A new piece of research shows that nearly half of all SME owners deem a business plan unnecessary.
The study, carried out by Close Brothers Asset Finance, revealed that 43 per cent of small business owners who admitted to not having a business plan said it’s because they do not consider it necessary.
The data was collected from the most recent Close Brothers Business Barometer, the quarterly survey that records and analyses the current SME climate.
“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,” said Mike Randall, CEO of Close Brothers Asset Finance.
Nearly a quarter of SME owners (20 per cent) said they have a mental business plan and 15 per cent said that it wasn’t a priority for them.
However, the majority of businesses that do have a business plan do not view it regularly. Less than half (40 per cent) of business owners view their business plan at least once a year. 20 per cent review their plan once every two years.
Nearly the same percentage (14 per cent) reviews it once every two to three years.
“Planning is key to any business throughout its lifecycle. A formal plan can be an extremely valuable tool for managing and growing a business as it allows a company to recognise its strengths and weaknesses and ensure they have appropriate plans in place,” continued Mike Randall.