model in its business which is given in the table
as follows:

Five stages Proposed Business Growth Potential Crisis

1-5th months Achieve the growth which is suitable Huge competition
6-11th months Balance the profit and loss Resource shortage
12-17th months Ensure the available resources Effectiveness in the
supply and demand
18-23th months Achieve the profit level Stress on the
management
24-29th months Gain the performance of the business Additional strategic
thinking
Table: Scott and Bruce's growth model applied in Yetiyap

Guerilla Marketing

According to Stokes and Wilson (2014), Yetiyap uses guerilla marketing in its business because
of its low marketing expenditures. Yetiyap can expand its business by using this marketing to
target potential clients. This marketing strategy can be implemented in a variety of ways in
Yetiyap. These include: a) street branding; b) word-of-mouth marketing; c) 'forehead' marketing;
d) covered advertisements such as postal letters; and e) advertisements at train stations and bus
stops, among other things.

Sponsorship marketing

Yetiyap may use sponsorship marketing, according to Morris et al. (2014). Yetiyap can
participate in social events such as cricket or football matches, as well as international and
national trade shows, in order to improve its brand image.

Marketing That Goes Viral

According to Social Media Examiner (2015), viral marketing refers to advertising that spreads
like a computer virus, and Yetiyap uses it. Yetiyap uses a variety of viral marketing strategies,
including the following:

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Marketing on Social Media

Yetiyap uses a variety of social media platforms, such as Facebook, Twitter, and YouTube, to
reach out to local communities and engage people in the business. Yetiyap can target potential
clients through various social media platforms, according to Social Media Examiner (2015).

Marketing via email

Yetiyap, the proposed company, can collect email addresses from third parties or specific
individuals in order to send marketing messages about its products and services to its consumers.

Mobile Phones

Yetiyap can also use a mobile device, such as a smartphone, to contact with its clients and send
messages to them.

For the proposed business's marketing, create a marketing mix strategy.

Yetiyap can construct the marketing mix (4Ps) in the future, according to Morris et al. (2014).
The potential strategies are given in the table as follows:

4 P's Proposed development

Products Yetiyap will maximize the ranges of its products by next five months of
beginning its business.
Prices Prices will be controlled or evaluated timely in supply and demand
chains.
Places If Yetiyap will get success in the first year, it will increase its operation
in different places of London.
Promotion Yetiyap will offer promotions and discounts infrequently depended on
the customer buying process.
Table: 4P's development for the proposed business, Yetiyap

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Task 4

Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option (P5)

Exit: success and failure

Main ways that an owner-manager might exit the business

A business's exit strategy is the entrepreneur's strategic plan to sell the company to another
company or to investors. The exit plan allows a small or startup business owner to liquidate or
reduce his or her ownership in the company. Every business owner will eventually sell his or her
company. According to Blackman (2017), there are a variety of reasons for departing a firm,
including increasing competition, lowering earnings, changing life goals, passing it on to family
members, retirements, or cashing in on success and goodwill, a new enterprise, changing
interests, and so on. A lot of business owners choose to leave their companies, while others may
be forced to. Making an exit strategy entails planning ahead for how a business owner would
prefer to quit the company in the future. It is capable of removing numerous uncertainties and
dealing with changes. There are various forms of exit strategies, including liquidation, selling the
business to stakeholders, selling the business on the open market or looking for shareholders or
partners, and keeping the business within the family. The exit strategies are described as below:

Liquidation

The process of liquidating a firm is known as liquidation. Liquidation, on the other hand, usually
refers to the process of selling a company's inventory at a significant discount in order to
generate cash (Shopify, 2018). Liquidation has the advantage of being straightforward and quick
to complete. Liquidation has the disadvantage of providing the lowest return on investment. As a
result, creditors and investors may be dissatisfied (Ward, 2018)

Keep the business in family

The majority of small business owners maintain their companies in the family to ensure that the
heritage carries on. The benefits of this exit procedure include the ability to establish a smooth

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transition by mentoring a family successor (Ward, 2018). On the other side, the negatives include
the difficulty of establishing a family succession plan.

