A third of small and medium-sized business owners are operating without a business plan, according to research by Close Brothers Asset Finance.
The survey found that 29% of SMEs do not have a business plan, with 43% of these claiming that they don't believe they need one.
Furthermore, a fifth say they prefer to memorise their business plan rather than writing it down, while 15% say that having a plan isn't a top priority.
Brian Dhenin, Managing Director of the Broker Division at Close Brothers Asset Finance, said:
"It is somewhat concerning that so many small and medium-sized firms do not have a business plan as without clear direction, they may be missing out on opportunities for growth and not realising their full potential."
Business Planning Basics
Having a solid plan in place for your business is essential, not just in its infancy but throughout its life. Plans not only help you fine-tune your vision but also make your business's flaws more visible, enabling you to develop your strategy and increase your resilience against potential risks.
A successful business plan must have the following components:
- an overview of your company, your mission statement and the business's unique features
- an analysis of the market, your competitors and your client base
- a detailed description of your company and the goods/services it offers
- your business strategy including a SWOT analysis, growth plans and a marketing strategy
- financial details including a balance sheet, revenue projections and a cashflow statement
- an outline of the steps you will take to turn your business plan into a reality
Contact Elpizo Accountancy to discuss your business planning.