1 in 4 UK SMEs don’t use a business plan (Barclays Bank)

Shocking statistics have been revealed that suggest a whopping 1 in 4 SMEs in the UK don’t bother to use a business plan, leaving them in danger of losing direction and having no plan to get their business to the next stage of growth.

Developing a business plan is a vital tool for any business, yet research from Barclays Bank reveals that:

  • one in four small businesses (23%) don’t have any strategy in place to support their business growth.
  • Less than half (47%) of the UK’s small businesses have a formal business plan in place that is written down or recorded
  • The remaining 25% have an informal, verbal plan.
  • Furthermore, only one in two (49%) UK small businesses have a succession plan in place.

A business plan, including a clear statement of objectives, policies, the systems to deliver the objectives and detailed financial projections, is essential to the success of any business. In today’s constantly changing environment this is ever more important – but in reality, very few SME businesses have any sort of concrete plan.

There are probably more uncertainties now that at any other time:

  • Brexit and future trade agreements  
  • Future employment legislation and costs
  • The effect of exchange rates
  • The pressure from global competition
  • The uncontrollable political impositions

These and a plethora of other factors can all have a drastic effect.

 

If there is no business plan – no road map for the business, if you like – how are you going to know when it is running off course? 

How are you going to know what decisions you need to at least be considering if not yet taking, if you don’t know how your businesses is performing compared to your intentions?

How do you know if you need to take what could be a critical action or how to adjust for the effect any uncontrollable changes if you don’t have a plan to work to?

How can you judge past performance if you don’t know how it compares with forecasts and budgets?

How can you take steps to plug any holes that are draining the business if you don’t know what they are?

By taking action at an early stage, you may be able to avert what could otherwise prove to be a disastrous for your business.

 

In setting your “personal objectives” (10, 5, 3, 1 years) and then writing your business plan to set your “business goals” in line with your personal objectives, you can ensure your business grows and succeeds.

It will also ensure you have the personal wealth (income and free time, etc.) that provides you with both the income and life/work balance you desire for you and your family.

After all isn’t that why we started our own businesses in the first place?

 

To support our clients through these uncertain times, we have market leading, bespoke, cloud based software which can assist you to prepare your business plan and financial plan to whatever level of detail you require.

 The plan can be adjusted as your business grows and as your situation changes to take account of variable factors as necessary. The system can provide linked reporting to compare the performance of your business with your expectations to enable you to take the early action that is required to keep your business soundly on track.

If you are focused on taking your business to the next level and think a great plan will help you get there quicker, and easier investigate our “PlanningCLUB” programme

Click here for further info: PlanningCLUB

Does that sound like a good plan?