Sell business to managers and employees

Small business owners or managers may be interested in purchasing the company. The benefit of
this leave process is that it organizes a long-term buyout by the employees, which can foster
loyalty. The disadvantage is that personnel may not be sufficiently trained to take over the
company (Ward, 2018).

Key reasons for business failure and how business failure might be prevented

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The failure of a large percentage of start-up firms is unavoidable. Business failure is caused by a
variety of external and internal reasons. The rapid development of technologies, political issues
such as uncertainty and instability, government rules and regulations, economic fluctuation,
currency fluctuation, social changes, several legal issues, and environmental factors, according to
Gard (2014), are the main external factors that may cause a business failure. On the other hand,
the most common internal difficulties that can lead to a business failure are a lack of funds and
capital, poor management, a lack of people and expertise, a business in a terrible location, and so
on. There are numerous approaches to avoid a business collapse. First and foremost, savvy and
successful business owners keep meticulous records of their operations. To avoid business
failure, it is critical to keep track of business activity (Whittle, 2017). Second, successful
business owners consistently look ahead and beyond the present, which helps to avoid business
failure. Finally, a smart or successful firm focuses heavily on its customers since customers are
the most important aspect of any business, and good customer service can prevent failure.
Fourth, in order to connect with customers and avoid business failure, it is critical to adopt an
effective marketing strategy (Whittle, 2017). Finally, a successful firm always follows its
competitors since it helps the company create something fresh in the marketplace and avoids
business failure.

Exit routes for successful businesses

When business owners start thinking about departing their companies, there are a few options to
consider for a successful exit. First and foremost, it is critical to pass the business on to family
members. Then, for a successful firm, selling the company to its employees is a must-do exit
strategy (Zeller Kern, 2017). After then, the company sells to its employees through an ESOP
(Employee Stock Ownership Plan). Businesses, on the other hand, can sell to outside third
parties or co-owners, which can help them succeed. It is critical for a company to engage with an
IPO (Initial Public Offering) that is looking to sell their company. Retaining ownership, on the
other hand, is critical. Finally, liquidation is an excellent exit strategy that aids the company's
success in selling the company.

Growth and succession in the family business

The family business is affected by expansion considerations.

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If a family owns a business, the family members' portion in the business may become valuable
assets. There are a number of factors to consider when running a family business, which are
listed below:

Long-Term Survival Has Long Odds

According to Reading (2013), most families want their firm to survive or continue in the future,
however statistics show that the odds or chances of a long-term family succession are stacked
against them. Only about 30% of family businesses survive to the following generation, and only
about 12% of family enterprises are viable. As a result, the family business's long-term
sustainability has a significant impact.

Standards for Hiring

The importance of the family company may be perceived differently by different family
members. It may be necessary to establish requirements for hiring the suitable family members
in order to ensure the long-term viability of the firm (Reading, 2013). Daily performance
reviews, on the other hand, should be conducted to determine whether family members are
performing better in the firm. A family firm will never prosper in the future if proper business
standards are not followed.

Best Practices

Sound business procedures are critical for any organization, including family businesses
(Reading, 2013). The following sound procedures should be followed by a family business: a) a
written company plan and strategic plan; b) an adequate management structure; c) daily
management meetings; and d) performance evaluation The family business may be harmed if
suitable sound processes are not followed (Reading, 2013).

Family business succession planning

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For the majority of organizations, succession planning is a significant challenge for the owners.
However, succession planning can be an effective way to expand opportunities and create a
multi-generational organization that symbolizes the family's values or mission for future
generations. Approximately 88 percent of family business owners believe their business will be
managed by their family in five years. This belief, however, is undercut by succession statistics.
According to the Family Firm Institute (2017), approximately 30% of family firms survive in the
next generation, and only 12% are viable in the third generation. On the other hand, about 3% of
family enterprises are in their fourth or fifth generation. According to research, business failures
can be attributed to one cause, which is a failure to plan for the succession of a family business.

Conclusion
There are four key tasks in this assignment. In the first assignment, various essential
considerations are examined in order to assess growth potential. In the second task, numerous
funding sources are evaluated. The third stage is to create a business plan for growth, which
includes financial facts and strategic objectives for scaling up a business. Finally, in the fourth
task, possible exits (such as selling or floating the business, valuing the company) are evaluated.

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